LSEG reported a 9.8% rise in first-quarter organic revenue growth, excluding currency impacts, to £2.5bn (£2.4bn expected). Growth was broad-based across divisions, with Markets the standout, driven by trading activity.
Gross profit rose 11.5% to £2.2bn (£2.2bn expected).
Guidance was tightened, with full-year revenue growth still expected at 6.5-7.5% but now skewed towards the upper half of the range. Margins and free cash flow are also expected to improve.
LSEG returned £1.1bn to shareholders through buybacks over the quarter and remains on track to complete its £3bn programme by February 2027.
The shares were broadly flat in early trading.
Our view
LSEG has delivered a record first-quarter set of results, justifying the sharp recovery in the valuation, which, after lagging the market earlier in the year, have overtaken it in recent weeks. Guidance was confidently reaffirmed, with upside on offer too if momentum continues.
The most important debate for investors centres on AI, where LSEG had been caught up in the recent sell‑off amid fears that generative models disrupt data and software businesses. Management has very deliberately put AI front and centre of late, positioning LSEG as an enabler of AI adoption rather than a casualty of it, with trusted, licensed data becoming more valuable as usage scales.
That framing makes sense to us: LSEG owns scarce, regulated datasets and critical market infrastructure that AI models need but cannot easily replicate. We’ve been impressed with the tone of recent results calls and the suite of new metrics to help break down revenue growth. Increased transparency is typically a good sign.
After buying Refinitiv in 2021, a major data and analytics business, LSEG now earns most of its revenue from providing tools and services that financial professionals rely on daily. Recurring revenue growth accelerated in the second half of 2025, and the outlook for 2026 is more encouraging than it has been for some time. But this remains a key area to monitor, along with shifting pricing dynamics as AI interfaces and agents become more widely used.
The company also benefits from its diversified operations. In addition to data and analytics, LSEG generates a good portion of its revenue from its large Markets business, which houses equity and bond trading. This variety of income streams makes LSEG’s business more resilient during market ups and downs.
There’s been a push of late to boost profitability, and the results are starting to bear fruit. Margins are expanding, helping top-line growth flow through to the profit line. This is a high-quality business with earnings backed by strong cash flows. The balance sheet is in decent shape, too, supporting increased shareholder returns, though nothing is guaranteed.
LSEG looks well-positioned to benefit from AI, with its data and infrastructure becoming increasingly valuable as adoption grows. Having recovered from February’s low, the valuation is now about 20 times forward earnings, back to levels seen through much of 2025. We still see scope for that to move closer to the roughly 25 times average of recent years.
But the quick rebound is likely behind us, and uncertainty around AI disruption could continue to linger for some time.
Environmental, social and governance (ESG) risk
The commercial services industry is low/medium risk in terms of ESG. Social and governance risks are the most acute - like product governance, data privacy & security, and labour relations - as exposure to environmental risks is minimal. Companies operating within facilities maintenance are also exposed to community relations and emissions risks.
According to Sustainalytics, LSEG’s overall management of material ESG issues is strong.
LSEG has no significant ongoing risk events and has board-level responsibility over sustainability issues. Data privacy is supported through regular risk assessments and employee training. It offers sustainable solutions, such as ESG data, and holds UN PRI signatory status, but does not provide specifics about its responsible products programme.
LSEG key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.