RELX plc (REL) ORD 14 51/116P
59.00p
(2.34%)
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59.00p
(2.34%)
Deal for just £6.95 per trade in
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Stocks and Shares ISA,
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HL comment (12 February 2026)
No recommendation - No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.
RELX reported full-year revenue of £9.6bn, in line with expectations, with underlying growth of 7% as all business areas contributed to the uplift.
Underlying operating profit rose 9% to £3.3bn, with margins improving from 33.9% to 34.8%.
Net debt increased from £6.6bn to £7.2bn. Free cash flow rose 9% to £2.3bn.
The group expects another year of “strong” underlying growth in revenue and operating profit.
The full-year dividend has been raised by 7% to 67.5p, and a £2.3bn buyback has been announced for 2026.
The shares were broadly flat in early trading.
Our view
RELX has once again demonstrated the resilience of its model, delivering a characteristically strong full-year performance. This came against a more challenging backdrop, with investors questioning whether established data and analytics businesses could be disrupted by the rapid emergence of new AI tools. The numbers, however, continue to point to a company executing well.
RELX provides mission-critical data analytics services to insurers, law firms and academic institutions. Its competitive moat remains substantial, built on proprietary, hard-to-replicate datasets and sophisticated analytics that deliver real value to customers. Fully digital products remain the core driver of the business, accounting for the vast majority of group revenue, and this is where long-term growth is concentrated.
The Legal division again stood out, with strong renewals and new business reflecting growing adoption of AI-enabled tools. While investors would still welcome more concrete evidence of AI’s revenue impact, RELX’s approach looks measured rather than promotional. This is not a company rushing to bolt AI onto its products, but one embedding it into workflows where it genuinely enhances productivity. That discipline matters, even if it means progress appears incremental rather than headline-grabbing.
Data analytics also remains relatively defensive. Much of RELX’s offering is essential rather than discretionary, and a large proportion of revenue is recurring through subscription models. This provides good visibility and stability, even as economic conditions fluctuate.
We continue to view the Exhibitions business positively. While still a smaller part of the group, it has evolved into a more streamlined, increasingly digital operation. Margins have improved, and the blend of physical events and digital tools strengthens the division's longer-term profile.
Cash generation remains a key strength, with operating profit translating cleanly into cash flow. This has allowed RELX to balance ongoing investment with shareholder returns. Management’s decision to step up buybacks, taking advantage of recent share price weakness, underlines confidence in the outlook – though nothing is guaranteed.
RELX features on our Five Shares to Watch list for 2026 because we believe it is a proven, high-quality business, and the recent sector-wide selloff has pulled the valuation to attractive levels. In our view, RELX still appears far more like an AI winner than a casualty.
That said, the threat of new AI-first entrants into the data arena puts RELX in a position it hasn't faced for quite some time. We don’t think sentiment will turn around overnight, so investors will need to take a long-term view.
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, RELX’s overall management of material ESG issues is strong.
In 2022, RELX’s board reviewed the company’s progress on sustainability and social responsibility goals, with regular updates from the global head of ESG. The CEO and CFO’s annual incentives are now tied to non-financial targets like carbon reduction and responsible sourcing. Employees receive training on data privacy, security, and business ethics, with a global mentorship programme and regular employee surveys to support human capital management.
The author holds shares in RELX.
RELX key facts
Forward price/earnings ratio (next 12 months): 14.2
Ten year average forward price/earnings ratio: 21.5
Prospective dividend yield (next 12 months): 3.6%
Ten year average prospective dividend yield: 2.4%
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.
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