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London Stock Exchange
(LSE:LSEG)
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Rating:69Neutral
Price Target:
9,347.00 p
▲(7.59% Upside)
Action:Downgraded
Date:08/17/26
The score is driven primarily by solid underlying financial performance (strong revenue expansion and high operating margins) and a very constructive earnings update with raised guidance and strong H1 execution. These positives are tempered by softer technical momentum (price below key moving averages and negative MACD) and a premium valuation (P/E ~30 with a modest yield), with cash flow variability and slightly higher leverage also limiting the upside.
Positive Factors
Organic Growth and Margin Expansion
Strong organic growth combined with expanding operating margins indicates effective execution and operating leverage. Sustained performance across markets, data and analytics can support durable earnings growth over the next several quarters.
Negative Factors
Higher Finance Costs
Higher financing costs reduce the portion of operating profit that reaches net income and can constrain capital allocation. The burden is more persistent than a single-quarter issue because leverage and refinancing costs remain relevant through the forecast period.
Read all positive and negative factors
Positive Factors
Negative Factors
Organic Growth and Margin Expansion
Strong organic growth combined with expanding operating margins indicates effective execution and operating leverage. Sustained performance across markets, data and analytics can support durable earnings growth over the next several quarters.
Read all positive factors
London Stock Exchange (LSEG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£39.81B
Dividend Yield1.92%
Average Volume (3M)1.30M
Price to Earnings (P/E)29.2
Beta (1Y)0.95
Revenue Growth5.81%
EPS Growth48.49%
CountryUK
Employees28,516
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)2.82
Shares Outstanding484,613,800
10 Day Avg. Volume1,070,927
30 Day Avg. Volume1,297,946
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)2.37
Price to Sales (P/S)5.04
P/FCF Ratio13.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£12,016.25Price Target Upside38.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)4.75
Revenue Forecast (FY)£9.77B
London Stock Exchange Business Overview & Revenue Model
Company Description
London Stock Exchange Group plc (LSEG) operates as a global market infrastructure provider, delivering services across the United Kingdom, the United States, other European nations, Asia, and internationally. The company's diverse operations are s...
How the Company Makes Money
LSEG makes money primarily by charging recurring and transaction-based fees across its markets infrastructure and data businesses. A major revenue stream is subscription-based data, analytics, and workflow products, where customers (e.g., banks, a...
London Stock Exchange Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 04, 2027
Earnings Call Sentiment Positive
The call highlights a materially strong first half: healthy top-line growth (8.4% organic), accelerating subscription momentum, robust profitability expansion (EBITDA +14%, EPS +17%), excellent cash generation and heavy shareholder returns, plus strong commercial traction for AI products (MCP, Workspace). Key operational wins include double-digit Markets performance and continuing acceleration in Data & Feeds. Offsetting factors include FX drag, a meaningful rise in net finance expense due to higher rates, timing impacts from the SwapClear revenue-share change that will pressure H2 margins, modest one-off transformation costs, and limited near-term MCP monetization. Overall, positive execution, upgraded guidance and strong cash returns outweigh the manageable near-term headwinds.Positive Updates
Strong Organic Revenue Growth
Organic revenue increased 8.4% in H1 2026, with reported revenue up 6.9% after a 1.5% FX headwind.
Negative Updates
FX Headwind on Reported Growth
A 1.5% FX headwind reduced reported revenue growth to 6.9% versus 8.4% organic, dampening headline reported performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Organic Revenue Growth
Organic revenue increased 8.4% in H1 2026, with reported revenue up 6.9% after a 1.5% FX headwind.
Read all positive updates
Company Guidance
Management raised full-year guidance, now targeting revenue growth of 7.0–7.5% for 2026 and an EBITDA margin improvement of around 100 basis points in constant currency (up from an 80–100bp range), while expecting capital intensity of ~9.5% of total income and equity free cash flow of at least GBP 2.7bn; net finance expense is guided to roughly GBP 300m for the year and the tax rate to remain in the 24–25% range. In H1 the business delivered organic revenue +8.4%, subscription +6.3% (on track to a 6.5% 2026 target), adjusted EBITDA +14%, adjusted EPS +17% (H1 EPS 245p), ASV growth exited Q2 at 6.1%, free cash flow +29% to GBP 1.2bn (free cash flow per share +37%), returned GBP 2.6bn to shareholders in H1 (GBP 2.1bn buybacks, GBP 0.5bn dividends) and announced an interim dividend up 17% to 55p. The outlook also notes a mid‑year H2 headwind (a c.70bp SwapClear timing effect implying a ~50bp H2 margin drag), plans for ~GBP 25m of H2 one‑off transformation costs, net debt/EBITDA of 2.1x at June, a further GBP 1.4bn of buybacks planned by Feb‑2027, and that MCP monetization is minimal for 2026 (with more contribution expected in 2027).London Stock Exchange Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.64B | 9.31B | 8.86B | 8.38B | 7.74B | 6.54B |
| Gross Profit | 5.19B | 3.75B | 7.68B | 7.24B | 6.68B | 5.68B |
| EBITDA | 3.76B | 4.50B | 4.14B | 3.89B | 3.55B | 2.96B |
| Net Income | 1.41B | 1.25B | 685.00M | 761.00M | 790.00M | 461.00M |
Balance Sheet | ||||||
| Total Assets | 896.33B | 796.70B | 732.82B | 805.01B | 835.16B | 787.11B |
| Cash, Cash Equivalents and Short-Term Investments | 4.25B | 3.96B | 2.13B | 3.58B | 3.44B | 2.67B |
| Total Debt | 13.51B | 11.72B | 9.96B | 9.70B | 8.82B | 8.37B |
| Total Liabilities | 875.26B | 774.45B | 707.67B | 779.07B | 807.00B | 761.59B |
| Stockholders Equity | 18.70B | 19.78B | 23.01B | 23.81B | 26.00B | 23.64B |
Cash Flow | ||||||
| Free Cash Flow | 3.78B | 3.50B | 2.39B | 1.87B | 2.54B | 2.51B |
| Operating Cash Flow | 3.92B | 3.62B | 3.40B | 2.94B | 2.74B | 2.60B |
| Investing Cash Flow | -1.90B | -2.05B | -1.28B | -1.37B | -909.00M | 3.68B |
| Financing Cash Flow | -1.46B | -1.06B | -2.16B | -1.09B | -1.47B | -5.35B |
London Stock Exchange Technical Analysis
Negative
8688.00
Price Trends
8719.15
Negative
8859.79
Negative
8644.69
Negative
Market Momentum
-46.04
Positive
37.42
Neutral
8.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LSEG, the sentiment is Negative. The current price of 8688 is above the 20-day moving average (MA) of 8666.50, below the 50-day MA of 8719.15, and above the 200-day MA of 8644.69, indicating a bearish trend. The MACD of -46.04 indicates Positive momentum. The RSI at 37.42 is Neutral, neither overbought nor oversold. The STOCH value of 8.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:LSEG.
London Stock Exchange Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £2.55B | 12.02 | 48.99% | 5.03% | 3.14% | 4.67% | |
74 Outperform | £2.29B | 19.47 | 57.35% | 2.53% | 19.27% | 40.49% | |
73 Outperform | £2.07B | 27.48 | 16.86% | 1.86% | 16.10% | 21.35% | |
72 Outperform | £2.29B | 12.48 | 9.51% | 5.18% | 3.88% | 11.86% | |
69 Neutral | £39.81B | 29.21 | 7.35% | 1.92% | 5.81% | 48.49% | |
69 Neutral | £4.42B | 12.44 | 19.99% | 3.20% | ― | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
GB:LSEG
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London Stock Exchange Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
LSEG Advances Share Buyback, Updates Voting Rights
Positive
Aug 17, 2026
London Stock Exchange Group has continued executing its share buyback programme, repurchasing a total of 573,380 ordinary shares between 10 and 14 August 2026 from BNP Paribas. The company intends to cancel all these shares, reflecting ongoing eff...
Business Operations and StrategyPrivate Placements and Financing
LSEG Lists ¥45 Billion of Guaranteed Notes on London Market
Positive
Aug 12, 2026
London Stock Exchange Group plc, a leading global markets infrastructure and data provider, has raised funding through its LSEG Finance plc subsidiary under its £10 billion Euro Medium Term Note Programme. The group continues to use multi-cur...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
LSEG Cancels Over 1.1 Million Shares in Ongoing Buyback Programme
Positive
Aug 10, 2026
London Stock Exchange Group has continued executing its previously announced share buyback programme, repurchasing more than 1.1 million ordinary shares from BNP Paribas over the period 3–7 August 2026 at prices broadly ranging between 8,320...
Business Operations and StrategyPrivate Placements and Financing
LSEG Publishes Final Terms for New Yen-Denominated EMTN Issues
Positive
Aug 10, 2026
London Stock Exchange Group, through its subsidiary LSEG Finance, has issued final terms for two tranches of yen-denominated guaranteed notes under its £10 billion Euro Medium Term Note Programme, comprising ¥30.5 billion notes due 2029 ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
LSEG Cancels Newly Repurchased Shares, Updates Voting Rights
Neutral
Aug 3, 2026
London Stock Exchange Group has repurchased 379,275 of its own ordinary shares on the London Stock Exchange as part of its ongoing share buyback programme, with purchases executed by BNP Paribas over 30 and 31 July 2026. The company intends to can...
Regulatory Filings and Compliance
London Stock Exchange Group Updates Total Voting Rights
Neutral
Aug 3, 2026
London Stock Exchange Group plc has confirmed that, as of the close of business on 31 July 2026, its share capital comprises 508,117,697 ordinary shares, of which 487,929,098 are in issue excluding treasury shares and 20,188,599 are held in treasu...
Business Operations and StrategyStock BuybackFinancial Disclosures
London Stock Exchange Group Launches £700m Share Buyback Programme
Positive
Jul 30, 2026
London Stock Exchange Group has launched a share buyback programme to repurchase up to £700 million of its ordinary shares, following the release of interim results for the half year to 30 June 2026. The initiative is aimed at reducing the co...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
LSEG Posts Record Half-Year Results and Raises Guidance as AI Strategy Gains Traction
Positive
Jul 30, 2026
London Stock Exchange Group reported record interim results for the six months to 30 June 2026, with total income excluding recoveries up 8.4% on an organic constant currency basis and broad-based growth across Data Analytics, FTSE Russell, Risk ...
Business Operations and StrategyProduct-Related Announcements
London Stock Exchange to Launch LSE 24 Extended-Hours Digital Trading Venue
Positive
Jul 21, 2026
London Stock Exchange is expanding its role as a global hub for securities trading and market infrastructure, serving institutional and retail investors with venues for equities, exchange traded products and other instruments. The group is increas...
Regulatory Filings and Compliance
London Stock Exchange Group Updates Share Capital and Voting Rights
Neutral
Jul 1, 2026
London Stock Exchange Group has confirmed that, as of the close of business on 30 June 2026, its issued share capital comprises 508,496,972 ordinary shares, of which 488,308,373 are in circulation and 20,188,599 are held in treasury. This structur...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
LSEG Completes Latest Share Buyback Tranche and Updates Voting Rights
Positive
Jun 10, 2026
London Stock Exchange Group has completed a tranche of its share buyback programme, repurchasing a total of 387,287 ordinary shares from Goldman Sachs International on 8 and 9 June at volume-weighted average prices around £93 per share. The c...
Business Operations and Strategy
LSEG Boosts Capital Flexibility With Court-Approved Reduction of Reserves
Positive
Jun 9, 2026
London Stock Exchange Group PLC has completed a court-approved reduction of capital aimed at increasing its distributable reserves, a move designed to enhance flexibility for future dividend payments and share buyback programmes. The transaction r...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
LSEG Advances Buyback Plan and Cuts Share Count
Positive
Jun 8, 2026
London Stock Exchange Group has continued its previously announced share buyback programme, repurchasing more than one million ordinary shares between 1 and 5 June 2026 through Goldman Sachs International on the London Stock Exchange. The purchase...
Stock Buyback
LSEG Cancels 875k Shares After Latest Buyback Tranche
Positive
Jun 1, 2026
London Stock Exchange Group plc has repurchased 874,742 of its ordinary shares between 26 and 29 May 2026 through Goldman Sachs International as part of its ongoing share buyback programme. The shares were bought on the London Stock Exchange at pr...
Regulatory Filings and Compliance
London Stock Exchange Group Updates Total Voting Rights
Neutral
Jun 1, 2026
London Stock Exchange Group plc has reported that, as of the close of business on 29 May 2026, its share capital comprised 509,995,046 ordinary shares, including 20,188,599 shares held in treasury. This leaves 489,806,447 ordinary shares in issue ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
LSEG Advances Buyback as Share Count and Voting Rights Decline
Positive
May 26, 2026
London Stock Exchange Group has continued executing its previously announced share buyback programme, repurchasing around 1.07 million ordinary shares between 18 and 22 May 2026 through Goldman Sachs International at prices mostly in the low-to-mi...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
LSEG Advances Buyback Programme, Cuts Share Count and Updates Voting Rights
Positive
May 18, 2026
London Stock Exchange Group has continued its previously announced share buyback programme, repurchasing more than 1.45 million ordinary shares via Goldman Sachs International over the period 11–15 May 2026 at volume‑weighted average p...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.