Want to see GB:LSEG full AI Analyst Report?
London Stock Exchange (LSEG) AI Stock Analysis
London Stock Exchange
(LSE:LSEG)
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.
London Stock Exchange (LSEG) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 46.92B
- Dividend Yield
- 1.62%
- Average Volume (3M)
- 1.38M
- Price to Earnings (P/E)
- 34.5
- Beta (1Y)
- 0.88
- Revenue Growth
- 5.81%
- EPS Growth
- 48.49%
- Country
- UK
- Employees
- 28,516
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Financial - Data & Stock Exchanges
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 stru...
How the Company Makes Money
LSEG generates revenue primarily from (1) Data & Analytics subscriptions and licensing, (2) Capital Markets activity-based fees, (3) Post Trade services fees, and (4) Technology/other services. 1) Data & Analytics (subscription and recurring revenue)...
London Stock Exchange Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Strong multi-year revenue growth and consistently high EBITDA margins support a solid operating profile. Offsetting factors include net income volatility, a rise in leverage in 2025 versus recent years, and choppy free cash flow with a notable setback in the latest year, reducing confidence in cash conversion stability.
Income Statement
78PositiveBalance Sheet
70PositiveCash Flow
62Positive| 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 | 4.51B | 4.14B | 3.89B | 3.59B | 2.66B |
| 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
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LSEG, the sentiment is Positive. The current price of 9740.00 is above the 20-day moving average (MA) of 9102.50, above the 50-day MA of 8691.00, and above the 200-day MA of 8646.05, indicating a bullish trend. The MACD of 311.93 indicates Negative momentum. The RSI at 69.16 is Neutral, neither overbought nor oversold. The STOCH value of 84.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LSEG.
London Stock Exchange Peers Comparison
Overall Rating
GB:TCAP81Outperform
GB:PLUS77Outperform
GB:AJB74Outperform- GB:LSEG69Neutral
GB:IGG68Neutral
GB:CMCX61Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:TCAP | 81Outperform | GBP 2.25B | 12.16 | 9.51% | 5.44% | 3.88% | 11.86% |
| GB:PLUS | 77Outperform | GBP 2.35B | 10.93 | 48.99% | 5.42% | 3.14% | 4.67% |
| GB:AJB | 74Outperform | GBP 2.34B | 19.42 | 57.35% | 2.53% | 19.27% | 40.49% |
| GB:LSEG | 69Neutral | GBP 46.88B | 34.54 | 7.35% | 1.62% | 5.81% | 48.49% |
| GB:IGG | 68Neutral | GBP 3.28B | 8.79 | 19.10% | 4.49% | ― | ― |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| GB:CMCX | 61Neutral | GBP 1.99B | 25.74 | 16.86% | 1.99% | 16.10% | 21.35% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:LSEG | London Stock Exchange | 9740.00 | 630.83 | 6.93% | |
| GB:CMCX | CMC Markets | 695.00 | 489.84 | 238.77% | |
| GB:IGG | IG Group Holdings | 949.00 | -130.85 | -12.12% | |
| GB:PLUS | Plus500 LTD | 3284.00 | 397.66 | 13.78% | |
| GB:TCAP | TP ICap | 316.20 | 80.57 | 34.20% | |
| GB:AJB | AJ BELL | 582.50 | 60.89 | 11.67% |
London Stock Exchange Corporate Events
LSEG lifts 2026 guidance on record Q3, AI momentum and fixed income expansion
PositiveLondon Stock Exchange Group reported record third-quarter 2026 results, with total income excluding recoveries up 8.8% on an organic constant currency basis and broad-based strength across Markets and subscription businesses. The company highlighted...
LSEG buys Octus in $3.5bn push to lead global credit data
PositiveLSEG has agreed to acquire Octus, a specialist in private and illiquid credit data and workflows, for $3.535 billion in cash from Permira-advised funds and Octus management. The deal will place Octus within LSEG’s Data & Analytics division,...
LSEG Tightens Share Count With Ongoing Buyback, Updates Voting Rights
PositiveLondon Stock Exchange Group has continued executing its previously announced share buyback programme, purchasing a series of tranches of ordinary shares on the London Stock Exchange from BNP Paribas between 12 and 16 October 2026. The company intends...
LSEG taps NVIDIA GPUs to turbocharge analysis of massive Tick History dataset
PositiveLSEG has entered into a collaboration with NVIDIA to dramatically speed up analysis of its vast Tick History dataset using NVIDIA cuDF and GPUs, cutting processing times from hours to seconds without requiring duplicate copies of the data. By bringin...
LSEG Confirms Talks on $3.5bn Octus Deal to Boost Credit Data Franchise
PositiveLondon Stock Exchange Group, a global provider of markets infrastructure and data solutions, leverages its extensive history and scale to support trading, capital access and financial stability. Its fixed income data, analytics and private markets of...
LSEG Cancels Shares After Latest Buyback Tranche
NeutralLondon Stock Exchange Group plc has continued executing its share buyback programme, repurchasing a series of ordinary shares on the London Stock Exchange from BNP Paribas over several trading days in early October 2026. The transactions, conducted a...
LSEG Cancels Repurchased Shares, Updates Total Voting Rights
PositiveLondon Stock Exchange Group plc has continued to execute its previously announced share buyback programme, repurchasing a series of ordinary shares on the London Stock Exchange from BNP Paribas over the period from 28 September to 2 October 2026. The...
London Stock Exchange Group Updates Share Capital and Voting Rights
NeutralLondon Stock Exchange Group has updated investors on its share capital and voting rights position as at the close of business on 30 September 2026. The company reports a total share capital of 502,645,943 ordinary shares, comprising 482,457,344 share...
LSEG appoints tech veteran Amit Zavery to board to bolster AI-led growth
PositiveLondon Stock Exchange Group has appointed Amit Zavery as a Non-Executive Director, effective 1 December 2026, and he will also sit on the Risk, Remuneration and Nomination Committees. Zavery currently serves as President, Chief Operating Officer and...
LSEG Cancels Newly Repurchased Shares, Updates Voting Rights
NeutralLondon Stock Exchange Group has continued executing its previously announced share buyback programme, repurchasing around 603,000 ordinary shares on the London market over five trading days in late September from BNP Paribas. The shares were acquired...
LSEG Advances Share Buyback, Updates Voting Rights Count
PositiveLondon Stock Exchange Group has continued its previously announced share buyback programme, repurchasing 604,780 ordinary shares on the London Stock Exchange from BNP Paribas between 14 and 18 September 2026 at volume‑weighted average prices ra...
LSEG Tightens Share Capital Through Ongoing Buyback
PositiveLondon Stock Exchange Group plc has continued executing its previously announced share buyback programme, repurchasing a series of ordinary shares on the London Stock Exchange from BNP Paribas between 7 and 11 September 2026. The company intends to c...
LSEG Cancels 455,000 Shares in Ongoing Buyback Programme
PositiveLondon Stock Exchange Group has continued its share buyback programme, repurchasing 455,530 ordinary shares between 1 and 4 September 2026 from BNP Paribas on the London market, at volume-weighted average prices ranging from about 8,684p to 8,807p pe...
LSEG Cancels 564,700 Shares in Latest Buyback Tranche
PositiveLondon Stock Exchange Group has repurchased 564,700 ordinary shares between 24 and 28 August 2026 from BNP Paribas under its previously announced share buyback programme, paying volume-weighted average prices in a range around 8,677 to 8,950 pence. T...
London Stock Exchange Group Updates Total Voting Rights
NeutralLondon Stock Exchange Group has reported its total share capital and voting rights position as at the close of business on 28 August 2026, in line with UK transparency rules. The group’s share capital comprises 505,257,918 ordinary shares, of w...
LSEG Non-Executive Val Rahmani Appointed to Smiths Group Board
PositiveLondon Stock Exchange Group plc has disclosed that non-executive director Val Rahmani will take up an additional board role at Smiths Group plc, joining as a non-executive director from 1 October 2026. The announcement underscores the company’s...
LSEG advances buyback, updates share capital and voting rights
PositiveLondon Stock Exchange Group has continued its previously announced share buyback programme, purchasing a total of 587,285 ordinary shares on the London Stock Exchange between 17 and 21 August 2026 from BNP Paribas. The company intends to cancel all r...
LSEG Advances Share Buyback, Updates Voting Rights
PositiveLondon 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 effort...
LSEG Lists ¥45 Billion of Guaranteed Notes on London Market
PositiveLondon 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-curren...
LSEG Cancels Over 1.1 Million Shares in Ongoing Buyback Programme
PositiveLondon 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 an...
LSEG Publishes Final Terms for New Yen-Denominated EMTN Issues
PositiveLondon 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 wit...
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.
Date of analysis: Aug 17, 2026