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London Stock Exchange Group plc Sponsored ADR
(OTC:LSEGY)
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Rating:73Outperform
Price Target:
$33.00
â–²(8.06% Upside)
Action:N/A
Date:10/22/26
The score is driven primarily by solid financial performance (strong cash generation and improving profitability) and a very positive earnings call with raised guidance and significant capital returns. Technicals are supportive with price above key moving averages, though short-term indicators look stretched. Valuation is the main drag given the premium P/E and only moderate dividend yield.
Positive Factors
Organic Growth and Guidance
Strong organic growth across a subscription-led financial infrastructure platform indicates continued customer demand and expanding usage. Raised revenue guidance reinforces management confidence that growth can remain durable over the next several quarters despite currency-related reporting effects.
Negative Factors
Higher Leverage and Modest ROE
Leverage has risen meaningfully from prior years and returns on equity remain modest for a major market-infrastructure franchise. Although debt is described as manageable, higher balance-sheet usage can constrain flexibility and reduce the benefit of future earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Organic Growth and Guidance
Strong organic growth across a subscription-led financial infrastructure platform indicates continued customer demand and expanding usage. Raised revenue guidance reinforces management confidence that growth can remain durable over the next several quarters despite currency-related reporting effects.
Read all positive factors
London Stock Exchange Group plc Sponsored ADR (LSEGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$60.66B
Dividend Yield1.68%
Average Volume (3M)11.92K
Price to Earnings (P/E)33.5
Beta (1Y)0.52
Revenue Growth9.77%
EPS Growth53.99%
CountryUS
Employees28,516
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)0.82
Shares Outstanding1,922,637,600
10 Day Avg. Volume0
30 Day Avg. Volume11,918
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)2.41
Price to Sales (P/S)5.22
P/FCF Ratio13.90
Enterprise Value/Market Cap1.15
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.61
Revenue Forecast (FY)$13.15B
London Stock Exchange Group plc Sponsored ADR Business Overview & Revenue Model
Company Description
London Stock Exchange Group plc acts as a vital global financial markets infrastructure provider, delivering a broad array of financial data, sophisticated analytics, news, and index products to clients both within the United Kingdom and across in...
London Stock Exchange Group plc Sponsored ADR 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 presented a robust set of operational and financial positives: strong organic revenue growth (8.4%), accelerating subscription growth (6.3%), double‑digit EBITDA and EPS expansion, record free cash flow per share growth (37%) and active capital return. Product and AI engagement showed clear customer traction (MCP adoption, Workspace AI metrics) and Markets and Data & Feeds businesses delivered notable momentum. Key challenges include higher net finance expense from rising rates, FX headwinds to reported revenue, timing effects from the SwapClear revenue‑share change that create an H2 margin headwind, and that MCP monetization is still early (limited 2026 impact). Overall the highlights materially outweigh the lowlights, with management raising revenue and margin guidance and expressing confidence in execution and medium‑term prospects.Positive Updates
Strong Top-Line Growth
Organic revenue up 8.4% in H1 2026 (reported revenues +6.9% including a 1.5% FX headwind); subscription revenue growth accelerated to 6.3% and ASV growth exited Q2 at 6.1% (up from 5.9% at year-end).
Negative Updates
FX and Reported Revenue Headwind
Reported revenue growth (6.9%) was reduced by a 1.5% FX headwind versus organic growth (8.4%), showing currency volatility impacts on reported numbers.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Organic revenue up 8.4% in H1 2026 (reported revenues +6.9% including a 1.5% FX headwind); subscription revenue growth accelerated to 6.3% and ASV growth exited Q2 at 6.1% (up from 5.9% at year-end).
Read all positive updates
Company Guidance
LSEG raised full‑year guidance, now expecting revenue growth of 7.0–7.5% (up from a prior view skewing to the upper half of 6.5–7.5%), and an EBITDA margin improvement of around 100 basis points in constant currency (H1 underlying margin 52.4% vs 49.8% a year ago; H1 adjusted EBITDA +14%), while flagging that H2 will show a slight year‑on‑year EBITDA margin decline of ~50 bps owing to a 70 bp timing headwind from the SwapClear revenue‑share change; management also expects full‑year capital intensity of ~9.5% of total income, equity free cash flow of at least GBP 2.7 billion (H1 free cash flow GBP 1.2bn, up 29%; free cash flow per share +37%), adjusted net finance expense roughly GBP 300m for the year (GBP149m in H1), an effective tax rate of 24–25%, net debt/EBITDA of 2.1x at June (midpoint of target range), around GBP25m of one‑off H2 transformation costs, and a further GBP1.4bn of share buybacks planned to be executed by February 2027 (having returned GBP2.6bn in H1 and increased the interim dividend 17% to 55p), with subscription revenue on track for the 2026 target of ~6.5% (H1 subscription growth 6.3%, organic revenue H1 +8.4%).London Stock Exchange Group plc Sponsored ADR Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.11B | 8.86B | 8.38B | 7.74B | 6.54B |
| Gross Profit | 3.67B | 7.68B | 7.24B | 6.68B | 5.68B |
| EBITDA | 4.46B | 4.30B | 3.62B | 3.32B | 2.66B |
| Net Income | 1.22B | 685.00M | 761.00M | 1.30B | 3.13B |
Balance Sheet | |||||
| Total Assets | 795.30B | 732.82B | 805.01B | 835.16B | 787.11B |
| Cash, Cash Equivalents and Short-Term Investments | 3.95B | 2.13B | 2.25B | 3.44B | 2.67B |
| Total Debt | 11.70B | 9.96B | 9.70B | 8.83B | 8.38B |
| Total Liabilities | 773.09B | 707.67B | 779.07B | 807.00B | 761.59B |
| Stockholders Equity | 19.74B | 23.01B | 23.81B | 26.00B | 23.64B |
Cash Flow | |||||
| Free Cash Flow | 3.42B | 2.39B | 2.82B | 1.77B | 1.94B |
| Operating Cash Flow | 3.54B | 3.40B | 2.94B | 2.74B | 2.60B |
| Investing Cash Flow | -2.00B | -1.28B | -1.37B | -909.00M | 3.68B |
| Financing Cash Flow | -1.04B | -2.16B | -1.09B | -1.47B | -5.35B |
London Stock Exchange Group plc Sponsored ADR Technical Analysis
Positive
30.54
Price Trends
28.86
Positive
28.92
Positive
29.04
Positive
Market Momentum
0.90
Negative
66.88
Neutral
81.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSEGY, the sentiment is Positive. The current price of 30.54 is above the 20-day moving average (MA) of 29.42, above the 50-day MA of 28.86, and above the 200-day MA of 29.04, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 66.88 is Neutral, neither overbought nor oversold. The STOCH value of 81.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LSEGY.
London Stock Exchange Group plc Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $106.10B | 24.18 | 16.24% | 3.81% | 8.99% | 18.85% | |
81 Outperform | $32.82B | 24.42 | 25.75% | 0.96% | 11.68% | 50.39% | |
79 Outperform | $133.55B | 27.39 | 17.54% | 0.84% | 5.99% | 22.20% | |
77 Outperform | $91.12B | 22.15 | 14.08% | 1.25% | 13.51% | 33.41% | |
77 Outperform | $58.60B | 28.54 | 17.29% | 1.10% | 11.94% | 30.40% | |
73 Outperform | $60.66B | 33.49 | 7.35% | 1.68% | 9.77% | 53.99% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
LSEGY
London Stock Exchange Group plc Sponsored ADR
31.81
1.14
3.72%
CBOE
Cboe Global Markets
335.53
92.37
37.99%
CME
CME Group
303.14
47.57
18.61%
ICE
Intercontinental Exchange
168.85
24.48
16.96%
SPGI
S&P Global
466.55
9.78
2.14%
NDAQ
Nasdaq
106.23
21.85
25.90%
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.