LSEG Shares Jump on Strong Financials, Buyback Bonanza

London Stock Exchange Group (LON: LSEG) saw its shares leap 5.9% following the release of preliminary results for the year ended December 31, 2025.

The report showcased robust growth, product innovation, margin expansion, and significant shareholder returns.

Total income (excluding recoveries) rose 7.1% on an organic, constant currency basis, reaching £8.986 billion. Adjusted EBITDA climbed 11.8%, boosting the margin by 150 basis points. Earnings per share soared 15.7% to 420.6p.

LSEG's commitment to returning capital to shareholders is a key highlight. The company returned £2.1 billion via buybacks in 2025 and has announced plans for an additional £3 billion buyback program to be completed by February 2027. The final dividend increased by 15.7% to 103.0p per share, payable on May 20, 2026, to shareholders of record on April 17, 2026, subject to shareholder approval.

The growth was broad-based across LSEG's segments: Data & Analytics (+5.0%), FTSE Russell (+7.3%), Risk Intelligence (+11.7%), and Markets (+8.9%). The company's Annualised Subscription Value (ASV) growth stood at 5.9% at the end of 2025, reflecting strong customer relationships.

The company's strategic focus on AI is paying dividends. LSEG is positioning itself as a leader in trusted data for AI-driven decision-making. It has forged partnerships with platforms like Anthropic, Databricks, Microsoft, Open AI, Rogo, and Snowflake, leveraging its MCP infrastructure.

LSEG is strategically transforming its Post Trade Solutions business. Eleven leading banks invested in the business for a 20% stake. This move aligns LSEG with key customers and supports future growth.

Driver Breakdown:

• Product Innovation: Launch of Open Directory with Microsoft, approval of Private Securities Market, and development of DigitalAssetClear.
• Strategic Partnerships: Collaborations with major platforms for AI-ready data, enhancing market reach.
• Efficiency Gains: Transformation of systems and use of AI to deliver operating leverage, boosting earnings growth.

CEO David Schwimmer emphasized, “We have achieved another year of very strong financial performance, driving continued top line momentum through significant investment in our product right across the business, bold strategic choices and an enduring focus on partnership with our customers.”

LSEG anticipates organic constant currency growth in total income (excluding recoveries) of 6.5-7.5% in 2026. The company also projects a constant currency EBITDA margin increase of 80-100 bps and equity free cash flow of at least £2.7 billion.

For the medium term (2027-2029), LSEG expects mid to high single-digit organic constant currency growth in total income (excluding recoveries) annually. Underlying EBITDA margin is projected to increase by a cumulative approximately 150 basis points, and capex is expected to decline to approximately 8% of total income (excluding recoveries) in 2029. The company forecasts double-digit compound annual growth in Equity Free Cash Flow per share.