LSEG Expands Buyback Amid Strong Q3 Trading

London Stock Exchange Group (LON: LSEG) has reported a robust Q3 2025 trading update, fueling investor enthusiasm with raised margin guidance and an increased share buyback program.

The company is strategically positioning itself as a key player in the burgeoning field of AI within financial services through its “LSEG Everywhere” initiative.

LSEG's total income (excluding recoveries) climbed 6.4% organically, with particularly strong performances from Risk Intelligence (+13.9%) and FTSE Russell (+9.3%).

Data & Analytics grew 4.9%, while Markets saw a 6.3% increase, demonstrating broad-based growth across all business lines. Subscription businesses also showed significant momentum, growing 6.5% combined.

The company has raised its EBITDA margin guidance for FY2025, expecting an increase of approximately 100 basis points in constant currency, reaching the top end of its previously stated range.

This excludes an additional 100 basis point benefit from changes to the SwapClear revenue share arrangements, showcasing improved profitability.

LSEG is actively returning capital to shareholders. Having already executed nearly £1 billion in share buybacks in the past three months, the company has committed to an additional £1 billion buyback program to be completed by February 2026.

A significant development is the strategic investment in Post Trade Solutions (PTS). A consortium of 11 leading global banks will acquire a 20% stake in PTS for £170 million, valuing the entire business at £850 million. Simultaneously, LSEG has amended and extended revenue share arrangements within SwapClear.

This deal strengthens partnerships with key customers and is expected to enhance margins and earnings.

Driver Breakdown:

• AI Focus: LSEG is aggressively integrating its data into AI workflows, partnering with firms like Microsoft, Databricks, Rogo, and Snowflake.
• Strategic Partnerships: The PTS investment and SwapClear amendment demonstrate a commitment to aligning with key clients.
• Shareholder Returns: Increased buybacks and consistent dividend payouts signal confidence in the company's financial health.

CEO David Schwimmer stated, “We continued our strong momentum in Q3, driving growth across all business lines… This deal strengthens our partnership and strategic alignment with key customers, while delivering attractive margin and earnings enhancement.”

The company's outlook for FY2025 remains positive, with organic constant currency growth in total income (excluding recoveries) projected at 6.5-7.5%. LSEG is also maintaining its guidance for capital expenditure intensity and equity free cash flow.