LSEG executives said the buyback was not a response to Elliott and the group had no plans for asset sales
International News via Reuters:
London Stock Exchange Group said on Thursday it would buy back a further 3 billion pounds ($4.1 billion) of shares over the next year, under pressure from activist investor Elliott Management and worries AI could squeeze its business.
LSEG executives said the buyback was not a response to Elliott and the group had no plans for asset sales. New York-based Elliott has recently emerged as a shareholder, pressing CEO David Schwimmer to review LSEG’s portfolio, lift margins that trail rivals, and better communicate its resilience to AI threats, a person familiar with the matter has told Reuters.
Elliott has also pushed for a 5 billion pound share buyback, the person said.
Shares in LSEG rose more than 6% by 1015 GMT, against a 0.1% rise in the FTSE 100, as analysts welcomed the buyback, new guidance for 2027 to 2029 and slightly better-than-expected forecasts for this year. Jefferies analysts said the “monster” buyback “should satisfy recently increased expectations”.
LSEG shares had lost around 30% of their value in the past year as of Wednesday as the data and exchanges group was dragged into concerns that AI will hit its business and those of its peers.
Schwimmer has dismissed the risk that AI models will replace its data business, arguing LSEG’s datasets are proprietary.
He told journalists on Thursday that it was “verging on impossible” for AI to replicate them, and said LSEG expected to sign more AI partnerships this year and beyond.
It has already struck deals with OpenAI and Anthropic that allow their users to access and interrogate its data.
Like many exchange groups, LSEG has pivoted towards data provision, betting on demand for proprietary financial information as its traditional stock exchange business suffers from slow listing activity and companies shifting overseas.
GROWTH IN SUBSCRIPTION VALUE SLOWS
LSEG said total income grew 7.1% in 2025 on an organic basis, excluding recoveries, in line with expectations in a company-compiled poll.
It forecast 2026 total income growth of between 6.5% and 7.5% on the same basis. Analysts had expected about 6.7% growth on average, according to the poll.
Annual subscription value (ASV), a closely watched metric, rose 5.9%, slightly ahead of expectations but down from 6.3% last year.
“The positive message around momentum within the business should also help sentiment, and perhaps clear some of the fears of AI disruption that have impacted the stock over the previous months,” JP Morgan analysts said.
Schwimmer said in a statement that LSEG was “very well positioned for continued growth”.
Reuters provides news for LSEG’s news and data terminal, Workspace, and other products.
LSEG also raised its dividend by 15%.
($1 = 0.7378 pounds)
Reporting by Charlie Conchie in London and Yadarisa Shabong in Bengaluru. Editing by Tommy Reggiori Wilkes and Mark Potter
