London Stock Exchange Group (LSEG.L), opens new tab said on Thursday it would buy back a further 3 billion pounds ($4.1 billion) of shares over the next 12 months, as the company faces pressure from activist investor Elliott Management and battles concerns AI will squeeze its business model. LSEG said its total income grew 7.1% in 2025 on an organic basis, excluding recoveries, in line with the rise expected by analysts in a company-compiled poll. The Reuters Inside Track newsletter is your essential guide to the biggest events in global sport. Sign up here. Advertisement · Scroll to continue
Shares in LSEG rose as much as 4.7% in early London trading. The company expects 2026 total income to grow between 6.5% and 7.5% on an organic constant currency basis, excluding recoveries. Analysts had expected growth of about 6.7% on average, according to a company-compiled poll. LSEG shares had lost around 30% of their value in the past year as of Wednesday as the data and exchanges group finds itself caught up in a swirl of concerns its business along with rivals will be hit hard by the rise of AI. New York-based Elliott Management has emerged as a shareholder in recent weeks, upping the pressure on CEO David Schwimmer to improve the group's margins, which lag rivals, and more forcefully communicate its resilience against the threat of AI. Elliott has pressed LSEG for a $5 billion share buyback and a portfolio review, a person familiar with the matter told Reuters previously. Advertisement · Scroll to continue LSEG also raised its dividend by 15%. GROWTH IN SUBSCRIPTION VALUE SLOWS LSEG reported 5.9% growth in annual subscription value (ASV), a closely-watched growth metric. The figure marks a slowdown from 6.3% in its results last year. Like many exchange groups, LSEG has pivoted towards provision of data business in the past few years, betting on demand for proprietary financial data as its traditional stock exchange business has suffered from a slowdown in new listings and the departure of some companies to exchanges overseas. Schwimmer has dismissed fears that its data business will be usurped by AI models and argued that LSEG data is proprietary. LSEG has also struck a number of deals with firms including OpenAI and Anthropic that will allow their users to access and interrogate LSEG data. Schwimmer said in a statement on Thursday LSEG was "very well positioned for continued growth".
