After strong Q1 trading, LSE Group (LSEG), the operator of the London Stock Exchange, has raised its FY26 revenue outlook. The firm now sees growth towards the top end of its range of guidance, while confirming its operating margin target.
Record revenue
For Q1, the group posted a 9.8% increase in revenue, marking an acceleration from last year’s 7.3% increase. As a result it has lifted its growth forecast to the top half of its 6.5% to 7.5% range of guidance.
Revenue from Data & Analytics, which represents 44% of the total, increased by 5.1% in Q1 in line with last year. Markets revenue, which represents 39% of the total, increased by an impressive 15.5% against 8.9% last year.
FTSE Russell, the index business, and Risk Intelligence, which make up the balance of revenue, also posted better growth. Subscription income from Data & Analytics, FTSE Russell and Risk Intelligence grew 6.3% overall, above Q4 2025.
‘We have had a great start to 2026 across the board’, commented CEO David Schwimmer. ‘Our leading, multi-asset class trading venues have been critical sources of liquidity, price discovery and risk management for customers, while engagement with our trusted data to inform decision-making has been at record levels.’
The group bought back £1.1 billion of shares during Q1 and is ‘well on track’ to meet its target of £3.7 billion by February 2027.
These are decent results from LSE Group and we’re not surprised at the positive reaction. The surge in Markets revenue thanks to ‘very strong’ trading volumes should quiet those who argue it should sell the exchange business.
Today’s results should also lay to rest investors’ fears the group will see its income cannibalised by AI. WIth ‘LSEG Everywhere’, the company has created a ‘funnel’ for customers to access its AI-ready data at a price.
Moreover, with £3.7 billion of share buybacks targeted by February 2027 the group has gone some way to silencing the activists. We aren’t fans of buybacks, but as we flagged in February the shares were trading at historic lows.
Read the press release here: https://www.lseg.com/en/investor-relations
