London Stock Exchange Group (LON:LSEG) Releases Quarterly Earnings Results

Key Points

• LSEG reported a strong first half: Organic revenue rose 8.4%, adjusted EBITDA increased 14%, EPS grew 17%, and free cash flow per share climbed 37%, with all four divisions contributing.
• The company raised its 2026 outlook to 7%–7.5% revenue growth and roughly 100 basis points of EBITDA margin improvement, while markets revenue increased 12% and swap-clearing volumes rose 29%.
• Shares fell 6.4% despite the positive operating results, as net finance expense more than doubled to £149 million and management expects about £300 million for the full year, along with £25 million in second-half transformation costs.

London Stock Exchange Group (LON:LSEG - Get Free Report) released its quarterly earnings data on Thursday. The company reported GBX 244.90 earnings per share for the quarter, Digital Look Earnings reports. London Stock Exchange Group had a return on equity of 6.10% and a net margin of 13.41%.

Here are the key takeaways from London Stock Exchange Group's conference call:

• Strong first-half performance: Organic revenue grew 8.4%, adjusted EBITDA 14%, EPS 17%, and free cash flow per share 37%, with growth across all four divisions.
• LSEG raised its 2026 guidance, now expecting revenue growth of 7%–7.5% and approximately 100 basis points of EBITDA margin improvement, supported by subscription growth, cost discipline, and operating leverage.
• Markets remained a major growth engine: Markets revenue rose 12%, while interest-rate swap clearing volumes increased 29% and LSE equities average daily volume rose 34% in the first half.
• Management reported growing customer adoption of AI-enabled products, including 200-plus customers engaged on MCP, 17,000 active Workspace AI search users, and sharply higher data consumption; however, AI monetization is expected to be gradual and have little impact in 2026.
• Net finance expense more than doubled to £149 million in the first half due primarily to higher refinancing rates, with full-year expense expected around £300 million; management also expects roughly £25 million of one-off transformation costs in the second half.

London Stock Exchange Group Stock Down 6.4%

Shares of LSEG traded down GBX 592 during mid-day trading on Thursday, hitting GBX 8,606. 1,781,475 shares of the company's stock were exchanged, compared to its average volume of 19,886,637. The company has a market cap of £41.90 billion, a PE ratio of 36.31, a P/E/G ratio of 1.72 and a beta of 0.39. London Stock Exchange Group has a 52 week low of GBX 6,684 and a 52 week high of £102.90. The company has a 50-day simple moving average of GBX 8,835.95 and a 200 day simple moving average of GBX 8,749.34. The company has a debt-to-equity ratio of 59.24, a current ratio of 229.64 and a quick ratio of 0.01.

London Stock Exchange Group declared that its board has authorized a share repurchase program on Thursday, April 9th that permits the company to buyback 0 shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Analyst Ratings Changes

Several analysts have commented on LSEG shares. Deutsche Bank Aktiengesellschaft dropped their target price on shares of London Stock Exchange Group from £119 to £110 and set a "buy" rating on the stock in a report on Wednesday, July 1st. Jefferies Financial Group reissued a "buy" rating and set a £110 price objective on shares of London Stock Exchange Group in a research report on Friday, April 24th. JPMorgan Chase & Co. boosted their price objective on shares of London Stock Exchange Group from £136 to £137 and gave the company an "overweight" rating in a research report on Friday, April 10th. Finally, Citigroup lowered shares of London Stock Exchange Group to a "buy" rating in a research note on Tuesday, July 7th. Six analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of £121.33.

About London Stock Exchange Group

LSEG is a leading global financial markets infrastructure and data provider that operates connected businesses to serve customers across the entire financial markets value chain. With capabilities in data, indices and analytics, capital formation, trade execution, clearing and risk management, we operate at the heart of the world's financial ecosystem and enable the sustainable growth and stability of our customers and their communities. Together, our five business divisions – Data and Analytics, FTSE Russell, Risk Intelligence, Capital Markets and Post Trade – offer customers seamless access to global financial markets, across the trading lifecycle. LSEG is headquartered in London and has a major presence throughout Europe, the Americas, Asia Pacific and emerging markets.

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