LSEG sees earnings spark, unveils £3bn share buyback

(Sharecast News) - The owner of the London Stock Exchange unveiled plans to return £3bn to shareholders on Thursday, alongside a rise in annual earnings, amid mounting pressure from activist investor Elliott Management. The London Stock Exchange Group, which also owns junior market AIM and offers extensive data and analytics services, saw total income excluding recoveries rise 7.1% to £8.99bn in the year to December end.

Reported earnings before interest, tax, depreciation and amortisation jumped 10.6% to £4.4bn, while adjusted operating profits rose 10.8% to £3.5bn, in line with expectations.

The blue chip also announced plans to return £3bn to shareholders over the next 12 months through share buybacks.

However, that is below the £5bn Elliott is understood to be pushing for. The New York firm has built a stake in recent weeks and is pushing LSEG to improve its performance as well as return more cash to shareholders.

David Schwimmer, LSEG chief executive, said 2025 had been "another year of very strong financial performance".

He continued: "Through the transformation of our systems and the use of AI and other technologies, we continue to deliver material operating leverage, with earnings growth significantly exceeding revenue growth.

"Given our strong cash generation and balance sheet, we also accelerated returns to shareholders. Today we announce our plan to execute a further £3bn of share buybacks over the next 12 months."

Looking to the current year, and LSEG forecast total income to grow by between 6.5% and 7.5% on an organic constant currency basis, excluding recoveries, comfortably ahead of analyst expectations for a 6.7% forecast rise.

As at 0830 GMT, the London-listed stock was trading up 5% at 8,186p.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "LSEG has delivered a steady set of results. No fireworks in the numbers, but enough reassurance to keep the investment case on track.

"The more important debate for investors centres on AI, where LSEG has been caught up in the recent sell off amid fears that generative models disrupt data and software businesses. Management has very deliberately put AI front and centre in today's release, positioning LSEG as an enabler rather than casualty."