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Relx sees strong earnings, sales growth in 2026 as profits jump 9%

(Sharecast News) - UK information group Relx on Thursday said it expected strong earnings and revenue growth in 2026 after a 9% rise in underlying operating profit last year. The company, which provides analytics tools to the finance, legal and scientific industries, has been caught in the recent slump in software stocks sparked by the growth in artificial intelligence products which threatens the sector's business model, in particular Anthropic's new AI tool for its 'Claude' chatbot

Relx said it was embedding extra AI functionality in its products and developing them at a faster pace, while continuing to manage cost growth below revenue growth.

"This evolution has been a key driver of our business for well over a decade and will remain a key driver of customer value and growth in our business for many years to come," said chief executive Erik Engstrom.

Adjusted operating profit for the 12 months to December 31 came in at £3.3bn on the back of a 7% rise in revenue to £9.6bn.

AJ Bell head of markets Dan Coatsworth said: "Relx's latest results are a pivotal moment for the business following market concerns that Anthropic's new legal AI tool would eat its lunch."

"Given the scale of the recent share price sell-off, Relx had no choice but to use its financial results as a platform to reassure the market. Unfortunately...it looks like it hasn't found the right words to fully calm investors' nerves."

"Relx's message on AI is loud and clear - it's an opportunity, not a threat. It has deployed AI across its own business to become more efficient and to benefit clients. However, there still feels a sense of trepidation among investors about third party AI disruption, given a muted share price reaction to the results. That is despite the company ticking all the right boxes on revenue, profit and dividend growth."

"The FTSE 100 company has made big money from making itself indispensable to people in the legal sector, deeply embedding itself in their day-to-day processes. There are doubts that Claude can mirror the same depth of information offered by Relx and be trustworthy."

Reporting by Frank Prenesti for Sharecast.com

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