LSEG Raises FY26 Growth Outlook Following Strong Q1 Performance

London Stock Exchange Group (LSEG) has posted a robust start to its fiscal year, reporting growth across its primary income streams and raising its outlook for the remainder of 2026. The results highlight the resilience of LSEG's diversified business model, particularly within its Markets and Risk Intelligence segments. Financial performance for the first quarter was marked by a gross profit increase of 8.5%, reaching £2.22 billion, compared to £2.05 billion in the prior year. On an organic constant currency basis, gross profit growth was even stronger at 11.5%. Total income, including recoveries, rose 6.5% to £2.51 billion, while total income excluding recoveries grew 6.8% to £2.42 billion. Segmental growth was varied but generally positive. The Markets division led the way with a 13% increase, followed by Risk Intelligence at 7% and FTSE Russell at 4.2%. Data & Analytics income grew 2.1% to £1.03 billion, while subscription businesses saw a 3% year-over-year increase to £1.43 billion. Looking forward, management has updated its guidance, now expecting organic constant currency growth in total income (excluding recoveries) to fall in the upper half of the 6.5% to 7.5% range. This outlook is supported by an expected acceleration in the growth of subscription businesses. Furthermore, the group projects an improvement in constant currency EBITDA margin of 80 to 100 basis points. Shareholder returns remain a priority, as the company confirmed it is well on track to execute its £3 billion share buyback program by February 2027.