LSEG lifts outlook after first-half revenue beat
London Stock Exchange Group Reports Strong First-Half Performance
July 30 (Reuters) - The London Stock Exchange Group on Thursday lifted its 2026 margin outlook and the bottom end of its revenue forecast, after a spike in trading activity boosted the company's markets business and helped it beat first-half expectations.
Impact of Global Events on Trading Activity
The U.S.-Israeli war with Iran is now in its fifth month and worries over its knock-on effects have led to a significant spike in trading across all asset classes, helping LSEG's markets business that typically benefits from market volatility.
Expansion of Offerings and AI Concerns
LSEG, which operates the London Stock Exchange and provides data and analytics, has also been expanding its offerings to support diverse demand and counter worries that AI will undermine its data business and squeeze its income.
CEO Statement on Market Performance
"Our Markets businesses had an exceptional first half, achieving double-digit growth through sustained investment," LSEG CEO David Schwimmer said, adding that the company has "never been better positioned for future growth."
Financial Outlook and Analyst Expectations
The company, which has also been navigating pressure from activist investor Elliott, now expects organic constant-currency growth of 7.0% to 7.5% in total income, excluding recoveries, for the year.
It had previously forecast growth at the upper end of its 6.5% to 7.5% range. Analysts are expecting income excluding recoveries to grow 7.8% on an organic constant-currency basis, but predict that would slow to 6.8% in 2027.
LSEG also forecast EBITDA margin growth of around 100 basis points, compared with its previous expectation 80-100 basis point rise.
For the six months to June, sales rose 8.4% versus expectations of 8.3%.
Reuters' Role in LSEG's Business
Reuters provides news for LSEG's news and data terminal, Workspace, and other products.
Reporting Credits
(Reporting by Pushkala Aripaka in Bengaluru and Samuel Indyk in London; Editing by Mrigank Dhaniwala)
