London Stock Exchange Group (LSEG) Q3 2025 TU earnings summary

Executive summary

• Achieved 6.4% organic growth in Q3 2025, with all divisions contributing and total income up to £2,219m; margin guidance raised to the top of the range, reflecting strong operating leverage and cost control.

• Announced a major post-trade transaction: 11 global banks acquired a 20% stake in Post Trade Solutions, reducing SwapClear revenue share and extending the partnership to 2045.

• Accelerated share buybacks, with £938m completed as of October 2025 and a further £1bn planned by February 2026, totaling £2.5bn over 12 months.

• Advanced AI-driven transformation, launching new partnerships and embedding AI/data solutions across products and operations.

• Strategic execution supported by strong capital deployment, including £3.5bn for buybacks, M&A, and post-trade investment.

Financial highlights

• Q3 2025 total income reached £2,219m, up 6.4% organically and 4.8% reported year-over-year.

• Data & Analytics revenue up 4.9%, FTSE Russell up 9.3%, Risk Intelligence up 13.9%, Markets up 6.3%.

• Subscription businesses delivered 6.5% organic growth; ASV growth at 5.6%.

• Free cash flow guidance reaffirmed at at least £2.4bn for FY2025.

• Gross profit rose 6.5% to £2,016m, outpacing cost of sales growth of 4.5%.

Outlook and guidance

• Organic income growth for FY2025 expected at 6.5–7.5%, with margin guidance raised by 100 bps and an additional 100 bps benefit from SwapClear changes.

• CapEx to remain at 10% of revenue/income, expected to decrease in future years.

• Subscription revenue growth for 2025 expected at ~6.5%, with D&A accelerating.

• Price increases of ~3.5% expected for 2026, consistent with prior years.

• Underlying effective tax rate guided at 24–25%.