Lseg Upbeat On 2026 Outlook After First: quarter revenue surpasses estimates (updated)

London Stock Exchange

23/04/2026 07:18

LSEG reports 9.8% organic revenue growth in first quarter, beating forecasts

Company keeps 2026 margin forecast unchanged

90 customers connected to Model Context Protocol server since December launch

Shares rise as much as 4%

Rewrites and adds detail and context throughout

April 23 (Reuters) - London Stock Exchange Group LSEG.L expects annual revenue growth at the upper end of its forecast range, it said on Thursday, after posting record first quarter revenue boosted by a surge in trading activity.

Since the U.S.-Israeli war with Iran began in late February, there has been a significant spike in trading across all asset classes, helping LSEG's markets business that typically benefits from market volatility.

        The data and exchange operator said it expects to deliver total income growth at the upper half of its 6.5% to 7.5% forecast range for 2026, on an organic constant-currency basis and excluding recoveries.

LSEG shares rose as much as 4% in morning trade to their highest since August last year, against a 0.6% drop in the FTSE 100 .FTSE. The shares, however, are still down about 12% over the past 12 months.

The company has been navigating pressure on two fronts: activist investor Elliott Management, which has taken a stake in LSEG, is pushing for portfolio changes and margin improvements, while fears that AI will undermine its data business and squeeze its income have hurt its stock price.

Under CEO David Schwimmer, LSEG has been investing heavily in its analytics division and struck partnerships with AI companies including OpenAI and Anthropic in a bid to roll out and adopt AI tools and offer customers access to its licensed data through AI platforms.

"We have had a great start to 2026 across the board," Schwimmer said in a statement, adding that the focus through the year will be on delivering its AI strategy.

The company said 90 customers have connected to its Model Context Protocol server since its December launch, with another 64 in the pipeline. An MCP allows AI models to connect with external data sources.

"The feedback has been very encouraging and we are refining our commercial strategy for this channel," the company said.

LSEG said total income grew 9.8% in the three months ended March, on an organic basis, excluding recoveries, beating average market expectations of 8% growth, according to a company-compiled poll.

"Against a backdrop where LSEG has been drawn into the ‘AI winner versus loser’ debate, a clear first quarter beat and guidance nudged to the upper half ...should help ease concerns around the durability of growth," said Will Howlett, financials analyst at Quilter Cheviot, which is an LSEG investor.

Reuters provides news for LSEG's news and data terminal, Workspace, and other products.

LSEG shares rise after a record quarter https://www.reuters.com/graphics/LSEG-HOT/dwpkyqkrapm/chart.png

 (Reporting by Yadarisa Shabong in Bengaluru; Editing by Mrigank Dhaniwala, Tommy Reggiori Wilkes and Elaine Hardcastle)

 ((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))