How one firm hit by AI fears is answering the pressure: stock buybacks and partnerships

By Steve Goldstein

The London Stock Exchange Group shares rose on Thursday, though they're still lower for the year.

Shares in the London Stock Exchange Group have fallen as much as 20% this year as investors fear that companies like Anthropic, the AI group, will eat away at its data and analytics business.

The stock rallied on Thursday, however, it offered a counter to those fears. LSE shares (UK:LSEG) rose 6% though the stock is still down 7% on the year.

The company, which brings in more revenue from data and analytics than its markets business, emphasized that it's working with these AI companies, rather than opposed to them.

The first bulletpoint in the strategic milestone section of its annual report was to highlight what it calls LSEG Everywhere: "agreed trusted, AI-ready data partnerships with leading platforms including Anthropic, Databricks, Microsoft, Open AI, Rogo and Snowflake."

The company also said it will undertake a further GBP3 billion ($4.1 billion ) of share buybacks over the next 12 months, after purchasing GBP2.1 billion last year.

On an adjusted basis, LSEG's operating profit rose 11% last year, on a 6% increase in revenue, which analysts said was right in line with expectations.

Its guidance for an 80 to 100 basis point improvement in margins this year came in slightly ahead of expectations.

Analysts at Cowen called it a "good enough" set of results and said management have the task of making the case the company is an AI winner and not loser.

-Steve Goldstein

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