MarketBeat
6 min read
Key Points
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LSEG raised its full-year outlook after reporting 8.8% organic revenue growth in the third quarter, now targeting at least 8% growth for 2026, improved EBITDA margins of 100–120 basis points, and at least £2.8 billion in equity free cash flow.
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Growth was broad-based, with subscription revenue up 6.6% and Markets revenue rising more than 12%; OTC derivatives and clearing volumes were especially strong, including nearly 30% growth at SwapClear.
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AI adoption and the Octus acquisition are key growth initiatives: 95% of LSEG’s top 200 customers use at least one AI solution, while Octus will add private-credit data and is expected to generate £300–£320 million of 2026 revenue.
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London Stock Exchange Group (LON:LSEG) reported third-quarter organic revenue growth of 8.8% and said it has raised its full-year outlook for revenue, margins and cash generation, citing broad-based momentum across its subscription and Markets businesses.
Chief Executive Officer David Schwimmer said year-to-date organic revenue rose 8.6%, with every business contributing to growth. The company now expects at least 8% organic revenue growth for 2026, which Schwimmer said would put the group on track for its strongest growth year since 2018.
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“Our revised guidance speaks to a business that is growing faster, is more profitable, and is generating more cash than anticipated at the start of the year,” Schwimmer said.
Subscription and Markets Growth
Chief Financial Officer Michel-Alain Proch said Data & Analytics revenue increased 5.2% in the third quarter, while data and feeds rose 7.5%. FTSE Russell grew 10.2%, Risk Intelligence increased 9.8%, and the group’s subscription businesses collectively grew 6.6%, accelerating from 6.3% in the first half.
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LSEG said it remains on track for about 6.5% subscription revenue growth for the full year, compared with 6% in 2025. Proch said these revenues are typically about 93% recurring annually and benefit from new sales being recognized once products are installed and activated.
Markets revenue rose more than 12%, with OTC derivatives standing out. Client volumes at SwapClear increased almost 30% during the quarter, while Tradeweb volumes rose 22%. Proch also cited growth in fixed income, equities and foreign exchange activity, against a backdrop of shifting interest-rate expectations and broader economic and political uncertainty.
