London Stock Exchange Group has kicked off 2026 in style. This was a genuinely strong trading update, with record quarterly income, faster growth in its subscription businesses, booming trading activity across Markets, and a steady stream of new products tied to AI, post-trade services and digital assets.
The headline number is hard to ignore: total income excluding recoveries rose 9.8% on an organic constant currency basis to £2,415 million. In plain English, that means the underlying business grew strongly once you strip out currency swings and deal-related distortions. For a company of LSEG’s size, that is a very solid start to the year.
LSEG Q1 2026 results: the key numbers investors need to know
| Metric | Q1 2026 | Growth |
|---|---|---|
| Total income excl. recoveries | £2,415 million | +9.8% organic constant currency |
| Total income incl. recoveries | £2,508 million | +9.6% organic constant currency |
| Gross profit | £2,219 million | +11.5% organic constant currency |
| Data & Analytics | £1,025 million | +5.1% |
| FTSE Russell | £248 million | +8.8% |
| Risk Intelligence | £153 million | +10.5% |
| Markets | £987 million | +15.5% |
| Q1 share buybacks | £1.1 billion | 12.8 million shares bought |
The other standout is guidance. Management now expects full-year growth in total income excluding recoveries to land in the upper half of its 6.5-7.5% range. That is a subtle but meaningful confidence signal, especially after just one quarter.
Why LSEG’s Markets division was the engine room of this record quarter
The biggest push came from Markets, which grew 15.5% organically. That tells you one thing straight away: when volatility rises and clients need liquidity, price discovery and risk management, LSEG’s trading and clearing infrastructure becomes more valuable.
This strength was broad-based, not a one-off from a single desk.
- Equities revenue rose 11.1%
- Fixed Income, Derivatives & Other jumped 18.4%
- FX increased 11.8%
- OTC Derivatives grew 16.0%
- Securities & Reporting rose 9.0%
- Net Treasury Income climbed 17.0%
Tradeweb was a clear star. Average daily volume across all asset classes hit $3.3 trillion, up 31.4%. In rates derivatives, volume surged 59.6%, while credit derivatives rose 59.5%.
SwapClear was also flying. Interest rate swaps notional cleared rose 39.9% to $649 trillion, and client trades increased 39.4% to 1,740,000. LSEG says all five of the busiest days on record for SwapClear happened in March 2026, which gives you a good sense of just how active markets were.
My take: this is very positive, but investors should remember that volatility-driven revenue can cool down if markets settle. The encouraging bit is that LSEG is not just benefiting from chaos – it is also gaining share and deepening customer usage across electronic trading and post-trade services.
LSEG AI strategy and Workspace rollout are starting to look commercially important
There is a lot of AI talk in financial markets right now, but LSEG at least has some real traction to point to. The group said more than 150 customers have either connected or are onboarding to its MCP server, with 90 already connected and another 64 in progress.
The MCP server is part of LSEG Everywhere, its strategy to make AI-ready data available across major model and cloud environments. That includes Anthropic, Microsoft, OpenAI, Databricks and Snowflake. Over half of LSEG’s non real-time data is now available via MCP.
That matters because LSEG is trying to shift from being just a terminal and market infrastructure provider into a wider data platform embedded in client workflows. If it can become the trusted data layer inside AI tools, that opens the door to more usage, more upselling and fewer customer defections.
Workspace AI is another piece of that puzzle. The AI Search tool is in pilot, while AI Deep Research is already being rolled out and is now available through Microsoft Teams as well as the main Workspace platform. Around 1,600 users received Deep Research capabilities in the quarter.
This is positive because it shows AI is moving from concept to product. The caveat is that revenue contribution from these AI tools is not disclosed, so investors should not assume a near-term earnings windfall just yet.
Data, FTSE Russell and Risk Intelligence show the quality of LSEG’s subscription model
One of the best features of the LSEG investment case is the mix of recurring revenue. Combined subscription businesses growth was 6.3%, with all three divisions accelerating versus Q4 2025.
Data & Analytics rose 5.1%, with Data & Feeds up 7.3% and Analytics up 5.2%. Workflows was slower at 2.9%, but still stable, and management highlighted heavy client engagement during a choppy quarter.
FTSE Russell delivered 8.8% growth, helped by stronger subscription renewals and healthy asset-based revenues. ETF assets under management linked to its indices reached $1,871 billion at period end, up 30.5%, with average AUM at $1,906 billion, up 31.5%.
Risk Intelligence was again impressive, up 10.5%. Demand stayed strong for screening and identity verification products, particularly tools linked to sanctions, politically exposed persons and adverse media checks. This is a good area to be in because compliance spending tends to be sticky.
For retail investors, this is the reassuring bit. The flashy trading numbers grab the headlines, but the subscription businesses are what give LSEG resilience and visibility.
Product launches at LSEG show management is not standing still
There was plenty of product activity packed into this update. In FTSE Russell, LSEG launched 28 new ETFs in Q1, compared with 24 in Q1 2025. It also saw early traction in digital asset indices and private markets indices developed with StepStone.
In post-trade, the group launched TradeAgent in March. This is designed to standardise the post-trade lifecycle for cleared and bilateral derivatives, helping customers cut risk and operational cost.
LSEG also said its Digital Settlement House, or LSEG DiSH, will launch in the first half and go live in Q2. The pitch is real-time settlement in commercial bank money across payment networks, both on and off chain. It sounds promising, though commercial impact is not disclosed.
And in Equities, LSEG executed the first transaction on the Private Securities Market. That is strategically interesting because it nudges the group further into connecting private and public market infrastructure.
Share buybacks, costs and 2026 guidance all point in the right direction
LSEG bought back £1.1 billion of shares in Q1, purchasing 12.8 million shares at an average price of £84.59. It remains on track to complete its £3 billion buyback programme by February 2027. That is a meaningful vote of confidence in cash generation.
Cost control also helped. Cost of sales fell 2.9%, largely due to the revised SwapClear revenue surplus share agreement agreed in 2025. Gross profit rose 11.5%, which outpaced revenue growth.
Management is guiding to:
- 6.5-7.5% organic constant currency income growth, with performance expected in the upper half
- 80-100 basis points of EBITDA margin improvement
- Capex intensity of around 9.5%
- Equity free cash flow of at least £2.7 billion
- An underlying effective tax rate of 24-25%
A basis point is one hundredth of a percentage point, so 80-100 basis points means margin improvement of 0.8 to 1.0 percentage points. Equity free cash flow is the cash left for shareholders after operating costs, interest, tax and capital spending.
What this LSEG trading update means for investors
This was a strong update, full stop. LSEG is showing the kind of balance investors usually want from a market infrastructure group: dependable subscription growth, operational leverage, exposure to bursts of trading activity, and credible innovation around AI and settlement.
The main risk is that some of the Markets upside was boosted by an unusually volatile backdrop. If that normalises, growth rates there could cool. But even with that caution, the quality of the quarter looks good because strength showed up almost everywhere.
My view is that this update strengthens the bull case. LSEG looks like a business with improving momentum, real product depth and enough recurring revenue to make the story more than just a bet on market volatility. That combination is hard to dislike.
