RELX interim results: Profit growth outpaces revenue as margin rises

RELX keeps its growth story moving

RELX delivered another solid set of numbers for the six months to 30 June 2026, with underlying profit growth outpacing revenue growth and the adjusted operating margin moving higher.

The information-based analytics and decision tools group reported revenue of £4,871 million, up 3% in sterling terms and 7% on an underlying basis. Adjusted operating profit increased by 5% as reported, or 9% underlying, to £1,727 million.

That gap between underlying revenue and profit growth matters. It suggests RELX is getting more operating leverage from its business, with management keeping cost growth below revenue growth. The adjusted operating margin rose to 35.5%, from 34.8% a year earlier.

Management also reaffirmed its full-year outlook, although it did not provide specific numerical guidance.

RELX interim results at a glance

Metric	First half 2026	First half 2025	Change
Revenue	£4,871 million	£4,741 million	3% reported, 7% underlying
Adjusted operating profit	£1,727 million	£1,652 million	5% reported, 9% underlying
Adjusted operating margin	35.5%	34.8%	Higher
Adjusted profit before tax	£1,589 million	£1,515 million	Not disclosed
Adjusted earnings per share	68.6p	63.5p	8% reported, 11% constant currency
Reported earnings per share	65.7p	52.9p	24%
Interim dividend	20.9p	19.5p	7%
Adjusted cash flow conversion	98%	100%	Lower
Net debt	£8,733 million	£7,443 million	Higher

Underlying growth strips out factors including currency movements, acquisitions, disposals, print-related revenue and certain timing effects. It is intended to show how the existing business is performing on a more comparable basis.

Margin improvement is the standout feature

The most encouraging part of the release is the combination of 7% underlying revenue growth and 9% underlying adjusted operating profit growth.

RELX attributed the resulting margin improvement to continuous process innovation, which helped it manage cost growth below revenue growth. That is particularly important for a business built around data, specialist content and digital decision tools, where successful product development can potentially serve more customers without costs rising at the same pace.

Adjusted operating profit excludes certain items, primarily the amortisation of acquired intangible assets and other acquisition or disposal-related effects. Reported operating profit, which includes more of those accounting charges, rose from £1,490 million to £1,585 million.

The gap between adjusted and reported operating profit included £118 million of amortisation relating to acquired intangible assets, compared with £123 million in the prior period.

Earnings growth and lower reported interest expense

Adjusted earnings per share increased from 63.5p to 68.6p. That represents growth of 8% in sterling and 11% at constant currency, which removes the effect of exchange-rate movements.

Reported earnings per share grew faster, rising 24% to 65.7p. One contributor was a sharp reduction in reported net interest expense, which fell from £210 million to £105 million.

On an adjusted basis, net interest expense was broadly flat at £138 million, compared with £137 million. The average interest rate on gross debt improved to 3.6%, from 4.1%.

Reported profit before tax rose from £1,283 million to £1,523 million, while adjusted profit before tax increased from £1,515 million to £1,589 million.

AI remains central to RELX's strategy

Chief executive Erik Engstrom said RELX's improving long-term growth trajectory continues to be driven by a shift in its business mix towards higher-growth analytics and decision tools.

Artificial intelligence remains a central part of that strategy. RELX said the evolution of AI is helping it add more value for customers, launch higher-value products more quickly and keep cost growth below revenue growth.

That is a more useful investor message than simply attaching an AI label to the business. RELX is presenting the technology as a tool for improving existing products, accelerating development and supporting margins.

However, the announcement did not disclose revenue from AI-related products, customer adoption figures, product-level profitability or the investment required. Investors therefore have a clear strategic direction, but limited financial detail with which to measure AI's individual contribution.

Growth was broad, but divisional figures were not disclosed

Management described continued strong growth in Risk, a step up in Scientific, Technical & Medical, a further step up in Legal, and strong ongoing growth in Exhibitions.

This points to positive momentum across the group rather than reliance on one division. Strong new sales were also highlighted.

The announcement did not provide divisional revenue, profit or margin figures, however. That limits the ability to compare the precise contribution of each business or identify where the strongest operating leverage is being generated.

Cash generation remains strong as debt rises

Adjusted cash flow increased from £1,652 million to £1,691 million. Cash flow conversion was 98%, slightly below the previous year's 100%, but still indicates that most adjusted operating profit was converted into cash.

The balance sheet deserves attention. Net debt increased from £7,443 million to £8,733 million, while the net debt to EBITDA ratio rose from 2.2 times to 2.3 times. EBITDA means earnings before interest, tax, depreciation and amortisation and is commonly used when comparing debt with operating performance.

RELX completed two acquisitions during the half for total consideration of £103 million, alongside one small disposal. The acquired businesses and their expected financial contributions were not disclosed in this announcement.

Buybacks and dividend support shareholder returns

RELX completed £1,750 million of its previously announced £2,250 million share buyback during the first half. A further £100 million was completed after 1 July, with the remaining £400 million due to be deployed before the end of 2026.

Buybacks reduce the number of shares in circulation and can support earnings per share, although they also use cash that might otherwise reduce debt or fund investment.

The interim dividend increased by 7% to 20.9p per share. It is due to be paid on 10 September 2026, with an ex-dividend date of 6 August and a record date of 7 August.

What investors should watch next

RELX expects another year of strong underlying growth in revenue and adjusted operating profit, alongside strong constant-currency growth in adjusted earnings per share. The outlook was reaffirmed, but no numerical targets were disclosed.

The positives are clear: broad-based momentum, profit growing faster than revenue, a higher margin, strong cash conversion and continued capital returns through dividends and buybacks.

The main points of caution are higher net debt, slightly lower cash conversion and limited detail on divisional performance or the measurable contribution from AI. Currency also remains relevant, given that reported revenue growth of 3% was below underlying growth of 7%.

For the remainder of 2026, the key test is whether RELX can preserve its current underlying growth while continuing to hold cost growth below revenue growth. If it can, margin progression and earnings growth should remain the central features of the investment case.