LSEG (LSEG) pressured by AI impact worries, Rothschild & Co Redburn downgrade
London Stock Exchange Group (LSEG) shares declined 3.0% to 8,028p on 25 June 2026, extending a recent selloff driven by concerns over artificial intelligence's impact on its data and analytics divisions. The movement follows a downgrade by Rothschild & Co Redburn and a notable discount on the company's share buyback programme.
Rothschild & Co Redburn initiated a "Neutral" rating on LSEG on 18 June, citing that approximately 30% of the group's EBITDA could be vulnerable to AI disruption. The analyst firm suggested that advanced AI tools might enable clients to circumvent LSEG's data products. This downgrade contributed to a 3.0% fall in shares yesterday, following an earlier 2.0% drop on 23 June.
Adding to the pressure, LSEG shares are currently trading 4.5% below the average price the company paid for its own stock in the first quarter. This indicates a market valuation lower than LSEG's recent capital return price, further highlighting investor apprehension regarding the large-cap United Kingdom financial infrastructure provider.
Why AI could re-route LSEG's data streams
London Stock Exchange Group, or LSEG, is a fundamental pillar of global financial markets. It operates the actual stock exchanges, but also generates substantial revenue by selling critical market data, analytics, and offering clearing and settlement services to a vast array of customers, from investment banks and asset managers to corporations. Essentially, LSEG provides the essential infrastructure and information that allows the financial world to operate smoothly and efficiently.
The specific concern driving LSEG's share price movement today centres on the potential for artificial intelligence to disrupt its highly profitable data and analytics divisions. Rothschild & Co Redburn, in a downgrade on 18 June, highlighted that approximately 30% of LSEG's core earnings, its EBITDA, could be at risk. The analyst firm suggested that advanced AI tools might enable clients to bypass LSEG's proprietary data products, extending a recent selloff and coming alongside a notable discount on the company's share buyback programme.
This apprehension has led to a clear market reaction, with LSEG shares trading down exactly 3.0% today to 8,028p, from yesterday's close of 8,280p.
Consider LSEG's data offerings like a specialised mapping service that provides the most accurate, up-to-date routes and traffic information for complex journeys. If a new, highly intelligent navigation system becomes available that can predict traffic patterns and optimise routes just as effectively, or even better, without needing to subscribe to the traditional service, then the value of that subscription is immediately questioned. Investors are grappling with whether AI could become that alternative navigation system for financial data.
London Stock Exchange Group
London Stock Exchange Group plc (LSEG), a prominent entity in the Financial Services sector, operates across three core segments: Data & Analytics, Capital Markets, and Post Trade. Its global footprint spans the United Kingdom, United States, other European nations, and Asia. LSEG facilitates a diverse array of international markets, encompassing equities, fixed income, exchange-traded products, and foreign exchange, through platforms such as the London Stock Exchange, AIM, Turquoise, CurveGlobal, FXall, and Tradeweb. The group provides comprehensive information and data products, including indexes, benchmarks, real-time pricing, and trade reporting, alongside network connectivity and server hosting. Additionally, LSEG offers market trading services, clearing, risk management, capital optimisation, and regulatory reporting solutions, alongside media training and software licensing. Founded in 1698, LSEG is headquartered in London.