Why is London Stock Exchange stock rallying today?

London Stock Exchange Group stock rallied nearly 3.0% today after the company published a strong Q3 2026 trading update alongside a major acquisition announcement, with shares reaching 9,048p during the session.

LSEG raised its full-year revenue growth guidance to at least 8.0%, up from a prior forecast of 7.0%–7.5%, citing strong third-quarter performance and growing adoption of its AI products, with total income excluding recoveries reaching £2.407 billion for the quarter — representing 8.8% organic constant-currency growth.

In a separate release issued simultaneously, LSEG confirmed it has agreed to acquire Octus for $3.535 billion in cash. Octus is a leading provider of credit solutions serving customers across private, illiquid, and distressed credit markets, and the deal is expected to transform LSEG’s presence in credit and private markets data.

The company also announced the planned acquisition of Trumid for approximately $1.75 billion, aiming to become a global leader in fixed income data and trading, while noting it has already returned £2.6 billion to shareholders via buybacks this year and plans an additional £1.0–1.5 billion in buybacks in 2027.

UBS reaffirmed its Buy rating on the stock, with analysts keeping the price target unchanged at 11,700 pence, pointing to substantial potential upside from recent levels.

UBS noted, however, that the trading update covers only revenue figures, and the bank sees limited near-term profit contribution from AI activity, with the market still seeking concrete evidence rather than further assurances — characterising LSEG as a "show-me" story.

Meanwhile, LSEG ranked among the highest FTSE 100 gainers on the day, even as the broader UK index faced a softer session amid global macro pressures.

CEO David Schwimmer noted that record performance continued in Q3, with accelerating growth across subscription businesses and sustained strength in Markets, and that the company was raising full-year guidance for revenue, EBITDA margin, and free cash flow.

He added that LSEG is "on track to deliver its strongest annual growth since 2018," a combination of operational momentum, strategic M&A, and shareholder returns that together drove today’s move well above the FTSE 100’s broader performance.