Shares of information and analytics provider RELX advanced nearly 2% in London trading Thursday, closing at 2,052 pence, following the release of its full-year financial results and a significant expansion of its capital return program.
Financial Performance and Capital Returns
The company reported 2025 revenue of £9.59 billion, reflecting a 7% underlying growth rate. Adjusted operating profit rose 9% to £3.34 billion. RELX proposed a final dividend of 48.0 pence per share, bringing the full-year payout to 67.5 pence, pending shareholder approval at the upcoming annual meeting.
In a key move for investors, RELX announced an irrevocable share buyback program worth £450 million, to be executed by UBS between February 12 and March 20. The company has been active in the market, repurchasing 1.4 million shares on Thursday at an average price of 2,046.6 pence. Since the start of the year, it has acquired a total of 10.24 million shares.
AI Disruption Narrative Under Scrutiny
Despite the solid financials, a primary focus for the market remains the potential threat generative artificial intelligence poses to RELX's established paid research and workflow products. The sector has seen significant selling pressure amid fears that AI tools could displace traditional services. RELX's share price has declined approximately 50% over the past twelve months, with a notable drop following recent AI chatbot advancements from competitors.
CEO Erik Engström pushed back against the disruption narrative, stating that AI evolution allows the company to "add more value to our customers" through faster product rollouts. He noted that costs are rising more slowly than revenue.
However, analysts caution that risks persist. A shift by corporate and legal clients toward cheaper AI alternatives could pressure renewal rates and pricing for RELX's platforms. The company's net debt also increased from £6.6 billion to £7.2 billion, according to Hargreaves Lansdown.
Investors have near-term catalysts to monitor, with the buyback program concluding on March 20 and a trading update scheduled alongside the annual general meeting on April 23.
