Core Viewpoint - RELX PLC has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Correlation - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant price movements based on their trading activities [4]. Company Performance and Outlook - The upgrade for RELX reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [5]. - For the fiscal year ending December 2026, RELX is expected to earn $1.95 per share, with a 4.8% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of RELX to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Financial Performance - Revenue for 2025 was £9,590m, representing an underlying growth of +7% compared to £9,434m in 2024[6] - Adjusted operating profit increased to £3,342m, reflecting an underlying growth of +9% from £3,199m in 2024[6] - Adjusted earnings per share (EPS) rose to 128.5p, with a constant currency growth of +10% from 120.1p in 2024[8] - Underlying revenue growth for the group was 7%, with all four business areas contributing positively[35] - Total revenue increased to £9,590m in 2025, up 2% from £9,434m in 2024[36] - Adjusted operating profit rose to £3,342m, reflecting a 4% increase from £3,199m in 2024[38] - Free cash flow before dividends was £2,313m, up from £2,126m in 2024[51] - Adjusted operating profit rose to £3,342m in 2025, up from £3,199m in 2024, resulting in an adjusted operating profit after tax of £2,590m[63] - Basic earnings per share (EPS) for 2025 is expected to be 112.6p, up from 103.6p in 2024, representing an increase of about 9.7%[110] - Operating profit for 2025 is forecasted to be £3,027m, compared to £2,861m in 2024, indicating a growth of approximately 5.8%[115] Dividends and Shareholder Returns - The proposed full year dividend is 67.5p, marking a +7% increase from 63.0p in 2024[9] - The proposed final dividend is 48.0p per share, leading to total dividends of 67.5p for the year, a 7% increase from 63.0p in 2024[64] - A total of 39.5m shares were repurchased at an average price of 3,797p, with total consideration amounting to £1,500m[65] Debt and Financial Ratios - Net debt/EBITDA ratio stood at 2.0x, with net debt at £7,201m compared to £6,563m in 2024[9] - Net debt increased to £7,201m, an increase of £638m since December 2024[54] - Gross debt increased to £7,267m in 2025 from £6,544m in 2024, with net debt rising to £7,201m from £6,563m[56] - The effective interest rate on gross bank and bond borrowings decreased to 3.9% in 2025 from 4.4% in 2024, with 66% of borrowings at fixed rates[57] - The ratio of net debt to EBITDA increased to 2.0x in 2025 from 1.8x in 2024, calculated in US dollars[57] Acquisitions and Investments - Five acquisitions were completed in 2025 for a total consideration of £270m, contributing to portfolio development[9] - Total consideration for acquisitions in 2025 was £270m, up from £195m in 2024[52] - The company plans to deploy £2,250m on share buybacks in 2026, with £250m already completed[10] Segment Performance - Strong growth in the Risk segment, with revenue increasing to £3,485m, an underlying growth of +8%[14] - Scientific, Technical & Medical segment revenue grew to £2,714m, with an underlying growth of +5%[20] - Revenue from the Risk segment grew to £3,485 million in 2025, up from £3,336 million in 2024, marking a 4.46% increase[105] - Scientific, Technical & Medical segment revenue increased to £2,714 million in 2025, up from £2,624 million in 2024, a growth of 3.43%[105] - Legal segment revenue reached £1,806 million in 2025, compared to £1,718 million in 2024, indicating a growth of 5.11%[105] Future Outlook - The company expects continued strong underlying revenue growth in 2026, with adjusted operating profit growth exceeding revenue growth[19] - The company expects continued strong underlying revenue growth and adjusted operating profit growth exceeding revenue growth in 2026[27] Cash Flow and Capital Expenditure - Capital expenditure was £525m, representing 5.5% of revenue, compared to 5.1% in 2024[48] - Adjusted cash flow conversion rate improved to 99%, up from 97% in the previous year[47] - Cash generated from operations is projected to increase from GBP 3,521 million in 2024 to GBP 3,735 million in 2025, a growth of 6.1%[86] Pension and Employee Metrics - The Group has a net positive pension accounting balance of £43m as of 31 December 2025, up from £21m in 2024[58] - The company has closed its UK defined benefit pension scheme to future benefit accruals, which will impact future funding requirements[81] - The Group plans to close the UK defined benefit pension scheme to future accrual of benefits effective 28 February 2027, resulting in a £5m accounting charge taken to operating profit[122] - The number of full-time equivalent employees is expected to increase to 37,600 by the end of 2025, up from 36,400 in 2024[138] - The percentage of women employees remains stable at 51% for 2025, while the percentage of women managers is projected to increase to 46%[138] Environmental and Social Responsibility - Total cash and in-kind donations are expected to decrease slightly to £11 million in 2025, down from £12 million in 2024[138] - The total number of days volunteered in company time is projected to decrease to 14,782 days in 2025, down from 16,149 days in 2024[138] - Scope 1 emissions are expected to decrease to 1,966 tCO2e in 2025, down from 2,703 tCO2e in 2024, reflecting a reduction of 27.3%[138] - The total on-site energy consumption is projected to decrease to 55,977 MWh in 2025, down from 89,745 MWh in 2024[138] - The percentage of waste diverted from landfill is expected to remain high at 96% in 2025, slightly down from 97% in 2024[138] - The number of key suppliers on the Socially Responsible Suppliers database is projected to increase to 954 in 2025, up from 914 in 2024[138] - Unique users of the SDG Resource Centre are expected to reach 352,391 in 2025, up from 303,837 in 2024, indicating a growth of 16%[138]

Financial Data and Key Metrics Changes - The company reported an underlying revenue growth of 7%, with underlying adjusted operating profit growth at 9% and adjusted earnings per share growth at 10% at constant currency [1][7] - The adjusted operating margin improved by just under one percentage point to 34.8% [7][10] - Cash conversion remained strong at 99%, with net profit increasing by 8% at constant currency and 5% in sterling to over GBP 2.3 billion [11][12] Business Line Data and Key Metrics Changes - In the Risk segment, underlying revenue growth was 8%, and underlying adjusted operating profit growth was 10% [1][2] - Business Services, representing over 40% of divisional revenue, saw strong growth driven by financial crime compliance and digital fraud solutions [2] - In STM, underlying revenue growth was 5%, with underlying adjusted operating profit growth of 7% [3] - Legal segment reported an underlying revenue growth of 9% and adjusted operating profit growth of 12%, driven by the adoption of AI-enabled Legal platforms [4][5] - Exhibitions delivered an underlying revenue growth of 8% and adjusted operating profit growth of 9% [5] Market Data and Key Metrics Changes - The number of articles submitted grew by over 20% in 2025, with published articles increasing by 10% [4] - The company continues to see strong demand for primary research publishing, with a global increase in scientific researchers [25] Company Strategy and Development Direction - The company aims to sustain strong long-term growth across all business areas, focusing on higher growth analytics and decision tools [6][14] - The strategic direction remains unchanged, with an emphasis on continuous product innovation and managing cost growth below revenue growth [6][10] - The company is committed to organic development while remaining open to strategic acquisitions that align with its goals [12][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong underlying revenue growth and adjusted operating profit growth exceeding revenue growth [1][14] - The company is well-positioned to leverage evolving AI technologies to enhance customer value and operational efficiency [6][50] - Management acknowledged potential competition in the Legal segment but emphasized the unique value of their comprehensive content and analytics [20][21] Other Important Information - The company completed GBP 270 million in acquisitions and a GBP 1.5 billion share buyback, with net debt at GBP 7.2 billion [12][13] - The company proposed a 7% increase in the full-year dividend to 67.5 pence per share [7] Q&A Session Questions and Answers Question: Concerns about competition in the Legal segment - Management noted that the adoption of AI tools has doubled the enterprise-wide subscription customer base for Lexis+ AI, indicating strong demand and usage growth [20][21] Question: Outlook for STM and potential growth considerations - Management highlighted continued strong demand for primary research publishing, with no signs of slowing down in submissions and publications [25] Question: Differentiation of Protégé AI workflows from competitors - Management emphasized that their workflow tools are content-enabled, providing a significant competitive advantage due to the trusted, curated content behind them [31][32] Question: Exposure to autonomous driving in the auto insurance market - Management stated that the evolving auto insurance market presents opportunities for sophisticated risk analysis, with the value at stake increasing despite fewer accidents [36][37] Question: Impact of strong new sales on future growth - Management clarified that while strong new sales are a good indicator of momentum, they will have a modest effect on current year revenues but support long-term growth [38] Question: Addressable market for Scopus AI and pricing strategy - Management indicated that the addressable market includes all institutions using their platforms, with plans for individual researcher subscription options in the future [42][43]

Financial Data and Key Metrics Changes - Underlying revenue growth was 7%, with underlying adjusted operating profit growth at 9% and adjusted earnings per share growth at 10% at constant currency [1][7] - Adjusted operating margin improved by just under one percentage point to 34.8% [7][10] - Cash conversion remained strong at 99%, with net profit up 8% at constant currency [11][12] Business Line Data and Key Metrics Changes - In Risk, underlying revenue growth was 8% and underlying adjusted operating profit growth was 10% [1][2] - Business Services, representing over 40% of divisional revenue, saw strong growth driven by financial crime compliance and digital fraud solutions [2] - In STM, underlying revenue growth was 5% and underlying adjusted operating profit growth was 7% [3] - Legal segment experienced underlying revenue growth of 9% and adjusted operating profit growth of 12% [4] - Exhibitions delivered underlying revenue growth of 8% and adjusted operating profit growth of 9% [5] Market Data and Key Metrics Changes - The number of articles submitted grew over 20% in 2025, with published articles increasing by 10% [4] - The overall revenue growth at constant currency was 4%, impacted by portfolio effects and a reduction in print-related activities [8][9] Company Strategy and Development Direction - The company continues to focus on operational and strategic progress, with a shift towards higher growth analytics and decision tools [5][6] - The strategic direction remains unchanged, with an emphasis on continuous product innovation and managing cost growth below revenue growth [6][10] - The company aims to sustain strong long-term growth across all business areas, leveraging AI technologies to enhance customer value [6][22] Management's Comments on Operating Environment and Future Outlook - Management expects continued strong underlying revenue growth, with adjusted operating profit growth exceeding revenue growth [1][14] - The company is optimistic about the ongoing demand for primary research publishing and the overall growth trajectory in the legal and risk sectors [25][39] - Management acknowledges potential competition in the legal segment but emphasizes the unique value of their content and analytics [20][21] Other Important Information - The company completed GBP 270 million in acquisitions and a GBP 1.5 billion share buyback, with year-end net debt at GBP 7.2 billion [12][13] - The company plans to return surplus capital through share buybacks, with GBP 2.25 billion announced for 2026 [13] Q&A Session Questions and Answers Question: Concerns about competition in the legal segment - Management noted that the adoption of AI tools is adding value and driving growth, with a significant increase in users of Lexis+ AI [20][21] Question: Outlook for STM and potential growth considerations - Management indicated strong momentum in STM, with an increase in new product introductions and strong new sales [25][39] Question: Differentiation of Protégé AI workflows from competitors - Management emphasized that their offerings are content-enabled, providing a significant competitive advantage due to their unique data sets [32][33] Question: Exposure to autonomous driving in the auto insurance market - Management sees opportunities in the evolving auto insurance market, with enhanced data analytics capabilities [38][39] Question: Strong new sales and their impact on future growth - Management confirmed that while new sales contribute modestly to current revenues, they indicate long-term growth momentum [40]

Financial Data and Key Metrics Changes - The company reported an underlying revenue growth of 7% and an underlying adjusted operating profit growth of 9% at constant currency, with adjusted earnings per share growth of 10% [1][8] - The adjusted operating margin improved by just under one percentage point to 34.8%, with cash conversion remaining strong at 99% [8][12] - Net profit increased by 8% at constant currency, reaching over GBP 2.3 billion, with adjusted earnings per share up 10% at constant currency [12][13] Business Line Data and Key Metrics Changes - In the Risk segment, underlying revenue growth was 8%, and underlying adjusted operating profit growth was 10% [1][2] - Business Services, representing over 40% of divisional revenue, saw strong growth driven by financial crime compliance and digital fraud solutions [2] - In the STM segment, underlying revenue growth was 5%, with underlying adjusted operating profit growth of 7% [3] - The Legal segment experienced a 9% growth in underlying revenue and a 12% growth in underlying adjusted operating profit, driven by the adoption of AI-enabled legal platforms [4][5] - Exhibitions delivered an 8% underlying revenue growth, with adjusted operating profit growth of 9% [5] Market Data and Key Metrics Changes - The number of articles submitted grew by over 20% in 2025, and the number of articles published increased by 10% [4] - The company continues to see strong demand for primary research publishing, with a global increase in scientific researchers [27] Company Strategy and Development Direction - The company aims to sustain strong long-term growth across all business areas, with a focus on higher growth analytics and decision tools [6][8] - The strategic direction remains unchanged, emphasizing continuous product innovation and managing cost growth below revenue growth [6][8] - The company is committed to organic development while remaining open to strategic acquisitions that align with its goals [13][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong underlying revenue growth, with adjusted operating profit growth expected to exceed revenue growth [1][16] - The company is well-positioned to leverage advancements in AI to enhance product offerings and customer value [6][24] - Management acknowledged potential competition in the legal segment but emphasized the unique value of their comprehensive content and analytics [18][22] Other Important Information - The company completed GBP 270 million in acquisitions and a GBP 1.5 billion share buyback, with net debt at GBP 7.2 billion [12][13] - The company proposed a 7% increase in the full-year dividend to 67.5 pence per share [8] Q&A Session Summary Question: Concerns about competition in the legal segment - Management noted that the adoption of AI tools has doubled the customer base for Lexis+ AI, indicating strong demand and value addition [21][22] Question: Outlook for STM and potential growth considerations - Management highlighted continued strong demand for primary research publishing, with no signs of slowdown in submissions or publications [27] Question: Differentiation of Protégé AI workflows from competitors - Management emphasized that their offerings are content-enabled, leveraging unique and curated data sets, which differentiates them from other workflow tools [33][34] Question: Impact of autonomous driving on auto insurance - Management indicated that the evolving auto insurance market presents opportunities for sophisticated risk analysis, with the value at stake increasing [38][39] Question: New sales impact on future growth - Management confirmed that while new sales contribute modestly to current revenues, they signal strong momentum for long-term growth [40]

Results 2025 Erik Engstrom, CEO, and Nick Luff, CFO 12 February 2026 2 Erik Engstrom, CEO 3 RELX 2025 4 DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results or outcomes of RELX PLC (together with its subsidiaries, "RELX", "w ...

Core Insights - The Zacks Internet - Content industry is experiencing growth due to strong demand for digital offerings, video content, and cloud-based applications, aided by advancements in AI and Generative AI [1][3] - Despite growth opportunities, the industry faces challenges from macroeconomic conditions affecting advertising spending, which is a primary revenue source [1][4] Industry Description - The industry includes providers of video encoding platforms, Internet content, staffing services, and online travel companies, among others, and is undergoing rapid digitalization [2] - Advertising remains a major revenue source, prompting companies to enhance their digital presence across various platforms [2] Trends - There is a growing demand for digital offerings driven by technological advancements and the proliferation of smart devices [3] - The industry is characterized by frequent product introductions and evolving consumer behavior [3] Advertising and Revenue - Marketing efforts are focused on increasing website traffic, with advertising and subscriptions being key revenue sources [4] - Consumer spending trends, particularly during holidays, significantly influence revenue, although macroeconomic challenges are expected to impact ad spending in the near term [4] Regulatory Environment - Increased regulatory pressures, especially in China and the EU, are affecting industry participants, particularly regarding advertising practices [5] - The implementation of the General Data Protection Regulation and the Digital Markets Act in the EU adds to the challenges faced by online content providers [5] Industry Ranking - The Zacks Internet - Content industry holds a Zacks Industry Rank of 55, placing it in the top 23% of over 250 Zacks industries, indicating a generally positive outlook [6] - However, the near-term prospects are considered dim, with the industry underperforming compared to the broader market [7][10] Earnings Outlook - Analysts show optimism regarding the industry's earnings growth potential, with a 4.1% increase in the Zacks Consensus Estimate for 2026 earnings since November 30, 2025 [8] Stock Performance - The industry has underperformed the S&P 500 and the broader Zacks Computer and Technology sector over the past year, with a decline of 40.3% compared to the S&P 500's increase of 16.8% [10] Valuation - The industry is currently trading at a trailing 12-month price-to-sales ratio of 3.66X, lower than the S&P 500's 6.61X and the sector's 8.32X [13] Company Highlights - **RELX**: A Zacks Rank 1 (Strong Buy) company benefiting from a shift towards higher growth analytics and decision tools, with a steady earnings estimate of $1.95 per share for 2026 [16][17] - **Yelp**: A Zacks Rank 2 (Buy) stock experiencing growth from increased ad spending and consumer traffic, with a steady earnings estimate of $2.39 per share for 2026 [20][21]

Core Viewpoint - The article discusses the recent sell-off in global software stocks, termed "SaaSpocalypse," triggered by the launch of Anthropic's Claude Cowork, which poses a significant challenge to traditional SaaS business models by offering high-level results at lower costs [5][10]. Group 1: Market Reaction - On February 4, major software companies experienced significant stock declines, with Thomson Reuters dropping 15.8%, LegalZoom nearly 20%, and Salesforce and Workday also seeing notable decreases [5]. - The S&P 500 Software and Services Index fell nearly 13% over five trading days, marking a 26% drop from its October peak [5]. - The sell-off is compared to a previous market panic caused by DeepSeek, highlighting the similarities in market reactions to disruptive AI technologies [7][10]. Group 2: Comparison of Two Market Panics - The panic caused by Cowork is expected to be more prolonged than that of DeepSeek, as Cowork represents a novel AI application, while DeepSeek was a cheaper alternative to existing models [10]. - The market's response to both events shows a pattern of overreaction, with analysts suggesting that the fears may be exaggerated [9][10]. - Cowork's impact has spread beyond the U.S. to global markets, affecting stocks in London, Tokyo, and India, indicating a broader concern within the tech industry [11]. Group 3: SaaS Pricing Models and Challenges - Traditional SaaS pricing models are under pressure, with many companies shifting from fixed pricing to usage-based models due to increased efficiency and cost-cutting measures [14][15]. - The average SaaS company in the PricingSaaS 500 index has experienced 3.6 pricing changes per year, with a significant increase in companies adopting usage-based pricing [15]. - Companies like Salesforce have struggled with pricing strategies, leading to a transition from fixed pricing to more flexible models to accommodate rising operational costs [15][17]. Group 4: Emergence of AI-Native Startups - AI-native startups are gaining traction, with their revenue growth rates significantly outpacing traditional SaaS companies, highlighting a shift in enterprise spending towards these new players [18]. - For instance, companies like Harvey and Glean have achieved valuations of $5 billion and $7.25 billion, respectively, indicating strong investor interest in AI-driven solutions [18]. - The article notes that AI-native companies are expected to capture over half of enterprise AI spending, reflecting a fundamental change in the software landscape [18]. Group 5: Vibe Coding and Its Implications - The rise of Vibe Coding could lead enterprises to create their own tools rather than relying on third-party SaaS products, potentially disrupting traditional software markets [20][21]. - If Vibe Coding matures, it may enable employees to develop solutions quickly, reducing reliance on complex software development processes [21]. - The article suggests that traditional software companies may face a "three-step path to extinction" if they fail to adapt to these emerging trends [22].

Core Viewpoint - The market is experiencing a cautious sentiment towards big tech firms due to their increasing capital expenditure plans, particularly in AI, which is raising concerns about profitability and potential risks to software firms [10][11]. Company Performance - Amazon announced a $200 billion capital expenditure, resulting in a 7% decline in its shares [10]. - Alphabet's shares fell 3% after the company indicated that its capital spending could double this year [10][11]. - Meta Platforms experienced a 1.3% drop in its stock price [10]. - In contrast, Nvidia shares rose by 7%, Microsoft gained 1%, and Tesla increased by 4% [10]. Market Trends - The S&P 500 index increased by 1.6% and the Nasdaq rose by 2%, although both indexes are expected to finish the week lower [10]. - The S&P 500 software and services index has decreased by almost 8% this week, with approximately $1 trillion in market value lost since January 28 [5][11]. - Global shares are projected to decline by 0.33% for the week, with significant losses in India, where software exporters lost $22.5 billion in market value [7][11]. Investor Sentiment - Investors are interpreting news related to AI spending more cautiously, reflecting a shift from previous optimism [6][11]. - Concerns are growing over narrow market leadership, with fears that it may not broaden beyond a few mega-cap companies [6][11]. - The selloff in software and data analytics firms was exacerbated by new AI developments, indicating potential existential threats to these companies [6][11]. Future Outlook - A planned $600 billion AI spending by big tech firms in 2026 is contributing to investor unease regarding profitability and market dynamics [10]. - Despite strong underlying business performance from companies like Alphabet and Amazon, their increasing capital investment plans are overshadowing positive growth indicators [9][11].

Group 1 - The FTSE 100 index in London experienced an increase on Friday, driven by gains in major banking institutions [1] - Data analytics firm RELX faced a decline, contributing to a broader global selloff due to concerns over potential disruptions from advancements in technology [1]