Investor appetite for software businesses is fueled by diversification benefits, sustainable revenue, innovation, and growth prospects. In this rapidly evolving technological landscape, software companies are extending substantial resources to diversify their service offerings and achieve scalability.However, the debate over AI’s significant impact on the software industry still seems to hog most of the limelight. On that front, Fidelity International, Australia, noted in a February 13 report that the situa ...

Core Viewpoint - RELX is planning to increase CEO Erik Engstrom's pay, aligning it more closely with FTSE-100 peers such as AstraZeneca, Rolls-Royce, and Shell [1] Company Summary - Erik Engstrom's annual remuneration for 2024 is reported to be £13.5 million ($18.29 million) according to the company's annual report [1]

U.S. Auto Insurance Policy Shopping and New Business Growth Continue to Break Records in Q4 with "Hot" Readings on the LexisNexis® U.S. Insurance Demand Meter [Accessibility Statement] Skip NavigationATLANTA, Feb. 18, 2026 /PRNewswire/ -- Shopping for U.S. auto insurance remained in high gear through the fourth quarter of 2025, according to the latest [U.S. Insurance Demand Meter] from [LexisNexis® Risk Solutions.] The quarterly year-over-year shopping growth registered "Hot", rising to 6.9% on the Demand M ...

Economic Outlook - The Bank of England is urged to implement quick interest rate cuts to alleviate the cost-of-living crisis and boost consumer spending and business confidence [1][2] - Trade unions support interest rate cuts, citing easing inflation as beneficial for working families, with expectations of further softening due to government support for energy bills and other costs [2] - Firms are looking for inflation easing to be accompanied by measures to reduce business costs, such as business rates reform, to stimulate economic growth [3] Inflation and Interest Rates - The Consumer Price Index (CPI) has dropped to 3.0%, the lowest level in nearly a year, indicating potential for interest rate cuts by the Bank of England [25][28] - Analysts predict a 25 basis point cut in interest rates at the next Bank of England meeting, with further cuts anticipated if inflation continues to decline [19][21][20] - Despite the drop in headline inflation, services inflation remains sticky, suggesting caution from the Monetary Policy Committee [22] Market Performance - The FTSE 100 index has reached new record highs, driven by gains in sectors such as mining, defense, and banking [6][15][28] - BAE Systems has reported a 10% increase in sales to £30.7 billion and a record order book of £83.6 billion, reflecting strong demand in the defense sector [23][10] - Glencore's revenue for 2025 increased by 7% to $247.54 billion, with adjusted EBIT falling less than expected, indicating resilience in the mining sector [16][17] Company-Specific Developments - BAE Systems has increased its dividend by 10% and expects sales growth of 7-9% for the current year, supported by rising global defense spending [23][13] - Glencore's performance improved significantly in the second half of the year, aided by stronger metals prices and higher copper output [17] - BAE's free cash flow is projected to exceed £1.3 billion, contributing to a reduction in net debt by 22% [13][24]

Economic Overview - The UK unemployment rate has risen to 5.2%, the highest level in nearly five years, indicating a potential upward trend in joblessness [14] - Average weekly earnings growth has decreased to 4.2%, down from 4.6% in November, which is below market expectations [14] - The jobs market is showing signs of distress, with private sector wages not keeping pace with inflation for the first time in two and a half years [1][2] Labor Market Insights - The single month jobless rate is currently at 5.4%, with expectations that it could climb higher as redundancies are anticipated [2] - The number of payrolled employees fell by 11,000 month-to-month in January, following a drop of 6,000 in December, which was better than the consensus forecast of a 20,000 decline [15] - Youth unemployment has reached a new high of 16.1%, highlighting ongoing challenges in the labor market [3] Company Performance - Antofagasta reported a 53% increase in pre-tax profits, with earnings per share more than doubling, driven by higher copper prices and disciplined cost control [3] - The final dividend declared by Antofagasta was 48 cents, lower than the consensus estimate of 56.5 cents, while revenue of $8.6 billion was in line with forecasts [4] - InterContinental Hotels announced a 10% increase in its dividend and a $950 million share buyback following a year of record hotel openings [9] Market Reactions - The FTSE 100 opened higher, gaining 39 points, with companies previously affected by the 'AI scare trade' leading the way [7] - Miners, including Antofagasta and Fresnillo, were among the main fallers as copper and precious metals prices declined [8] - The pound has weakened by 0.5% against the dollar, influenced by rising unemployment and softer wage growth, which have increased the likelihood of a Bank of England rate cut [12]

Core Viewpoint - The recent launch of AI products by Anthropic has triggered a significant decline in the share prices of major UK companies in the data sector, despite the overall FTSE 100 index nearing all-time highs [1][2]. Company Performance - Relx, a prominent player in the data sector, saw its share price rise from £5 in 2012 to £41 in May last year, valuing the company at approximately £70 billion [3]. - Following the introduction of AI tools, Relx's share price has halved, with market sentiment shifting from viewing it as an AI winner to fearing a collapse in its profit margins [4]. - In its latest full-year results, Relx reported a 7% increase in revenues to £9.6 billion and a 9% rise in operating profits to £3.3 billion, alongside a forecast for strong growth in 2026 and a 7% increase in dividends [5]. AI Impact and Strategy - The CEO of Relx, Erik Engström, emphasized that AI will continue to drive customer value and growth for the company in the long term [6]. - Relx operates in a niche market that relies on comprehensive and reliable information, which may be public or proprietary, and AI tools are seen as a means to enhance the value of this information [7]. - The company retains the option to engage in limited licensing deals with AI firms while maintaining its proprietary information, which is central to its business value [8]. Market Reaction and Future Outlook - Despite a slight 2% bounce in share price following the positive earnings report, market concerns about the future of AI and Relx's competitive position remain [9]. - Relx plans to continue its share buy-back program, which has increased to £2.25 billion, representing 6% of its equity base, potentially boosting earnings per share if business projections hold true [10].

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].

12 February 2026 RESULTS FOR THE YEAR TO 31 DECEMBER 2025 RELX, the global provider of information-based analytics and decision tools, reports results for 2025 and provides outlook for another year of strong growth in 2026. 2025 highlights 2026 outlook Ø We continue to see positive momentum across the group, and we expect another year of strong underlying growth in revenue and adjusted operating profit, as well as strong growth in adjusted earnings per share on a constant currency basis. Chief Executive Off ...

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]