London – Shares of the London Stock Exchange Group (LSEG) jumped 6.1% in European morning trading after the company unveiled £3 billion ($4.07 billion) in stock buybacks and outlined plans to boost profitability in the coming years.

The financial-data provider and exchange operator has faced investor concerns over artificial intelligence, with some fearing that new AI tools could reduce demand for its services. LSEG shares have lost more than a quarter of their value over the past year.

Activist investor Elliott Investment Management, which recently took a stake in the company, had urged LSEG to increase buybacks and improve profit margins to match those of rivals, including S&P Global and Intercontinental Exchange, the owner of the New York Stock Exchange.

Under the new plan, LSEG aims to complete £3 billion in share repurchases by February 2027, up from £2.1 billion last year. The company also raised its final dividend by 16% to 103 pence per share.

LSEG forecast an adjusted EBITDA margin increase of 0.8 to 1 percentage point in 2026, with further growth targeted between 2027 and 2029, aiming for roughly a 1.5 percentage point improvement in underlying margins. Analysts at J.P. Morgan Cazenove noted that the buyback, midterm targets, and positive commentary on business momentum could ease lingering AI-related investor fears.

CEO David Schwimmer highlighted that the transformation of the group’s systems and adoption of AI and other technologies have helped drive earnings growth that outpaced revenue expansion.

For the full year, adjusted EBITDA reached £4.52 billion, up 12% excluding currency effects, while total income excluding recoveries grew 7.6% at constant currency to £8.99 billion, slightly above analyst expectations of £8.98 billion.

The strong performance underscores LSEG’s strategy of leveraging technology and operational efficiencies to maintain competitiveness and restore investor confidence.