This is an old version of RELX from 4 weeks ago (Sep 27, 2026).See the latest version
RELX
- Price
- $33.52
- Fair value range
- $51 to $63
- Discount
- 35% to 47%
- Next earnings
- 2026-10-23
- Next earnings is estimate
- Yes
- Company name
- RELX
- Sector
- Information analytics & professional publishing
- About
- RELX is a UK-based information and analytics company built from four businesses. Risk, sold under the LexisNexis Risk Solutions brand, is the largest segment at about 37% of first-half 2026 revenue; it sells data and analytics tools that insurers, banks, and government agencies use to screen for fraud, verify identities, and price risk. Scientific, Technical & Medical (STM), sold under the Elsevier brand, is about 28% of revenue; it publishes scientific and medical journals and sells research databases such as ScienceDirect and Scopus that researchers and universities pay to access. Legal, sold under LexisNexis Legal & Professional, is about 20% of revenue; it sells legal research databases, case law, and AI-powered tools such as Lexis+ AI to law firms and corporate legal departments. Exhibitions, run under the RX brand, is about 12% of revenue; it organizes trade shows and conferences worldwide, earning money from exhibitor space, sponsorships, and attendee fees. RELX shares trade on the London Stock Exchange (its main listing), Euronext Amsterdam, and the New York Stock Exchange, where each ADR represents one ordinary share; the company merged its former dual UK/Dutch corporate structure into a single company, RELX PLC, in 2018. Erik Engstrom has been CEO since 2009, and Nick Luff has been CFO since 2014.
- Thesis
- Investors fear that AI chatbots will replace RELX's subscription research tools. This fear centers on Legal and STM (scientific, technical, and medical publishing), the two segments that produce most of RELX's profit. A single AI product launch by a rival can trigger a sharp sell-off, as it did in February 2026. The gap can close if Legal and STM keep growing revenue and profit faster than the group average, the way they did in the first half of 2026. The Doctrine acquisition, completed in September 2026, must show it can win legal AI subscriptions across continental Europe, not only in France. RELX is expected to issue its next trading update in late October 2026, though the exact date is not yet confirmed. Full-year 2026 results are due around February 2027. If Legal and STM keep outgrowing the AI fear through those reports, the discount can start to close over the next two to four quarters. Because the fear is driven by sentiment, a new AI product launch from any competitor, even one aimed at a different company, could reopen the gap at any time.
- Risks
- Generative AI chatbots and AI-native legal and research tools, like Anthropic's Claude legal plug-in, could reduce demand for RELX's subscription research products over time. Legal is the segment investors worry about most, and it already carries RELX's lowest operating margin, at 21.7%. RELX's Risk segment sells data to government agencies, including ICE for immigration enforcement. In March 2026, more than 200 journalists at Law360 and related titles publicly objected to this, and RELX subsidiaries have received more than $172 million in US Department of Homeland Security contracts since 2005. Continued controversy could bring reputational and regulatory risk. Net debt rose to £8,733m (2.3x EBITDA) at the end of June 2026, up from £7,201m (2.0x) at the end of 2025, as RELX funded £1,750m of buybacks plus the Doctrine acquisition. Further leverage increases would use up capacity for future deals or buybacks. LexisNexis Risk Solutions has suffered multiple data breaches, including one confirmed in March 2026 affecting roughly 400,000 records. Repeated breaches could damage trust with customers who rely on RELX to protect sensitive personal data. The Doctrine acquisition and other legal-AI deals expand RELX's position in European legal information services, where regulators may scrutinize further consolidation given RELX's already strong market position. RELX's Exhibitions segment, about 12% of revenue, depends on global business travel and event spending, which can fall quickly in a recession or health scare, as it did during the pandemic. Because much of the current share-price discount is tied to a single debate over whether AI helps or hurts RELX, a new competing AI product launch, even one aimed at a rival, can trigger another sharp, sentiment-driven drop in RELX's stock regardless of its own results, as happened in February 2026.
- Recent events
- 2026-09-03: RELX completed its acquisition of Doctrine, a French legal AI platform used daily by 27,000 legal professionals across France, Italy, Germany, Spain, and Luxembourg, extending Lexis+ AI into continental Europe. 2026-07-23: RELX reported H1 2026 results: revenue of £4,871m, up 7% on an underlying basis, and adjusted operating profit of £1,727m, up 9%. All four segments grew, led by Legal at +10% revenue and +13% profit. The interim dividend rose 7% to 20.9p, and £1,750m of shares were repurchased in the half. 2026-04-28: RELX agreed to acquire Doctrine, a French legal AI platform, to expand LexisNexis's legal AI offering across continental Europe, including France, Italy, Germany, and Spain. 2026-04-23: In an AGM trading update, RELX said it had started 2026 well across all four business areas and reaffirmed full-year guidance for strong underlying growth in revenue, profit, and earnings per share. 2026-03-05: The analysts downgraded their view of competitors Wolters Kluwer and Thomson Reuters on AI disruption risk. 2026-02-12: RELX reported full-year 2025 results: revenue of £9,590m, up 7% on an underlying basis, and adjusted operating profit of £3,342m, up 9%. Adjusted earnings per share grew 10% to 128.5p. The board raised the full-year dividend 7% to 67.5p and set a £2,250m share buyback target for 2026. 2026-02-03: RELX shares fell about 14% in a single day after Anthropic launched a Claude legal plug-in aimed at in-house legal teams, part of a broader selloff in legal and data-analytics stocks, including Thomson Reuters and Wolters Kluwer, on fears of AI disruption to subscription research businesses.