RELX Reports Revenue Growth Amid AI Market Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy RELX?
Source: NASDAQ.COM
RELX shares rose 6.18% and reached a 5-day high amid mixed market conditions.
The company reported FY 2023 revenue of £9.59 billion, a 1.4% increase from the previous year, and adjusted EPS rose to 128.5 pence, reflecting effective cost control. However, analysts remain cautious about enterprise software stocks due to potential market volatility from AI impacts, maintaining a 'Hold' rating on RELX, indicating confidence in its long-term growth potential.
Despite the revenue and profit growth, the market's apprehension regarding AI's influence on traditional software providers could lead to increased volatility for RELX shares.
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Analyst Views on RELX
Wall Street analysts forecast RELX stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 30.450
Low
60.54
Averages
60.54
High
60.54
Current: 30.450
Low
60.54
Averages
60.54
High
60.54
About RELX
RELX PLC is a United Kingdom-based global provider of information-based analytics and decision tools for professional and business customers. The Company operates in four market segments: Risk; Scientific, Technical & Medical; Legal, and Exhibitions. The Risk segment provides customers with information-based analytics and decision tools that combine public and industry-specific content with advanced technology and algorithms to assist them in evaluating and predicting risk and enhancing operational efficiency. The Scientific, Technical & Medical segment helps researchers and healthcare professionals advance science and improve health outcomes by combining high-quality scientific and medical information. The Legal segment provides legal, regulatory and business information and analytics. The Exhibitions segment combines industry expertise with data and digital tools to help customers connect face-to-face and digitally, learn about markets, source products and complete transactions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong New Policy Growth: The year-over-year growth rate for new policies rose to 7.1%, moving from 'Warm' to 'Hot' territory, reflecting increased consumer enthusiasm in selecting insurance, which may lead insurers to adopt more attractive pricing strategies in a competitive landscape.
- Older Consumers Lead: Consumers aged 66 and older exhibited the highest shopping growth at 11% year-over-year, a trend sustained for 12 consecutive quarters, highlighting the increasing significance of this demographic in the insurance market and prompting insurers to adjust strategies to attract them.
- Exclusive Agent Channel Growth: While the direct channel led with a 12.6% growth rate, the exclusive agent channel achieved a positive growth rate of 5.3% for the first time in 2025, likely linked to increased advertising spending, indicating a rising demand for diversified sales channels in the market.
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- Senior Consumers Lead: Consumers aged 66 and older exhibited the highest shopping growth rate at 11%, consistently outperforming younger demographics, highlighting the increasing significance of older consumers in the insurance market.
- Rate Adjustment Trends: In Q4, 50% of rate revisions were decreases, resulting in an overall industry rate impact of -0.5%, reflecting insurers' strategies to adopt more attractive pricing to stimulate consumer shopping activity.
- Analysis of Repeat Shopping Behavior: Research indicates that once sidelined shoppers are twice as likely to shop again within six months, particularly among those aged 66 and older, suggesting a shift in sensitivity and loyalty among older consumers towards insurance products.
See More
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- Stable Dividend Record: Over the past decade, RELX's annual payment has increased from £0.26 to £0.675, reflecting an average annual growth rate of about 10%, showcasing the company's stability and growth potential in dividends, which attracts more investor interest.
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See More
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- Profitability Improvement: The adjusted earnings per share (EPS) rose to 128.5 pence, a 5.8% increase from 120.1 pence the previous year, reflecting successful cost control and operational efficiency.
- Market Reaction: Despite revenue and profit growth, analysts express caution regarding enterprise software stocks, suggesting that AI impacts may accelerate market volatility, leading to potential downside pressure on RELX shares.
- Investment Rating: Analysts maintain a 'Hold' rating on RELX, indicating confidence in its long-term growth potential, particularly in the evolving technological landscape.
See More
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- Software Sector Hit: The iShares Tech-Expanded Software Sector ETF (NYSE:IGV) has plummeted nearly 20% year-to-date, making it the worst-performing industry, as fears mount that AI tools could disintermediate traditional software providers, causing forward P/E ratios for application software to drop from 35.3 to 23.7 and systems software from 35.5 to 23.3, reflecting market concerns over future earnings durability.
- Brokerage Pressure: Investment banks and brokerage firms are under pressure following the rollout of AI tools by fintech firm Altruist, with forward P/E ratios declining from 24.7 to 15.9, as the market fears that AI could replace traditional advisors in the future, leading to long-term margin compression.
- Insurance Broker Anxiety: Insurance brokers are facing disruption due to the integration of AI-driven tools, with the S&P Insurance Brokers industry index down 4% year-to-date; while the insurance sector remains relationship-driven, there are concerns that AI could erode commissions, impacting brokers' income stability.
- Asset Management Damage: Alternative asset managers are indirectly affected by significant exposure to private software companies, with many large firms down double digits year-to-date, as declining public software valuations raise concerns about their private portfolios, shrinking exit opportunities.
See More
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Impact on Professions: The rise of artificial intelligence is shifting job security concerns from software developers to lawyers, highlighting the expanding influence of AI across various professions.
Market Reactions: This transition is contributing to a rotation in the stock market, affecting both U.S. equities and international markets as investors respond to the implications of AI advancements.
See More
