Relx (RELX) AI Stock Analysis

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Relx

(NYSE:RELX)

Select Model

Neutral 69 (OpenAI - 5.2)

Rating:69Neutral

Price Target:

$34.00

▼(-15.38% Downside)

Action:ReiteratedDate:02/18/26

Strong fundamentals (high margins and very strong cash generation) and a positive earnings outlook with substantial capital returns are the main supports. The score is held back by weak technicals (price below all major moving averages with negative momentum) and balance-sheet leverage/equity decline, while valuation is reasonable but not clearly cheap.

Positive Factors

Cash generation

Near-100% cash conversion and multi-billion free cash flow create durable financial flexibility. Strong recurring cash enables sustained dividends, large buybacks, targeted deleveraging or selective M&A without depending on volatile capital markets, supporting capital allocation over the next several years.

High margins and profitability

Consistently high gross and net margins indicate strong pricing power and a scalable, software- and content-driven model. Stable margins support reinvestment in product development and AI, sustain operating leverage in downcycles, and underpin long-term cash generation and return of capital.

Content + AI strategic moat

Integration of AI with unique curated databases and analytics creates differentiated, hard-to-replicate workflows. This drives recurring machine-to-machine revenues, accelerates enterprise adoption in Legal and Risk, and supports structurally higher-value subscriptions and stickier customer relationships over time.

Negative Factors

Leverage and balance-sheet flexibility

Elevated gross and net debt with a notable equity decline reduces financial headroom. Higher leverage constrains large-scale inorganic investment, increases sensitivity to rate rises or slower cash flow, and leaves less cushion for prolonged demand weakness or competitive disruption.

Slowing reported revenue

A mature top line with negative reported revenue in 2025 signals reliance on underlying adjustments, portfolio moves, and currency effects. Durable growth now depends on successful digital migration, AI monetization and scaling new products—execution risks that can temper multi-quarter expansion.

Structural print revenue decline

A sustained secular decline in print revenue forces mix shift and reinvestment into digital offerings. The transition reduces reported revenue and may require margin reinvestment or slower near-term growth in legacy segments, creating a structural headwind during multi-year migration.

Relx (RELX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$54.16B

Dividend Yield2%

Average Volume (3M)4.18M

Price to Earnings (P/E)20.6

Beta (1Y)0.50

Revenue Growth5.32%

EPS Growth6.06%

CountryUS

Employees34,580

SectorIndustrials

Sector Strength72

IndustryPublishing

Share Statistics

EPS (TTM)0.80

Shares Outstanding1,810,239,300

10 Day Avg. Volume4,612,324

30 Day Avg. Volume4,179,721

Financial Highlights & Ratios

PEG Ratio4.01

Price to Book (P/B)23.30

Price to Sales (P/S)5.87

P/FCF Ratio19.71

Enterprise Value/Market Cap0.91

Enterprise Value/Revenue5.15

Enterprise Value/Gross Profit7.93

Enterprise Value/Ebitda14.61

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

EPS Forecast (FY)1.92

Revenue Forecast (FY)$13.85B

Relx Business Overview & Revenue Model

Company DescriptionRELX PLC provides information-based analytics and decision tools for professional and business customers in North America, Europe, and internationally. It operates through four segments: Risk; Scientific, Technical & Medical; Legal; and Exhibitions. The Risk segment offers information-based analytics and decision tools that combine public and industry specific content with technology and algorithms to assist clients in evaluating and predicting risk. The Scientific, Technical & Medical segment provides information and analytics that help institutions and professionals to progress in science and advance healthcare. The Legal segment provides legal, regulatory, and business information and analytics that help customers in decision-making, as well as increases the productivity. The Exhibitions segment is involved in the events business that combines face-to-face with data and digital tools to help customers learn about markets, source products, and complete transactions. The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in July 2015. The company was incorporated in 1903 and is headquartered in London, the United Kingdom.

How the Company Makes MoneyRELX generates revenue primarily through subscription-based models, transactional services, and licensing fees. Its major revenue streams include selling access to its databases and digital content, offering analytics services that help businesses mitigate risk, and providing legal solutions that enhance operational efficiency for law firms and corporate legal departments. Additionally, RELX earns revenue from exhibitions by hosting industry-leading events that connect businesses and facilitate networking opportunities. The company's strategic partnerships with various organizations enhance its offerings and expand its reach, further contributing to its earnings.

Relx Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Analyzes income from different business units, highlighting which segments are driving growth and which may need strategic adjustments.

Chart InsightsRelx's Risk segment is experiencing robust growth, with recent earnings highlighting an 8% increase in underlying revenue, driven by strategic focus on analytics and decision tools. The Scientific, Technical, and Medical segment shows volatility, but new product introductions are fostering a 5% revenue rise. Legal and Exhibitions segments are also performing well, with 9% and 8% revenue growth respectively, surpassing pre-pandemic margins. Despite challenges from declining print revenues and currency impacts, the company's strategic transition to digital and strong cash flow management underpin its positive outlook.

Data provided by:

The Fly

Relx Earnings Call Summary

Earnings Call Date:Feb 12, 2026

(Q4-2025)

% Change Since: |

Next Earnings Date:Jul 23, 2026

Earnings Call Sentiment Positive

The call conveyed a broadly positive performance: solid underlying revenue (7%), stronger operating profit (9%), EPS growth (10% constant currency), margin expansion (~90bps), strong cash generation and meaningful capital returns (dividend increase and large buyback). All four divisions grew (Risk, Legal, STM, Exhibitions) with notable AI-driven adoption in Legal and Risk and strong research submission trends in STM. Offsets include a material reduction in print-related revenue (>20%), portfolio effects and currency headwinds that restrained reported sterling growth, selective (below-average) M&A activity, and some timing/competitive risks in new product rollouts and workflow competition. On balance the positives substantially outweigh the negatives.

Q4-2025 Updates

Positive Updates

Strong Group Financial Performance

Underlying revenue growth 7%; underlying adjusted operating profit growth 9%; adjusted earnings per share up 10% at constant currency (128.5p, +7% in sterling). Group adjusted operating margin improved by ~90 basis points to 34.8%.

Robust Cash Generation and Capital Return

Cash conversion 99%; EBITDA > GBP 3.8bn; capital expenditure GBP 525m (5% of revenue); free cash flow > GBP 2.3bn. Completed GBP 1.5bn buyback in 2025 and announced GBP 2.25bn buyback for 2026 (GBP 250m already deployed); dividend increased 7% to 67.5p.

Risk: High Growth and Deep AI Integration

Risk underlying revenue growth 8% and underlying adjusted operating profit growth 10%. Over 90% of divisional revenue from machine-to-machine interactions driven by embedded AI-enabled analytics and decision tools.

STM Momentum and Scientific Volume Growth

STM underlying revenue growth 5% and underlying adjusted operating profit growth 7%. Primary Research submissions grew over 20% in 2025 and published articles grew 10%; new higher-value products (e.g., LeapSpace) launched with positive early signals.

Legal: AI Adoption and Strong Profitability

Legal underlying revenue growth 9% and underlying adjusted operating profit growth 12%. Lexis+ AI enterprise-wide subscription base more than doubled in the past year with usage increasing faster; hundreds of thousands of users and continued roll-out of Protege AI workflows (approaching ~300 workflows).

Exhibitions: Revenue Recovery and Margin Expansion

Exhibitions underlying revenue growth 8% and underlying adjusted operating profit growth 9%. Margin expansion materially ahead of history (Exhibitions margin increase ~250 basis points) supported by portfolio improvements and digital initiatives.

Operational Leverage and Margin Upside

Cost growth managed below revenue growth across business areas; Risk, STM and Legal delivered profit growth 2–3 percentage points ahead of revenue growth; management expects adjusted operating profit growth to continue to exceed revenue growth going forward.

Strategic Positioning Around Content + AI

Clear strategic emphasis on shifting mix toward higher-growth analytics and decision tools, embedding AI across products, leveraging unique, curated content and contributory databases to create differentiated, hard-to-replicate offerings.

Negative Updates

Print and Print-Related Revenue Decline

Proactive reduction in print-related activities led to a reduction in associated revenue of over 20%. Profit from print and print-related activities declined and is expected to continue to decline in the high single digits annually.

Portfolio Effects and Revenue Drag

After portfolio effects and the print step-down, total group revenue growth at constant currency was 4% (versus 7% underlying); in sterling total revenue growth was 2% — portfolio moves and print decline were a slight drag on reported growth.

Currency Headwinds

Strong pound versus dollar impacted sterling-reported results: adjusted operating profit growth in sterling was 4% (vs. higher constant-currency metrics) and adjusted EPS growth in sterling was +7% (vs +10% at constant currency).

M&A Spend Below Long-Term Average

Acquisition spend in 2025 was GBP 270m versus a 10-year average of ~GBP 400m per year; management notes M&A is selective and organic development remains the priority, which may limit near-term inorganic acceleration.

Gradual Adoption and Timing Risk in Some New Markets

STM corporate opportunity and some new product monetization are important but currently small and expected to scale gradually (institutional addressable market rollout likely to be multi-year), creating timing risk to near-term upside.

Competitive and Market Uncertainty around Workflow Tools

Questions from investors about potential incursion by large software/AI workflow competitors in Legal and broader market volatility were raised; management maintains confidence in content moat but competitive dynamics and broader market sentiment represent execution risks.

Company Guidance

Management guidance is for continued strong underlying revenue growth across the Group, with underlying adjusted operating profit growth ahead of revenue and strong adjusted EPS growth on a constant‑currency basis; divisional guidance was consistent with that view (Risk: sustain strong long‑term growth — FY25 underlying revenue +8% and underlying adjusted operating profit +10%; STM: “good to strong” revenue growth — FY25 revenue +5% and op profit +7%; Legal: continued strong revenue growth — FY25 revenue +9% and op profit +12%; Exhibitions: continued strong revenue growth and an improvement in adjusted operating margin — FY25 revenue +8% and op profit +9%, margin +250bps). They reiterated CapEx around 5% of revenue (FY25 CapEx £525m), organic development as top priority, selective M&A (FY25 acquisitions £270m; 10‑year average c.£400m p.a.), dividend up 7% to 67.5p, a £2.25bn buyback for 2026 (£250m deployed), targeted leverage 2.0–2.5x (year‑end 2025 net debt £7.2bn, net debt/EBITDA 2.0x), cash conversion 99%, and an expectation that print‑related profit will continue to decline in the high single digits annually.

Relx Financial Statement Overview

Summary

High-quality profitability and cash generation (stable ~64–65% gross margin, ~19–21% net margin, strong FCF and ~99% cash conversion) support a strong operating profile. Offsetting factors are slower/negative reported revenue in 2025 and a more leveraged balance sheet with equity decline, which reduces flexibility.

Income Statement

Positive

RELX shows consistently strong profitability: gross margin has held around ~64–65% (2020–2024) and net margin has stayed near ~19–21% (2021–2024). Earnings have generally trended up from 2020–2024, and operating profitability remains solid. The key weakness is growth: revenue growth slowed materially and turned slightly negative in 2025 (annual revenue down ~1.6% vs. 2024), suggesting a more mature top-line profile and potential sensitivity to demand softness.

Balance Sheet

Neutral

Leverage is the main constraint. Debt has stayed high (roughly £6.5–£7.3B), and debt relative to equity is elevated (about ~1.8–1.9x in 2021–2024, with a much higher level in 2020). Equity also declined notably in 2025 versus 2024, which reduces balance sheet flexibility. Offsetting this, the business generates strong profits relative to equity (high returns on equity in 2021–2024), indicating efficient capital use—but the capital structure leaves less room for error if conditions weaken.

Cash Flow

Very Positive

Cash generation is a clear strength. Operating cash flow and free cash flow have been consistently strong, with free cash flow rising meaningfully from 2023 to 2024 and remaining very high in 2025. Cash conversion is solid: free cash flow was close to net income in 2024 (roughly ~99%), supporting funding capacity for dividends, buybacks, or debt management. The main weakness is some variability over time (notably weaker free-cash-flow growth in 2020 and more modest improvement in 2023), but overall cash flow quality is strong.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.38B	9.43B	9.16B	8.55B	7.24B
Gross Profit	5.98B	6.13B	5.95B	5.51B	4.68B
EBITDA	3.65B	3.13B	3.31B	3.06B	2.65B
Net Income	2.02B	1.93B	1.78B	1.63B	1.47B
Balance Sheet
Total Assets	14.73B	15.13B	14.92B	15.83B	13.86B
Cash, Cash Equivalents and Short-Term Investments	130.77M	119.00M	155.00M	334.00M	113.00M
Total Debt	7.32B	6.54B	6.50B	6.73B	6.17B
Total Liabilities	12.35B	11.63B	11.48B	12.07B	10.63B
Stockholders Equity	2.36B	3.48B	3.46B	3.78B	3.23B
Cash Flow
Free Cash Flow	2.79B	2.59B	1.98B	1.97B	1.68B
Operating Cash Flow	2.81B	2.61B	2.46B	2.40B	2.02B
Investing Cash Flow	-810.83M	-575.00M	-569.00M	-859.00M	-384.00M
Financing Cash Flow	-1.99B	-2.06B	-2.06B	-1.33B	-1.61B

Relx Technical Analysis

Technical Analysis Sentiment

Negative

Last Price40.18

Price Trends

50DMA

37.71

Negative

100DMA

40.61

Negative

200DMA

45.78

Negative

Market Momentum

MACD

-2.39

Negative

RSI

38.54

Neutral

STOCH

85.01

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RELX, the sentiment is Negative. The current price of 40.18 is above the 20-day moving average (MA) of 32.61, above the 50-day MA of 37.71, and below the 200-day MA of 45.78, indicating a bearish trend. The MACD of -2.39 indicates Negative momentum. The RSI at 38.54 is Neutral, neither overbought nor oversold. The STOCH value of 85.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RELX.

Relx Risk Analysis

Relx disclosed 17 risk factors in its most recent earnings report. Relx reported the most risks in the "Tech & Innovation" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Relx Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NYT	78 Outperform	$12.26B	36.12	―	0.95%	8.43%	21.38%
PSO	74 Outperform	$7.85B	14.63	11.74%	2.11%	1.93%	34.40%
RELX	69 Neutral	$54.16B	20.59	72.23%	2.00%	5.32%	6.06%
WLY	69 Neutral	$1.56B	15.73	13.61%	4.48%	-5.33%	―
SCHL	65 Neutral	$829.91M	-159.23	-0.35%	2.78%	2.53%	-23.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

RELX

Relx

31.46

-16.92

-34.97%

WLY

John Wiley Sons Cl A

29.87

-8.55

-22.26%

NYT

New York Times

77.99

30.56

64.42%

PSO

Pearson

12.61

-4.08

-24.45%

SCHL

Scholastic

32.44

12.09

59.39%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026