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How AI Product Uptake At RELX (LSE:REL) Has Changed Its Investment Story

Simply Wall St · 5d ago
  • RELX recently reported 7% underlying revenue growth and 10% EPS growth, alongside faster 6% expansion in Elsevier's STM division and strong uptake of AI-enabled tools across Legal, STM and Risk.
  • While RELX leans into proprietary AI platforms such as Protégé, LeapSpace and Accurint One, at least one active manager has exited the stock, citing concern that emerging AI capabilities could gradually erode some core information businesses.
  • We will now examine how RELX's investment narrative is affected by this AI-driven product momentum and the fund exit.

Scan how other AI driven data and analytics businesses are setting up for the next leg of this theme with a curated list of 42 profitable AI stocks that aren't just burning cash

RELX Investment Narrative Recap

To own RELX, you need to be comfortable that its core edge comes from proprietary data and workflows, not just generic AI, and that customers keep paying for that differentiation. The latest half shows 7% underlying revenue growth and 10% EPS growth, which supports that view. In the short term, execution around AI rollouts looks like the key catalyst, while the Hennessy exit mainly highlights debate on upside rather than a new operational shock.

The bigger operational risk still sits in whether AI tools compress pricing or make some content feel commoditised, especially in Legal and STM. Heavy AI investment could also weigh on margins if monetisation lags. Open access policies and concentrated subscriptions remain background issues to track, although nothing in this news flow materially shifts those risks right now.

The flashpoint in this debate is LexisNexis and its new AI platforms, and Accurint One for law enforcement is a good example. It pulls together data, mapping, collaboration and governed AI in a single environment. That sort of product tries to keep RELX in the workflow, not just at the data layer, which is where pricing power tends to live.

For catalysts, tools like Accurint One and Protégé matter because they test whether RELX can keep turning content into must have decision systems. Strong adoption would support recurring revenue and help offset worries that AI native rivals or cheaper analytics could drag on margins. If uptake disappoints or customers push for lower pricing instead, the concerns highlighted by the exiting fund will feel more pressing.

RELX's current analyst story points to revenue of £12.0b and earnings of £2.9b by 2029, based on expectations of 7.3% yearly top line growth and an earnings increase of about £0.6b from £2.3b today.

Uncover why RELX's fair value indicates a 13% potential upside to its current price that may not last much longer.

LSE:REL 1-Year Stock Price Chart
LSE:REL 1-Year Stock Price Chart

Exploring Other Perspectives

Some of the most optimistic analysts frame the real catalyst around AI driven upsell. They focus on RELX turning tools like Lexis+ AI and Protégé into richer subscriptions, with forecasts before this news event for revenue to reach about £12.3b and earnings of £3.1b by 2029. That view is far more upbeat than consensus expectations of £12.0b and £2.9b. With Hennessy exiting on fears that AI could eat into core franchises, you now see how sharply opinions can diverge. Use this spread in forecasts as a prompt to explore several narratives, then decide which seems closer to how you think AI adoption might reshape RELX from here.

Explore 7 other RELX fair value estimates, including one that suggests as much as 46% potential increase from the current price.

Decide For Yourself

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

  • A great starting point for your RELX research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
  • See our latest analysis for RELX. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate the overall financial health of RELX at a glance.

Looking for more investment ideas beyond RELX?

If the RELX story has sharpened how you think about quality, pricing power and risk, use that same lens across the wider market with the Simply Wall St Screener. Curated lists help you move quickly from theory to a concrete watchlist.