Is RELX Stock a Steal in the FTSE 100 After 50% Drop?

Rowan Ashford

Published: February 12, 2026 8:04 PM ET

Is RELX Stock a Steal in the FTSE 100 After 50% Drop?

Shares in RELX (LSE: REL), a prominent data company within the FTSE 100, have experienced a significant decline recently, dropping nearly 50% over the past six months. This steep decline has raised questions among investors about the potential for a bargain in the current market. The downturn is largely attributed to growing concerns over artificial intelligence (AI) developments from competitors such as Anthropic and OpenAI.

2025 Performance Highlights

Despite recent stock struggles, RELX reported solid performance results for the fiscal year 2025. Key figures include:

Revenue increased by 7% to £9,590 million.
Adjusted operating profit rose by 9% to £3,342 million.
Adjusted earnings per share (EPS) reached 128.5p, a 10% increase at constant currency.

The company’s Risk and Legal segments led the performance, showing growth of 8% and 9%, respectively.

Positive Outlook for 2026

Looking ahead to 2026, RELX expressed a confident outlook. Management reported positive momentum across various segments, predicting another strong year of growth in both revenue and adjusted operating profit. They specifically noted:

Continued strong revenue growth in the Risk and Legal segments.
Adjusted operating profit growth expected to outpace revenue growth.

CEO Erik Engstrom indicated that AI will not pose a significant threat in the near future. Rather, he believes AI will enhance customer value by enabling faster product development and additional functionality.

Dividend Increase and Stock Buyback Plans

Adding to the appeal for investors, RELX raised its dividend by 7% to 67.5p per share. This decision suggests a level of confidence in the company’s financial stability, even amid challenges posed by AI.

Furthermore, RELX plans to conduct a substantial stock buyback, with intentions to repurchase £2.25 billion in shares during 2026, an increase from £1.5 billion in 2025. This move indicates management’s belief that the stock is currently undervalued.

Analyzing the Stock’s Value

For investors considering whether RELX stock represents a bargain in the FTSE 100, several factors stand out:

Forward price-to-earnings (P/E) ratio stands at a low 14, which is favorable for a growing data company.
The relative strength index (RSI) is at 17, classifying the stock as massively oversold, as readings below 30 indicate such conditions.

While AI poses potential challenges to some divisions, including the Lexis+ platform, the overall consensus appears positive. The current market conditions present a compelling risk/reward scenario for prospective investors.

Conclusion

Given the solid performance indicators, positive future expectations, and strategic moves by management, RELX stock deserves attention. Investors looking for value opportunities within the FTSE 100 might find this stock worth a closer examination in light of its recent performance and growth potential.