Investors in RELX, the London-listed information and analytics giant, can expect a quiet nine-month trading update on October 22, according to Bank of America Global Research. The bank forecasts underlying revenue growth of around 7%, roughly in line with the first half of the year, and views the update more as a confidence check than a market-moving catalyst.
The real event to watch, BofA says, is the company's investor seminar on November 3, where artificial intelligence is expected to take center stage in the growth story. The bank believes attention will shift from RELX's Legal division to its STM (scientific, technical and medical) and Risk segments, which are seen as key drivers of the company's AI-fueled future.
What is RELX?
RELX is a global provider of information-based analytics and decision tools. Its major divisions include Legal (LexisNexis), STM (ScienceDirect, Scopus), Risk (fraud and compliance solutions) and Exhibitions. The company has been a consistent performer, with recurring subscription revenue and a track record of steady growth.
For everyday investors, RELX is often seen as a defensive growth stock—one that can deliver steady gains even when the broader economy wobbles. Its products are deeply embedded in professional workflows, from lawyers researching case law to scientists accessing journals and risk managers screening transactions.
Why AI matters for RELX
Artificial intelligence has become a central theme across the information services sector. Companies like RELX are well-positioned because they own vast proprietary datasets, which are essential for training and refining AI models. BofA's note suggests that the November seminar will likely highlight how RELX is embedding AI into its products to improve efficiency and create new revenue streams.
The shift in focus from Legal to STM and Risk is notable. While Legal has been a strong performer, the STM and Risk divisions may offer more compelling AI-driven growth opportunities. For instance, Risk solutions that use AI to detect fraud or assess creditworthiness are in high demand, and STM's analytics tools are increasingly used in drug discovery and academic research.
This is part of a broader trend where AI stocks have seen volatility as investors weigh the costs and benefits of the technology. RELX's approach, however, is more about integrating AI into existing products rather than building massive data centers, which may appeal to investors wary of heavy capital spending.
What to expect from the trading update
BofA's forecast of 7% underlying revenue growth suggests RELX is maintaining its momentum. The company has consistently delivered mid-single-digit to low-double-digit growth, driven by its subscription-based model and high retention rates. The October 22 update is unlikely to change the investment thesis, but it will provide a check on whether the company is on track.
Investors will also be listening for any commentary on currency effects, which can impact reported results, and on the performance of the Exhibitions division, which is more cyclical and tied to the health of the global economy.
What it means for investors
For those holding RELX shares, the upcoming update is unlikely to cause major swings. The stock has been a steady compounder, and the seminar could provide a catalyst if it reveals new AI-driven products or growth targets. However, as with any company, there are risks: competition from new AI-native startups, potential regulatory scrutiny of data usage, and the possibility that AI investments take longer to pay off than expected.
BofA's view is that the update is a "confidence check"—a chance for management to reassure investors that the business is on solid footing. The seminar, meanwhile, could be a more significant event, as it may set the tone for the company's AI strategy for years to come.
Investors should also consider the broader context. The market has been steady as investors await key inflation data, and any surprises in the macro environment could affect RELX's valuation. Additionally, the AI data-center boom has raised concerns about debt-fueled expansion, but RELX's asset-light model may be less exposed to such risks.
Ultimately, the October 22 update is likely to be a non-event, but the November 3 seminar could provide a clearer picture of how RELX plans to stay ahead in the AI era. For long-term investors, the key is to watch whether the company can translate its data advantages into sustained revenue growth.
