Experian PLC (LSE:EXPN) shares led the FTSE 100 fallers on Wednesday morning, down 4.1% to 2,596p, despite the credit checking group reporting record annual results and announcing a fresh $1 billion share buyback programme.
Guidance for the coming year of 6-8% organic sales growth compared to the City consensus of 8%, which chief executive Brian Cassin said was "prudent" bearing in mind current Middle East uncertainties.
For the past year to March, revenue from ongoing activities came in at $8.43 billion, up 13%, while benchmark earnings before interest and tax increased 15% to $2.41 billion. Statutory pre-tax profit climbed 26% to $1.95 billion, helped by revenue growth and lower restructuring costs.
The company increased its full-year dividend by 11% to 69.25 US cents per share and said it would launch a new $1 billion share repurchase programme running through to June 2027.
Cassin pointed out that it was "a record year for Experian, with performance at the upper end of our expectations and strong strategic momentum."
Looking ahead, he said: "We expect another year of strong growth in FY27, supported by continued expansion of our addressable markets, successful strategic progress, further productivity gains, and whilst taking a prudent approach to macroeconomic uncertainties linked to the Middle East."
He guided to another year of double-digit benchmark earnings per share growth in the 2027 financial year, supported by revenue growth of 8-11%, organic growth of 6-8% and further margin expansion.
Broker Panmure Liberum said the FY26 results were "in-line on profits and slightly below consensus on revenue", where 8% organic growth was in-line with forecasts, with the UK's 2% growth the weakest of the main regions.
"Experian’s share price has fallen by 19% YTD due to fears of disruption from AI, which contrasts with EPS CAGR of 13-14% over FY26-27E."
Analysts at Stifel said the top-line growth and margin improvement made for "an impressive performance", while the outlook for total revenue growth of 8-11% and EBIT margin expansion of 50 basis points were at the higher end of the medium-term framework.
"We view this as a good update from Experian, given the buyback and outlook," the analysts added, also agreeing that the shares are down "on AI disruption concerns".