Experian shares fell to a two-year low of around 2,700p in late January as investors expressed unease about rapid advances in AI-driven credit scoring platforms. Market participants highlighted the success of rival algorithms that analyze thousands of data points to underwrite loans more efficiently, raising questions about the long-term defensibility of traditional credit bureaux. Over the past three months, Experian’s market capitalisation declined by approximately £2.5 billion, reflecting heightened scrutiny of its core data-analytics business.

In response to the share-price weakness, Experian unveiled a surprise $1 billion share buyback programme on Thursday, to run until June 2027. Analysts at three major brokerages welcomed the move, noting that it should shore up confidence while the group continues to invest in AI and cloud infrastructure. At the current pace, the buyback represents close to 3 percent of the outstanding share count, a level that Morgan Stanley estimates could boost earnings per share growth by 1.5 percent annually through fiscal 2027.

Following the announcement, Experian stock climbed 2.4 percent to 2,759p, marking its strongest daily performance since early December. The company reiterated guidance for the financial year ending March, forecasting a leverage ratio of around 1.7 times net debt to EBITDA and free cash flow growth of 8 percent year-on-year. Investors responded positively to the combination of a robust cash-return policy and management’s commitment to maintain investment in product innovation.