Thomson Reuters (NASDAQ:TRI) Issues Earnings Results

Key Points

• Thomson Reuters beat Q1 expectations with $1.23 EPS (vs. $1.19 est.), organic revenue up ~8% and adjusted EBITDA +9% to $881M, while management reaffirmed full‑year organic growth of 7.5%–8% and a ~40% EBITDA margin.
• The company is seeing rapid AI adoption — reaching 1 million advanced AI users, accelerated Westlaw Advantage and CoCounsel uptake, and touts its in‑house legal LLM “Thompson” as outperforming frontier models as part of a claimed “fiduciary‑grade AI” moat.
• Capital returns remain a focus: Thomson Reuters raised its dividend by 10% (to $0.655 quarterly), repurchased $262M in Q1, completed a $605M return of capital and cites more than $9B of capacity through 2028 for buybacks, dividends or M&A.

Thomson Reuters (NASDAQ:TRI - Get Free Report) announced its earnings results on Tuesday. The company reported $1.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.19 by $0.04, Briefing.com reports. Thomson Reuters had a net margin of 20.09% and a return on equity of 14.51%. During the same quarter in the previous year, the firm posted $1.12 EPS. The business's quarterly revenue was up 9.8% on a year-over-year basis.

Here are the key takeaways from Thomson Reuters' conference call:

• Strong start to 2026 with organic revenue up 8% (big three ~9%), adjusted EBITDA up 9% to $881M, adjusted EPS $1.23 (+10%), and management reaffirmed full‑year organic growth of 7.5%–8% and a ~40% EBITDA margin (+100 bps).
• Rapid AI adoption — the company reached 1 million advanced AI users; Westlaw Advantage adoption is faster than prior upgrades (Advantage users and deep research searches >7x in six months), CoCounsel skill users have quadrupled YoY, and CoCounsel Tax & Audit activity is ~5x since September.
• Proprietary model and positioning — the in‑house legal LLM “Thompson” is said to outperform frontier models on specific legal tasks, and Thomson Reuters emphasizes its “fiduciary‑grade AI” moat built on authoritative content, domain experts, privacy/governance, and customer support.
• Strong capital allocation — raised the dividend 10%, repurchased $262M in Q1, completed a $605M return of capital and share consolidation (~2% fewer shares), and cites >$9B of estimated capital capacity through 2028 for buybacks, dividends or M&A.
• Near‑term headwinds include sluggish government legal growth (1% in Q1), a 5% decline in Global Print, rising LLM costs and expected Q2 EBITDA margin compression to ~38% due to seasonality and higher AI-related costs.

Thomson Reuters Trading Up 2.5%

TRI traded up $2.43 during trading hours on Tuesday, reaching $98.18. The company's stock had a trading volume of 606,437 shares, compared to its average volume of 2,443,736. The stock has a market cap of $43.49 billion, a PE ratio of 29.58, a P/E/G ratio of 1.41 and a beta of 0.80. Thomson Reuters has a fifty-two week low of $79.71 and a fifty-two week high of $218.42. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.64 and a quick ratio of 0.64. The business's 50-day moving average is $93.63 and its 200-day moving average is $116.45.

Thomson Reuters Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 17th were issued a $0.655 dividend. This is a boost from Thomson Reuters's previous quarterly dividend of $0.60. This represents a $2.62 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date was Tuesday, February 17th. Thomson Reuters's payout ratio is currently 78.68%.

Analyst Ratings Changes

A number of equities analysts recently weighed in on TRI shares. Scotiabank restated an "outperform" rating and set a $156.00 price target (down from $189.00) on shares of Thomson Reuters in a research report on Friday, February 6th. Wells Fargo & Company set a $87.00 target price on shares of Thomson Reuters and gave the stock an "equal weight" rating in a research note on Tuesday, April 14th. The Goldman Sachs Group set a $111.00 target price on Thomson Reuters and gave the stock a "buy" rating in a report on Saturday, February 7th. Bank of America increased their price target on Thomson Reuters from $100.00 to $115.00 and gave the company a "neutral" rating in a report on Tuesday, March 10th. Finally, BMO Capital Markets set a $165.00 price objective on Thomson Reuters in a research report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $148.23.

Institutional Investors Weigh In On Thomson Reuters

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Empowered Funds LLC purchased a new position in shares of Thomson Reuters during the 4th quarter worth $30,000. Timmons Wealth Management LLC purchased a new stake in Thomson Reuters in the 4th quarter valued at about $42,000. J.Safra Asset Management Corp acquired a new position in Thomson Reuters in the fourth quarter valued at about $56,000. Summit Securities Group LLC boosted its stake in Thomson Reuters by 33,800.0% during the fourth quarter. Summit Securities Group LLC now owns 678 shares of the company's stock worth $89,000 after buying an additional 676 shares during the period. Finally, Smartleaf Asset Management LLC boosted its stake in Thomson Reuters by 24.1% during the fourth quarter. Smartleaf Asset Management LLC now owns 762 shares of the company's stock worth $101,000 after buying an additional 148 shares during the period. Hedge funds and other institutional investors own 17.31% of the company's stock.

Thomson Reuters Company Profile

Thomson Reuters is a global provider of information and technology solutions for professional markets, including financial services, legal, tax and accounting, and media industries. The company delivers a range of data, analytics and software tools designed to help customers make informed decisions, manage risk and stay compliant with evolving regulations. Its key offerings include the Eikon financial data platform, Westlaw legal research service, Checkpoint tax and accounting solution, and Reuters News, which supplies real‐time journalism to media organizations worldwide.

Formed in 2008 through the merger of Canada's Thomson Corporation (founded in 1934) and the UK's Reuters Group (established in 1851), Thomson Reuters has built on a legacy of journalistic integrity and information innovation.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.