Thomson Reuters (NASDAQ:TRI) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Thomson Reuters beat earnings expectations: Quarterly EPS was $0.99 versus the $0.96 consensus, up from $0.87 a year earlier, while revenue rose 9.5% year over year.
• Management raised its growth outlook: Full-year organic revenue growth guidance increased to approximately 8%, with Big Three segment growth expected at 9.5%–10%. CoCounsel also surpassed one million users, highlighting continued AI momentum.
• Execution and valuation remain concerns: Tax, Audit & Accounting underperformed, near-term margins face pressure from severance and investment spending, and shares fell despite the earnings beat. The company is also selling a 51% stake in Global Print to KKR for approximately $500 million.

Thomson Reuters (NASDAQ:TRI - Get Free Report) released its earnings results on Wednesday. The company reported $0.99 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.03, Briefing.com reports. Thomson Reuters had a return on equity of 14.99% and a net margin of 19.93%.During the same period in the prior year, the company earned $0.87 EPS. The company's revenue for the quarter was up 9.5% compared to the same quarter last year.

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

• Revenue outlook raised: Thomson Reuters reported 8% total organic revenue growth in Q2, with Big Three growth accelerating to 10%, and raised its full-year total and organic revenue outlook to approximately 8%. Big Three guidance was increased to 9.5%–10%.
• AI momentum continued: CoCounsel surpassed one million users, with rising usage and strong early feedback on its next-generation legal product. The company plans to use its proprietary Thomson large language model to improve speed, scalability, and costs, while exploring sovereign-AI and standalone commercialization opportunities.
• Portfolio optimization and capital returns: Thomson Reuters agreed to sell a 51% stake in Global Print to KKR for approximately $500 million, which management expects to be 60–70 basis points accretive to organic growth and roughly margin-neutral after closing. Share repurchases and other capital-return actions have reduced the share count by approximately 3%.
• Tax, Audit & Accounting execution was weaker than expected: Transactional growth fell short because of timing and go-to-market challenges, prompting leadership and talent changes. Management expects improvement in the second half, aided by new AI offerings and revenue-recognition normalization.
• Near-term margin pressure remains: Q3 adjusted EBITDA margin is expected to be approximately 36%, affected by $19 million of severance, continued innovation and automation investment, marketing spending, and M&A dilution. Management maintained its full-year margin outlook of approximately 40%, relying on fourth-quarter savings and operating leverage.

Thomson Reuters Stock Performance

Shares of TRI traded down $10.54 during mid-day trading on Wednesday, reaching $98.61. The company's stock had a trading volume of 4,368,484 shares, compared to its average volume of 2,372,829. The company has a current ratio of 0.60, a quick ratio of 0.60 and a debt-to-equity ratio of 0.11. Thomson Reuters has a 1-year low of $76.28 and a 1-year high of $203.43. The business has a 50-day simple moving average of $88.27 and a two-hundred day simple moving average of $93.66. The stock has a market cap of $42.96 billion, a P/E ratio of 28.69, a PEG ratio of 1.51 and a beta of 0.75.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Weiss Ratings downgraded Thomson Reuters from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, June 23rd. TD Securities reissued a "buy" rating on shares of Thomson Reuters in a report on Wednesday, May 6th. Scotiabank set a $138.00 target price on shares of Thomson Reuters and gave the company a "sector outperform" rating in a research note on Wednesday, May 6th. Wells Fargo & Company set a $85.00 price target on shares of Thomson Reuters and gave the stock an "equal weight" rating in a research report on Tuesday, June 30th. Finally, Barclays reiterated an "overweight" rating and issued a $130.00 price target (down from $170.00) on shares of Thomson Reuters in a research note on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Thomson Reuters currently has a consensus rating of "Moderate Buy" and an average target price of $143.92.

Thomson Reuters News Summary

Here are the key news stories impacting Thomson Reuters this week:

• Positive Sentiment: Thomson Reuters reported second-quarter adjusted earnings of $0.99 per share, above the $0.96 analyst consensus and up from $0.87 a year earlier. Revenue increased approximately 9% year over year, while net income and margins also improved. Thomson Reuters Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Growth was particularly strong in Thomson Reuters’ core “Big 3” businesses—Legal Professionals, Corporates, and Tax, Audit & Accounting Professionals—with organic revenue growth of approximately 10%. Thomson Reuters Reports Second-Quarter 2026 Results
• Positive Sentiment: Management raised its 2026 outlook to approximately 8% total-company organic revenue growth and 9.5%–10% organic growth for the Big 3 segments, signaling continued demand for its professional information and AI-enabled products. Thomson Reuters Reports Higher Second-Quarter Revenue and Raises Forecast
• Neutral Sentiment: The company agreed to sell a 51% stake in its Global Print business to KKR for approximately $500 million in gross proceeds. The transaction could streamline the portfolio and provide capital, although print is a relatively small part of the broader growth story. Thomson Reuters Reports Second-Quarter 2026 Results
• Negative Sentiment: Despite the earnings and guidance beats, the stock moved lower, suggesting investors were focused on elevated expectations, valuation, or the possibility that the improved outlook was already priced in. The company’s reported full-year revenue guidance of about $8.1 billion was broadly in line with consensus, limiting the immediate upside surprise. Why Thomson Reuters Stock Is Down

Institutional Investors Weigh In On Thomson Reuters

A number of large investors have recently added to or reduced their stakes in TRI. Empowered Funds LLC bought a new position in Thomson Reuters during the fourth quarter worth $30,000. Timmons Wealth Management LLC bought a new position in shares of Thomson Reuters in the fourth quarter valued at about $42,000. J.Safra Asset Management Corp bought a new position in shares of Thomson Reuters in the fourth quarter valued at about $56,000. Summit Securities Group LLC lifted its stake in shares of Thomson Reuters by 33,800.0% during the 4th 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 last quarter. Finally, Smartleaf Asset Management LLC lifted its stake in shares of Thomson Reuters by 24.1% during the 4th 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 last quarter. Institutional investors own 17.31% of the company's stock.

About Thomson Reuters

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source