Thomson Reuters (NASDAQ:TRI) Issues Earnings Results, Misses Expectations By $0.08 EPS

Thomson Reuters (NASDAQ:TRI) announced its quarterly earnings results on Tuesday. The company reported $0.81 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.89 by ($0.08), Zacks reports. Thomson Reuters had a net margin of 21.22% and a return on equity of 15.82%. The company had revenue of $1.80 billion during the quarter, compared to analyst estimates of $1.80 billion. During the same quarter in the prior year, the company posted $0.85 earnings per share. The firm’s revenue for the quarter was up 2.9% on a year-over-year basis.

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

• Strong third-quarter momentum: Organic revenue growth accelerated to 10%, with the Big 3 segments also growing 10% for a second consecutive quarter. Adjusted EBITDA rose 10% to $651 million, while adjusted EPS increased 14% to $0.81.
• Full-year outlook raised: Thomson Reuters now expects approximately 9.5% total revenue growth and 8.5%–9% organic growth in 2026, up from its previous 8% outlook. The Big 3 growth outlook remains 9.5%–10%.
• AI adoption is accelerating: GenAI-enabled products accounted for 34% of annualized contract value, up from 24% a year ago. Next-generation CoCounsel Legal engagement, retention, usage, and customer satisfaction exceeded the prior product’s records, while CoCounsel Tax, Audit & Accounting and the Thomson large-language-model initiative broaden the growth opportunity.
• Near-term growth and margin dynamics are mixed: Fourth-quarter organic growth is expected to moderate to approximately 8% as Reuters laps prior AI licensing revenue and corporate transactional revenue normalizes. Management said it could achieve higher margins in 2027 but may reinvest operating leverage in AI, product development, sales, and market expansion, delaying some margin gains.
• Pagero and transactional compliance remain growth drivers: Pagero now supports e-invoicing requirements in more than 90 jurisdictions, with roughly 50 additional mandates expected over the next three years. Thomson Reuters said its broader transactional compliance business is growing at a rate in the teens and gaining market share.

Thomson Reuters Stock Performance

NASDAQ:TRI opened at $110.18 on Wednesday. The company has a debt-to-equity ratio of 0.12, a current ratio of 0.51 and a quick ratio of 0.51. The firm has a 50-day moving average of $105.18 and a two-hundred day moving average of $97.23. The stock has a market cap of $47.75 billion, a P/E ratio of 29.33, a PEG ratio of 2.35 and a beta of 0.69. Thomson Reuters has a 1-year low of $76.28 and a 1-year high of $157.63.

Thomson Reuters Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Wednesday, November 18th will be given a $0.6550 dividend. This represents a $2.62 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Wednesday, November 18th. Thomson Reuters’s dividend payout ratio is presently 69.68%.

Thomson Reuters News Summary

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

• Positive Sentiment: Thomson Reuters reported 10% growth in both total and organic revenue in the third quarter, with organic growth also at 10% across its “Big 3” businesses. Management cited encouraging customer engagement with the next generation of CoCounsel Legal and the launch of CoCounsel Tax, Audit & Accounting. Third-quarter 2026 results
• Positive Sentiment: The company declared a quarterly dividend of $0.655 per share, payable December 10 to shareholders of record November 18. Quarterly dividend announcement
• Neutral Sentiment: Following the sale of a 51% stake in Global Print for about $500 million, Thomson Reuters updated its full-year outlook to exclude that business: approximately 9.5% total revenue growth, 8.5%–9.0% organic revenue growth, and an adjusted EBITDA margin of about 39%. Guidance for the Big 3 segments was unchanged. Third-quarter 2026 results
• Negative Sentiment: Quarterly EPS of $0.81 missed the $0.89 consensus, while revenue of $1.80 billion was roughly in line with estimates. Higher investment costs and software amortization weighed on profit; earnings also faced a comparison with a year-earlier asset-sale gain. The shortfall appears to be the main driver of the shares’ decline. Why Thomson Reuters stock fell

Analyst Upgrades and Downgrades

A number of research analysts have commented on the company. Scotiabank restated a “sector outperform” rating and set a $135.00 price objective on shares of Thomson Reuters in a research note on Thursday, August 6th. Weiss Ratings upgraded Thomson Reuters from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 15th. Jefferies Financial Group began coverage on Thomson Reuters in a report on Tuesday, October 20th. They set a “buy” rating and a $130.00 target price on the stock. Barclays dropped their target price on Thomson Reuters from $140.00 to $130.00 and set an “overweight” rating on the stock in a report on Tuesday, September 8th. Finally, RBC Dominion Securities boosted their price target on Thomson Reuters from $124.00 to $130.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 28th. Twelve analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $127.99.

About Thomson Reuters

Thomson Reuters is a global provider of information, software and technology solutions for professionals and institutions. The company serves customers in the legal, tax, accounting, audit, corporate, government, risk and compliance sectors, as well as the media industry. Its offerings combine authoritative content with workflow tools, data analytics and artificial intelligence.

Key products and services include Westlaw and Practical Law for legal research and practice management; Checkpoint and ONESOURCE for tax and accounting professionals; Confirmation for audit-related workflows; and CoCounsel, an AI-assisted legal technology platform.