Thomson Reuters (TRI) AI Stock Analysis

• Market Cap: C$57.02B
• Dividend Yield: 1.83%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 38.7
• Beta (1Y): 0.35
• Revenue Growth: 5.89%
• EPS Growth: -21.32%
• Country: CA
• Employees: 26,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 1.46
• Shares Outstanding: 444,765,660
• 10 Day Avg. Volume: 955,832
• 30 Day Avg. Volume: 1,159,212
• PEG Ratio: -1.27
• Price to Book (P/B): 4.98
• Price to Sales (P/S): 7.78
• P/FCF Ratio: 28.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$184.23
• Price Target Upside: 43.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 6.01
• Revenue Forecast (FY): C$11.01B

• Rating: 69 Neutral
• Price Target: C$144.00 ▲(12.32% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is supported primarily by strong financial performance and constructive guidance/capital-return commitments from the latest earnings call. This is meaningfully offset by very weak technical conditions (deeply negative trend and momentum). Valuation is moderately demanding on P/E, with the dividend providing partial support.

Positive Factors

Consistent Organic Revenue Growth

Steady organic growth across core professional segments reflects recurring subscription demand and entrenched workflow integration. Sustained mid-single-digit to high-single-digit organic growth indicates durable customer renewals, cross-sell potential, and structural demand for legal, tax and corporate content over a multi-year horizon.

Strong Free Cash Flow & Capital Flexibility

High and growing free cash flow combined with recent $1B buyback, dividend hike and ~$11B of capital capacity provide durable financial flexibility. This supports disciplined buybacks, tuck-in M&A, and shareholder returns while preserving balance-sheet resilience and funding for strategic investments over the next several years.

Commercializing AI-enabled Products

Rapid adoption of GenAI features into contract value signals meaningful product-market fit. Embedding AI into workflows can increase stickiness, expand ACV, enable premium pricing and drive operational efficiencies long term, creating a structural growth and margin tailwind if conversion continues across enterprise customers.

Negative Factors

Margin Volatility / Recent Gross Margin Dip

Reported margins have shown year-to-year volatility and a notable recent gross margin decline, which undermines predictability of profitability. Even with targeted margin expansion, inconsistent margin performance complicates forecasting, reduces operating leverage reliability, and may constrain sustained improvements in return metrics.

Print Decline & Government Exposure

Ongoing structural print decline and slower government demand create durable revenue pressure in certain end markets. Government cancellations and print secular decline increase segment volatility, limit near-term upside in some customer cohorts, and require continued product migration to digital to offset legacy revenue erosion.

One-time Charges and Interest Pressure

Restructuring/severance and higher-than-expected interest expense create near-term margin headwinds and indicate implementation costs from automation. While not large versus scale, recurring automation-related charges and financing cost variability can depress short-term margins and complicate steady margin expansion until productivity gains fully offset transition costs.

Thomson Reuters Business Overview & Revenue Model

Company Description

Thomson Reuters Corporation provides business information services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in five segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print. The Legal Professionals segment offers research and workflow products focusing on legal research and integrated legal workflow solutions that combine content, tools, and analytics to law firms and governments. The Corporates segment provides a suite of content-enabled technology solutions for legal, tax, regulatory, compliance, and IT professionals. The Tax & Accounting Professionals segment offers research and workflow products focusing on tax offerings and automating tax workflows to tax, accounting, and audit professionals in accounting firms. The Reuters News segment provides business, financial, and international news to media organizations, professional, and news consumers through news agency and industry events. The Global Print segment offers legal and tax information primarily in print format to legal and tax professionals, governments, law schools, and corporations. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company was founded in 1851 and is headquartered in Toronto, Canada. Thomson Reuters Corporation is a subsidiary of The Woodbridge Company Limited.

How the Company Makes Money

Thomson Reuters primarily makes money by selling subscription and recurring-access products that embed its proprietary content and software into customers’ daily professional workflows. A significant share of revenue comes from ongoing contracts for legal research and legal workflow solutions (e.g., platforms and tools used by law firms, courts, and legal departments), tax and accounting software and content (used by accounting firms and corporate tax departments for compliance, preparation, and research), and corporate compliance/risk and regulatory content offerings sold to businesses that need to manage legal, regulatory, and governance obligations. In addition to recurring subscriptions, the company earns revenue from transactional and usage-based services (such as certain research, filing, or document-related services where applicable), and from professional services tied to implementation, integration, training, and support for enterprise customers. Reuters News contributes revenue through a mix of products and services including licensing and distribution of news content to third parties and customers, and other news-related offerings; advertising can contribute in some areas of news operations, but specific contribution details are not provided here. Overall, the company’s earnings are driven by renewals and expansion within its installed customer base, multi-year enterprise agreements, and bundling of content with software to provide end-to-end workflow solutions; detailed partner-by-partner economics are not available here, so any specific partnership revenue splits are null.

Thomson Reuters Financial Statement Overview

Summary

Strong overall financial quality with steady revenue growth, generally healthy profitability, conservative and improving leverage, and solid free cash flow generation. Main offsets are volatility in reported margins (including a notable gross margin dip in the latest year) and moderation in net profitability/returns versus peak years.

Income Statement

Revenue has grown steadily across the period, with the latest year showing a re-acceleration in growth. Profitability is generally strong with healthy operating and EBITDA margins, and results improved materially after the 2021 loss. However, reported margins are volatile year-to-year (including an outlier drop in gross margin in 2025 versus prior years), and net margin stepped down from the very high levels seen in 2023–2024.

Balance Sheet

Leverage looks conservative and improving, with debt-to-equity declining meaningfully over the last several years and remaining low in the most recent year. Equity is sizable relative to assets, supporting balance-sheet resilience. The main watch-out is that returns on equity have moderated versus the stronger 2022–2024 levels (and were negative in 2021), suggesting profitability has become less efficient recently despite the stronger capital position.

Cash Flow

Cash generation is solid and trending upward: operating cash flow and free cash flow have both increased over time, and the most recent year shows strong free cash flow growth. Free cash flow remains consistently substantial relative to earnings, indicating good earnings quality. That said, cash flow conversion is not perfect—operating cash flow runs below net income in the latest years—and free cash flow growth has been uneven, with slower growth in several years before the recent jump.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.61B	7.26B	6.79B	6.63B	6.35B
Gross Profit	2.00B	5.76B	2.70B	4.22B	3.87B
EBITDA	3.06B	3.05B	2.95B	3.01B	2.02B
Net Income	1.53B	2.21B	2.69B	1.89B	-553.00M
Balance Sheet
Total Assets	17.91B	18.44B	18.68B	21.71B	22.15B
Cash, Cash Equivalents and Short-Term Investments	510.07M	1.89B	1.36B	1.27B	886.00M
Total Debt	2.12B	3.08B	3.54B	4.76B	3.79B
Total Liabilities	6.02B	6.43B	7.62B	9.76B	8.31B
Stockholders Equity	11.89B	12.01B	11.06B	11.95B	13.83B
Cash Flow
Free Cash Flow	2.05B	1.85B	1.80B	1.32B	1.29B
Operating Cash Flow	2.70B	2.46B	2.34B	1.92B	1.77B
Investing Cash Flow	-1.31B	680.00M	3.51B	-462.00M	-504.00M
Financing Cash Flow	-2.88B	-2.46B	-5.63B	-1.16B	-2.27B

Thomson Reuters Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 128.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRI, the sentiment is Negative. The current price of 128.2 is below the 20-day moving average (MA) of 134.78, below the 50-day MA of 142.49, and below the 200-day MA of 205.89, indicating a bearish trend. The MACD of -1.92 indicates Positive momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 8.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TRI.

Thomson Reuters Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRI	69 Neutral	C$57.02B	38.75	12.40%	1.83%	5.89%	-21.32%
TCL.A	67 Neutral	C$1.96B	16.26	7.69%	8.32%	-2.45%	44.20%
CGY	66 Neutral	C$875.64M	30.99	6.36%	1.98%	3.69%	92.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DCM	55 Neutral	C$92.40M	9.79	26.87%	5.99%	-7.01%	―

Thomson Reuters Corporate Events

Thomson Reuters Sets Shareholder Vote on US$605 Million Return of Capital and Reverse Split

Thomson Reuters has filed its management proxy circular and related materials ahead of a special shareholder meeting to vote on a proposed US$605 million return of capital and a proportionate share consolidation. The transaction includes an estimated US$1.36 per common share cash distribution, followed by a reverse stock split designed to maintain capital structure alignment.

The return of capital is structured to be generally tax-free for Canadian shareholders, while eligible investors in other jurisdictions, including the U.S., may opt out and forgo the cash in order to potentially achieve more favorable tax treatment. Shareholders of record as of March 6, 2026 may vote at the rescheduled April 28, 2026 webcast meeting, with detailed instructions and materials made available through regulatory filings and the company’s investor relations channels.

The most recent analyst rating on (TSE:TRI) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on Thomson Reuters stock, see the TSE:TRI Stock Forecast page.

Thomson Reuters Delivers Strong 2025 Organic Growth, Sets Higher 2026 Targets and Raises Dividend

Thomson Reuters reported continued revenue momentum for the fourth quarter and full year 2025, with total revenues up 3% for the year and 5% in the quarter, and organic revenue rising 7% overall and 9% in its key “Big 3” segments, which now account for 82% of total revenues. While operating profit and diluted EPS declined year-on-year due largely to prior-year gains from asset sales and higher software amortization, underlying performance improved as adjusted EBITDA grew 8% and margin expanded to 38.7%, supported by strong recurring and transaction revenue growth and operating leverage. Management highlighted benefits from sustained investment in AI and product innovation, a more strategically aligned portfolio following recent acquisitions, and set a 2026 outlook calling for mid‑ to high‑single‑digit organic revenue growth and further margin expansion, while also signaling confidence through a 10% increase in the annual dividend, extending its multi-decade record of dividend growth.

The most recent analyst rating on (TSE:TRI) stock is a Buy with a C$142.00 price target. To see the full list of analyst forecasts on Thomson Reuters stock, see the TSE:TRI Stock Forecast page.