Thomson Reuters (TRI) AI Stock Analysis

• Market Cap: C$60.52B
• Dividend Yield: 1.83%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.54
• 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: 444,842,500
• 10 Day Avg. Volume: 1,268,971
• 30 Day Avg. Volume: 1,133,239
• 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$184.06
• Price Target Upside: 35.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 6.02
• Revenue Forecast (FY): C$11.02B

• Rating: 69 Neutral
• Price Target: C$149.00 ▲(9.52% 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

Recurring subscription business model

Thomson Reuters’s subscription-heavy model embeds content and software into daily professional workflows, producing high renewal rates and predictable recurring revenue. Multi-year enterprise agreements and in‑product integration support durable revenue visibility and organic expansion over quarters and years.

Strong cash generation and capital flexibility

Robust free cash flow and conservative leverage give management scope for disciplined capital allocation: sizeable buybacks, a raised dividend and $11B of capital capacity through 2028. Consistent FCF supports strategic M&A tuck‑ins and shareholder returns while preserving balance sheet resilience.

Commercial traction from GenAI-enabled products

Early commercial adoption of AI-enabled offerings (28% of ACV) plus notable customer wins point to sustainable product-led revenue expansion and cross-sell opportunities. Internal AI productivity gains also reduce operating costs, supporting longer‑term margin improvement and competitive differentiation.

Negative Factors

Structural print revenue decline

Ongoing print declines are a structural headwind in legacy product lines, shrinking a portion of addressable revenue and pressuring segment-level margins. Transitioning customers and offsetting lost print revenue with higher‑margin digital services is multi-year work and can compress near-term growth until adoption scales.

Government contract volatility

Exposure to government contracts introduces timing and renewal uncertainty: cancellations materially affected Legal segment growth. This creates durable quarter‑to‑quarter variability and could limit predictability of organic growth if public budgets or procurement cycles remain uneven.

Margin and profitability volatility

While management targets continued EBITDA expansion, historical swings—including a gross margin dip and moderated net margins—signal execution and mix risk. Persistent margin volatility weakens earnings predictability and could constrain sustainable returns on equity during business or macro stress periods.

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 generates revenue primarily through subscription-based models and software licensing. Its key revenue streams include: 1) Legal Professionals: Providing legal research tools, case law databases, and analytics solutions. 2) Financial Professionals: Offering financial market data, trading platforms, and analytical tools for investment professionals. 3) Tax and Accounting: Supplying software and services for compliance, tax planning, and accounting professionals. 4) Media: Licensing news content and providing insights to media organizations. Additionally, strategic partnerships with technology firms enhance its service offerings and expand its market reach, contributing substantially to its revenue growth.

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: Neutral
• Last Price: 136.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRI, the sentiment is Neutral. The current price of 136.05 is above the 20-day moving average (MA) of 123.51, below the 50-day MA of 152.93, and below the 200-day MA of 214.06, indicating a neutral trend. The MACD of -6.27 indicates Negative momentum. The RSI at 51.31 is Neutral, neither overbought nor oversold. The STOCH value of 82.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TRI.

Thomson Reuters Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCL.A	74 Outperform	C$1.96B	11.40	8.95%	8.32%	-2.45%	44.20%
TRI	69 Neutral	C$60.52B	28.09	12.40%	1.83%	5.89%	-21.32%
CGY	66 Neutral	C$956.85M	34.26	6.36%	1.98%	3.69%	92.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DCM	54 Neutral	C$79.20M	7.73	26.87%	5.99%	-7.01%	―

Thomson Reuters Corporate Events

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.