tiprankstipranks
Thomson Reuters Corp (TSE:TRI)
NASDAQ:TRI
Want to see TSE:TRI full AI Analyst Report?

Thomson Reuters (TRI) AI Stock Analysis

245 Followers

Top Page

TSE:TRI

Thomson Reuters

(NASDAQ:TRI)

Select Model
Select Model
Select Model
Outperform 81 (OpenAI - 5.2)
Rating:81Outperform
Price Target:
C$164.00
▲(29.09% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by strong financial performance (durable profitability and growing free cash flow) and a favorable earnings-call setup (raised full-year growth outlook with continued margin/FCF targets and accelerating Big 3 momentum). Technicals add moderate support as the stock trends above shorter moving averages with neutral momentum readings. Valuation is a modest restraint due to a premium P/E, partially balanced by an attractive dividend yield.
Positive Factors
High Recurring Revenue Mix
A high recurring revenue mix (86%) and >90% visibility into annual revenue provide durable cash flow predictability and reduce top-line volatility. For professional workflows with high switching costs and multi-year contracts, this underpins stable renewal economics, easier planning for AI investments and consistent margins over months.
Negative Factors
Global Print JV & Reporting Transition
The 51% JV sale shifts Global Print to discontinued operations and a royalty model, reducing consolidated revenue and changing margin recognition. This introduces transitional reporting complexity, one-time effects and execution reliance on a JV partner, which can obscure near-term comparability and pressure organic metrics through the transition period.
Read all positive and negative factors
Positive Factors
Negative Factors
High Recurring Revenue Mix
A high recurring revenue mix (86%) and >90% visibility into annual revenue provide durable cash flow predictability and reduce top-line volatility. For professional workflows with high switching costs and multi-year contracts, this underpins stable renewal economics, easier planning for AI investments and consistent margins over months.
Read all positive factors

Thomson Reuters (TRI) vs. iShares MSCI Canada ETF (EWC)

Thomson Reuters Business Overview & Revenue Model

Company Description
Thomson Reuters Corporation delivers business information services globally, spanning the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. The company organizes its operations into five main divisions. Its Legal Professional...
How the Company Makes Money
Thomson Reuters makes money primarily by selling subscription-based software, information, and workflow solutions to professionals and institutions. A large portion of revenue is recurring and derived from (1) Legal products and services, where cu...

Thomson Reuters Earnings Call Summary

Earnings Call Date:Aug 05, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented a solid set of financial and operational results: revenue growth accelerated (total organic +8%, Big 3 +10%), profitability expanded (adjusted EBITDA +10%, EPS +14%), free cash flow strengthened (+29%), major capital returns were executed, and strong product and AI innovation milestones were announced (Thomson LLM, next-gen CoCounsel). Near-term risks include Q3 margin headwinds driven by severance and continued investments, TAAP go-to-market and timing challenges, and a small organic decline in Global Print that will be transitioned via the KKR JV. Management raised full-year revenue guidance and expects margin improvement into Q4, indicating confidence in recovery and execution. Overall, the positives — robust top-line momentum, profit and cash flow expansion, strategic AI/innovation progress and decisive capital allocation — outweigh the manageable near-term execution and transition challenges.
Positive Updates
Total Company Organic Revenue Growth
Total company organic revenues rose 8% year-over-year in Q2 2026, slightly ahead of prior expectations, and management raised full-year total and organic revenue growth guidance to approximately 8% (high end of prior 7.5%–8% range).
Negative Updates
Global Print Organic Decline and Transition
Global Print organic revenues declined 3% year-over-year in Q2. The pending 51% JV sale will deconsolidate the business in Q4 and change revenue reporting (royalty revenue to be reclassified), introducing transitional reporting complexity and one-time effects.
Read all updates
Q2-2026 Updates
Negative
Total Company Organic Revenue Growth
Total company organic revenues rose 8% year-over-year in Q2 2026, slightly ahead of prior expectations, and management raised full-year total and organic revenue growth guidance to approximately 8% (high end of prior 7.5%–8% range).
Read all positive updates
Company Guidance
Thomson Reuters raised its 2026 outlook, now targeting approximately 8% total and organic revenue growth (high end of the prior 7.5–8% range) and lifting Big 3 total and organic growth to 9.5–10% (from ~9.5%), while maintaining an expected full‑year adjusted EBITDA margin of ~40% and free cash flow of about $2.1 billion; for Q3 the company sees ~8% organic revenue growth and an adjusted EBITDA margin of ~36% (including ~$19 million of severance), with strong year‑over‑year margin expansion expected in Q4 and line‑of‑sight to low‑40s EBITDA margin driven in part by roughly $40 million of severance/automation savings; additional guidance‑relevant metrics: ACV from GenAI‑enabled products at 32% (up from 30%), a signed agreement to sell a 51% stake in Global Print for ~ $500 million (closing expected in Q4) that management expects to be 60–70 bps accretive to organic growth and approximately neutral to margins post‑close, and recent capital actions including a $605 million return of capital plus completion of a $600 million buyback (reducing shares by ~3%).

Thomson Reuters Financial Statement Overview

Summary
Strong and improving fundamentals overall: steady revenue growth into TTM, solid profitability (TTM net margin ~21%), and consistently rising free cash flow with good conversion. Balance sheet leverage is manageable (TTM debt-to-equity ~0.29) with healthy ROE, but risks include year-to-year margin/earnings volatility, a recent uptick in total debt, softer equity vs. 2024–2025, and sub-1.0 operating cash flow coverage (~0.65 in TTM).
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue7.83B7.48B7.26B6.79B6.63B6.35B
Gross Profit4.24B5.67B5.76B2.70B4.22B3.87B
EBITDA3.35B3.06B3.05B2.95B3.01B2.02B
Net Income1.66B1.53B2.21B2.69B1.89B-553.00M
Balance Sheet
Total Assets18.08B17.91B18.44B18.68B21.71B22.15B
Cash, Cash Equivalents and Short-Term Investments693.00M465.00M1.89B1.36B1.27B886.00M
Total Debt3.18B2.37B3.08B3.54B4.76B3.79B
Total Liabilities6.95B6.02B6.43B7.62B9.76B8.31B
Stockholders Equity11.13B11.89B12.01B11.06B11.95B13.83B
Cash Flow
Free Cash Flow2.24B2.05B1.85B1.80B1.32B1.29B
Operating Cash Flow2.89B2.70B2.46B2.34B1.92B1.77B
Investing Cash Flow-915.04M-1.31B680.00M3.51B-462.00M-504.00M
Financing Cash Flow-2.05B-2.88B-2.46B-5.63B-1.16B-2.27B

Thomson Reuters Technical Analysis

Technical Analysis Sentiment
Positive
Last Price127.04
Price Trends
50DMA
129.26
Positive
100DMA
124.39
Positive
200DMA
139.51
Positive
Market Momentum
MACD
3.94
Positive
RSI
56.51
Neutral
STOCH
73.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRI, the sentiment is Positive. The current price of 127.04 is below the 20-day moving average (MA) of 141.60, below the 50-day MA of 129.26, and below the 200-day MA of 139.51, indicating a bullish trend. The MACD of 3.94 indicates Positive momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 73.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TRI.

Thomson Reuters Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
C$63.47B28.2214.26%4.27%5.91%1.60%
69
Neutral
C$881.53M22.6511.67%1.44%15.72%
64
Neutral
C$175.19M35.6710.60%3.86%-4.58%-36.77%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
C$492.45M1.4322.24%383.18%-29.78%88.96%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TRI
Thomson Reuters
145.39
-89.66
-38.14%
TSE:CGY
Calian Group
76.56
28.91
60.69%
TSE:DCM
Data Commun Management
2.80
1.35
93.37%
TSE:TCL.A
Transcontinental
5.75
2.96
106.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 10, 2026