Thomson Reuters (TSE:TRI)
TSX:TRI
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Thomson Reuters
(TSX:TRI)
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Rating:69Neutral
Price Target:
C$144.00
▲(15.89% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Thomson Reuters (TRI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$55.27B
Dividend Yield1.83%
Average Volume (3M)1.02M
Price to Earnings (P/E)44.2
Beta (1Y)0.35
Revenue Growth5.89%
EPS Growth-21.32%
CountryCA
Employees26,400
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.46
Shares Outstanding444,765,660
10 Day Avg. Volume762,668
30 Day Avg. Volume1,015,995
Financial Highlights & Ratios
PEG Ratio-1.27
Price to Book (P/B)4.98
Price to Sales (P/S)7.78
P/FCF Ratio28.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$184.92Price Target Upside48.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)6.02
Revenue Forecast (FY)C$11.02B
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,...
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 f...
Thomson Reuters Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and financial strengths—consistent organic revenue growth across core segments, margin expansion, healthy free cash flow, a clear AI product roadmap with early commercial validation, and disciplined capital allocation (dividend increase, completed buyback, strategic tuck-ins). Near-term challenges were acknowledged (print decline, government cancellations, severance costs, and some finance-related impacts), but management reaffirmed 2026 guidance and outlined confidence in continued margin expansion and stronger revenue acceleration driven by AI-enabled offerings. Overall, the positives (growth, margins, cash generation, AI traction, capital returns) materially outweigh the highlighted headwinds.Positive Updates
Consistent Revenue Growth
Full-year organic revenue grew 7% (2025). Fourth-quarter organic revenue grew 7% year-over-year. The Big Three segments collectively delivered 9% organic revenue growth in the quarter (Legal Professionals +9%, Corporates +9%, Tax, Audit & Accounting +11%, Reuters +5%).
Negative Updates
Print Revenue Decline
Global Print organic revenues declined 6% in Q4 and declined 5% for the full year (ongoing structural print headwinds remain).
Read all updates
Q4-2025 Updates
Positive
Negative
Consistent Revenue Growth
Full-year organic revenue grew 7% (2025). Fourth-quarter organic revenue grew 7% year-over-year. The Big Three segments collectively delivered 9% organic revenue growth in the quarter (Legal Professionals +9%, Corporates +9%, Tax, Audit & Accounting +11%, Reuters +5%).
Read all positive updates
Company Guidance
Thomson Reuters reiterated its 2026 financial framework: total organic revenue growth of 7.5–8.0% (Big Three ~9.5%), with segment targets Legal Professionals 8–9%, Corporates 9–11%, and Tax, Audit & Accounting 11–13%; management expects adjusted EBITDA margin to expand 100 basis points from 39.2% (and to deliver 100 bps of annual margin expansion in 2026–2028), an effective tax rate of ~19% (cash tax roughly 5 percentage points lower), accrued CapEx of ~8% of revenue, and free cash flow of about $2.1 billion (up from $1.95B in 2025). For Q1 they guide organic revenue ~7% and an adjusted EBITDA margin of ~42%; at year‑end Q4 GenAI‑enabled ACV was 28% (up from 24%), capital capacity is ~$11 billion through 2028, year‑end cash was ~$500 million with an undrawn $2.0 billion revolver and $1.7 billion commercial paper capacity, and leverage was 0.6x on Dec. 31. Capital allocation includes a 10% dividend increase to $2.62/share, a commitment to return 75% of free cash flow (implying roughly $500M of buybacks in 2026 to hit that target), following a $1.0 billion repurchase in 2025 (6M shares); 2025 results to frame the outlook: organic revenue +7%, Big Three +9%, adjusted EBITDA $2.9B (39.2% margin), adjusted EPS $3.92, and FCF $1.95B. They also noted $19M of severance in Q4 and expect ~$10M in Q1 (roughly $20M total severance-related charges in 2026).Thomson Reuters Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
80
Positive
| 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
Negative
124.26
Price Trends
136.25
Negative
160.00
Negative
201.76
Negative
Market Momentum
-3.91
Positive
40.38
Neutral
32.77
Neutral
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 124.26 is below the 20-day moving average (MA) of 134.37, below the 50-day MA of 136.25, and below the 200-day MA of 201.76, indicating a bearish trend. The MACD of -3.91 indicates Positive momentum. The RSI at 40.38 is Neutral, neither overbought nor oversold. The STOCH value of 32.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TRI.
Thomson Reuters Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$55.27B | 44.22 | 12.40% | 1.83% | 5.89% | -21.32% | |
66 Neutral | C$806.19M | 30.99 | 6.36% | 1.98% | 3.69% | 92.38% | |
64 Neutral | C$456.13M | 16.26 | 7.69% | 8.32% | -2.45% | 44.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$87.97M | 9.79 | 26.87% | 5.99% | -7.01% | ― |
* Industrials Sector Average
TSE:TRI
Thomson Reuters
124.26
-119.49
-49.02%
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70.58
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Thomson Reuters Corporate Events
Shareholder MeetingsStock Split
Thomson Reuters Sets Shareholder Vote on US$605 Million Return of Capital and Reverse Split
Neutral
Mar 14, 2026
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 estima...
Business Operations and StrategyDividendsFinancial Disclosures
Thomson Reuters Delivers Strong 2025 Organic Growth, Sets Higher 2026 Targets and Raises Dividend
Positive
Feb 5, 2026
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, whic...
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.