Thomson Reuters Corp (TSE:TRI)
NASDAQ:TRI
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Thomson Reuters
(NASDAQ:TRI)
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Rating:76Outperform
Price Target:
C$129.00
â–²(1.22% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial performance (profitability, cash generation, and conservative leverage) and a positive earnings-call setup with reaffirmed growth/margin guidance and solid Q1 execution. These strengths are partially offset by weaker longer-term technicals (price below key long-term moving averages), while valuation appears reasonable with a supportive dividend yield.
Positive Factors
Recurring subscription business model
Thomson Reuters’ core revenue comes from multi‑year subscriptions that embed content and workflow tools into customers’ daily operations. This creates high retention, predictable renewal streams, and cross-sell opportunities across legal, tax and compliance — supporting durable top-line visibility and steady cash generation over time.
Negative Factors
Rising LLM and integration costs
Large language model costs are a structural expense as advanced AI features scale. Unless offset by higher pricing, efficiency gains, or proprietary model economics, sustained LLM and integration spend will compress margins and require continued investment to reach profitable scale, creating medium‑term margin pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription business model
Thomson Reuters’ core revenue comes from multi‑year subscriptions that embed content and workflow tools into customers’ daily operations. This creates high retention, predictable renewal streams, and cross-sell opportunities across legal, tax and compliance — supporting durable top-line visibility and steady cash generation over time.
Read all positive factors
Thomson Reuters (TRI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$50.52B
Dividend Yield1.83%
Average Volume (3M)687.62K
Price to Earnings (P/E)21.9
Beta (1Y)0.44
Revenue Growth4.56%
EPS Growth-29.50%
CountryCA
Employees26,400
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)3.41
Shares Outstanding442,962,430
10 Day Avg. Volume771,394
30 Day Avg. Volume687,620
Financial Highlights & Ratios
PEG Ratio-1.29
Price to Book (P/B)5.06
Price to Sales (P/S)7.91
P/FCF Ratio29.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$186.26Price Target Upside46.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)6.01
Revenue Forecast (FY)C$11.03B
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:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presents a constructive picture: strong organic revenue growth (8% overall, 9% for the Big 3), accelerating AI adoption and clear product momentum (1M AI users, rapid adoption metrics), margin targets and EPS/Cash Flow improvements were reaffirmed, and active capital returns were executed. Offsetting items include secular print decline, subdued government growth, rising LLM and integration costs, severance charges and some near-term revenue timing shifts in Tax/Audit & Accounting. Overall, positive operational and financial momentum outweighs the manageable near-term headwinds, and management reiterated confidence in full-year guidance, margin expansion and cash generation.Positive Updates
Strong Top-Line Growth
Total company organic revenue grew 8% in Q1 2026 (up from 7% through 2025). The Big 3 segments delivered 9% organic growth, and management reaffirmed full-year organic growth guidance of 7.5%–8% with the Big 3 targeted at ~9.5%.
Negative Updates
Print Revenue Decline
Global Print organic revenues declined 5% year-over-year in Q1, consistent with management expectations and continuing secular print pressures.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total company organic revenue grew 8% in Q1 2026 (up from 7% through 2025). The Big 3 segments delivered 9% organic growth, and management reaffirmed full-year organic growth guidance of 7.5%–8% with the Big 3 targeted at ~9.5%.
Read all positive updates
Company Guidance
Management reaffirmed 2026 guidance for organic revenue growth of 7.5%–8% (Big‑3 segments ~9.5%), with Legal Professionals about 9% (legal ex‑government ran 11% in Q1), Corporate guidance ~9%–11% and Tax/Audit/Accounting 11%–13%; they see adjusted EBITDA margins rising ~100 bps to ~40% for the year (Q1 adjusted EBITDA was $881M, +9%, margin 42.2%), Q2 organic growth of 7%–8% with an expected Q2 EBITDA margin of ~38%, and full‑year free cash flow of ≈$2.1B. Other metrics disclosed: ACV from Gen‑AI‑enabled products at 30% (up from 28%); Q1 adjusted EPS $1.23 (+10%); Q1 free cash flow $332M (+19%); $262M of buybacks in Q1 plus a $605M return of capital (share count down ~9M shares, ~2%); dividend raised 10%; interest expense outlook increased $30M to $180–190M; and a planned $500M bond paydown.Thomson Reuters Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.66B | 7.61B | 7.26B | 6.79B | 6.63B | 6.35B |
| Gross Profit | 5.77B | 2.00B | 5.76B | 2.70B | 4.22B | 3.87B |
| EBITDA | 3.15B | 3.06B | 3.05B | 2.95B | 3.01B | 2.02B |
| Net Income | 1.52B | 1.53B | 2.21B | 2.69B | 1.89B | -553.00M |
Balance Sheet | ||||||
| Total Assets | 17.96B | 17.91B | 18.44B | 18.68B | 21.71B | 22.15B |
| Cash, Cash Equivalents and Short-Term Investments | 400.28M | 510.07M | 1.89B | 1.36B | 1.27B | 886.00M |
| Total Debt | 2.45B | 2.12B | 3.08B | 3.54B | 4.76B | 3.79B |
| Total Liabilities | 6.13B | 6.02B | 6.43B | 7.62B | 9.76B | 8.31B |
| Stockholders Equity | 11.82B | 11.89B | 12.01B | 11.06B | 11.95B | 13.83B |
Cash Flow | ||||||
| Free Cash Flow | 2.07B | 2.05B | 1.85B | 1.80B | 1.32B | 1.29B |
| Operating Cash Flow | 2.71B | 2.70B | 2.46B | 2.34B | 1.92B | 1.77B |
| Investing Cash Flow | -891.04M | -1.31B | 680.00M | 3.51B | -462.00M | -504.00M |
| Financing Cash Flow | -2.79B | -2.88B | -2.46B | -5.63B | -1.16B | -2.27B |
Thomson Reuters Technical Analysis
Negative
127.45
Price Trends
125.85
Negative
138.06
Negative
176.14
Negative
Market Momentum
-2.83
Positive
46.79
Neutral
25.07
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 127.45 is above the 20-day moving average (MA) of 123.67, above the 50-day MA of 125.85, and below the 200-day MA of 176.14, indicating a bearish trend. The MACD of -2.83 indicates Positive momentum. The RSI at 46.79 is Neutral, neither overbought nor oversold. The STOCH value of 25.07 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | C$50.52B | 21.88 | 12.73% | 1.83% | 4.56% | -29.50% | |
70 Outperform | C$94.99M | 4.51 | 25.52% | 5.99% | -6.38% | 24.25% | |
68 Neutral | C$926.59M | 31.13 | 10.35% | 1.98% | 11.71% | 76473.68% | |
67 Neutral | C$459.51M | 16.26 | 7.69% | 8.32% | -14.81% | -9.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
TSE:TRI
Thomson Reuters
120.24
-146.11
-54.86%
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Thomson Reuters Corporate Events
Business Operations and Strategy
Thomson Reuters Outlines Opt-Out Option for Non-Canadian Holders in Capital Return Plan
Neutral
Apr 14, 2026
Thomson Reuters has reminded shareholders who are taxable outside Canada that they may opt out of its proposed return of capital, a transaction that combines a special cash distribution with a proportional share consolidation. The distribution tot...
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...
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.