Thomson Reuters (TRI) AI Stock Analysis

• Market Cap: $93.12B
• Dividend Yield: 1.6%
• Average Volume (3M): 499.18K
• Price to Earnings (P/E): 37.9
• Beta (1Y): 0.44
• Revenue Growth: 5.89%
• EPS Growth: -21.32%
• Country: CA
• Employees: 26,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 1.20
• Shares Outstanding: 450,680,700
• 10 Day Avg. Volume: 482,667
• 30 Day Avg. Volume: 499,181
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 13.59
• Enterprise Value/Gross Profit: 17.16
• Enterprise Value/Ebitda: 33.01
• 1Y Price Target: $272.26
• Price Target Upside: 38.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$242.00 ▲(23.32% Upside)

Thomson Reuters' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. However, the high valuation and mixed technical indicators temper the overall outlook. The company's strategic focus on AI and robust capital position support future growth, but current market conditions and valuation metrics suggest caution.

Positive Factors

Strong Revenue Growth

The consistent revenue growth in key segments indicates a robust market position and effective product offerings, supporting long-term stability.

AI-Driven Innovation

The focus on AI innovation enhances product capabilities and customer engagement, positioning the company for future growth and competitive advantage.

Cash Flow Strength

Strong cash flow growth provides financial flexibility for strategic investments and shareholder returns, underpinning long-term financial health.

Negative Factors

Decline in Global Print Revenue

Declining print revenues reflect structural shifts in media consumption, potentially impacting overall revenue growth if not offset by digital gains.

Government Segment Challenges

Challenges in the government segment could hinder growth prospects and require strategic adjustments to mitigate revenue impact.

Gross Profit Margin Pressure

Decreasing gross margins may indicate rising costs or pricing pressures, potentially affecting profitability if trends persist.

Thomson Reuters Business Overview & Revenue Model

Company Description

Thomson Reuters Corporation (TRI) is a global information and technology company that serves professionals in the legal, tax, accounting, finance, and media sectors. The company operates through several segments, including Legal, Tax & Accounting, Corporates, and Reuters News. Thomson Reuters provides a wide array of products and services, such as legal research tools, regulatory compliance solutions, financial data analytics, and news reporting, aimed at enhancing decision-making and operational efficiency for its clients.

How the Company Makes Money

Thomson Reuters generates revenue primarily through subscription-based services, which provide access to its extensive databases, tools, and platforms. The Legal segment, for instance, offers products like Westlaw, a leading legal research service, which is sold on a subscription basis. The Tax & Accounting segment provides software solutions and compliance services that are also delivered through subscription models. Additionally, the company earns revenue from its Corporates segment through the sale of risk management and compliance solutions. Key revenue streams include recurring subscriptions, transactional services, and professional services. Significant partnerships with various legal and financial institutions enhance its offerings and market reach, contributing to its overall earnings. Furthermore, the Reuters News segment generates revenue from licensing content to media outlets and businesses, providing another important source of income.

Thomson Reuters Financial Statement Overview

Summary

Thomson Reuters demonstrates strong financial health with impressive revenue growth and profitability. The company maintains a low leverage position and generates substantial cash flows, supporting its operational and strategic initiatives. While the gross profit margin has seen some decline, the overall financial trajectory remains positive.

Income Statement

Thomson Reuters shows strong profitability with a consistent increase in revenue, highlighted by a TTM revenue growth rate of 61.9%. The company maintains healthy margins, with a TTM EBIT margin of 28.9% and a net profit margin of 22.3%. However, the gross profit margin has decreased from previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.146 in TTM, indicating low leverage. The return on equity is strong at 13.3%, though it has decreased from previous years. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals robust free cash flow growth of 161.6% in TTM, supporting operational sustainability. The operating cash flow to net income ratio is healthy at 0.88, indicating efficient cash conversion. The free cash flow to net income ratio remains stable, reflecting consistent cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.32B	7.26B	6.79B	6.63B	6.35B	5.98B
Gross Profit	5.80B	5.76B	2.70B	4.22B	3.87B	3.71B
EBITDA	3.01B	3.05B	2.95B	3.01B	2.02B	2.76B
Net Income	1.64B	2.21B	2.69B	1.89B	-553.00M	1.69B
Balance Sheet
Total Assets	17.97B	18.44B	18.68B	21.71B	22.15B	17.88B
Cash, Cash Equivalents and Short-Term Investments	727.00M	1.89B	1.36B	1.27B	886.00M	2.40B
Total Debt	1.84B	3.08B	3.54B	4.76B	3.79B	3.77B
Total Liabilities	5.35B	6.43B	7.62B	9.76B	8.31B	7.90B
Stockholders Equity	12.62B	12.01B	11.06B	11.95B	13.83B	9.98B
Cash Flow
Free Cash Flow	1.89B	1.85B	1.80B	1.32B	1.29B	1.24B
Operating Cash Flow	2.51B	2.46B	2.34B	1.92B	1.77B	1.75B
Investing Cash Flow	-1.21B	680.00M	3.51B	-462.00M	-504.00M	-138.00M
Financing Cash Flow	-2.31B	-2.46B	-5.63B	-1.16B	-2.27B	-644.00M

Thomson Reuters Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 196.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 196.24 is below the 20-day moving average (MA) of 218.17, below the 50-day MA of 224.64, and below the 200-day MA of 247.83, indicating a bearish trend. The MACD of -4.97 indicates Positive momentum. The RSI at 27.73 is Positive, neither overbought nor oversold. The STOCH value of 4.44 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	71 Outperform	$93.12B	37.89	14.87%	1.60%	5.89%	-21.32%
TCL.B	68 Neutral	C$1.61B	9.30	9.36%	9.72%	-2.90%	57.43%
TCL.A	66 Neutral	C$1.61B	9.17	9.36%	9.91%	-2.90%	57.43%
RBA	64 Neutral	C$25.56B	48.62	7.88%	1.20%	7.80%	17.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Thomson Reuters Corporate Events

Thomson Reuters Reports Strong Q3 2025 Results with AI-Driven Growth

On November 4, 2025, Thomson Reuters reported its third-quarter results for the period ending September 30, 2025, showing a 3% increase in total revenues and a 7% rise in organic revenues, with significant growth in its ‘Big 3’ segments. The company completed a $1 billion share repurchase program and reaffirmed its full-year 2025 outlook, while updating its 2026 financial framework to anticipate higher adjusted EBITDA margins and free cash flow. These results reflect the company’s strategic focus on AI-driven innovation and its robust capital position, positioning it for sustained growth and shareholder value.

The most recent analyst rating on (TSE:TRI) stock is a Buy with a C$267.00 price target. To see the full list of analyst forecasts on Thomson Reuters stock, see the TSE:TRI Stock Forecast page.

Thomson Reuters Launches Automatic Share Purchase Plan Amid $1 Billion Buyback Initiative

Thomson Reuters has announced the establishment of an automatic share purchase plan (ASPP) as part of its $1.0 billion share repurchase program and normal course issuer bid (NCIB), which aims to buy back up to 10 million common shares between August 2025 and August 2026. The ASPP will facilitate share purchases during blackout periods or regulatory restrictions, with purchases made by the company’s broker based on set parameters. This move is expected to provide flexibility in managing share repurchases and is aligned with the company’s strategic financial management, potentially impacting market perceptions and shareholder value.

The most recent analyst rating on (TSE:TRI) stock is a Buy with a C$285.00 price target. To see the full list of analyst forecasts on Thomson Reuters stock, see the TSE:TRI Stock Forecast page.

Thomson Reuters Launches $1 Billion Share Buyback Program

On August 15, 2025, Thomson Reuters announced a $1.0 billion share repurchase program under a new normal course issuer bid (NCIB) approved by the Toronto Stock Exchange. This initiative, running from August 19, 2025, to August 18, 2026, allows the company to repurchase up to 10 million common shares, representing approximately 2.22% of its outstanding shares. The program reflects Thomson Reuters’ disciplined capital strategy, balancing growth and shareholder returns, and provides flexibility in returning capital to shareholders. The company may adjust its repurchase plans based on market conditions and other investment opportunities, emphasizing its commitment to maintaining financial leverage and credit ratings.

The most recent analyst rating on (TSE:TRI) stock is a Buy with a C$260.00 price target. To see the full list of analyst forecasts on Thomson Reuters stock, see the TSE:TRI Stock Forecast page.

Thomson Reuters Reinforces Compliance with Sarbanes-Oxley Certifications

On August 7, 2025, Thomson Reuters Corporation voluntarily furnished certifications by its CEO and CFO pursuant to the Sarbanes-Oxley Act of 2002, as part of its Form 6-K filing with the U.S. Securities and Exchange Commission. This move underscores the company’s commitment to transparency and compliance with regulatory standards, potentially strengthening its position in the industry and reassuring stakeholders of its operational integrity.

The most recent analyst rating on (TSE:TRI) stock is a Buy with a C$260.00 price target. To see the full list of analyst forecasts on Thomson Reuters stock, see the TSE:TRI Stock Forecast page.

Thomson Reuters Reports Solid Q2 2025 Performance

Thomson Reuters Corporation, a leading provider of business information services, operates in the legal, tax, audit, accounting, compliance, government, and media sectors, offering specialized software and insights for informed decision-making. In its second-quarter 2025 earnings report, Thomson Reuters reported a 3% increase in total revenues, with organic revenues up by 7%, driven by strong performance in its ‘Big 3’ segments: Legal Professionals, Corporates, and Tax & Accounting Professionals. The company maintained its full-year outlook for organic revenue growth, adjusted EBITDA margin, and free cash flow, and highlighted the launch of new AI solutions in its legal, tax, and accounting markets. Key financial metrics showed a 5% increase in operating profit and adjusted EBITDA, although diluted earnings per share dropped significantly due to currency losses and the absence of a prior-year tax benefit. The company also repaid $1.0 billion in notes and announced a 10% dividend increase. Looking ahead, Thomson Reuters remains committed to product innovation and a balanced capital allocation strategy, while navigating an uncertain macroeconomic environment.

Thomson Reuters Corp’s Positive Earnings Call Highlights

Thomson Reuters Corp’s recent earnings call painted a positive picture of the company’s financial health and strategic direction. The discussion highlighted robust organic revenue growth across key segments, strong margin performance, and strategic investments in innovative AI solutions. Despite some challenges, such as declines in print revenue and modest growth in Reuters News, the overall sentiment was optimistic about the company’s future.

Thomson Reuters Sees Revenue Growth and Launches New AI Solutions in Q2 2025

Thomson Reuters reported a 3% increase in total revenues for the second quarter of 2025, with organic revenues rising by 7%, driven by strong performance in its ‘Big 3’ segments: Legal Professionals, Corporates, and Tax & Accounting Professionals. The company maintained its full-year outlook for organic revenue growth and launched new AI solutions to further leverage its content and expertise. Despite a decline in diluted EPS due to currency losses and other factors, adjusted EPS saw a slight increase, reflecting higher adjusted EBITDA and operating leverage.

The most recent analyst rating on (TSE:TRI) stock is a Buy with a C$260.00 price target. To see the full list of analyst forecasts on Thomson Reuters stock, see the TSE:TRI Stock Forecast page.