Thomson Reuters (NASDAQ:TRI) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Thomson Reuters (NASDAQ:TRI) issued its quarterly earnings results on Wednesday. The company reported $0.99 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.03, Briefing.com reports. The company had revenue of $1.93 billion for the quarter, compared to analysts’ expectations of $1.89 billion. Thomson Reuters had a return on equity of 15.59% and a net margin of 21.22%.The firm’s revenue for the quarter was up 9.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.87 earnings per share.

Here are the key takeaways from Thomson Reuters’ conference call:

• Revenue outlook raised: Thomson Reuters reported 8% total organic revenue growth in Q2, with Big Three growth accelerating to 10%, and raised its full-year total and organic revenue outlook to approximately 8%. Big Three guidance was increased to 9.5%–10%.
• AI momentum continued: CoCounsel surpassed one million users, with rising usage and strong early feedback on its next-generation legal product. The company plans to use its proprietary Thomson large language model to improve speed, scalability, and costs, while exploring sovereign-AI and standalone commercialization opportunities.
• Portfolio optimization and capital returns: Thomson Reuters agreed to sell a 51% stake in Global Print to KKR for approximately $500 million, which management expects to be 60–70 basis points accretive to organic growth and roughly margin-neutral after closing. Share repurchases and other capital-return actions have reduced the share count by approximately 3%.
• Tax, Audit & Accounting execution was weaker than expected: Transactional growth fell short because of timing and go-to-market challenges, prompting leadership and talent changes. Management expects improvement in the second half, aided by new AI offerings and revenue-recognition normalization.
• Near-term margin pressure remains: Q3 adjusted EBITDA margin is expected to be approximately 36%, affected by $19 million of severance, continued innovation and automation investment, marketing spending, and M&A dilution. Management maintained its full-year margin outlook of approximately 40%, relying on fourth-quarter savings and operating leverage.

Thomson Reuters Stock Performance

Shares of TRI traded up $2.72 during trading hours on Friday, hitting $102.87. The stock had a trading volume of 385,567 shares, compared to its average volume of 2,358,805. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.60 and a quick ratio of 0.60. Thomson Reuters has a 12 month low of $76.28 and a 12 month high of $182.98. The firm has a market capitalization of $44.81 billion, a PE ratio of 27.34, a PEG ratio of 1.47 and a beta of 0.75. The stock has a fifty day moving average price of $88.91 and a 200 day moving average price of $93.28.

Thomson Reuters Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Wednesday, August 19th will be paid a $0.655 dividend. This represents a $2.62 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date is Wednesday, August 19th. Thomson Reuters’s dividend payout ratio (DPR) is 69.68%.

Analyst Ratings Changes

TRI has been the topic of a number of recent research reports. Canaccord Genuity Group reduced their target price on shares of Thomson Reuters from $134.00 to $132.50 and set a “buy” rating on the stock in a research report on Thursday. Royal Bank Of Canada boosted their price objective on shares of Thomson Reuters from $121.00 to $124.00 and gave the stock an “outperform” rating in a research note on Thursday. Barclays restated an “overweight” rating and issued a $130.00 price objective (down from $170.00) on shares of Thomson Reuters in a report on Friday, May 8th. Scotiabank reaffirmed a “sector outperform” rating and set a $135.00 target price on shares of Thomson Reuters in a research note on Thursday. Finally, TD Securities reissued a “buy” rating on shares of Thomson Reuters in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Thomson Reuters currently has a consensus rating of “Moderate Buy” and an average price target of $142.83.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of TRI. Invesco Ltd. lifted its stake in shares of Thomson Reuters by 9.9% in the 4th quarter. Invesco Ltd. now owns 2,476,965 shares of the company’s stock worth $326,687,000 after purchasing an additional 223,722 shares during the period. Corient Private Wealth LLC increased its holdings in Thomson Reuters by 5.9% during the fourth quarter. Corient Private Wealth LLC now owns 20,014 shares of the company’s stock valued at $2,640,000 after buying an additional 1,107 shares during the last quarter. Alberta Investment Management Corp purchased a new stake in Thomson Reuters during the fourth quarter valued at approximately $2,112,000. Coastal Bridge Advisors LLC raised its position in Thomson Reuters by 7.8% in the fourth quarter. Coastal Bridge Advisors LLC now owns 6,184 shares of the company’s stock worth $816,000 after acquiring an additional 445 shares during the period. Finally, Empowered Funds LLC bought a new position in Thomson Reuters in the fourth quarter worth approximately $30,000. Institutional investors own 17.31% of the company’s stock.

Thomson Reuters Company Profile

Thomson Reuters is a global provider of information and technology solutions for professional markets, including financial services, legal, tax and accounting, and media industries. The company delivers a range of data, analytics and software tools designed to help customers make informed decisions, manage risk and stay compliant with evolving regulations. Its key offerings include the Eikon financial data platform, Westlaw legal research service, Checkpoint tax and accounting solution, and Reuters News, which supplies real‐time journalism to media organizations worldwide.

Formed in 2008 through the merger of Canada’s Thomson Corporation (founded in 1934) and the UK’s Reuters Group (established in 1851), Thomson Reuters has built on a legacy of journalistic integrity and information innovation.