Thomson Reuters (NASDAQ:TRI) Posts Earnings Results, Beats Estimates By $0.05 EPS

Thomson Reuters (NASDAQ:TRI) released its quarterly earnings results on Tuesday. The company reported $1.23 EPS for the quarter, beating analysts’ consensus estimates of $1.18 by $0.05, Briefing.com reports. Thomson Reuters had a net margin of 20.09% and a return on equity of 14.51%. The firm had revenue of $2.04 billion during the quarter, compared to analyst estimates of $2 billion. During the same period in the previous year, the business earned $1.12 EPS. The business’s revenue for the quarter was up 9.8% on a year-over-year basis.

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

• Strong start to 2026 with organic revenue up 8% (big three ~9%), adjusted EBITDA up 9% to $881M, adjusted EPS $1.23 (+10%), and management reaffirmed full‑year organic growth of 7.5%–8% and a ~40% EBITDA margin (+100 bps).
• Rapid AI adoption — the company reached 1 million advanced AI users; Westlaw Advantage adoption is faster than prior upgrades (Advantage users and deep research searches >7x in six months), CoCounsel skill users have quadrupled YoY, and CoCounsel Tax & Audit activity is ~5x since September.
• Proprietary model and positioning — the in‑house legal LLM “Thompson” is said to outperform frontier models on specific legal tasks, and Thomson Reuters emphasizes its “fiduciary‑grade AI” moat built on authoritative content, domain experts, privacy/governance, and customer support.
• Strong capital allocation — raised the dividend 10%, repurchased $262M in Q1, completed a $605M return of capital and share consolidation (~2% fewer shares), and cites >$9B of estimated capital capacity through 2028 for buybacks, dividends or M&A.
• Near‑term headwinds include sluggish government legal growth (1% in Q1), a 5% decline in Global Print, rising LLM costs and expected Q2 EBITDA margin compression to ~38% due to seasonality and higher AI-related costs.

Thomson Reuters Trading Down 0.3%

Shares of TRI stock opened at $95.43 on Wednesday. The business has a 50-day moving average price of $93.87 and a two-hundred day moving average price of $116.00. Thomson Reuters has a 12-month low of $79.71 and a 12-month high of $218.42. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 0.11. The firm has a market cap of $41.62 billion, a P/E ratio of 28.22, a price-to-earnings-growth ratio of 1.40 and a beta of 0.80.

Thomson Reuters Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Wednesday, May 20th will be paid a dividend of $0.655 per share. The ex-dividend date of this dividend is Wednesday, May 20th. This represents a $2.62 annualized dividend and a yield of 2.7%. Thomson Reuters’s payout ratio is 79.88%.

Hedge Funds Weigh In On Thomson Reuters

Large investors have recently modified their holdings of the company. Public Sector Pension Investment Board lifted its position in Thomson Reuters by 0.8% in the 2nd quarter. Public Sector Pension Investment Board now owns 13,098 shares of the company’s stock worth $2,629,000 after buying an additional 100 shares during the last quarter. Natixis Advisors LLC grew its position in Thomson Reuters by 0.6% during the third quarter. Natixis Advisors LLC now owns 16,424 shares of the company’s stock valued at $2,551,000 after acquiring an additional 103 shares during the last quarter. Royal London Asset Management Ltd. raised its stake in shares of Thomson Reuters by 1.7% during the fourth quarter. Royal London Asset Management Ltd. now owns 8,037 shares of the company’s stock worth $1,060,000 after acquiring an additional 134 shares in the last quarter. Steward Partners Investment Advisory LLC raised its stake in shares of Thomson Reuters by 9.4% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 1,618 shares of the company’s stock worth $213,000 after acquiring an additional 139 shares in the last quarter. Finally, Smartleaf Asset Management LLC lifted its holdings in shares of Thomson Reuters by 24.1% in the 4th quarter. Smartleaf Asset Management LLC now owns 762 shares of the company’s stock worth $101,000 after acquiring an additional 148 shares during the last quarter. 17.31% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on TRI shares. Argus started coverage on Thomson Reuters in a research note on Wednesday, April 22nd. They set a “hold” rating for the company. Bank of America raised their price target on Thomson Reuters from $100.00 to $115.00 and gave the company a “neutral” rating in a report on Tuesday, March 10th. Royal Bank Of Canada raised Thomson Reuters from a “sector perform” rating to an “outperform” rating and set a $126.00 price objective for the company in a report on Tuesday, February 10th. TD Securities restated a “buy” rating on shares of Thomson Reuters in a research report on Friday, February 6th. Finally, UBS Group set a $183.00 target price on shares of Thomson Reuters and gave the company a “buy” rating in a research note on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $148.23.

Key Thomson Reuters News

Here are the key news stories impacting Thomson Reuters this week:

• Positive Sentiment: Reported stronger-than-expected Q1: revenue up ~10% (organic +8–9%), EPS beat and management reiterated the full-year outlook — underpins revenue momentum and margin progress. Thomson Reuters Reports First-Quarter 2026 Results
• Positive Sentiment: Earnings beat consensus: $1.23 EPS and $2.04B revenue topped estimates — supports valuation and answered near-term performance questions. TRI Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Management emphasizes strong demand for its “fiduciary‑grade” AI and says professionals are choosing Thomson Reuters’ AI tools — helps address investor AI concerns and supports subscription/usage growth. Thomson Reuters CEO says pros are choosing its AI
• Positive Sentiment: Reaffirmed guidance and highlighted AI-driven demand on the earnings call — indicates management confidence in hitting FY targets. Thomson Reuters reaffirms forecasts, highlights ‘fiduciary-grade AI’ demand
• Positive Sentiment: Shareholder returns: increased annualized dividend (10% to $2.62), announced quarterly dividend (0.655 per share) and continued repurchases — supports total-return thesis and may boost investor confidence. Thomson Reuters Reports First-Quarter 2026 Results
• Neutral Sentiment: Completed a $605M return-of-capital transaction and repurchased $262M (2.5M shares) under the repurchase program — reduces share count and supports EPS but alters capital structure. Thomson Reuters Reports First-Quarter 2026 Results
• Neutral Sentiment: Filed May 2026 Form 6‑K with corporate arrangement details — routine disclosure tied to the restructuring/return-of-capital process. Thomson Reuters Files May 2026 Form 6-K
• Negative Sentiment: Reverse share split executed (May 4) — reduces outstanding shares and can be seen as a technical/structural move that may affect liquidity and perceptions; some investors view splits negatively. Thomson Reuters Trading / Reverse Split

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.