Thomson Reuters Stock Earnings Reports

Thomson Reuters delivered a strong start to 2026 with first-quarter organic revenue up 8% (Big 3 segments +9%), adjusted EBITDA of $881M (+9%) and adjusted EPS of $1.23 (+10%). The company reaffirmed full-year 2026 guidance: organic revenue growth of 7.5%–8% (Big 3 ~9.5%), adjusted EBITDA margin improvement of ~100 bps to ~40%, and ~ $2.1B of free cash flow. Key growth drivers are AI-enabled products (Westlaw Advantage, CoCounsel and other AI offerings), double-digit growth in several product lines (CoCounsel, Pagero, SafeSend, SurePrep), and international strength. Thomson Reuters highlights its strategy around "fiduciary‑grade AI"—an emphasis on authoritative proprietary content, deep domain expertise, data privacy/governance, and customer support—plus progress on its proprietary legal LLM (Thomson) that is outperforming frontier models on specific legal tasks. The percent of annualized contract value (ACV) from Gen‑AI-enabled products reached 30% (from 28% last quarter). Capital allocation: 10% dividend increase in February, $262M repurchased in Q1, completion of a $605M return of capital and share consolidation (reducing share count ~2%), and remaining NCIB capacity planned for Q2; management reiterates balanced allocation with >$9B estimated capital capacity through 2028. Leadership: long-time CFO Mike Eastwood is retiring and incoming CFO Gary Bischoping will join. Near-term items to monitor: LLM costs (growing but still a relatively small line item), seasonality in Tax/Audit/Accounting (Q2 margin dip expected), government legal growth remaining subdued near term, and continued product commercialization / change management for AI adoption.