Company Reports

Thomson Reuters is a leading provider of legal, tax, accounting, and risk information services and software, predominantly in the US. The company’s content-driven technology helps customers with three main tasks: (1) finding answers to complex industry-specific questions; (2) creating work products such as legal documents, tax returns, and compliance reports; and (3) managing risk, such as deciding whether to accept a new customer or use a certain vendor. Additionally, its Reuters News business is one of the world’s leading independent news agencies.

Thomson's second quarter beat FactSet consensus, and 2026 growth guidance was raised modestly, but second-quarter tax growth of 8% and third-quarter guidance for EBITDA margin of 36% were mild disappointments. Shares fell 10% on Aug 5.

Thomson's first-quarter results were ahead of company guidance and beat FactSet consensus on the top and bottom line. 2026 guidance was confirmed. Shares ended flat on May 5.

Thomson Reuters is a leading provider of legal, tax, accounting, and risk information services and software, predominantly in the US. The company’s content-driven technology helps customers with three main tasks: (1) finding answers to complex industry-specific questions; (2) creating work products such as legal documents, tax returns, and compliance reports; and (3) managing risk, such as deciding whether to accept a new customer or use a certain vendor. Additionally, its Reuters News business is one of the world’s leading independent news agencies.

We reviewed our moat ratings in the global technology and information services' sectors due to potential disruption from artificial intelligence.

Thomson Reuters is a leading provider of legal, tax, accounting, and risk information services and software, predominantly in the US. The company’s content-driven technology helps customers with three main tasks: (1) finding answers to complex industry-specific questions; (2) creating work products such as legal documents, tax returns, and compliance reports; and (3) managing risk, such as deciding whether to accept a new customer or use a certain vendor. Additionally, its Reuters News business is one of the world’s leading independent news agencies.

Thomson Reuters' fourth-quarter results and 2026 guidance were broadly in line with FactSet consensus. Regardless, the shares fell 6% after the earnings release on Feb. 5.

On Feb. 3, Thomson Reuters, RELX, and Wolters Kluwer's stocks fell 16%, 14%, and 13%, respectively, after Anthropic released a legal plug-in for its Claude product.

Thomson Reuters' third-quarter numbers beat FactSet consensus, and 2025 guidance was maintained, although growth is expected to be at the bottom of the range. Shares fell 6% on Nov. 4.

Thomson Reuters' second-quarter results slightly beat FactSet consensus, and the company maintained its 2025 guidance. Nonetheless, the shares fell 10% on Aug. 6 after the earnings release.

We've updated our view on Thomson Reuters after transferring coverage to a new analyst. Thomson is a leading provider of legal, tax, accounting, and risk information services and software, predominantly in the US.

Thomson Reuters is a leading provider of legal, tax, accounting, and risk information services and software, predominantly in the US. The company’s content-driven technology helps customers with three main tasks: (1) finding answers to complex industry-specific questions; (2) creating work products such as legal documents, tax returns, and compliance reports; and (3) managing risk, such as deciding whether to accept a new customer or use a certain vendor. Additionally, its Reuters News business is one of the world’s leading independent news agencies.

Thomson Reuters reported 6% organic revenue growth to $1.90 billion and adjusted EBITDA was roughly flat at $809 million. Thomson Reuters maintained its fiscal 2025 outlook of 7.0%-7.5% organic revenue growth and 39% adjusted EBITDA margins.

For most of the 2010s, Thomson Reuters was a laggard relative to its information services peers, in our view. Since deciding to spin off its Refinitiv financial and risk operations to London-based LSE Group, we believe the firm has gained more focus. Some of its past offerings have been clunky, and we believe efforts to streamline its businesses should lead to meaningful margin expansion and higher retention in the years ahead.

Thomson Reuters' subscription-heavy business was mostly steady. Organic recurring revenue was up 8%, a similar clip as the third quarter. Transaction revenue, which was less than 10% of total revenue, declined 4% but that was mostly expected due to elevated Reuters News license revenue in the year-ago period. Thomson Reuters’ 2025 outlook of 7.0%-7.5% organic revenue growth was solid, in our view. In addition, for 2026, Thomson Reuters’ financial framework calls for 7.5%-8.0% organic growth, which is an improvement from 6.5%-8.0% that it laid out at its March 2024 investor day. Overall, we will maintain our $140 fair value estimate and narrow moat rating on Thomson Reuters. While we acknowledge the firm has very limited macroeconomic exposure and that underpins our Morningstar Uncertainty Rating of Low, we view shares as a bit pricey at current levels.

For most of the 2010s, Thomson Reuters was a laggard relative to its information services peers, in our view. Since deciding to spin off its Refinitiv financial and risk operations to London-based LSE Group, we believe the firm has gained more focus. Some of its past offerings have been clunky, and we believe efforts to streamline its businesses should lead to meaningful margin expansion and higher retention in the years ahead.

Thomson Reuters' subscription-heavy businesses saw solid performance in the third quarter of 2024. Organic revenue grew 7% year over year compared with 6% in the second quarter. Thomson Reuters also raised its 2024 organic revenue outlook by half a percentage point. Overall, we will maintain our $140 per share fair value estimate and narrow moat rating, noting that our current model was already slightly above the firm's prior outlook.

For most of the 2010s, Thomson Reuters was a laggard relative to its information services peers, in our view. Since deciding to spin off its Refinitiv financial and risk operations to London-based LSE Group, we believe the firm has gained more focus. Some of its past offerings have been clunky, and we believe efforts to streamline its businesses should lead to meaningful margin expansion and higher retention in the years ahead.

As expected, Thomson Reuters subscription-heavy business was mostly steady in the second quarter of 2024. Second-quarter organic revenue grew 6%, which compares with 9% in the first quarter and 7% in the fourth quarter. We are not concerned with the deceleration sequentially, as there were some one-time and seasonal items affecting first-quarter comparisons. In addition, we note that organic recurring revenue was 8% in the quarter compared with 9% in the first quarter. While the results were steady, revenue and adjusted EBITDA were both 1% below the FactSet consensus, and we think that partially explains the modestly negative market reaction. We will maintain our narrow moat rating and $137 fair value estimate on Thomson Reuters' shares.

Thomson Reuters reported a very good start to 2024. First-quarter organic revenue growth accelerated to 9% from 7% in the fourth quarter with organic growth particularly strong in corporate and tax and accounting professionals segments. While there were some one-time and seasonal items impacting growth that likely won’t occur in the rest of 2024, underlying trends were still strong, in our view. As we take up our revenue estimates, we are increasing our fair value estimate to $137 from $128 but still regard shares as pricey.