Canadian-based media company Thomson Reuters (TRI) has reported strong third-quarter financial results and announced a $1 billion stock buyback program.
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The Toronto-based company, which owns the Reuters newswire, announced earnings per share (EPS) of $0.85, which was above the $0.83 that was expected on Wall Street. Revenue for the quarter totaled $1.78 billion, in-line with consensus expectations. Sales were up 3% from a year earlier.
Management attributed the results largely to rising demand for its artificial intelligence (AI) products. Thomson Reuters also benefited from 3% growth in its recurring revenues, which comprise 83% of the total, and 12% growth in its transactions revenue.
Buyback and Dividend
Thomson Reuters has been developing a number of agentic AI products that are proving to be popular with its clients. These include AI software that helps with taxes, audits, and general accounting. Many of its AI products are used by law firms and accountants.
Along with the Q3 print, Thomson Reuters announced a new $1 billion share repurchase program that goes into effect immediately and is made possible by an improving 2026 profitability outlook. The company also declared a quarterly dividend of $0.595 per share that is payable on Dec. 10 to shareholders of record as of Nov. 18. The dividend is unchanged from the previous quarter.
Is TRI Stock a Buy?
The stock of Thomson Reuters has a consensus Moderate Buy rating among 11 Wall Street analysts. That rating is based on eight Buy and three Hold recommendations issued in the last three months. The average TRI price target of $202.87 implies 37.07% upside from current levels. These ratings could change after the company’s financial results.
