Thomson Reuters (0Q89) AI Stock Analysis

Thomson Reuters

(LSE:0Q89)

Rating:―N/A

Action:N/A

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Positive Factors

Recurring Revenue BaseThe increasing recurring and repeat-revenue mix improves visibility into future results and makes the business less dependent on individual transactions. Subscription contracts also support renewals, price increases, cross-selling, and deeper workflow integration across professional customers.

Negative Factors

TAAP Execution IssuesExecution and timing issues in Tax, Audit & Accounting can delay revenue recognition and weaken customer adoption of important workflow products. Leadership changes and expected second-half improvement suggest the problems may be manageable, but they still create medium-term delivery risk.

Thomson Reuters (0Q89) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: CAD 51.23B
Dividend Yield: 3.38%
Average Volume (3M): 717
Price to Earnings (P/E): 31.6
Beta (1Y): 0.01
Revenue Growth: 5.91%
EPS Growth: 1.60%
Country: UK
Employees: 27,100
Sector: General
Sector Strength: 55
Industry: Specialty Business Services

Thomson Reuters Business Overview & Revenue Model

Company Description

Thomson Reuters Corporation delivers business information services globally, spanning the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. The company organizes its operations into five main divisions. Its Legal Professionals s...

Thomson Reuters Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|% Change Since:13.42%|Next Earnings Date:Nov 02, 2026

Earnings Call SentimentPositive

The call presented a solid set of financial and operational results: revenue growth accelerated (total organic +8%, Big 3 +10%), profitability expanded (adjusted EBITDA +10%, EPS +14%), free cash flow strengthened (+29%), major capital returns were executed, and strong product and AI innovation milestones were announced (Thomson LLM, next-gen CoCounsel). Near-term risks include Q3 margin headwinds driven by severance and continued investments, TAAP go-to-market and timing challenges, and a small organic decline in Global Print that will be transitioned via the KKR JV. Management raised full-year revenue guidance and expects margin improvement into Q4, indicating confidence in recovery and execution. Overall, the positives — robust top-line momentum, profit and cash flow expansion, strategic AI/innovation progress and decisive capital allocation — outweigh the manageable near-term execution and transition challenges.

Positive Updates

Total Company Organic Revenue Growth

Total company organic revenues rose 8% year-over-year in Q2 2026, slightly ahead of prior expectations, and management raised full-year total and organic revenue growth guidance to approximately 8% (high end of prior 7.5%–8% range).

Negative Updates

Global Print Organic Decline and Transition

Global Print organic revenues declined 3% year-over-year in Q2. The pending 51% JV sale will deconsolidate the business in Q4 and change revenue reporting (royalty revenue to be reclassified), introducing transitional reporting complexity and one-time effects.

Company Guidance

Thomson Reuters raised its 2026 outlook, now targeting approximately 8% total and organic revenue growth (high end of the prior 7.5–8% range) and lifting Big 3 total and organic growth to 9.5–10% (from ~9.5%), while maintaining an expected full‑year adjusted EBITDA margin of ~40% and free cash flow of about $2.1 billion; for Q3 the company sees ~8% organic revenue growth and an adjusted EBITDA margin of ~36% (including ~$19 million of severance), with strong year‑over‑year margin expansion expected in Q4 and line‑of‑sight to low‑40s EBITDA margin driven in part by roughly $40 million of severance/automation savings; additional guidance‑relevant metrics: ACV from GenAI‑enabled products at 32% (up from 30%), a signed agreement to sell a 51% stake in Global Print for ~ $500 million (closing expected in Q4) that management expects to be 60–70 bps accretive to organic growth and approximately neutral to margins post‑close, and recent capital actions including a $605 million return of capital plus completion of a $600 million buyback (reducing shares by ~3%).

Thomson Reuters Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

GB:0Q89 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:CGY	69Neutral	CAD 956.16M	24.55	11.67%	1.35%	15.72%	―
TSE:DCM	62Neutral	CAD 137.65M	28.02	10.60%	4.55%	-4.58%	-36.77%
TSE:TCL.A	60Neutral	CAD 479.65M	1.39	29.10%	363.60%	-43.09%	91.71%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

GB:0Q89 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0Q89	Thomson Reuters Corp	166.34	-41.30	-19.89%
TSE:CGY	Calian Group Ltd.	82.98	32.57	64.62%
TSE:DCM	Data Commun Management	2.20	0.95	76.14%
TSE:TCL.A	Transcontinental Inc.	5.59	2.87	105.67%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Thomson Reuters AI Stock Analysis