Thomson-Reuters Corp
Q2 2026 Earnings
Market Reaction
Did TRI Beat Earnings? Q2 2026 Results
Thomson Reuters delivered a clean beat across the board in Q2 2026, posting adjusted EPS of $0.99 against the $0.96 consensus estimate, a 3.34% beat that extended the company's streak of exceeding analyst EPS expectations to four consecutive quarters. Revenue climbed 9.5% year over year to $1.95 billion, edging past the $1.92 billion consensus by 1.82%, with the outperformance anchored by broad strength across the company's "Big 3" segments, Legal Professionals, Corporates, and Tax, Audit and Accounting Professionals, which collectively grew 10% organically, driven by recurring revenue growth and expanding adoption of products like Westlaw and CoCounsel. Adjusted EBITDA margin widened 30 basis points to 38.1%, reflecting operating leverage from the revenue acceleration. Adding a notable strategic dimension to the quarter, the company announced an agreement to sell a 51% stake in its Global Print business to KKR for approximately $500 million, a move expected to lift organic revenue growth by 60 to 70 basis points annually once closed. Management raised its full-year 2026 revenue growth outlook to approximately 8%, while also unveiling plans to deploy a proprietary AI model tailored for legal professionals.
- 9% organic growth in recurring revenues (82% of total revenues) across Big 3 segments
- 13% organic growth in transactions revenues for Big 3 segments
- Strong performance from Westlaw, CoCounsel, CLEAR, Indirect Tax, and Pagero products
- Corporates segment transactions revenue grew 24% organically driven by Confirmation, Pagero, Trust, Checkpoint, and Indirect Tax
- Legal Professionals transactions revenue grew 18% organically driven by CLEAR
- Operating leverage driving adjusted EBITDA margin expansion to 38.1%
- Corporates adjusted EBITDA margin expanded 150bp to 37.2% in Q2
- Global Print adjusted EBITDA margin expanded 170bp to 37.7% in Q2
- Other operating gains of $68 million in Q2 primarily related to acquisitions and investments
Forward Guidance & Outlook
Thomson Reuters raised its full-year 2026 outlook in August: total and organic revenue growth raised to approximately 8.0% (from 7.5%-8.0% previously); Big 3 segments organic revenue growth raised to 9.5%-10.0% (from approximately 9.5%). All other metrics unchanged: adjusted EBITDA margin expected to improve +100bp vs 2025; corporate costs of $115-$125 million; free cash flow of approximately $2.1 billion; accrued capex approximately 8.0% of revenues; depreciation and amortization of software $890-$910 million; net interest expense $180-$190 million; effective tax rate on adjusted earnings approximately 19%. Q3 2026 organic revenue growth expected at approximately 8% with adjusted EBITDA margin of approximately 36%. The Global Print segment will be reported as a discontinued operation starting Q3 2026 with an updated outlook to be provided at that time. Once the KKR transaction closes, the company expects total organic revenue growth to increase 60-70bp annually with minimal impact on adjusted EBITDA margin.
TRI YoY Financials
TRI Revenue by Segment
TRI Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.