Thomson-Reuters Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.55%.
Did TRI Beat Earnings? Q3 2025 Results
Thomson Reuters posted a clean beat in Q3 2025, with adjusted EPS of $0.85 topping the $0.83 consensus by 2.97%, while revenue of $1.78 billion edged past estimates and grew 3.4% year over year, underpinned by 7% organic growth that reflects the company's deepening push into AI-powered professional tools. The single most important driver was the collective strength of the "Big 3" segments, Legal Professionals, Corporates, and Tax & Accounting Professionals, which together delivered 9% organic revenue growth and accounted for 82% of total revenues, with Tax & Accounting leading at 10% organic gains. Profitability moved meaningfully higher as adjusted EBITDA expanded to $672 million at a 37.7% margin, up 240 basis points. Despite the solid print, shares faced pressure as some observers noted pockets of softness in government and corporate segments. Looking ahead, management reaffirmed full-year 2025 guidance while raising its 2026 framework, now targeting approximately 100 basis points of adjusted EBITDA margin expansion and free cash flow of roughly $2.1 billion.
- 7% organic revenue growth driven by 9% growth in recurring revenues
- Big 3 segments organic revenue growth of 9%
- Higher operating leverage driving adjusted EBITDA margin expansion of 240 basis points to 37.7%
- Legal Professionals organic growth driven by Westlaw, CoCounsel, CoCounsel Drafting, Practical Law, and international businesses
- Corporates growth driven by Indirect Tax, Direct Tax, Pagero, Practical Law, and international businesses
- Tax & Accounting Professionals growth driven by Latin America business, tax and audit products, SafeSend, UltraTax, and Confirmation
- $161 million pre-tax gain from sale of remaining minority interest in Elite
“Our third-quarter results reflect continued momentum and the ongoing execution of our AI-driven innovation strategy. The growth in organic revenue highlights the impact of our agentic AI solutions like CoCounsel Legal and CoCounsel for tax, audit and accounting. We are launching new products and reshaping professional workflows by combining our expertise and trusted, authoritative content with cutting-edge technology. This is how we are empowering our customers to navigate increasing complexity and stay ahead.”
Thomson Reuters CEO, on the earnings call
Forward Guidance & Outlook
Thomson Reuters reaffirmed its full-year 2025 outlook for all metrics. Total revenue growth of 3.0%-3.5% and organic revenue growth of 7.0%-7.5% are trending toward the lower end of their respective ranges. Big 3 organic revenue growth remains at approximately 9%. The 2025 outlook calls for adjusted EBITDA margin of ~39%, free cash flow of ~$1.9 billion, corporate costs of $120-$130 million, accrued capex as % of revenues of ~8%, net interest expense of ~$150 million, and effective tax rate on adjusted earnings of ~19%. For Q4 2025, the company expects organic revenue growth of approximately 7% (Big 3 at ~9%) and adjusted EBITDA margin of approximately 39%. For 2026, the company raised its financial framework: adjusted EBITDA margin expansion now expected at approximately 100 basis points (up from 50+ bps), and free cash flow at approximately $2.1 billion (high end of prior $2.0-$2.1 billion range). Organic revenue growth target of 7.5%-8.0% (Big 3 at ~9.5%), accrued capex at ~8% of revenues, and effective tax rate of ~19% remain unchanged.
TRI YoY Financials
TRI Revenue by Segment
TRI Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.