Thomson Reuters Corp Earnings Overview
On August 6, 2025, Thomson Reuters Corp provided its second-quarter earnings report, revealing consistent growth momentum and strategic advancements in AI within key professional markets. This quarter demonstrated the company's commitment to innovation, strong revenue performance, and attentive capital management. The company maintained its full-year outlook for 2025, indicating confidence in meeting its long-term goals despite a challenging macroeconomic environment.
Financial Performance Summary
Key Financial Metrics
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|---|---|---|---|
| Total Revenue | - | - | +3% |
| Organic Revenue Growth | - | - | +7% |
| Diluted EPS | $0.69 | $1.86 | -62.9% |
| Adjusted EPS | $0.87 | $0.85 | +2.4% |
| Adjusted EBITDA Margin | 37.8% | 37.1% | +0.7 pp |
Thomson Reuters experienced a 3% year-over-year increase in total revenues, propelled by a 7% increase in organic revenues. Diluted earnings per share were $0.69, significantly down from $1.86 in the previous year due to exceptional non-cash tax benefits and investment gains in Q2 2024. However, adjusted EPS rose slightly by 2.4%, illustrating improved operational efficiency.
Segment Revenue Breakdown
| Segment | Revenue Growth | Organic Growth |
|---|---|---|
| Legal Professionals | -3% | 8% |
| Corporates | 6% | 9% |
| Tax & Accounting Pros | 13% | 11% |
| Reuters News | 5% | 5% |
| Global Print | -7% | -7% |
The "Big 3" segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) contributed significantly to the revenue growth, collectively marking an organic increase of 9%. The strong performance in the Tax & Accounting segment, with a notable 13% revenue jump, was crucial, reflecting strategic acquisitions and expanding product capabilities.
Revenue Performance Across Segments
Thomson Reuters' performance varied across its key segments, driven by strategic disposals, acquisitions, and innovative solutions:
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Legal Professionals : Despite a 3% decline attributed to the disposal of FindLaw, organic growth reached 8%. The segment's recurring revenues, primarily driven by Westlaw and related products, illustrated resilience.
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Corporates : Reported a 6% revenue rise with a strong 9% organic growth. This was fueled by international business expansion and software offerings like Pagero and Practical Law.
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Tax & Accounting Professionals : This segment excelled with a 13% revenue increase, enhanced by the acquisition of SafeSend. Organic growth was supported by tax products and momentum in Latin America.
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Reuters News : Achieved a 5% revenue increase due to enhanced agency deals and higher pricing structures, despite a reduction in EBITDA due to elevated editorial investments.
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Global Print : Saw a decrease of 7% in line with the industry's shift towards digital solutions like Westlaw, leading to revenue declines.
Key Developments in the Quarter
Thomson Reuters made noteworthy strides in product innovation, specifically in AI-driven solutions tailored for legal, tax, and accounting markets. The introduction of CoCounsel Legal, featuring Deep Research on Westlaw, and CoCounsel for tax and audit, underscores the company's efforts to bring transformative, professional-grade AI solutions to the forefront.
CEO Steve Hasker emphasized the importance of these innovations, reaffirming the company's commitment to leveraging its authoritative content to deliver impactful professional tools. This strategic focus aligns with Thomson Reuters' overarching goal of sustained value creation through long-term investments and balanced capital allocation.
Comments from Company Officers
Steve Hasker, President and CEO, commented, "We saw good momentum continue in the second quarter, with revenue in-line and margins modestly ahead of our expectations. We remain focused on delivering product innovation across our portfolio, as exemplified by the launch of CoCounsel Legal, including Deep Research on Westlaw and guided workflows, and CoCounsel for tax, audit, and accounting."
Mr. Hasker further remarked, "As we look ahead, we remain committed to a balanced capital allocation approach and continue to assess inorganic opportunities as they arise, while focusing on delivering sustained value creation through a long-term investment strategy."
Dividends and Share Repurchases
Reflecting its solid financial standing, Thomson Reuters announced a 10% increase in its annual dividend to $2.38 per share, marking the 32nd consecutive year of dividend growth. This represents a continued commitment to returning value to shareholders. As of August 4, 2025, the company had approximately 450.7 million common shares outstanding.
Thomson Reuters Corp Stock Forecast
Given the robust financial and operational performance evidenced in Q2 2025, and the strategic initiatives underway, Thomson Reuters appears well-positioned for continued growth. Assuming stable market conditions and successful execution of its current strategic pursuits, the company's stock could see promising appreciation.
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High Projection : $145 - Driven by continued double-digit growth in the Tax & Accounting segment and successful AI product adoption.
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Low Projection : $120 - Assuming macroeconomic pressures, such as ongoing geopolitical risks and inflationary challenges, impact broader market performance.
These projections are guided by fundamental analysis and current market conditions while considering potential risks that may alter these forecasts. Overall, Thomson Reuters maintains strategic flexibility, focusing on core competencies and innovation to drive long-term shareholder value.
