- Company name
- Thomson Reuters
- Sector
- Legal, tax and news information
- About
- Thomson Reuters is a content and technology company based in Toronto. It sells information, software and AI tools to lawyers, tax and accounting professionals, corporations and governments, and it owns the Reuters news agency. Its three largest segments, the "Big 3", are Legal Professionals (including Westlaw and the CoCounsel AI assistant), Corporates and Tax, Audit & Accounting Professionals; together they were 83% of revenue in Q2 2026. The other segments are Reuters and Global Print. About 82% of revenue is recurring, mostly from subscriptions. Revenue was $1.95 billion in Q2 2026. The Thomson family, through Woodbridge, controls the company. Its shares trade on the Toronto Stock Exchange and on Nasdaq; this page uses the Toronto price in Canadian dollars.
- Thesis
- The market prices Thomson Reuters for the risk that generative AI lowers the value of its legal and tax research products. New AI tools from start-ups and from large AI companies can answer legal and tax questions, and customers may pay less for Westlaw and similar products over time. Results show no damage yet: in Q2 2026, organic revenue grew 8%, the Big 3 segments grew 10% organically and the adjusted EBITDA margin rose to 38.1%. Thomson Reuters raised its 2026 outlook to about 8% organic growth and 9.5% to 10.0% for the Big 3. Its balance sheet is strong, with net debt of 0.9 times adjusted EBITDA. For the gap to close, three things must be true. Organic growth in the Big 3 must stay near 9% or more as customers buy its AI products, such as CoCounsel Legal. The adjusted EBITDA margin must rise by about 100 basis points in 2026, as planned. Thomson Reuters must use its balance sheet well for buybacks and AI acquisitions. The Q3 2026 report on November 3, 2026, is the next test. The 2027 outlook in February 2027 is the main test. If these checks pass, the gap can close over the next three to five quarters. The main reason it may not close is a slowdown in subscription growth caused by AI competition.
- Risks
- Generative AI tools can answer legal, tax and compliance questions. If customers use them instead of Westlaw and its other products, or pay lower prices, growth can slow.
Thomson Reuters spends heavily on AI products and acquisitions. If these products do not win customers, the costs can lower margins and returns.
Reuters news and the Global Print business grow slowly or shrink. The Global Print joint venture with KKR still needs regulatory approvals.
Woodbridge, the Thomson family company, controls Thomson Reuters. Minority shareholders have little influence on major decisions.
- Balance sheet
- Cash: $577M
Debt: $3.0B
Net debt: $2.4B
Net debt / EBITDA: 0.9× (low)
Undrawn credit line: $2.0B, to November 2030
Debt due within 12 months: $1.6B
Last debt due: 2043
At June 30, 2026, Thomson Reuters had cash and cash equivalents of $577 million and total debt of about $3.0 billion, including $1.62 billion of commercial paper in current indebtedness. Its term debt then matured in 2035, 2040 and 2043, with an average maturity of about 14 years. Net debt was 0.9 times adjusted EBITDA, well below its 2.5 times target, and the covenant ratio was 0.8 times against a maximum of 4.5 times. Nothing was drawn on its $2.0 billion credit facility, which matures in November 2030. In May 2026, it repaid $500 million of 3.35% notes. In September 2026, it issued US$1.3 billion and C$1.0 billion of new notes, mainly to repay commercial paper. It expects free cash flow of about $2.1 billion in 2026 and about $500 million from the Global Print sale.
As of 2026-06-30.
- Checkpoints
- Nov 3, 2026: Q3 2026 earnings: Big 3 growth and AI products. Pending. Watch: Big 3 organic growth near 9.5% or more and a margin on track for a 100 basis point rise pass; slower Big 3 growth fails.
Feb 2027 (estimate): 2026 results and the 2027 outlook. Pending. Watch: A 2027 outlook with organic growth near 8% or more and a higher margin passes; lower growth guidance fails.
- Recent events
- 2026-09-29: Thomson Reuters said that it will report Q3 2026 results on November 3, 2026.
2026-09-17: Thomson Reuters closed its sale of US$1.3 billion of notes, 5.100% notes due 2028 and 5.750% notes due 2033, and a private placement of C$1.0 billion of notes due 2029 and 2031. It will use the money mainly to repay commercial paper.
2026-08-05: Thomson Reuters reported Q2 2026 results. Revenue rose 9% to $1.95 billion and organic revenue rose 8%, with 10% organic growth in the Big 3 segments. The adjusted EBITDA margin was 38.1% and adjusted EPS rose 14% to $0.99. Free cash flow rose to $727 million. It raised its 2026 revenue growth outlook to about 8%.
2026-07-14: Thomson Reuters agreed to sell a 51% stake in its Global Print business to KKR for about $500 million in gross proceeds and to keep 49% of a new joint venture. It expects the deal to close in Q4 2026.
2026-05-05: Thomson Reuters reported Q1 2026 results. Revenue rose 10% to $2.09 billion and organic revenue rose 8%. On May 4, 2026, it completed a $605 million return of capital with a share consolidation. In February 2026, it raised its annual dividend by 10% to $2.62 per share and announced a $600 million buyback, which it completed in Q2 2026.