Core Viewpoint - Thomson Reuters is set to present at the JP Morgan Ultimate Services Investor Conference on November 18, 2025, highlighting its ongoing commitment to providing forward-looking information [1]. Company Overview - Thomson Reuters (TSX/Nasdaq: TRI) integrates trusted content and technology to assist professionals in making informed decisions across various sectors, including legal, tax, accounting, compliance, government, and media [3]. - The company offers specialized software and insights aimed at empowering professionals with essential data and solutions, contributing to justice, truth, and transparency [3]. - Reuters, as part of Thomson Reuters, is recognized as a leading provider of trusted journalism and news [3]. Investor Relations - A live audio webcast of the presentation will be accessible in the Investor Relations section of the Thomson Reuters website 24 hours prior to the event, with an archive available post-presentation [2]. Recent Developments - Thomson Reuters reported solid revenue momentum in its third-quarter results for the period ending September 30, 2025, indicating a positive financial trajectory [5].

Industry Overview - The U.S. Business Services Sector is supported by strong domestic economic fundamentals, encompassing companies that provide consulting, staffing, financial transactions, outsourcing, advertising, waste removal, building maintenance, technology services, and auction/valuation services [1] - The sector has evolved into a mature and resilient ecosystem, with revenues, income, and cash flows now above pre-pandemic levels [2] - The rapid advancement and adoption of artificial intelligence and automation technologies are reshaping the delivery of business services [2] Sector Performance - The Zacks-defined Business Services Sector ranks in the top 38% of the Zacks Sector Rank, indicating an expectation to outperform the market over the next three to six months [3] Recommended Stocks - Five business services stocks with favorable Zacks Rank are recommended: Xylem Inc. (XYL), Thomson Reuters Corp. (TRI), UL Solutions Inc. (ULS), Omnicom Group Inc. (OMC), and Veralto Corp. (VLTO), all carrying a Zacks Rank 2 (Buy) [4] Company Insights Xylem Inc. (XYL) - Xylem experiences steady demand due to the essential nature of its offerings, benefiting from robust demand for smart metering and applications in the U.S. [5] - The Water Infrastructure unit's performance is boosted by growth in transport and treatment application businesses, with an expected revenue growth rate of 3.7% and earnings growth rate of 9.6% for next year [6] Thomson Reuters Corp. (TRI) - Thomson Reuters is a leading provider of value-added information and technology across various sectors, including law, tax, accounting, and healthcare [7] - The company has an expected revenue growth rate of 7.8% and earnings growth rate of 14.2% for next year [8] UL Solutions Inc. (ULS) - UL Solutions provides safety science services across multiple segments, including Industrial, Consumer, and Software and Advisory [9] - The company has an expected revenue growth rate of 5.4% and earnings growth rate of 6.5% for next year [10] Omnicom Group Inc. (OMC) - Omnicom Group's diverse portfolio across traditional and digital marketing segments ensures revenue stability and adaptability [11] - The company has an expected revenue growth rate of 3.2% and earnings growth rate of 6.9% for next year [13] Veralto Corp. (VLTO) - Veralto is positioned for growth through U.S. infrastructure investments and rising semiconductor demand, with a strong focus on water quality and product quality segments [14][15] - The company has an expected revenue growth rate of 5.8% and earnings growth rate of 9.3% for next year [17]

Core Viewpoint - The analyst previously held a "hold" rating for Thomson Reuters (TRI) due to concerns about its valuation, indicating a lack of compelling reasons to invest in the stock [1]. Investment Philosophy - The investment approach is fundamentally driven, focusing on identifying businesses with potential for scalability and significant terminal value [1]. - Key factors considered include competitive moat, unit economics, reinvestment opportunities, and management quality, which are essential for long-term free cash flow generation and shareholder value creation [1]. - The analyst emphasizes the importance of fundamental research and targets sectors with strong secular tailwinds [1]. Professional Background - The analyst has 10 years of experience in investment banking and is currently managing personal funds sourced from friends and family [1]. - The motivation for writing on Seeking Alpha is to share investment insights and receive feedback from other investors [1]. - The goal is to help readers focus on the drivers of long-term equity value, advocating for analysis that is both analytical and accessible [1].

Air Canada - Operating revenues for the quarter were $5.77 billion, a decrease of approximately 5% from $6.1 billion in the same quarter last year [1] - The results included a three-day work stoppage by over 10,000 flight attendants in August, leading to more than 3,000 flight cancellations [1] - CEO Michael Rousseau stated that the results met the company's revised estimates, which were adjusted due to the labor disruption during peak summer season, with the estimated cost of the strike at $375 million [2] Fortis Inc. - Fortis reported a third-quarter profit of $409 million, down from $420 million a year ago, with earnings of 81 cents per share compared to 85 cents per share in the same quarter last year [4][7] - Revenue for the quarter was $2.94 billion, an increase from $2.77 billion in the same quarter last year [4][7] - Fortis announced a new five-year capital plan for 2026-2030 totaling $28.8 billion, an increase of $2.8 billion compared to the previous plan [5] Thomson Reuters Corp. - Thomson Reuters reported a profit of US$423 million for the quarter, up from US$301 million a year earlier, with profit per diluted share increasing to 94 cents from 67 cents [9][12] - Revenue rose to US$1.78 billion, up from US$1.72 billion in the same period last year [10][12] - The company acquired Additive AI Inc., a specialist in AI-powered tax document processing, and sold its remaining minority interest in the Elite business [11] Suncor Energy Inc. - Suncor reported a decline in third-quarter profits to $1.62 billion, down from $2.02 billion a year earlier, with profit per share decreasing to $1.34 from $1.59 [14][18] - Operating revenues net of royalties were $6.17 billion, down from $6.32 billion in the same quarter last year [15][18] - Total upstream production reached 870,000 barrels of oil equivalent per day, an increase from 828,600 boe/d, while refinery throughput also hit a record of 491,700 barrels per day [15][16] Cameco - Cameco raised its annual dividend to 24 cents per share from 16 cents, despite reporting a small net loss of $158,000 for the quarter, compared to a profit of $7.4 million a year earlier [21] - Revenue for the quarter was $614.6 million, down from $720.6 million [21]

Group 1 - The article discusses the Asia Value & Moat Stocks research service, which targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1] - The current year turnover for the group is expected to be at the lower end of guidance, which is perceived as a one-off situation [1] - The Legal segment is anticipated to maintain a fast growth trajectory moving forward [1] Group 2 - The Value Pendulum is highlighted as an Asian equity market specialist with over a decade of experience, providing investment ideas particularly for the Hong Kong market [1] - The service offers a variety of watch lists with monthly updates to assist investors in identifying potential investment opportunities [1]

Core Insights - Thomson Reuters (NASDAQ: TRI) is a significant player in the information services industry, particularly known for its legal, tax, and accounting solutions [1][5] - The company is integrating artificial intelligence into its legal tools to enhance its offerings and aims to become the leading AI platform for legal professionals [2][5] - Canaccord Genuity has set a price target of $174 for TRI, indicating a potential price increase of 18.69% from its current price of $146.60 [1][5] Stock Performance - TRI's stock is currently priced at $146.60, reflecting a decrease of 5.86%, which is a drop of $9.12 [3][5] - The stock has experienced fluctuations during the trading day, with a low of $145.26 and a high of $157.64 [3] - Over the past year, TRI has reached a high of $218.42 and a low of $145.28 [3] Market Position - Thomson Reuters has a market capitalization of approximately $66.07 billion, with a trading volume of 2,490,644 shares [4] - The integration of AI into its legal tools is crucial for maintaining a competitive edge against established models like ChatGPT [4]

Core Insights - The legal technology sector is experiencing a shift as generative AI begins to dominate software, with Thomson Reuters leveraging its extensive legal data to develop new AI-driven products like Westlaw Advantage and CoCounsel [1][2] Company Performance - Thomson Reuters reported a 9% organic revenue growth in its legal unit, reaching $700 million, an increase from 8% growth in the first half of the year, driven by AI features in CoCounsel products [3] - Despite the positive growth, the company's stock fell over 6% following the quarterly results announcement, marking a decline of more than 30% since mid-July [2] Competitive Landscape - The rise of generative AI has led to increased competition, with new entrants like RELX's LexisNexis forming alliances with AI startups and Clio acquiring vLex for $1 billion [7][8][9] - Thomson Reuters' CEO Steve Hasker expressed skepticism about the inflated valuations of AI startups and claimed that CoCounsel's adoption is outpacing that of its rivals [9] Strategic Positioning - The company emphasizes its competitive advantage through a combination of its Westlaw legal data and human editorial oversight, which is crucial in an industry where accuracy is vital [10] - Westlaw processes over 300 million documents annually, with 85% of primary documents enhanced by editorial upgrades, providing court-safe guidance [11] Future Directions - Thomson Reuters aims to expand its services beyond basic retrieval and summarization to include more generative AI capabilities that assist lawyers with complex tasks [12] - The potential entry of OpenAI into the legal tech space raises concerns, as it could disrupt existing customer relationships and market dynamics [13][14] Market Dynamics - The competitive landscape is influenced by the capabilities of general-purpose AI models, with Thomson Reuters arguing that specialized legal AI tools can outperform broader applications [15] - Customers are beginning to recognize the differences between specialized legal AI solutions and general-purpose models, indicating a shift in market understanding [16]

Core Insights - Thomson Reuters Corp reported third-quarter 2025 revenue of $1.78 billion, a 3% increase year-over-year, surpassing estimates [1] - Organic revenue grew by 7%, driven by a 9% increase in its three main segments: Legal Professionals, Corporates, and Tax and Accounting Professionals [1] Financial Performance - GAAP diluted earnings per share rose 40% to 94 cents, while adjusted EPS increased 6% to 85 cents, exceeding the estimate of 83 cents [2] - Operating profit surged 43% to $593 million, aided by the sale of its remaining minority stake in Elite [2] - Adjusted EBITDA increased 10% to $672 million, with the margin improving to 37.7% from 35.3% [3] Segment Performance - Legal Professionals revenue decreased 2% to $728 million, but organic growth was 9% due to strong performance in Westlaw, CoCounsel, and Practical Law [3] - Corporates revenue grew 9% to $478 million, supported by Indirect Tax, Pagero, and Global Trade [4] - Tax & Accounting Professionals revenue climbed 15% to $251 million, bolstered by the SafeSend acquisition and 10% organic growth [4] Additional Revenue Insights - Reuters News revenue increased 4% to $207 million, primarily from higher agency revenue and a price increase under its London Stock Exchange Group contract [5] - Global Print revenue fell 4% to $124 million, while adjusted EBITDA rose 8% to $46 million due to reduced expenses [5] Year-to-Date Performance - For the first nine months of 2025, total revenue rose 2% to $5.47 billion, and adjusted EBITDA grew 5% to $2.16 billion, with a margin of 39.3% [6] - Adjusted EPS increased to $2.85 from $2.7 [6] Strategic Moves - The company acquired Additive AI, Inc., specializing in AI-powered tax document processing, and completed a $1 billion share buyback [6] - Thomson Reuters reaffirmed its 2025 sales guidance of $7.475 billion to $7.512 billion, expecting total revenue growth of 3% to 3.5% [7] Future Outlook - For 2026, the company raised its projected margin expansion to approximately 100 basis points and expects free cash flow of around $2.1 billion [8] - Thomson Reuters shares were trading 5.69% lower at $146.87 at the time of publication [8]

Core Content and Technology Offerings - The competitive dynamics for core content and technology offerings, particularly Westlaw and tax engines, remain stable, with CoCounsel being a market leader in the AI assistant space [1] - The company completed a $1 billion share repurchase program and maintains a strong capital position with a net leverage of 0.6 times [1] Financial Performance - Total company organic revenues increased by 7%, with the big three segments growing by 9% [4][5] - Adjusted EBITDA rose by 10% to $672 million, reflecting a margin increase to 37.7% [5][19] - Organic revenue growth for the legal professionals segment accelerated to 9%, driven by Westlaw and CoCounsel [6][16] Growth Outlook - The company expects organic revenue growth of 7.5% to 8% for 2026, with approximately 9.5% growth anticipated for the big three segments [2][24] - The tax and accounting segment is projected to achieve the highest absolute growth rate in 2026, with expectations of 11% to 13% organic growth [79] AI and Innovation - Positive customer feedback has been received for the AgenTik AI launches, with initial sales trends encouraging [2] - The company emphasizes the differentiation of Westlaw in an AI environment, highlighting the importance of comprehensive and accurate legal research [7][14] Segment Performance - Legal organic revenue grew by 9%, while corporate organic revenues increased by 7%, driven by legal, tax, and risk offerings [6][16] - Tax and accounting organic revenues grew by 10%, supported by strong performance in Latin America and the U.S. [17][79] Capital Allocation and M&A Strategy - The company has an estimated $9 billion capital capacity through 2027 and remains focused on balanced capital allocation [5][20] - The company is open to assessing additional inorganic opportunities, particularly in areas showing strong growth potential [56][58]

Financial Data and Key Metrics Changes - Total company organic revenues rose by 7%, with the big three segments growing by 9% [4][8] - Adjusted EBITDA increased by 10% to $672 million, reflecting a margin increase of 240 basis points to 37.7% [8][20] - Adjusted EPS was $0.85 for the quarter, compared to $0.80 in the prior year [20] Business Line Data and Key Metrics Changes - Legal organic revenue grew by 9%, improving from 8% in the first half of 2025, driven by Westlaw and Co-Counsel [5][18] - Corporate segment organic revenues grew by 9%, with recurring revenue also increasing by 9% [18] - Tax and accounting organic revenues grew by 10%, driven by Latin American and U.S. businesses [18][19] - Reuters News organic revenues rose by 3%, primarily from growth in the agency business [19] Market Data and Key Metrics Changes - Global print organic revenues declined by 4% year on year [19] - The percentage of annualized contract value from GenAI-enabled products increased to 24%, up from 22% last quarter [19] Company Strategy and Development Direction - The company is reaffirming its full-year 2025 revenue and profit outlook, expecting approximately 9% organic revenue growth for the big three segments [4][21] - The company is focused on leveraging AI and technology to enhance product offerings and improve operational efficiency [7][16] - The company completed a $1 billion share repurchase program and remains well-capitalized with a net leverage of only 0.6 times [7][8] Management's Comments on Operating Environment and Future Outlook - Management noted temporary factors affecting revenue growth, including slower commercial print volumes and recent U.S. federal government cancellations [4][21] - The company remains confident in achieving its 9% organic revenue growth outlook for the year, driven by strong innovation-led momentum [21][24] - Looking ahead, the company expects organic revenue growth of approximately 7% in Q4, with legal professionals likely to deliver 9% organic revenue growth [21][24] Other Important Information - The company is committed to a balanced capital allocation approach and is assessing additional inorganic opportunities [7][8] - The company plans to invest over $200 million in AI and GenAI initiatives in 2025, continuing into 2026 [93][94] Q&A Session Summary Question: What are the recurring impacts of government and corporate headwinds? - Management acknowledged temporary sales softness in corporates but remains confident in the long-term growth potential, targeting 9%-11% organic growth for next year [30][32] Question: How is customer reaction to Agentic AI? - Customers have responded positively to Westlaw Advantage, with significant changes in their research behaviors noted [35][36] Question: What is the impact of the government shutdown on contracts? - Cancellations occurred prior to the shutdown, which has minimal impact on revenue [41] Question: How does the company view competition in the AI assistance space? - The company sees new entrants in the AI assistance space as a white space opportunity and is confident in its competitive position [56][57] Question: What are the expectations for tax and accounting business growth? - Management remains confident in delivering 11%-13% organic growth for the tax and accounting segment in 2026 [59][61] Question: What is the company's approach to pricing strategy with AI products? - The company aims to price based on the value delivered, with ongoing assessments of market signals [81][82]