Financial Data and Key Metrics Changes - Total company organic revenues rose 7% with the big three segments growing by 9% [5][9] - Adjusted EBITDA increased 5% to $678 million, reflecting a 70 basis point margin increase to 37.8% [9][29] - Adjusted EPS was $0.87 for the quarter versus $0.85 in the prior year period [29] Business Line Data and Key Metrics Changes - Legal organic revenue grew 8%, driven by Westlaw and co counsel [10][26] - Corporates organic revenue grew 9%, with key contributions from legal, tax, and risk portfolios [10][26] - Tax and accounting organic revenues grew 11%, driven by Latin American and US businesses [10][26] - Reuters News organic revenues rose 5%, with all major lines contributing [10][27] - Global print organic revenues declined 7% [10][27] Market Data and Key Metrics Changes - The percentage of annualized contract value from GenAI-enabled products increased to 22%, up from 20% last quarter [28] - The company expects organic revenue growth of 7% to 7.5% for the full year 2025 [31] Company Strategy and Development Direction - The company continues to invest heavily in innovation, particularly in AI capabilities [6][12] - A balanced capital allocation approach is maintained, with a focus on strategic M&A opportunities [8][80] - The company aims to leverage its capital capacity of $10 billion through 2027 for growth [8][80] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the full year 2025 outlook for organic revenue, adjusted EBITDA margin, and free cash flow [5][31] - The company is optimistic about the adoption of AI technologies among clients, with a significant portion showing interest [105][110] Other Important Information - The company repaid a $1 billion maturing bond issue and remains well-capitalized with net leverage of only 0.5 times [8] - The company is committed to returning 75% of free cash flow to shareholders, with potential share buybacks discussed [81][82] Q&A Session Summary Question: Can you provide a sense of the percentage of workflow currently being automated? - Management indicated that automation is still relatively modest in legal but more significant in tax and accounting, with ongoing efforts to automate ancillary tasks [39][40] Question: How does the company view its competitive position in the market? - Management believes they are ahead of competitors in tax and accounting innovations and highlighted the unique capabilities of their deep research technology [48][51] Question: What is the company's approach to managing margins and expenses? - Management explained that margin performance was driven by good operating leverage and timing of expenses, with confidence in maintaining guidance despite seasonal factors [58][60] Question: How is the company thinking about excess capital and potential returns to shareholders? - Management emphasized strategic M&A as a top priority for capital deployment, with ongoing discussions about share buybacks and dividend growth [80][81] Question: What is the adoption rate of GenAI-enabled products across different segments? - Management noted that there is significant interest in AI offerings across client cohorts, with varying levels of adoption [105][110]

Financial Data and Key Metrics Changes - Total company organic revenues rose 7% with the big three segments growing by 9% [4][7] - Adjusted EBITDA increased 5% to $678 million, reflecting a 70 basis point margin increase to 37.8% [7][28] - Free cash flow for 2025 was $843 million, up 4% from the prior year period [29] Business Line Data and Key Metrics Changes - Legal organic revenue grew 8%, driven by Westlaw and co counsel [8][24] - Corporates organic revenue grew 9%, with key contributions from legal, tax, and risk portfolios [9][24] - Tax and accounting organic revenues grew 11%, driven by Latin American and US businesses [9][24] - Reuters News organic revenues rose 5%, with all major lines contributing [10][25] - Global print organic revenues declined 7% [10][25] Market Data and Key Metrics Changes - The percentage of annualized contract value from GenAI-enabled products increased to 22%, up from 20% [26] - The company expects organic revenue growth of 7% to 7.5% for the full year 2025 [30] Company Strategy and Development Direction - The company is focused on leveraging Agentic AI to enhance legal and tax/accounting portfolios [5][11] - There is a commitment to a balanced capital allocation approach, with $10 billion of capital capacity through 2027 [6][78] - The company aims to continue investing in innovation and strategic M&A opportunities [6][78] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the full year 2025 outlook for organic revenue, adjusted EBITDA margin, and free cash flow [4][30] - The company remains confident in delivering its guidance for 2026, with organic revenue growth targets for the big three segments [31] Other Important Information - The company has introduced several new AI-powered products, including CoCounsel for Tax, Ready to Review, and Ready to Advise [15][16][18] - The integration of AI capabilities is seen as a key differentiator in the competitive landscape [48][50] Q&A Session Summary Question: Can you provide a sense of the percentage of workflow currently being automated? - Management indicated that automation is still relatively modest in legal but more advanced in tax and accounting, with significant time-consuming tasks being automated [36][38] Question: How does the company view its competitive position in the market? - Management believes they are ahead of competitors in tax and accounting innovations and highlighted the unique capabilities of their deep research technology [47][50] Question: What are the drivers behind the margin performance in the quarter? - Key factors included good operating leverage, timing of expenses, and revenue mix, with expectations for margin performance to normalize in the second half of the year [56][58] Question: How is the company thinking about excess capital and potential return of capital transactions? - The company prioritizes strategic M&A for capital deployment, with a commitment to return 75% of free cash flow, potentially including share buybacks [79][80] Question: What is the adoption rate of GenAI-enabled products across different segments? - The larger portion of GenAI-enabled products is currently in the legal segment, but growth is expected across all segments as new products are launched [110]

Core Viewpoint - Thomson Reuters reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and showing a slight increase from $0.85 per share a year ago, indicating a positive earnings surprise of +4.82% [1][2] Financial Performance - The company posted revenues of $1.79 billion for the quarter ended June 2025, which was slightly below the Zacks Consensus Estimate by 0.19%, but an increase from $1.74 billion year-over-year [2] - Over the last four quarters, Thomson Reuters has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Thomson Reuters shares have increased approximately 24.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at $0.82 for the coming quarter and $3.90 for the current fiscal year [4][7] - The estimate revisions trend for Thomson Reuters was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Business - Services industry, to which Thomson Reuters belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Thomson Reuters' Q2 2025 revenues increased by 3% to $1.785 billion[12], with organic revenue growth of 7%[11, 12, 14] and recurring revenue growth of 9%[11, 14] - Adjusted EBITDA for Q2 2025 increased by 5% to $678 million[12], with an adjusted EBITDA margin of 37.8%[12], up 70 bps[12] - Adjusted EPS for Q2 2025 increased by 2% to $0.87[12] - Free cash flow for Q2 2025 increased by 4% to $566 million[12] Segment Performance - "Big 3" (Legal, Corporates, and Tax & Accounting) organic revenue growth was 9%[11, 15, 29, 30] - Legal Professionals revenues decreased by 2% to $709 million[14, 29, 30], but experienced organic growth of 8%[14, 29, 30] - Corporates revenues increased by 7% to $472 million[14, 29, 30], with organic growth of 9%[14, 29, 30] - Tax & Accounting Professionals revenues increased by 11% to $277 million[14, 29, 30], with organic growth of 11%[14, 29, 30] Innovation and AI - Agentic AI launches continue, including CoCounsel for Tax, Audit & Accounting and CoCounsel Legal[11, 18] - The company estimates ~$10 billion of capital capacity by 2027[11] Outlook - FY 2025 outlook for organic revenue growth, adjusted EBITDA margin, and free cash flow reaffirmed[11, 35] - Free cash flow is expected to be ~$1.9 billion[35]

Group 1 - The company reported Q2 revenue of $1.79 billion, in line with market expectations [1] - Adjusted earnings per share were $0.87, exceeding the market expectation of $0.82 [1] - Sales amounted to $1.785 billion, slightly below the market expectation of $1.792 billion [1] Group 2 - Revenue grew by 5% on a constant currency basis in Q2 [1] - The company anticipates an adjusted EBITDA margin of approximately 36% by Q3 2025 [1]

Core Insights - Thomson Reuters reported a 3% increase in total revenues for Q2 2025, reaching $1,785 million, driven by a 3% growth in recurring revenues and a 5% increase in transaction revenues, despite a 7% decline in Global Print revenues [2][3][5] - The company launched new AI solutions, including CoCounsel Legal, aimed at enhancing its offerings in legal, tax, and accounting markets [1][5] - The company maintained its full-year 2025 outlook for organic revenue growth, adjusted EBITDA margin, and free cash flow [5][27] Financial Performance - Operating profit for Q2 2025 increased by 5% to $436 million, attributed to higher revenues and other operating gains [2][4] - Diluted earnings per share (EPS) decreased to $0.69, down 63% from $1.86 in the prior year, primarily due to currency losses and a significant non-cash tax benefit in the previous year [2][4] - Adjusted EBITDA rose by 5% to $678 million, with an adjusted EBITDA margin of 37.8%, up from 37.1% [2][4][5] Revenue Breakdown - The "Big 3" segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) collectively accounted for 82% of total revenues, with organic revenue growth of 9% [6][8] - Legal Professionals segment revenues decreased by 2% to $709 million, while organic revenue growth was 8% [11][12] - Corporates segment revenues increased by 7% to $472 million, with organic growth of 9% [15][25] - Tax & Accounting Professionals segment revenues rose by 11% to $277 million, with organic growth of 11% [16][17] Cash Flow and Capital Allocation - Net cash provided by operating activities increased by $41 million to $746 million, reflecting higher operating profit [7][21] - Free cash flow for Q2 2025 increased by $25 million to $566 million [7] - The company repaid Canadian $1.4 billion (U.S. $1.0 billion) in notes with cash on hand in May 2025 [33] Outlook - The company expects approximately 7% organic revenue growth and an adjusted EBITDA margin of around 36% for Q3 2025 [28] - The full-year 2025 outlook remains unchanged, with total revenue growth projected at 3.0% to 3.5% and organic revenue growth at 7.0% to 7.5% [30][27]

CoCounsel Legal includes Deep Research, an industry-first AI solution grounded in Thomson Reuters expert legal content, starting with Westlaw TORONTO, Aug. 5, 2025 /PRNewswire/ -- Today, Thomson Reuters (TSX/Nasdaq: TRI), a global content and technology company, announced the launch of CoCounsel Legal, featuring Deep Research and agentic guided workflows. This milestone product release showcases Thomson Reuters most advanced AI offering to date, designed to help professionals move beyond prompting and start ...

Core Viewpoint - Analysts project that Thomson Reuters (TRI) will report quarterly earnings of $0.83 per share, reflecting a year-over-year decline of 2.4%, while revenues are expected to reach $1.79 billion, an increase of 2.8% from the same quarter last year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts' reassessment of their initial estimates [1] - Analysts expect 'Revenues- Legal Professionals' to be $706.57 million, a decrease of 2.8% year-over-year [4] - 'Revenues- Tax & Accounting Professionals' is estimated at $284.50 million, suggesting a year-over-year increase of 13.8% [4] - 'Revenues- Global Print' is projected to reach $117.31 million, indicating a decline of 4.6% from the previous year [4] Group 2: Adjusted EBITDA Estimates - 'Adjusted EBITDA- Legal Professionals' is forecasted to be $326.26 million, slightly down from $327.00 million reported in the same quarter last year [5] - 'Adjusted EBITDA- Corporates' is expected to reach $168.90 million, up from $163.00 million reported in the same quarter last year [6] - 'Adjusted EBITDA- Reuters News' is projected at $48.12 million, compared to $51.00 million in the previous year [6] - 'Adjusted EBITDA- Tax & Accounting Professionals' is likely to be $103.48 million, up from $91.00 million reported in the same quarter last year [7] Group 3: Market Performance - Over the past month, shares of Thomson Reuters have returned -0.1%, while the Zacks S&P 500 composite has increased by 2.3% [7] - Currently, TRI holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the overall market in the near future [7]

Core Viewpoint - The comparison between WNS (Holdings) Limited and Thomson Reuters (TRI) indicates that WNS is more attractive to value investors based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Outlook - WNS currently has a Zacks Rank of 2 (Buy), while TRI has a Zacks Rank of 4 (Sell), suggesting a more favorable earnings outlook for WNS [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, indicating that WNS is likely experiencing an improvement in its earnings outlook compared to TRI [3]. Group 2: Valuation Metrics - WNS has a forward P/E ratio of 16.25, significantly lower than TRI's forward P/E of 52.78, indicating that WNS may be undervalued relative to TRI [5]. - The PEG ratio for WNS is 1.88, while TRI's PEG ratio is 6.39, further suggesting that WNS is more attractive in terms of expected earnings growth [5]. - WNS has a P/B ratio of 4.13 compared to TRI's P/B of 7.53, reinforcing the notion that WNS is undervalued [6]. Group 3: Value Grades - Based on the analysis of various metrics, WNS holds a Value grade of B, while TRI has a Value grade of F, indicating a stronger position for WNS among value investors [6].

Market Overview - The market capitalization of major US stocks shows varied performance, with Oracle at 762.30 billion, Mastercard at 321.36 billion, and Visa at 770.15 billion, reflecting increases of +0.66%, +0.86%, and +0.68% respectively [3] - Exxon Mobil's market cap is 679.53 billion, with a slight decrease of -0.98%, while Johnson & Johnson and Netflix show minor changes of -0.08% and -0.05% respectively [3] - Companies like Wells Fargo and Cisco have market caps of 270.15 billion and 279.59 billion, with respective increases of +0.98% and -0.58% [3] Notable Stock Movements - T-Mobile US Inc experienced a significant increase of +6.20%, reaching a market cap of 272.19 billion [3] - General Electric and Coca-Cola saw market caps of 285.05 billion and 298.76 billion, with increases of +0.37% and +0.91% respectively [3] - Companies like Disney and Goldman Sachs have market caps of 229.06 billion and 221.80 billion, with slight changes of +0.01% and -0.60% [3] Sector Performance - The technology sector shows mixed results, with Intel at 991.05 billion, down -3.28%, while AMD increased by +2.46% to 254.92 billion [5] - The consumer goods sector is represented by companies like Procter & Gamble and Coca-Cola, with market caps of 371.68 billion and 298.76 billion, showing slight increases [3][4] - The energy sector, represented by Exxon Mobil and Chevron, shows varied performance, with Exxon down -0.98% and Chevron up +0.66% [3] Summary of Key Companies - Oracle's market cap stands at 762.30 billion, reflecting a positive trend [3] - Mastercard and Visa show strong performance with market caps of 321.36 billion and 770.15 billion, both increasing [3] - Companies like Pfizer and Comcast have market caps of 1579.81 billion and 1332.00 billion, with Pfizer showing minimal change and Comcast down -3.16% [4][5]