Thomson Reuters Reports Fourth-Quarter and Full-Year 2025 Results

Core Insights - Thomson Reuters reported solid revenue momentum with organic revenues up 9% for its "Big 3" segments in both the fourth quarter and full year of 2025 [1] - The company experienced a 5% increase in total revenues for Q4 2025 and a 3% increase for the full year, with organic revenues growing by 7% in both periods [1] - The CEO emphasized the benefits of investments in AI and technology to enhance product innovation and customer service [1] Financial Highlights - Q4 2025 - Total revenues reached $2,009 million, a 5% increase from $1,909 million in Q4 2024 [1] - Operating profit decreased by 25% to $540 million, primarily due to prior-year gains from the sale of FindLaw [1] - Diluted EPS fell to $0.74 from $1.30, reflecting lower operating profit [1] - Adjusted EBITDA increased by 8% to $777 million, with a margin of 38.7%, up from 37.6% [1] Financial Highlights - Full Year 2025 - Total revenues for the year were $7,476 million, a 3% increase from $7,258 million in 2024 [2] - Operating profit increased by 1% to $2,132 million [2] - Diluted EPS decreased to $3.33 from $4.89, largely due to a prior-year non-cash tax benefit [2] - Adjusted EBITDA rose by 6% to $2,936 million, with a margin of 39.2%, up from 38.2% [2] Segment Performance - Q4 2025 - Legal Professionals segment revenues increased by 1%, with organic growth of 9% [2] - Corporates segment revenues rose by 7%, with organic growth also at 9% [2] - Tax, Audit & Accounting Professionals segment saw a 13% revenue increase, with organic growth of 11% [2] - Reuters segment revenues increased by 6%, driven by AI-related content licensing [2] Segment Performance - Full Year 2025 - Legal Professionals segment revenues decreased by 2% to $2,868 million, with organic growth of 8% [3] - Corporates segment revenues increased by 8% to $1,987 million, with organic growth of 9% [3] - Tax, Audit & Accounting Professionals segment revenues rose by 12% to $1,302 million, with organic growth of 11% [3] - Reuters segment revenues increased by 3% to $853 million, with organic growth of 1% [3] 2026 Outlook - The company anticipates approximately 7% organic revenue growth in Q1 2026 and an adjusted EBITDA margin of around 42% [3] - Full-year 2026 total revenue growth is expected to be between 7.5% and 8.0% [3] - The adjusted EBITDA margin for 2026 is projected to increase by 100 basis points compared to 2025 [3] Dividend and Share Repurchase - The company announced a 10% increase in its annual dividend to $2.62 per common share, marking the 33rd consecutive annual increase [3] - A share repurchase program of up to $1.0 billion was completed, repurchasing 6.0 million shares [3]