Thomson Reuters reports fourth-quarter revenue rise, shares slip

Core Viewpoint - Thomson Reuters reported higher fourth-quarter revenue driven by its legal, tax, accounting, and corporate sectors, while forecasting a revenue increase of 7.5% to 8% for full-year 2026, aligning closely with Wall Street's expectation of 7.7% growth [1][4]. Financial Performance - Fourth-quarter revenue rose by 5% to $2 billion, meeting expectations according to LSEG estimates [4]. - The company raised its annualized dividend by 10% to $2.62 per common share [4]. Market Reaction - Shares of Thomson Reuters initially opened 7% higher but later fell around 5% on Nasdaq, continuing a decline from a broader selloff in the software and services sector [3]. - The stock has decreased nearly 30% year-to-date, underperforming the S&P 500, which was up 0.54% by Wednesday [3]. Competitive Landscape - The emergence of AI companies like Anthropic poses challenges to Thomson Reuters, particularly with new products that could disrupt its market [5][7]. - CEO Steve Hasker emphasized that the market's recent reaction reflects anxiety rather than fundamentals, suggesting that trusted content and infrastructure will be key for success in legal AI [6]. Strategic Focus - The company is focused on scaling its AI capabilities to enhance service delivery for customers, highlighting the importance of professional-grade tools built on quality content [2].