Thomson Reuters CEO Says AI Is Delivering Tangible Gains

Core Insights - Thomson Reuters Corp. reported fourth-quarter fiscal 2025 results with revenue of $2.009 billion, a 5% increase year-over-year, exceeding the $2.001 billion estimate [1] - Organic revenue rose 7%, driven by 9% growth in its "Big 3" segments: Legal Professionals, Corporates, and Tax and Accounting Professionals [1] - GAAP diluted earnings per share decreased 43% to 74 cents from $1.30, while adjusted EPS increased 6% to $1.07, surpassing the $1.06 estimate [1] Financial Performance - Operating profit fell 25% to $540 million, mainly due to prior-year gains related to the sale of FindLaw [2] - Revenue growth included a 6% rise in recurring revenue, which constituted 84% of total revenue, and an 11% increase in transaction revenue, offset by a 6% decline in Global Print [3] - Adjusted EBITDA rose 8% to $777 million, with the margin improving to 38.7% from 37.6% [3] - Net cash from operations increased 35% to $756 million, and free cash flow grew 38% to $581 million [3] Segment Performance - Legal Professionals unit revenue grew 1% to $738 million, with organic growth reaching 9% driven by Westlaw, CoCounsel, and Practical Law; adjusted EBITDA rose 9% to $327 million, with a margin of 44.3% [4] - Corporates revenue increased 7% to $496 million, despite negative impacts from the sale of non-core businesses, with an adjusted EBITDA margin of 32.2% and organic revenue growth of 9% [5] - Tax & Accounting Professionals' revenue climbed 13% to $414 million, supported by the SafeSend acquisition, with organic growth at 11% and adjusted EBITDA jumping 14% to $222 million, resulting in a margin of 53.6% [6] - Reuters News revenue increased 6% (5% organic) to $232 million, driven by higher generative AI-related transactional content licensing revenue and a price increase from a news agreement with LSEG [7]