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]

Thomson Reuters Corp (NASDAQ:TRI) reported third-quarter 2025 revenue of $1.78 billion, up 3% from a year earlier and above the $1.78 billion estimate. Organic revenue rose 7%, led by 9% growth across its "Big 3" segments: Legal Professionals; Corporates; and Tax and Accounting Professionals. • TRI stock is at key technical levels. Get the details here.GAAP diluted earnings per share climbed 40% to 94 cents from 67 cents, while adjusted EPS rose 6% to 85 cents, topping the 83 cents estimate. Operating profi ...

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]

Core Insights - Thomson Reuters reported higher third-quarter revenue, driven by investments in artificial intelligence products within its legal and tax and accounting divisions [1] Group 1 - The increase in revenue is attributed to the company's strategic focus on artificial intelligence [1] - The performance in the legal and tax and accounting sectors indicates a positive trend in these divisions due to technological advancements [1]

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]

Group 1 - Thomson Reuters will release its first-quarter 2025 earnings on May 1, 2025, and a conference call will be held at 8:30 a.m. EDT on the same day [1] - The conference call will be hosted by Steve Hasker, the president and CEO, and Mike Eastwood, the CFO, and may include forward-looking information [1] - The webcast for the earnings call is accessible through the Investor Relations section of the Thomson Reuters website, with registration now open [2] Group 2 - Thomson Reuters provides trusted content and technology to professionals in various sectors, including legal, tax, accounting, compliance, government, and media [3] - The company's products combine specialized software and insights to empower professionals with necessary data and solutions for informed decision-making [3] - Reuters, as part of Thomson Reuters, is recognized as a leading provider of trusted journalism and news [3]