Core Content and Technology Offerings - The competitive dynamics for core content and technology offerings, particularly Westlaw and tax engines, remain stable, with CoCounsel being a market leader in the AI assistant space [1] - The company completed a $1 billion share repurchase program and maintains a strong capital position with a net leverage of 0.6 times [1] Financial Performance - Total company organic revenues increased by 7%, with the big three segments growing by 9% [4][5] - Adjusted EBITDA rose by 10% to $672 million, reflecting a margin increase to 37.7% [5][19] - Organic revenue growth for the legal professionals segment accelerated to 9%, driven by Westlaw and CoCounsel [6][16] Growth Outlook - The company expects organic revenue growth of 7.5% to 8% for 2026, with approximately 9.5% growth anticipated for the big three segments [2][24] - The tax and accounting segment is projected to achieve the highest absolute growth rate in 2026, with expectations of 11% to 13% organic growth [79] AI and Innovation - Positive customer feedback has been received for the AgenTik AI launches, with initial sales trends encouraging [2] - The company emphasizes the differentiation of Westlaw in an AI environment, highlighting the importance of comprehensive and accurate legal research [7][14] Segment Performance - Legal organic revenue grew by 9%, while corporate organic revenues increased by 7%, driven by legal, tax, and risk offerings [6][16] - Tax and accounting organic revenues grew by 10%, supported by strong performance in Latin America and the U.S. [17][79] Capital Allocation and M&A Strategy - The company has an estimated $9 billion capital capacity through 2027 and remains focused on balanced capital allocation [5][20] - The company is open to assessing additional inorganic opportunities, particularly in areas showing strong growth potential [56][58]

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]

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 period [20] Business Line Data and Key Metrics Changes - Legal organic revenue grew by 9%, improving from 8% in the first half of 2025 [8][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 [9][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 operational efficiency [7][16] - The competitive dynamics for core content-enabled technology offerings remain stable, with incremental competition in the AI assistance space [7][58] 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 completed a $1 billion share repurchase program and remains well-capitalized with a net leverage of only 0.6 times [7][8] - The company is committed to a balanced capital allocation approach and is assessing additional inorganic opportunities [8] Q&A Session Summary Question: What is the outlook for 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 [31][32] Question: How is customer reaction to Agentic AI? - Customer feedback on Agentic AI products has been very positive, with significant changes in user behavior noted [36][38] Question: What is the impact of the government shutdown on contracts? - Cancellations occurred prior to the shutdown, which has minimal impact on revenue [43] 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 [58] 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 [60][62] Question: What is the company's approach to pricing strategy? - The company aims to price based on the value provided by its AI products, with a focus on maintaining competitive pricing [83][86] Question: What is the outlook for capital allocation and share buybacks? - The company maintains a framework for capital allocation but is willing to step up buybacks when opportunities arise [99][100]

Financial Data and Key Metrics Changes - Total company organic revenues rose 7%, with the big three segments growing by 9% [4][8] - Adjusted EBITDA increased 10% to $672 million, reflecting a 240 basis point margin increase to 37.7% [8][19] - Adjusted EPS was $0.85 for the quarter, compared to $0.80 in the prior year period [19] Business Line Data and Key Metrics Changes - Legal organic revenue grew 9%, improving from 8% in the first half of 2025 [5][17] - Corporate segment organic revenues grew 9%, with recurring revenue growing 9% and transactional revenue rising 5% [17] - Tax and accounting organic revenues grew 10%, driven by Latin American and U.S. businesses [9][17] - Reuters News organic revenues rose 3%, primarily from growth in the agency business [9][18] - Global print organic revenues declined 4% year on year [9][18] Market Data and Key Metrics Changes - The percentage of annualized contract value from GenAI-enabled products increased to 24%, up from 22% last quarter [18] - The company expects organic revenue growth of approximately 7% in Q4, including about 9% for the big three segments [23] Company Strategy and Development Direction - The company is focused on leveraging AI and technology to enhance product offerings and improve operational efficiency [6][16] - A balanced capital allocation approach is maintained, with a commitment to assess additional inorganic opportunities [7][46] - The company aims to achieve approximately 9% organic revenue growth for the big three segments in 2025, despite some temporary headwinds [20][23] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the long-term growth potential of the corporate segment, despite recent sales softness [26][28] - The company anticipates a positive margin expansion and higher free cash flow outlook for 2026 [24][55] - Management highlighted the importance of their proprietary content and editorial expertise in maintaining a competitive edge in the AI landscape [10][15] Other Important Information - The company completed a $1 billion share repurchase program, acquiring approximately 6 million shares [19][20] - The company is committed to investing over $200 million in AI and technology in 2025, continuing into 2026 [54][55] Q&A Session Summary Question: What are the recurring impacts of government and corporate headwinds into next year? - Management expressed confidence in achieving the 9%-11% organic revenue growth target for corporates next year, despite temporary sales softness [26][28] Question: How is customer reaction to Agentic AI products? - Customers have responded positively to Westlaw Advantage and Co-Counsel, with significant changes in their research behaviors noted [30][31] Question: What is the impact of the government shutdown on contracts? - Cancellations occurred prior to the shutdown, which has minimal impact on monthly and quarterly revenue [32] Question: How does the company view competition in the AI assistance space? - The company sees new entrants in the AI assistance space as a growth opportunity, with Co-Counsel positioned well in the market [39][40] Question: What is the pricing strategy in light of AI product value? - The company aims to price based on value delivered, with ongoing discussions about pricing strategies as AI products evolve [49][50] Question: How does the company view innovation and product intensity moving forward? - The company expects to see an acceleration in innovation and product launches, with continued investment in AI [53][54]

Core Insights - Thomson Reuters reported revenue of $1.79 billion for the quarter ended June 2025, reflecting a 2.6% increase year-over-year, with EPS at $0.87 compared to $0.85 in the same quarter last year [1] - The revenue was slightly below the Zacks Consensus Estimate by -0.19%, while the EPS exceeded the consensus estimate by +4.82% [1] Revenue Breakdown - Legal Professionals revenue was $709 million, slightly above the estimated $706.57 million, but down -2.5% year-over-year [4] - Tax & Accounting Professionals revenue reached $277 million, below the estimated $284.5 million, but up +10.8% year-over-year [4] - Global Print revenue was $114 million, below the estimated $117.31 million, representing a -7.3% change from the previous year [4] - Corporates revenue was $472 million, slightly below the estimated $474.54 million, with a year-over-year increase of +6.8% [4] - Reuters News revenue was $218 million, exceeding the estimated $212.43 million, with a +6.3% year-over-year change [4] - Eliminations reported a revenue of -$5 million, better than the estimated -$6 million, showing a -28.6% change year-over-year [4] Adjusted EBITDA Performance - Adjusted EBITDA for Legal Professionals was $339 million, surpassing the estimated $326.26 million [4] - Adjusted EBITDA for Corporates was $169 million, slightly above the estimated $168.9 million [4] - Adjusted EBITDA for Corporate costs was -$29 million, in line with the estimated -$29.96 million [4] - Adjusted EBITDA for Reuters News was $45 million, below the estimated $48.12 million [4] - Adjusted EBITDA for Global Print was $41 million, exceeding the estimated $39.43 million [4] - Adjusted EBITDA for Tax & Accounting Professionals was $113 million, above the estimated $103.48 million [4] Stock Performance - Thomson Reuters shares returned -0.3% over the past month, while the Zacks S&P 500 composite increased by +0.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance compared to the broader market in the near term [3]

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 Insights - Thomson Reuters reported $1.9 billion in revenue for Q1 2025, a year-over-year increase of 0.8%, with an EPS of $1.12 compared to $1.11 a year ago, indicating a slight growth in earnings [1] - The revenue fell short of the Zacks Consensus Estimate of $1.92 billion by 0.95%, while the EPS exceeded the consensus estimate of $1.06 by 5.66% [1] Revenue Performance - Legal Professionals revenue was $693 million, below the average estimate of $696.75 million, reflecting a year-over-year decline of 3.9% [4] - Tax & Accounting Professionals revenue reached $360 million, surpassing the average estimate of $366.88 million, with a year-over-year increase of 9.8% [4] - Global Print revenue was $116 million, below the average estimate of $119.85 million, showing a year-over-year decrease of 6.5% [4] - Corporates revenue was $541 million, slightly below the average estimate of $553.36 million, with a year-over-year increase of 6.7% [4] - Reuters News revenue was $196 million, exceeding the average estimate of $186.80 million, but down 6.7% year-over-year [4] - Eliminations reported a loss of $6 million, slightly worse than the estimated loss of $5 million, but improved by 20% year-over-year [4] Adjusted EBITDA Analysis - Adjusted EBITDA for Legal Professionals was $336 million, exceeding the average estimate of $327.02 million [4] - Adjusted EBITDA for Corporates was $213 million, above the average estimate of $202.65 million [4] - Adjusted EBITDA for Corporate costs was -$33 million, worse than the average estimate of -$31.28 million [4] - Adjusted EBITDA for Reuters News was $39 million, surpassing the average estimate of $36 million [4] - Adjusted EBITDA for Global Print was $44 million, in line with the average estimate of $44.23 million [4] - Adjusted EBITDA for Tax & Accounting Professionals was $210 million, exceeding the average estimate of $197.30 million [4] Stock Performance - Thomson Reuters shares returned +6% over the past month, outperforming the Zacks S&P 500 composite, which saw a -0.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Thomson Reuters reported a positive start to 2025 with a solid financial performance and reaffirmed outlook, emphasizing its commitment to innovation and balanced capital allocation [1][6]. Financial Highlights - Total revenues for Q1 2025 were $1,900 million, a 1% increase from $1,885 million in Q1 2024 [2][42]. - Operating profit rose by 1% to $563 million compared to $557 million in the prior year [2][4]. - Diluted earnings per share (EPS) decreased to $0.96 from $1.06, reflecting a 9% decline [2][4]. - Net cash provided by operating activities increased by 4% to $445 million [2][4]. - Free cash flow increased by 3% to $277 million [2][4]. Revenue Breakdown - Revenues increased by 1%, driven by a 2% growth in recurring revenues, which accounted for 76% of total revenues, partially offset by a 1% decline in transaction revenues and a 6% decline in Global Print [3][6]. - Organic revenues grew by 6%, with the "Big 3" segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) reporting a 9% organic revenue growth [3][6]. Segment Performance - Legal Professionals segment revenues decreased by 4% to $693 million, with an organic growth of 8% [5][9]. - Corporates segment revenues increased by 7% to $541 million, with an organic growth of 9% [5][11]. - Tax & Accounting Professionals segment revenues rose by 10% to $360 million, with an organic growth of 11% [5][13]. - Reuters News segment revenues decreased by 7% to $196 million, reflecting a decline in organic revenue [5][15]. - Global Print segment revenues decreased by 6% to $116 million, driven by lower shipment volumes [5][17]. Adjusted EBITDA and Margins - Adjusted EBITDA for Q1 2025 was $809 million, a slight increase from $806 million in Q1 2024, with an adjusted EBITDA margin of 42.3%, down from 42.7% [2][4][7]. - The adjusted EBITDA margin for the "Big 3" segments combined increased to 47.3% from 45.8% [7][10]. Capital Allocation and Dividends - The company announced a 10% increase in its annual common share dividend to $2.38, marking the 32nd consecutive year of dividend increases [6][29]. - Thomson Reuters completed the acquisition of SafeSend for approximately $600 million to enhance its tax automation capabilities [6][28]. 2025 Outlook - The company reaffirmed its full-year 2025 outlook for all metrics, expecting organic revenue growth of approximately 7% and an adjusted EBITDA margin of around 36% for Q2 2025 [22][24].

Core Viewpoint - Thomson Reuters (TRI) is expected to report quarterly earnings of $1.06 per share, reflecting a year-over-year decline of 4.5%, with revenues projected at $1.92 billion, an increase of 1.8% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 2.6% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Legal Professionals' at $696.75 million, a decrease of 3.4% year over year [5]. - 'Revenues- Tax & Accounting Professionals' are expected to reach $366.88 million, reflecting an increase of 11.9% from the previous year [5]. - 'Revenues- Global Print' are projected at $119.85 million, indicating a decline of 3.3% year over year [5]. - 'Revenues- Corporates' are estimated at $553.36 million, showing a year-over-year increase of 9.1% [6]. - 'Revenues- Reuters News' are expected to be $186.80 million, reflecting a decline of 11.1% year over year [6]. Adjusted EBITDA Estimates - 'Adjusted EBITDA- Legal Professionals' is projected at $327.02 million, down from $342 million in the same quarter last year [7]. - 'Adjusted EBITDA- Corporates' is estimated at $202.65 million, compared to $193 million in the previous year [7]. - 'Adjusted EBITDA- Reuters News' is forecasted to be $36.00 million, down from $60 million year over year [8]. - 'Adjusted EBITDA- Global Print' is expected to reach $44.23 million, down from $47 million in the same quarter last year [8]. - 'Adjusted EBITDA- Tax & Accounting Professionals' is estimated at $197.30 million, up from $181 million in the same quarter last year [8]. Stock Performance - Shares of Thomson Reuters have increased by 6.2% over the past month, contrasting with a decline of 4.3% in the Zacks S&P 500 composite [9]. - The company holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the overall market in the near future [9].