Thomson Reuters Corporation reported first‑quarter 2026 results that surpassed consensus expectations, with revenue of $2.09 billion, up 10% from $1.90 billion in Q1 2025, and adjusted earnings per share of $1.23, a 10% increase over the $1.12 reported a year earlier. Adjusted EBITDA rose to $881 million, a 9% gain, and the adjusted EBITDA margin held steady at 42.2%, only a 0.1‑percentage‑point decline from 42.3% in the prior year. The company beat revenue estimates of $2.06 billion and EPS estimates of $1.19, delivering a $0.04 or 3.4% beat on earnings and a $0.03 or 1.5% beat on revenue.
The quarter’s top line was driven by a 10% increase in recurring revenue and a 15% jump in transaction‑based revenue, while global print revenue fell 4%. The growth in recurring and transaction segments was largely attributed to the company’s “fiduciary‑grade AI” platform, which has attracted higher‑margin contracts across its law, tax, audit and compliance businesses. The decline in print revenue reflects the continued shift away from legacy media, a trend that has been ongoing for several years.
Management highlighted the strength of the AI offering, saying, “We have delivered an encouraging start to 2026,” and adding, “Our positive momentum reflects the trust professionals place in Thomson Reuters in the moments that matter most. Across law, tax, audit and compliance, professionals accountable for high‑stakes outcomes are choosing our AI products, built to the standards their work demands – grounded in authoritative content, designed and tested by our domain experts, and created to produce results that can be verified and audited under real‑world scrutiny. We call this ‘fiduciary‑grade AI.’” The company also noted, “We have had a strong start to 2026, with revenue growth ahead of our prior expectations and margins in line.” It reaffirmed its 2026 guidance for organic revenue growth of 7.5%‑8% and an adjusted EBITDA margin expansion of 100 basis points, while adding that the Big Three segments are expected to grow approximately 9.5%.
Capital allocation remained a priority, with Thomson Reuters returning $605 million to shareholders through a combination of dividends and share repurchases. A share consolidation effective May 4 2026 reduced the number of outstanding shares, improving earnings per share and simplifying the capital structure. The company’s disciplined capital strategy is designed to balance shareholder returns with investment in AI and other growth initiatives.
The results reinforce Thomson Reuters’ strategic pivot toward AI‑enabled solutions and demonstrate its ability to maintain high profitability while expanding revenue. The company’s ability to generate a margin that is essentially flat year‑over‑year, despite a decline in legacy print revenue, signals strong pricing power and effective cost management. The positive earnings beat and reaffirmed guidance suggest that management remains confident in the company’s trajectory, and the continued investment in AI positions Thomson Reuters to capture additional market share in the professional services sector.
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