Thomson Reuters Corporation reported fourth‑quarter and full‑year 2025 results that reflected a 5% year‑over‑year increase in revenue to $2.01 billion, driven by a 6% rise in recurring revenues and an 11% jump in transaction revenues. The growth was offset by a 6% decline in Global Print, a legacy segment that has been shrinking as customers shift to digital workflows. The company’s AI‑enabled product suite helped lift demand in its core “Big 3” professional services segments, with Legal Professionals, Corporates, and Tax, Audit & Accounting Professionals reporting $738 million, $496 million, and $414 million respectively. Organic growth in these segments was 9%, 9%, and 11%, underscoring the strength of the AI‑powered platform and the company’s ability to convert new customers into recurring revenue streams.
Adjusted EBITDA rose 8% to $777 million, translating into a margin of 38.7%—an increase of 110 basis points from the prior year. The margin expansion was largely a result of higher mix of high‑margin AI‑enabled contracts and improved operational leverage as recurring revenue grew. Cost inflation was contained through disciplined spending on technology and talent, allowing the company to maintain profitability even as it invested heavily in AI research and development.
The company reported an adjusted earnings per share of $1.07, beating the consensus estimate of $1.06 by $0.01 (a 1.4% beat). The earnings beat was driven by the combination of margin expansion and the absence of significant one‑time charges. While revenue was slightly below the upper end of analyst expectations, the company’s ability to generate a clean earnings beat signals strong cost control and pricing power in its high‑margin segments.
Management reiterated its 2026 outlook, maintaining guidance for organic revenue growth of 7.5‑8% and an adjusted EBITDA margin expansion of approximately 100 basis points. The company also announced a 10% dividend increase to $2.62 per share, its 33rd consecutive year of dividend growth, and a $1 billion share‑repurchase program to be executed through 2027. These capital‑allocation decisions reflect confidence in the company’s cash‑flow generation and a commitment to returning value to shareholders while continuing to invest in AI and strategic acquisitions.
Investors reacted cautiously to the results, citing the slight revenue miss relative to the upper end of analyst expectations and broader sector sell‑offs in the software and services space. The company’s strong earnings beat and guidance, however, reinforced confidence in its AI strategy and recurring‑revenue model, suggesting that the market will continue to monitor the company’s execution on its growth and margin expansion plans.
Steve Hasker, President and CEO, said the quarter “capped a year of important progress” and highlighted the company’s “continued investments in AI” as a key driver of product innovation and customer adoption. He added that the firm remains focused on “allocating capital to drive long‑term shareholder value” while pursuing strategic acquisitions to strengthen its professional‑services portfolio.
The company’s performance demonstrates that its AI‑enabled platform is translating into tangible revenue and margin gains, while its disciplined cost management has allowed it to beat earnings estimates. The guidance and capital‑allocation decisions signal management’s confidence in sustaining growth and profitability in the coming years.
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