BofA Reinstates Coverage on Thomson Reuters with $100 Target; Dividend Up 10%
Bank of America reinstated coverage on Thomson Reuters with a Neutral rating and $100 price target, projecting 7% revenue, 12% EPS and 11% free cash flow growth in 2026. Q4 revenue rose 5% to $2 billion, company guides for 7.5%-8% growth in 2026 and raised the dividend 10% to $2.62.
1. BofA Reinstates Coverage with Neutral Rating
On Feb. 17, Bank of America reinstated analyst coverage of Thomson Reuters with a Neutral rating and set a $100 price target. The firm forecasts 7% revenue growth, 12% EPS growth and 11% free cash flow growth for 2026 as part of its constructive outlook on information services.
2. Fourth-Quarter Results and 2026 Guidance
In the fourth quarter, Thomson Reuters reported revenue of $2 billion, up 5% year-over-year, meeting consensus estimates. The company issued full-year 2026 guidance of 7.5%–8% revenue growth, aligning with projections of around 7.7% growth, driven by its legal, tax and accounting segments.
3. Dividend Increase and Segment Strength
The board approved a 10% increase in the annual dividend, raising the payout to $2.62 per share. Strength in legal research tools and workflow solutions, coupled with investments in generative AI, supported cash flow and underpinned confidence in free cash flow growth.