Thomson Reuters posts higher third-quarter revenue, lifts forecast
TRI•Thomson Reuters reported third-quarter revenue up 10% to $1.83 billion and adjusted earnings per share of 81 cents. It raised its 2026 organic revenue growth forecast to 8.5%-9.0%, from about 8%.
1. Revenue and forecast rise
Thomson Reuters reported higher third-quarter revenue, boosted by recurring revenue in its legal, tax and accounting, and corporates businesses. The company raised its full-year 2026 organic revenue guidance to 8.5%-9.0% growth, from about 8%, and said revenue growth and margins came in ahead of prior expectations.
2. AI demand and costs
Revenue rose by double digits across the combined legal, tax and accounting, and corporates segments, supported by recurring revenue and new AI upgrades to CoCounsel products. Reuters revenue increased 12%, including a 56% rise in news division transaction revenue to $44 million, boosted by generative AI licensing. In legal, AI spending and $22 million in severance costs pressured margins, which fell to 46.6% from 49%.
3. Contract value and customers
CFO Gary E. Bischoping Jr. said about 34% of underlying contract value relied on generative AI in the third quarter, up from 32% in the second quarter and 24% a year earlier. CEO Steve Hasker said the company expected premium-tier pricing for AI agentic products to offset legal-division AI spending and expected to announce Skadden, Arps, Slate, Meagher & Flom LLP as a new customer.
