Thomson Reuters Q4 Revenue Up 5% to $2.01B, EBITDA Margins Hit 38.7%
Thomson Reuters’ Q4 total company revenue rose 5% to $2.009 billion, with organic revenues up 7% driven by 9% growth in its Legal, Corporates and Tax segments. Adjusted EBITDA climbed 8% to $777 million, boosting margin by 110 basis points to 38.7%, and annualized dividend rose 10% to $2.62.
1. Q4 Earnings and Revenue Beat
Thomson Reuters reported adjusted EPS of $1.07 for the quarter ended December 31, 2025, surpassing the Zacks Consensus Estimate of $1.06 and up 6% from $1.01 a year ago. Total company revenues rose 5% year-over-year to $2.009 billion, driven by a 6% increase in recurring revenues, which now account for 84% of the mix, and an 11% rise in transaction revenues. The beat on both top- and bottom-line metrics reflects the strength of its subscription-based offerings and growing demand for on-demand data services.
2. Organic Revenue Growth Drivers
On an organic basis, revenues climbed 7% in the quarter and 7% for the full year. The ‘Big 3’ customer segments—Legal Professionals, Corporates, and Tax, Audit & Accounting Professionals—delivered 9% organic growth, representing 82% of total revenues. Within Legal Professionals, Westlaw, Practical Law and CoCounsel drove recurring revenues up 8% organically. Corporates saw 9% organic gains led by Indirect Tax and Global Trade solutions, while the Tax, Audit & Accounting group achieved 11% organic growth, bolstered by UltraTax and the SafeSend acquisition.
3. Profitability and Cash Flow Strength
Adjusted EBITDA for the quarter increased 8% to $777 million, lifting the margin to 38.7% from 37.6% a year ago, thanks to operating leverage and disciplined cost management. IFRS operating profit was $540 million, down 25% due to prior-year gains on the sale of FindLaw and higher software amortization. Net cash provided by operating activities rose 35% to $756 million, while free cash flow jumped 38% to $581 million, highlighting robust conversion of earnings into cash and supporting ongoing investment in AI and product innovation.
4. 2026 Outlook and Shareholder Returns
Thomson Reuters reaffirmed its full-year 2026 targets of approximately 7.5%–8.0% organic revenue growth and about 100 basis points of adjusted EBITDA margin expansion from the 39.2% baseline in 2025. The company increased its annualized dividend by 10% to $2.62 per share, marking the 33rd consecutive year of dividend growth. Management emphasized continued capital allocation toward strategic acquisitions, AI-driven product enhancements and returning surplus cash to shareholders as key pillars of long-term value creation.