Thomson Reuters Q3 revenue, profit miss estimates

Overview

• Information services firm's Q3 revenue rose 10% but missed analyst expectations

• Adjusted EPS for Q3 increased 14% but missed consensus estimates

• Company completed $600 mln share repurchase program and closed sale of 51% stake in Global Print

Outlook

• Thomson Reuters updates full-year 2026 total revenue growth outlook to ~9.5%

• Company expects full-year 2026 organic revenue growth of 8.5%-9.0%

• Thomson Reuters forecasts full-year 2026 adjusted EBITDA margin of about 39%

Result Drivers

• RECURRING REVENUE GROWTH - Co said Q3 revenue growth was driven by 9% increase in recurring revenues, which made up 88% of total revenues

• TRANSACTION REVENUE SURGE - Co attributed 27% growth in transactions revenues as a key driver of overall revenue increase

• SEGMENT PERFORMANCE - Organic revenue growth in Big 3 segments was 10%, led by Westlaw, CoCounsel Legal, Pagero, and tax and audit products

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the professional information services peer group is "buy"

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

• Nov 2 - Canada's Capital Power Q3 revenue falls on derivative losses

• Nov 3 - Canada's TransAlta swings to Q3 net profit but revenue falls

• Nov 3 - Canada's Fortis Q3 profit beats estimates on rate base growth; raises dividend

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)