Thomson Reuters Corp (TRI) reported strong performance in its core markets, with recurring sales comprising 82% of its quarterly revenues. The company achieved 10% organic growth across its Big 3 businesses—Legal Professionals, Corporates, and Tax, Audit & Accounting Professionals—with 10% growth in Legal and Corporates and an 8% increase in Tax, Audit & Accounting. As a result of a robust first half and 9% organic growth, management revised its 2026 growth outlook to approximately 8% total and 9.5-10% for the Big 3.
Artificial intelligence continues to play a significant role in Thomson Reuters’ strategy, as generative AI offerings accounted for 32% of annualized contract value by quarter-end, a rise from 30% three months prior. The CoCounsel platform has surpassed one million users, while the company also launched its proprietary large language model, developed for about $40 million, expected to enhance efficiency and integration in professional workflows.
In comparison, competitors like Wolters Kluwer (WTKWY) and RELX (RELX) are also leveraging AI and analytics to enhance their offerings, emphasizing the importance of product adoption and margin performance. Thomson Reuters holds a Zacks Rank #2 (Buy), reflecting positive investor sentiment in the context of its high recurring revenue model and effective strategy to capitalize on AI advancements.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
