Thomson Reuters reported third‑quarter 2025 revenue of $1.78 billion, matching consensus estimates and representing a 3 % year‑over‑year increase. Adjusted earnings per share rose to $0.85, beating the $0.81 consensus by $0.04 (a 5 % beat) and surpassing the prior‑year adjusted EPS of $0.80. GAAP diluted EPS reached $0.94, up from $0.67 in Q3 2024, underscoring the company’s ability to generate cash even as it invests heavily in new technology.
Margin performance improved sharply: adjusted EBITDA margin expanded to 37.7 % from 35.3 % a year earlier, a 240‑basis‑point lift driven by higher mix of high‑margin AI‑enabled contracts and operational leverage as revenue scales. The company’s cost base remained disciplined, with only modest increases in support and infrastructure expenses, allowing the margin expansion to offset the capital outlay for AI development.
Segment analysis shows that the “Big 3”—Legal Professionals, Corporates, and Tax & Accounting Professionals—recorded 9 % organic revenue growth, the strongest among all segments. Legal revenue benefited from the rollout of CoCounsel Legal, which automates complex document review and drafting, while the Tax & Accounting segment saw gains from the new ONESOURCE+ compliance network that streamlines return preparation. The News and Global Print segments remained flat, reflecting a shift in customer spending toward digital and AI‑driven services.
The company unveiled ONESOURCE+, an intelligent compliance network that integrates tax, trade, legal, and risk tools, and expanded CoCounsel with next‑generation agentic capabilities for tax, audit, accounting, and legal workflows. ONESOURCE+ is expected to reduce preparation time by 40‑60 % for U.S. customers, while CoCounsel Legal’s bulk‑review engine can process up to 10,000 documents, positioning Thomson Reuters as a leader in agentic AI for professional services. U.S. availability is slated for early 2026, with a broader rollout planned for 2027.
Thomson Reuters reaffirmed its full‑year 2025 outlook and updated its 2026 financial framework, raising expectations for adjusted EBITDA margin expansion and free cash flow. The company also completed a $1 billion share‑repurchase program, signaling confidence in its cash‑generating capacity. Management highlighted that 24 % of annualized contract value is now from GenAI‑enabled products, up from 22 % in the prior quarter, indicating accelerating adoption of the new AI platform.
Investor sentiment was mixed: while the earnings beat and margin expansion earned a “Buy” upgrade from Canaccord Genuity, concerns about the company’s heavy investment in AI and a cautious 2025 revenue outlook tempered enthusiasm. Analysts noted that the margin expansion reflects pricing power and operational efficiency, but the capital intensity of AI development raises questions about near‑term returns. The company’s guidance signals confidence in sustaining profitability while continuing to invest in high‑return verticals.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.