Thomson Reuters revenue rises 10% to $1.833 billion in third quarter
Key Facts
Thomson Reuters reported revenue of $1.833 billion in the third quarter of 2026, up 10% from the same period last year, while profitability measures diverged. The company said diluted earnings per share under International Financial Reporting Standards (IFRS) were $0.78, down 17% from $0.94 a year earlier. By contrast, adjusted earnings per share, a non-IFRS measure, rose 14% to $0.81 from $0.71. The results showed revenue growth alongside a decline in profitability under the international accounting standard. Chief Executive Steve Hasker said revenue and margin growth came in above the company's previous expectations.
Revenue growth was driven by a 9% increase in recurring revenue, which accounted for 88% of total revenue, and a 27% rise in transactional revenue, the company said. The Legal Professionals, Corporates and Tax, Audit & Accounting segments together generated revenue of $1.608 billion, with organic growth of 10%. Revenue at the Reuters segment rose to $232 million from $207 million a year earlier, an increase of 12%. The company attributed the segment's growth mainly to higher generative AI content-licensing revenue, alongside higher agency and professional services revenue. Hasker said customer engagement with the next generation of CoCounsel Legal was encouraging.
By contrast, free cash flow fell to $408 million in the third quarter from $526 million a year earlier, a decline of 23%. The company said the $118 million decrease was mainly due to lower net cash generated from operating activities and higher capital expenditures. The cash flow result came alongside revenue growth, while IFRS earnings per share posted a year-on-year decline. The company also said it completed the sale of a 51% stake in its Global Print business to accounts advised by KKR on October 1, 2026. Gross proceeds from the transaction totaled about $500 million.
Thomson Reuters raised its 2026 outlook on a continuing-operations basis, excluding Global Print from the forecast. It now expects total revenue growth of about 9.5%, organic growth of between 8.5% and 9.0%, and an adjusted EBITDA margin of about 39%. In August, the company had raised its total and organic revenue growth forecast to about 8%, at the upper end of a previous range of 7.5% to 8%. For the fourth quarter of 2026, the company expects organic growth of about 8% and an adjusted EBITDA margin of about 42%.
Starting in the fourth quarter of 2026, Westbridge Print is expected to pay Thomson Reuters a royalty equal to 20% of its professional revenue. The company estimates that this professional revenue accounts for about 85% to 90% of Westbridge Print's total revenue. It said the expected impact of the arrangement after the transaction's completion is approximately neutral for the adjusted EBITDA margin. In trading, the company's shares closed at $122.24 on November 2, 2026. Investors are now set to focus on the fourth-quarter outlook and the revised annual guidance.