| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 29 | 32.6x | 17.3x | Bottom tier | |
Growth | 49 | 7.0% | 7.1% | Around median | |
Quality | 85 | 11.6% | 4.5% | Top tier | |
Safety | 84 | 0.8x | 2.6x | Top tier | |
Capital Return | 80 | 1.94% | 0.06% | Top tier | |
Momentum | 62 | -39.5% | -1.6% | Around median | |
Sentiment | 92 | 9 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
68% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Thomson Reuters Corporation (TRI) serves professionals across the legal, tax and accounting, and corporate sectors, combining trusted content, software, and AI-powered workflows. Its Legal Professionals, Corporates, and Tax, Audit & Accounting segments, collectively known as the Big 3, lead its core portfolio through products such as Westlaw, CoCounsel, ONESOURCE, Pagero, and SafeSend, while Reuters generates revenue from its agency business and its agreement with LSEG. In Q2 FY2026, recurring revenue accounted for 86% of the total on a Global Print transaction-adjusted basis, with visibility rising to more than 90% when recurring transactional revenue is included.
Q2 FY2026 revenue reached approximately $1.95 billion, with total growth of 9% and organic growth of 8%. Organic revenue for the Big 3 segments increased 10%, comprising 10% in Legal Professionals, 10% in Corporates, and 8% in Tax, Audit & Accounting, compared with 4% growth at Reuters and a 3% decline at Global Print. The share of annual contract value associated with generative AI-enabled products reached 32% at the end of the quarter, up from 30% in the previous quarter.
Adjusted earnings before interest, taxes, depreciation, and amortization in Q2 FY2026 increased 10% to $745 million, with the margin expanding 30 basis points to 38.1%. The Big 3 segments generated adjusted earnings of $691 million and a margin of 42.7%, while Reuters recorded $48 million and a margin of 20.8%, and Global Print recorded $42 million and a margin of 37.7%. Adjusted earnings per share were $0.99, up 14% from $0.87, and free cash flow increased 29% to $727 million; meanwhile, the latest filed EDGAR data, covering Q2 FY2025, show revenue of $1.8 billion, net income of $313 million, and earnings per share of $0.69.
The average analyst price target is $133.25, approximately 26% below the 52-week range high of $180, while the wide target range extends from $85 to $183 and the consensus rating is "Buy." This divergence reflects substantial differences in assessments of the ability of Big 3 growth and AI to offset Q3 FY2026 margin pressure and execution risks in Tax, Audit & Accounting; a reliable price-to-earnings multiple comparison cannot be made because the data do not include an available multiple.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Revenue reached $1.95 billion, with total growth of 9% and organic growth of 8%. Organic growth in the Big 3 accelerated to 10%, with Legal Professionals and Corporates each growing 10% and Tax, Audit & Accounting growing 8%. Westlaw and CoCounsel Legal led the legal business, while Pagero, Indirect Tax, and CLEAR supported Corporates growth. By contrast, Reuters grew 4% and Global Print declined 3%.
Thomson is the first large language model wholly owned by Thomson Reuters, and the company announced its launch on August 24, 2026. Investment in its first production version amounted to approximately $40 million, and as of the August 5, 2026 call, it had been trained on less than 10% of the company's legal content. Company testing showed performance comparable to leading models across multiple general tasks, with lower cost and faster response times. The company plans to use the model for Tabular Analysis within CoCounsel Legal and is considering expanding its use and offering standalone AI environments to large customers.
Automated analysis for informational purposes only — not investment advice.
CoCounsel surpassed one million users roughly one quarter ahead of the Q2 FY2026 call, and management reported continued growth in the number and duration of interactions thereafter. CoCounsel Legal, together with Westlaw, contributed to the acceleration of Legal Professionals growth to 10% and kept growth excluding government at 11%. In June 2026, the company also completed the pilot version of the next generation of CoCounsel Legal ahead of schedule and opened early access to all its existing customers. Its agentic capabilities are typically sold within a premium pricing tier that management said covers growth in language model and usage costs during 2026.
The company signed the agreement on July 14, 2026, to sell 51% of Global Print for total cash proceeds of approximately $500 million, while retaining a 49% stake. Management expects the transaction to close in Q4 FY2026 following regulatory approvals and satisfaction of customary conditions. The transaction is expected to add 60–70 basis points to organic growth and be approximately neutral to margins, with the royalty and transitional services agreement offsetting most stranded costs. The joint venture will receive an exclusive license for printing and distribution through ProView and will pay a royalty equal to 20% of its professional revenue, while Thomson Reuters retains intellectual property rights and full editorial control.
Despite raising the revenue growth outlook to approximately 8% and expecting Big 3 growth of between 9.5% and 10%, management expects a margin of only approximately 36% in Q3 FY2026. This includes $19 million in severance costs, as well as spending on marketing, innovation, and automation and some impact from acquisitions. Management also expects government business growth to slow in Q3 because some Q2 transactional revenue will not recur at the same level. In Tax, Audit & Accounting, commercial execution challenges and the timing of revenue recognition affected Q2 growth by approximately one percentage point.
Thomson Reuters generated free cash flow of $727 million in Q2 FY2026, up 29% from $566 million in the comparable period. Management expects free cash flow of approximately $2.1 billion for FY2026, and the company repaid $500 million of maturing notes during the quarter. It also completed a $605 million return of capital and a $600 million share repurchase program, reducing the share count by approximately 3%. No new share repurchase program had been authorized as of the August 5, 2026 call, while management estimates its capital capacity through 2028 at approximately $9 billion.