Thomson Reuters posts higher Q3 revenue, lifts 2026 forecast
The firm reports a 10% rise in third-quarter revenue to US$1.83 billion
Thomson Reuters disclosed a 10% increase in third-quarter revenue, reaching US$1.83 billion, and raised its 2026 organic revenue forecast to between 8.5% and 9%. The revenue growth was driven by recurring revenue in its core legal, tax and accounting divisions, as well as its corporate segment. The company's chief executive, Steve Hasker, expressed satisfaction with the Q3 momentum, noting that revenue growth and margins surpassed expectations.
Adjusted earnings per share stood at US$0.81. The firm excluded financials from its global print division in the results, following the sale of a majority stake in that business. Analyst Maher Yaghi from Scotia Capital highlighted the continued demand for Thomson Reuters' products, including Westlaw and CoCounsel, despite the emergence of AI-native competitors.
Revenue across the legal, tax, accounting and corporate segments rose by double digits, with a 12% increase at Reuters, fueled by a surge in licensing revenue from generative AI. However, margins in the legal division fell to 46.6% due to AI spending and US$22 million in severance costs. Thomson Reuters expects higher revenue from premium tier pricing for AI agentic products to offset AI spending in the legal division.
The company's CFO, Gary E Bischoping, Jr, revealed that about 34% of the company's underlying contract value relied on generative AI in the third quarter, up from 32% in the second quarter and 24% in 2025. Thomson Reuters' shares have declined by 6.3% in 2026, compared to a 10% rise in the S&P 500.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
