Abstract
Thomson Reuters will report second-quarter results on August 05, 2026 Pre-Market; this preview summarizes consensus forecasts for revenue, profitability, and EPS, alongside key segment dynamics and the balance of analyst opinions since January 01, 2026.
Market Forecast
Consensus modeling for this quarter points to revenue of 1.91 billion US dollars, implying 6.83% year-over-year growth, with EBIT around 533.48 million US dollars and EPS of 0.96, implying year-over-year growth of 10.62% and 16.09%, respectively. Based on the company’s last report, investors expect gross profit margin to hold near the low-40s and net margin near the low-20s, with adjusted EPS tracking mid-teens growth year over year.
Management continues to emphasize steady expansion across its core subscription-led businesses and disciplined cost execution; the outlook highlights durable demand in information, workflow, and AI-enhanced tools serving legal, tax, risk, and news clients. The most promising area appears to be the reportable segments collectively at 1.77 billion US dollars last quarter, supported by subscription renewals and cross-sell to higher-value AI and workflow modules, indicating stable double-digit momentum in EBIT and EPS.
Last Quarter Review
Thomson Reuters posted revenue of 2.09 billion US dollars, a gross profit margin of 42.79%, GAAP net profit attributable to the parent company of 459.00 million US dollars with a net profit margin of 21.99%, and adjusted EPS of 1.23, which was up 9.82% year over year.
A notable positive was operating leverage that supported double-digit EBIT growth year over year alongside solid subscription renewals. In the breakdown of main businesses last quarter: reportable segments delivered 1.77 billion US dollars; Reuters News contributed 212.00 million US dollars; Global Print was 112.00 million US dollars; and the offset item was -11.00 million US dollars.
Current Quarter Outlook
Core subscription franchises and workflow platforms
Subscription renewal and price realization remain central to earnings quality this quarter, with consensus revenue growth of 6.83% aligned to mid-single-digit underlying expansion plus incremental uplift from premium modules. In the prior quarter, a 42.79% gross margin and 21.99% net margin reflected operating efficiency that can sustain even if revenue mix tilts slightly toward services tied to platform upgrades. Watch for attach rates to AI-enabled search, drafting, and compliance features, which support upsell and reduce churn, helping adjusted EPS to the forecast 0.96, or up 16.09% year over year. If renewal cycles skew later in the quarter, booked but not billed could increase, tempering reported revenue while preserving backlog visibility into the second half.
Most promising business vector: AI-enhanced workflow and premium content within reportable segments
The reportable segments, which generated 1.77 billion US dollars last quarter, underpin both near-term revenue and margin expansion as clients adopt higher-value AI features embedded in legal research, tax automation, and risk intelligence. Pricing power is most defensible where AI materially improves speed and accuracy of professional tasks, which supports EBIT leverage toward the 533.48 million US dollars consensus this quarter. Adoption breadth will be visible through net revenue retention and cross-sell metrics; a positive surprise on attach rates could push adjusted EPS above the 0.96 forecast. Conversely, slower enterprise deployment cycles or budget scrutiny could defer some premium conversions, narrowing upside.
Stock-price drivers this quarter
Share performance is likely to react to three levers: the pace of AI feature monetization, evidence of steady mid-40% gross margins, and the EPS print versus the 0.96 consensus. Any updates to full-year guidance tied to recurring revenue and EBIT flow-through will be pivotal, especially if management signals sustained mid-teens EPS growth against the recent 21.99% net margin baseline. Investors will also parse segment color for Reuters News and Global Print to gauge mix effects; stable news agency revenues and measured print declines typically help margin predictability, but any divergence could shift sentiment quickly.
Analyst Opinions
Bullish views dominate the published opinions since January 01, 2026, with multiple Buy ratings versus a smaller number of Hold stances. TD Cowen reiterated a Buy and lifted its price target to C$185.00, citing durable growth supported by AI adoption and strong execution in core franchises. Wells Fargo maintained Buy with targets around 120.00 to 140.00 US dollars in recent notes, emphasizing resilient recurring revenue and a balanced capital framework. National Bank maintained Buy with a C$175.00 target, pointing to healthy net retention and continued operating leverage. BMO maintained Buy with a C$165.00 target, highlighting a strong balance sheet and what it views as mispriced valuation relative to growth durability. In contrast, Morgan Stanley maintained Hold with a 116.00 US dollar target, reflecting a more neutral view on near-term upside versus valuation. Synthesizing these views, the majority bullish camp expects the quarter to validate mid-single-digit organic revenue growth, margin discipline consistent with low-40s gross margin and low-20s net margin, and adjusted EPS near 0.96, with upside risk if AI-enabled workflow adoption and cross-sell continue to track ahead of plan.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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