Thomson Reuters shares plummeted 5.19% during intraday trading on Wednesday, as investors zeroed in on a softer-than-expected third-quarter profitability outlook, overshadowing an otherwise strong second-quarter earnings report.
The company reported second-quarter adjusted earnings of 99 cents per share, topping analyst estimates of 96 cents, and revenue of $1.95 billion, ahead of the $1.91 billion consensus. Full-year 2026 revenue growth guidance was raised to approximately 8% for the total company, with the "Big 3" segments now expected to grow 9.5% to 10%. However, the company’s forecast for third-quarter adjusted EBITDA margin of about 36% came in well below the 38.1% margin delivered in the second quarter and the full-year target of roughly 40%, sparking concerns about near-term profitability pressure.
The cautious third-quarter margin view, which includes results from the Global Print segment, appeared to trigger profit-taking after the stock had rallied sharply in recent months. The pullback underscores market sensitivity to any sign of margin compression, even as the company continues to execute on its AI-powered product strategy and shareholder returns.
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