By Adriano Marchese
Thomson Reuters expects revenue growth to accelerate this year despite the market's concerns about artificial intelligence that sent software stocks tumbling earlier in the week.
The Canadian information and technology conglomerate on Thursday set its revenue targets for both total and organic growth at between 7.5% and 8%, up from total growth of 3% and organic growth of 7% in 2025.
It also expects the pace of revenue growth at its "Big Three" segments--Legal Professionals, Corporates and Tax, Audit & Accounting Professionals--to more than double to 9.5% from 4%.
Thomson Reuters expects it adjusted earnings before interest, taxes, depreciation and amortization margin to rise by 1 percentage point to 40.2%, with a free cash flow of $2.1 billion, up from $1.95 billion in 2025.
The company will continue to expand its AI‑driven tools this year, with the aim of making its products faster and clearer for customers, Chief Executive Officer Steve Hasker said.
"We are seeing tangible benefits from our continued investments in AI," Hasker said.
Software companies have been the focus of investor concerns around recent developments in AI that threaten to supplant their core offerings, sending jitters across stock markets this week and dragging down the shares of companies that develop, license and even invest in code and systems.
Thomson Reuters shares fell sharply earlier in the week after Anthropic, the maker of Claude AI, revealed a new legal automation tool that could potentially encroach on Thomson Reuters' core contract-review and workflow-software business.
In the company's fourth-quarter, net income fell to $332 million, or 74 cents a share, from $587 million, or $1.30 a share, in the comparable quarter the year before.
Adjusted earnings were $1.07 a share. According to FactSet, analysts were expecting $1.06 a share.
Revenue rose 5% to $2.01 billion, slightly above the $2 billion expected by analysts. Organic revenue rose 7% in the quarter.
Thomson Reuters said that for the "Big Three" segments, organic revenue rose by 9%. Legal Professionals, its largest segment of the three, rose 1% to $738 million, while Corporates rose 8% to $496 million. Tax, Audit & Accounting Professionals revenue grew 13% to $414 million.
For the first quarter, the company expects organic revenue growth to be about 7% and its adjusted Ebitda margin to be around 42%.
Dow Jones competes with Thomson Reuters in financial news and information services.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
February 05, 2026 07:41 ET (12:41 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments