Thomson Reuters Brings Trusted Data to the Next Wave of Professional AI in Legal and Tax Markets

Thomson Reuters’ combination of a durable content moat and a compelling AI monetization pathway is the strongest reason to own this information technology provider. Legal, tax, audit, compliance, and corporate professionals work in domains where errors can be expensive, reputationally damaging, or legally consequential. This firm owns deeply embedded content, professional brands, workflow relationships, and distribution channels that general-purpose AI providers can’t easily replicate. The firm’s specialist AI tools can increase customer productivity, support premium pricing, improve retention, and enlarge the company’s share of customer technology budgets.

The financial model is also attractive. Revenue is mostly recurring, margins are high, free cash flow is substantial, and capital intensity is moderate for a software-and-content business. The company is combining investment in AI and acquisitions with buybacks, debt repayment, and a dividend that has increased for 33 consecutive years.

The stock trades at 23.1 times the company’s forward earnings forecast. That’s reasonable for a company with high recurring revenue, strong cash conversion, an entrenched professional-information franchise, and high-single-digit organic growth.

THOMSON REUTERS CORP. (Toronto symbol TRI; www.thomsonreuters.com) provides mission-critical software, data, workflow tools, and authoritative content to legal professionals, corporations, tax and accounting firms, governments, and media customers through brands including Westlaw, CoCounsel, Practical Law, CLEAR, Checkpoint, Pagero, Confirmation, and Reuters.

Thomson has agreed to sell 51% of its Global Print business to U.S.-based private equity investor KKR & Co. Inc. (New York symbol KKR). This business provides legal and tax information in print and e-book formats. It accounts for about 7% of Thomson’s total revenue of $7.5 billion (all amounts except share price in U.S. dollars).

KKR will pay $500 million for this stake when it completes the transaction later this year. The company will retain 49%. Thomson will also continue to exercise editorial control and own the rights to these publications.

The sale makes sense, as demand for print products is declining. Thomson can also use the cash to keep improving its electronic products, including adding new artificial intelligence tools that make its databases easier to use.

The cash will also help the company with its plan to add new artificial intelligence tools to its databases. That includes its CoCounsel suite of AI-powered research tools, which has performed well compared with popular AI models from Anthropic (Claude), Open AI (ChatGPT) and Google (Gemini). What’s more, these general-purpose AI offerings can’t access Thomson’s vast library of exclusive data. That should help it hang onto clients, who rely on accurate data to make decisions.
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Thomson Reuters’ recurring revenue powers a strong growth profile

In the three months ended June 30, 2026, Thomson’s revenue rose 9.5%, to $1.95 billion from $1.79 billion a year earlier (all amounts except share price in U.S. dollars). That topped the consensus forecast of $1.90 billion.
If you factor out businesses that Thomson bought and sold, as well as currency rates, organic revenue improved 8% in the latest quarter.
The company continues to add new subscribers and deepen its relationship with existing ones. In the quarter, recurring revenue from its three main businesses—legal information, data for corporate clients, and tax and accounting information—rose 9%. Recurring revenue now accounts for 86% of total revenue.

Earnings before unusual items rose 10.4%, to $435 million from $94 million. Due to fewer shares outstanding, per-share earnings improved 13.8%, to $0.99 from $0.87. That beat the $0.96-a-share consensus estimate.

Thomson now expects its revenue (excluding acquisitions and currency rates) will rise about 8% in 2026, which is up from its earlier forecast of 7.5% and 8.0% growth. Its earnings should also rise about 11% to $4.41 U.S. a share. The stock trades at what is a reasonable 23.1 times that forecast, considering the company continues to integrate new artificial intelligence tools into its databases.

The $2.62 dividend yields a solid 2.5%.

Recommendation in The Successful Investor: Thomson Reuters Corp. is a buy.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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