Thomson Reuters offers a resilient, subscription-heavy model with high switching costs which is underpinned by mission-critical legal, tax, and risk information and workflow software that customers rely on daily.
The company is also an early and credible leader in applying generative AI to professional workflows. It has embedded AI deeply into products like Westlaw and corporate compliance platforms, which can materially increase customer value and pricing power over time. This positions the business for potentially faster long‑term earnings growth than a traditional information provider, while the long history of 30+ years of consecutive dividend increases and a growing payout provides a defensive total-return profile.
The stock trades at 18.4 times the company’s forward earnings forecast, a reasonable valuation for a quality compounder with recurring revenue, high margins, and what’s becoming a structural AI tailwind.
THOMSON REUTERS CORP. (Toronto symbol TRI; www.thomsonreuters.com) sells specialized information (through electronic channels) to professionals in the legal, tax and accounting fields. It also owns the Reuters news service.
With the March 10, 2026, payment, Thomson raised your quarterly dividend by 10.1%. Investors now receive $0.655 U.S. a share instead of $0.595 U.S. The new annual rate of $2.62 U.S. yields a solid 3.0%.
On top of that, the company now plans to return $605 million U.S. to its shareholders from the recent sale of its stake in the London Stock Exchange Group. This return of capital will be tax-free for Canadian investors.
Those shareholders opting to participate will receive a special cash distribution of $1.36 U.S. a share. Immediately after that payment, the company will consolidate its outstanding common shares by that amount, meaning a Canadian shareholder with 100 shares will own roughly 98.49 shares following the transaction (Thomson has not yet announced the final consolidation ratio). The difference represents the cash return of capital.
Note—non-Canadian shareholders will probably opt out of the return of capital plan as it would expose them to a higher tax bill. In doing so, they will retain the same number of shares following the transaction.
Separate from the share consolidation, Thomson plans to buy back $600 million U.S. of its outstanding shares by August 18, 2026. To put that figure in context, the company’s market cap is $51.2 billion (Canadian).
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Thomson’s rebound will come when investors see that AI is actually a plus for the company
In the quarter ended December 31, 2025, Thomson’s revenue rose 5.2%, to $2.01 billion from $1.91 billion a year earlier (all amounts except share price in U.S. dollars). That topped the consensus forecast of $2.00 billion
If you factor out businesses that Thomson bought and sold, as well as currency rates, organic revenue improved 7% 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 82% of total revenue.
Earnings before unusual items rose 5.9%, to $1.07 a share (or a total of $479 million) from $1.01 a share (or $454 million). That beat the $1.06-a-share consensus estimate.
The stock has declined steadily since mid-June 2025. That’s largely due to the launch of new legal-related features by artificial intelligence (AI) software maker Anthropic. These new tools, part of Anthropic’s Claude chatbot, make it easier for lawyers to perform routine tasks, such as reviewing contracts and legal briefings.
However, Anthropic’s tools are not a replacement for legal research. Moreover, the Claude chatbot can only access publicly available information, not Thomson’s proprietary databases. In fact, over 1 million legal, accounting and tax professionals in 107 countries are now using CoCounsel, the company’s AI-powered suite of research tools.
Meantime, the company continues to add AI tools to make it easier for users to access its data with confidence that the results will be accurate. That’s important, as bad or incomplete results could lead to lost lawsuits and big cash settlements.
Thomson’s earnings will probably rise 12% in 2026 to $4.41 U.S. a share, and the stock trades at a reasonable 18.4 times that forecast.
Recommendation in The Successful Investor: Thomson Reuters Corp. is a buy.
