Thomson Reuters Q2: AI fuels core growth, but shares fall on conservative outlook

Thomson Reuters reported a modest 3 percent rise in second-quarter revenue to $1.78 billion, while organic growth reached 7 percent—driven by strong performance in its core “Big 3” markets: legal, corporate, and tax & accounting. These segments together grew 9 percent organically, reflecting sustained demand for enterprise content and services. The company reaffirmed its full‑year revenue guidance of 7 to 7.5 percent organic growth and maintained its adjusted EBITDA margin target of around 39 percent.

Adjusted earnings per share came in at 87 cents, comfortably beating analyst expectations of around 82 cents. CEO Steve Hasker described the quarter as solid, noting momentum in revenue and margins aligning with expectations. 

AI innovation took center stage as the company launched several “agentic AI” products—most notably CoCounsel Legal integrating Westlaw Deep Research, and CoCounsel tools for tax, audit, and accounting workflows. CFO Michael Eastwood highlighted that the contribution of AI-enabled offerings to underlying contract value jumped to 22 percent from about 15 percent at the end of last year, underscoring AI’s growing role as a business driver. 

Despite the upbeat results, the stock dipped about 8 percent on the Toronto Stock Exchange as analysts flagged the lack of an upward revision in forward guidance and questioned the impact of sustained AI investments on operating profitability. The company had been expected to raise its outlook but chose to maintain existing targets. 

Looking ahead, Thomson Reuters remains committed to AI-driven transformation. In early 2025, it forecast organic revenue growth of 7–7.5 percent for FY25 and even higher for 2026, backed by over $200 million in AI investments and up to $10 billion reserved for acquisitions through 2027. 

For marketers and media strategists, the takeaway is clear: Thomson Reuters is doubling down on AI—not just as a feature, but as a strategic pillar. While the market’s short-term reaction may seem cautious, the firm’s investment in agentic AI tools signals a long-term shift toward automation-led enterprise workflows and subscription value.