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what it is
Thomson Reuters sells the legal, tax, finance, and news tools that professionals pay for because being wrong costs more.
how it gets paid
Last year Tri made $7.5B in revenue. Legal was the main engine at $2.85B, or 38% of sales.
why it's growing
Revenue grew 3.0% last year. EDGAR shows quarterly revenue up 106% vs. prior year and EPS up 139% vs. prior year.
what just happened
The latest quarter showed revenue of $3.7B and EPS of $1.65, but the market is focused on a separate reported miss versus a $1.04 estimate.
At a glance
A balance sheet — strong enough to weather a downturn
85/100 earnings predictability — you can trust these numbers
24.8x trailing p/e — priced about right
2.8% dividend yield — cash in your pocket every quarter
13.9% return on capital — nothing to write home about
xvary composite: 70/100 — average
What they do
Thomson Reuters sells the legal, tax, finance, and news tools that professionals pay for because being wrong costs more.
This business sits inside your workflow. If your law firm, tax team, or finance desk already runs on Thomson Reuters, switching means retraining people, rewriting habits, and risking mistakes across work that bills by the hour. Legal alone was 38% of 2024 sales, and the company still posted a 37.3% operating margin (operating margin → profit after running the business → this customer stickiness shows up in cash).
How they make money
$7.5B
annual revenue · their business grew +3.0% last year
Legal
$2.85B
+9.0%
Corporates
$1.80B
+3.0%
Tax
$1.43B
+3.0%
Global Print
$0.75B
3.0%
Reuters News
$0.68B
0.0%
The products that matter
legal research and workflow
Legal Professionals
inside a $7.5B revenue base
the page does not break this segment out, but it sits inside a $7.5B business earning a 37.3% operating margin. Lawyers pay for speed, search, and not missing a citation.
workflow sticky
tax and accounting software
Tax & Accounting
part of a 23.2% net-margin company
this is the kind of product professionals renew because deadlines do not move. That helps explain how Thomson Reuters keeps 23.2 cents of profit from every revenue dollar.
recurring demand
news, risk, and market information
Reuters + risk data
supports an 85/100 predictability score
the Reuters brand matters, but the investment case is steadier than the headlines. An 85/100 predictability score says the broader information bundle behaves more like infrastructure than a media trade.
brand + data
Key numbers
37.3%
operating margin
You do not get a 37.3% operating margin without customers who hate switching. That is the business model in one number.
24.8x
trailing p/e
You are paying 24.8 times trailing earnings for a company with 1.5% past sales growth. That is quality pricing, not bargain pricing.
$1.3B
long-term debt
Debt is just 2% of capital, which means balance-sheet stress is not the problem here. Execution is.
95/100
price stability
A 95 stability score says this stock has usually been calm, which makes a 50% drawdown look even more like a valuation reset.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 1 — safer than 95% of stocks
- price stability 95 / 100
- long-term debt $1.3B (2% of capital)
- net profit margin 23.2% — keeps 23 cents of every dollar in revenue
- return on equity 15% — $0.15 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in TRI 3 years ago → it's now worth $9,720.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
The latest quarter showed revenue of $3.7B and EPS of $1.65, but the market is focused on a separate reported miss versus a $1.04 estimate.
EDGAR shows quarterly revenue up 106% vs. prior year and EPS up 139% vs. prior year. Consensus data also shows the last earnings print at $0.74 versus $1.04 expected, which tells you the data sources are not lining up cleanly.
$3.7B
revenue
$1.65
eps
23.2%
gross margin
the number that mattered
The number that matters is the 106% revenue jump, because it is too large to treat as normal operating momentum and needs context before you underwrite it.
-
typically-stable thomson reuters shares have recently been on a rough ride.
-
the stock price sank over 50% from its all-time high last july to a three-year low this february.
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the steep six-month decline may suggest significant difficulties, but, from an earnings perspective, it hasn't happened yet.a look at the price chart versus the share's cash-flow line suggests that about half of the downward move was a response to overvaluation, from a long-term perspective.
-
this had been pointed out in our previous reports.
-
the 2% nominal revenue growth in the first three quarters of last year may appear sluggish; however, after correcting for the disposal of units, organic revenues rose a healthy 7%.
source: company earnings report, 2026
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What could go wrong
the top risk for TRI is paying a premium multiple for a business still growing only 3.0%.
med
growth stays stuck near 3%
Revenue reached $7.5B, up 3.0% from last year. The stock still trades at 24.8x trailing earnings. That works only if the market keeps treating TRI like a premium-quality subscription name.
The catch: if growth stays flat, multiple expansion has less room to do the work for you.
med
enterprise budget pressure hits a very profitable model
A 37.3% operating margin and 23.2% net margin are excellent. They also give the market a high bar. If clients slow hiring, cut seats, or delay projects, profit pressure shows up fast.
On a $7.5B revenue base, even modest margin slippage matters more than the headline growth rate suggests.
med
institutions have been sellers, not chasers
The page shows net selling for 2 consecutive quarters. In 3q2025, there were 241 buyers versus 282 sellers. That does not break the business. It does cap enthusiasm.
If big money keeps trimming, the stock can stay stable without getting re-rated higher.
med
the path from $7.5B to $10B needs to stay believable
The long-range revenue estimate on the page is $10B for fy2029. That is $2.5B above the current base. If that path starts looking stretched, long-term target math gets thinner.
This is a quality stock, not a no-work-required stock. The market still wants proof that steady can also mean steadily bigger.
TRI has the balance sheet to absorb turbulence. The real risk is simpler: 24.8x earnings leaves less room for disappointment when growth is 3.0%, not 13.0%.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue growth needs to beat 3.0%
That is the number that matters. If sales keep growing at roughly the same pace, the stock stays a quality hold. If growth accelerates, the premium multiple starts making more sense.
calendar
next earnings report
You want one clean answer: did Thomson Reuters grow faster than last year's 3.0% without giving up that 37.3% operating margin.
trend
institutional flow
Net selling for 2 quarters is not a crisis. It is a signal. If that flips to net buying, you have one less valuation headwind to worry about.
risk
client budget pressure
Tariffs, energy shocks, and geopolitical noise are great for demand for information. They are less great if customers start trimming spending. Watch renewals and seat growth, not just headlines.
Analyst rankings
earnings predictability
85 / 100
Management has a habit of producing steady results. In human-speak: this business does not surprise you often.
risk rank
1
That places TRI among the safer names in the market. You are taking business-model risk here, not balance-sheet risk.
price stability
95 / 100
The stock has been far less jumpy than most equities. Good for sleep. Less exciting for traders.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 241 buyers vs. 282 sellers in 3q2025. total institutional holdings: 0.4B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$95
$193
$96
current price
$144
target midpoint · +49% from current · 3-5yr high: $210 (+95% · 19% ann'l return)
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