Thomson Reuters Corporation (NASDAQ: TRI) disclosed its financial results for the fourth quarter of fiscal 2025, highlighting a 5 percent increase in total revenue to $2.009 billion, which slightly surpasses analyst expectations pegged at $2.001 billion. The company’s organic revenue advanced by 7 percent, largely propelled by 9 percent growth across its core verticals identified as Legal Professionals, Corporates, and Tax & Accounting Professionals.
In terms of profitability, the company saw a 43 percent decline in GAAP diluted earnings per share, dropping from $1.30 in the prior year quarter to 74 cents. Contrastingly, adjusted earnings per share experienced a 6 percent rise, reaching $1.07, modestly exceeding the anticipated $1.06. Operating profit diminished by 25 percent to $540 million, influenced primarily by smaller other operating gains compared to the previous year’s quarter, which benefitted from proceeds related to the sale of FindLaw.
The revenue mix detailed a 6 percent increase in recurring revenue, which now comprises 84 percent of total revenue, alongside an 11 percent growth in transaction revenue. This was partially offset by a reduction in Global Print revenue, which declined by 6 percent. On the expense side, adjusted EBITDA climbed 8 percent to $777 million, with margins improving to 38.7 percent, up from 37.6 percent in the same period last year.
Cash flow metrics reflected the strengthened operational performance, with net cash flows from operations rising 35 percent to $756 million, while free cash flow improved by 38 percent, reaching $581 million. These figures underscore the company’s capacity to generate healthier cash positions despite pressures on some profit metrics.
Segment Analysis
The Legal Professionals segment reported revenues amounting to $738 million, an increase of 1 percent that includes a comparative impact from the prior year’s sale of FindLaw. On an organic basis, growth in this division was stronger at 9 percent, supported by notable advancements in flagship offerings such as Westlaw, CoCounsel, and Practical Law. Adjusted EBITDA for this segment rose by 9 percent, reaching $327 million, while the corresponding margin expanded to 44.3 percent.
Within the Corporates segment, revenue climbed 7 percent to $496 million despite the headwind from divesting certain non-core businesses. The adjusted EBITDA margin for Corporates stood at 32.2 percent, backed by an organic revenue surge of 9 percent, reflecting robust demand and client engagement.
The Tax & Accounting Professionals segment demonstrated the strongest revenue growth, increasing 13 percent to $414 million, bolstered by the recent acquisition of SafeSend. Its organic growth rate registered at 11 percent. Adjusted EBITDA jumped 14 percent to $222 million, with the segment margin increasing to 53.6 percent, showcasing efficiency gains alongside top-line improvement.
Reuters News contributed $232 million in revenue, marking a 6 percent overall gain, including 5 percent organic growth. This growth was driven by enhanced licensing revenue linked to generative AI capabilities within the Agency business and contractual price adjustments tied to the news agreement with London Stock Exchange Group’s Data & Analytics unit. Adjusted EBITDA for Reuters News was $48 million, translating into a 21.0 percent margin.
Conversely, the Global Print business experienced a revenue decline of 6 percent to $136 million, with adjusted EBITDA decreasing 2 percent to $54 million. Corporate-level expenses rose slightly to $34 million, up from $30 million the previous year.
AI as a Catalyst for Growth
Steve Hasker, the CEO of Thomson Reuters, emphasized that ongoing investments in artificial intelligence are materially enhancing the company’s product innovation cycle and operational effectiveness. According to Hasker, AI integration is delivering discernible benefits by expediting improvements and reshaping internal processes. He highlighted the company’s intent to scale its agentic AI capabilities in 2026, with a focus on empowering customers to perform tasks more efficiently and confidently through the use of professional-grade tools enriched by high-quality content and expertise.
Fiscal 2026 Outlook
Looking ahead, Thomson Reuters projects total revenues for fiscal 2026 to range between approximately $8.037 billion and $8.074 billion, closely aligned with available consensus estimates around $8.051 billion. The company anticipates total revenue growth in the range of 7.5 to 8.0 percent, with equivalent organic growth expected. On profitability, the firm forecasts an adjusted EBITDA margin near 40.2 percent, complemented by estimated free cash flows of approximately $2.1 billion.
Following the earnings release, Thomson Reuters shares declined 7.72 percent to $97.00 as reported by market data at the time of publication, reflecting investor caution amid mixed profit signals despite strong revenue performance.