Thomson Reuters shares slide to 2-yr low after Q3 miss on earnings

[General Views Of Publishing Houses In Paris]
Pascal Le Segretain/Getty Images News

Shares of Thomson Reuters (TRI [https://seekingalpha.com/symbol/TRI]) fell as much as 6.7% to touch a two-year low on Tuesday after the company reported third-quarter earnings that came in below Wall Street expectations for both profit and revenue, amid continued momentum in its AI-driven product lineup.

The information and media company posted adjusted earnings of $0.85 a share, missing the analyst consensus of $1.07 a share, while revenue rose 3% to $1.78 billion, short of forecasts calling for $2.02 billion.

Net income rose to $460 million, or $0.94 a share, from $328 million, or $0.67 a share, in the same period a year earlier. Analysts had expected earnings of $0.92 a share on a basis of generally accepted accounting principles.

Operating profit increased 43% year over year to $593 million, driven largely by gains from the sale of the company’s remaining minority stake in its Elite business and higher overall revenue.

Earnings, before interest, taxes, depreciation and amortization rose 10% from a year earlier to $672 million, with an adjusted ebitda margin of 37.7%, up from 35.3% a year earlier. The company attributed the margin expansion to stronger operating leverage in its “Big 3” business lines (Legal Professionals, Corporates and Tax & Accounting Professionals) which collectively grew organic revenue by 9%.

Cash flow from operations slipped 7% to $704 million, while free cash flow declined 11% to $526 million, reflecting higher capital expenditures and working-capital shifts.

Among individual segments, revenue from Legal Professionals fell 2% due to divestitures but grew 9% organically, while the Corporates division posted a 9% organic increase and the Tax & Accounting Professionals unit surged 10%. Revenue at Reuters News climbed 4%, supported by higher agency income and contractual payments from its content agreement with the London Stock Exchange Group.

Thomson Reuters reaffirmed its full-year 2025 outlook, guiding for organic revenue growth of 7% to 7.5% and an adjusted ebitda margin of around 39%. The company also raised its 2026 framework, targeting 100 basis points of margin expansion and free cash flow near $2.1 billion, citing efficiency gains from its ongoing transformation and AI investments.

MORE ON THOMSON REUTERS CORPORATION

* Thomson Reuters Corporation (TRI:CA) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4837498-thomson-reuters-corporation-tri-ca-q3-2025-earnings-call-transcript]
* Thomson Reuters Corporation 2025 Q3 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4837441-thomson-reuters-corporation-2025-q3-results-earnings-call-presentation]
* Thomson Reuters: Valuation Is Still Not Compelling Enough [https://seekingalpha.com/article/4813532-thomson-reuters-valuation-is-still-not-compelling-enough]
* Thomson Reuters Non-GAAP EPS of $0.85, revenue of $1.78B [https://seekingalpha.com/news/4514060-thomson-reuters-non-gaap-eps-of-0_85-revenue-of-1_78b]
* Thomson Reuters Q3 2025 Earnings Preview [https://seekingalpha.com/news/4513402-thomson-reuters-q3-2025-earnings-preview]