Thomson Reuters Raises 2026 Revenue Guidance to 8%

What happened

Thomson Reuters reported second-quarter net earnings of $448 million (or $1.02 per share), up from $313 million a year earlier. On an adjusted basis, earnings per share rose to 99 cents, exceeding analyst forecasts of 96 cents. Total revenue increased 9.5% to $1.95 billion, surpassing the expected $1.91 billion. The company's three major business segments all posted strong growth: legal professionals revenue rose 10% to $772 million, tax and accounting climbed 14% to $311 million, and corporates increased 12% to $537 million. Based on this performance, Thomson Reuters raised its full-year 2026 organic revenue growth target to 8%, up from a prior range of 7.5%-8%. Revenue for its big three segments is now forecast to grow 9.5%-10%, compared to the earlier target of 9.5%. The company also confirmed expectations for its adjusted EBITDA margin to expand 1 percentage point to around 40.2% and free cash flow to reach $2.1 billion, up from $1.95 billion in 2025.

Why it matters

The upward revision signals sustained demand for Thomson Reuters' core information and technology services across legal, tax, and corporate markets. Double-digit growth in all three major segments reflects successful product development and market positioning, particularly as the company integrates artificial intelligence into its offerings. The company's May integration of Anthropic's Claude into its CoCounsel Legal AI tool represents a strategic bet on AI-driven productivity for legal professionals. Investors should note that Thomson Reuters is simultaneously restructuring its portfolio-last month agreeing to sell control of its global legal print business to KKR for approximately $500 million while retaining a 49% stake in a joint venture. This combination of organic growth acceleration and strategic portfolio refinement suggests management is focusing capital on higher-margin digital and AI-enabled products. The improved guidance also indicates Thomson Reuters is outpacing its 2025 revenue growth of 3%, pointing to meaningful business momentum.

Bigger picture

Thomson Reuters competes with peers like Bloomberg and Dow Jones in financial news and information services, a sector increasingly shaped by AI integration and digital transformation. The company's ability to deliver double-digit growth in legal and tax segments reflects broader industry trends: professional service firms are adopting AI tools to improve efficiency, and regulatory complexity continues to drive demand for specialized information platforms. The shift away from print-based services (evidenced by the KKR deal) mirrors industry-wide migration to digital-first business models. Thomson Reuters' raised guidance suggests it is capturing market share or benefiting from category expansion, potentially at the expense of competitors or traditional workflow methods. The 1 percentage point EBITDA margin expansion target also signals that scale and technology investments are translating into improved profitability, a key metric for technology-enabled content providers.

What to watch

Investors should monitor third-quarter results to see if the 8% organic revenue growth target holds, particularly given the company's Q3 guidance of about 8% revenue growth and a 36% adjusted EBITDA margin (which includes the global print segment being sold). Continued adoption of AI tools like CoCounsel will be a key indicator of whether Thomson Reuters can sustain or accelerate growth in its legal segment. Watch for updates on the integration of Anthropic's Claude and whether the company announces further AI partnerships or acquisitions. The completion of the KKR joint venture and its impact on margins and cash flow will also be important. Finally, any signs of market share gains in the competitive financial information space-or slowing growth in legal or corporate segments-could shift investor sentiment.