Thomson Reuters Q4 & Full-Year 2025 Earnings: Revenue In Line At $2.01 Billion
Updated · Feb 09, 2026
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Thomson Reuters delivered Q4 2025 adjusted EPS of $1.07 on revenue of $2.01 billion, essentially in line with expectations, while full-year organic revenue grew 7%. Guidance for 2026 points to faster top-line growth and higher margins, but shares still fell about 4% on the day amid broader AI-related volatility and competitive concerns.
About Thomson Reuters Corporation
Thomson Reuters Corporation (TSX/Nasdaq: TRI) is a Canadian-based global provider of information, software and AI-enabled workflow tools for legal, tax, accounting, compliance, government and media professionals. Headquartered in Toronto, Ontario, the company was created in 2008 through the merger of Thomson Corporation and Reuters Group, with roots that trace back to 1851.
As of 2024, Thomson Reuters employed roughly 26,400 people worldwide. The stock currently carries a market capitalization of about $39 billion (U.S.) and trades at a trailing P/E ratio near 26–27, implying a premium valuation for its recurring-revenue, data-and-software-driven model. The company has a long history of returning cash to shareholders, supported by a forward dividend yield of roughly 2–2.5%, underpinned by a 33-year streak of annual dividend increases.
Top Financial Highlights
- Q4 2025 revenue rose 5% to $2.009 billion, with 7% organic revenue growth and recurring revenue comprising 84% of the total.
- Full-year 2025 revenue increased 3% to $7.476 billion, driven by 7% organic growth and 9% organic growth across the “Big 3” segments (Legal Professionals, Corporates, Tax, Audit & Accounting Professionals).
- Q4 diluted EPS declined to $0.74 (down 43% YoY) due to lower operating profit and prior-year gains, but adjusted EPS increased 6% to $1.07, a $0.01 beat versus consensus of about $1.06.
- Full-year diluted EPS fell to $3.33 from $4.89, largely because 2024 included a $1.04 per-share non-cash tax benefit; adjusted EPS rose 4% to $3.92.
- Q4 operating profit dropped 25% to $540 million, reflecting prior-year disposal gains and higher software amortization, but adjusted EBITDA grew 8% to $777 million, expanding margin to 38.7% (up 110 bps).
- Net cash from operating activities climbed 35% in Q4 to $756 million, while free cash flow increased 38% to $581 million, helped by stronger earnings and working-capital improvements.
- For full-year 2025, net cash from operating activities rose 8% to $2.651 billion and free cash flow grew 7% to $1.95 billion, meeting the company’s cash-flow outlook.
- In Q4, Legal Professionals revenue was $738 million (+1%; 9% organic), Corporates $496 million (+8%; 9% organic), and Tax, Audit & Accounting Professionals $414 million (+13%; 11% organic).
- The “Big 3” segments generated $1.648 billion of Q4 revenue (about 82% of total), with 9% organic growth and a combined adjusted EBITDA margin of 43.0%.
- Reuters revenue grew 7% to $232 million, driven by AI-related content licensing and higher fees under the LSEG news agreement; Global Print revenue declined 6% to $136 million.
- Cash and cash equivalents stood at $511 million at year-end 2025, alongside an undrawn $2 billion revolving credit facility and additional commercial paper capacity, leaving leverage at just 0.6x adjusted EBITDA.
- 2026 guidance calls for 7.5%–8.0% organic revenue growth, roughly 100 bps of adjusted EBITDA margin expansion from 39.2%, and ~$2.1 billion of free cash flow, implying continued operating leverage.
- The board approved a 10% dividend increase to $2.62 per share annually (33rd consecutive hike) and the company completed a $1.0 billion share repurchase program, retiring 6 million shares.
Beat or Miss?
| Metric | Reported | Difference / Analysis |
| Q4 2025 Revenue | $2.009 billion | Roughly in line with LSEG consensus around $2.0 billion; effectively a small revenue beat. |
| Q4 2025 Adjusted EPS | $1.07 | Beat consensus of about $1.06 by $0.01, reflecting operating leverage and cost control. |
| FY 2025 Revenue | $7.476 billion | Delivered 3% reported and 7% organic growth, consistent with the 2025 outlook range. |
| FY 2025 Adjusted EPS | $3.92 | Up 4% YoY despite higher interest and tax expense; no explicit consensus cited in company materials. |
| 2026 Organic Revenue Guidance | 7.5–8.0% | Implies modest acceleration from 7% in 2025, supported by AI-driven products and “Big 3” strength. |
What Leadership Is Saying
“Our fourth‑quarter results capped a year of important progress for Thomson Reuters. We are seeing tangible benefits from our continued investments in AI, accelerating our pace of product innovation and leveraging technology to reimagine how we work. As we move into 2026, we will continue to scale our agentic capabilities to deliver greater speed, clarity, and confidence for our customers – further demonstrating the value of professional‑grade tools built on quality content and deep subject‑matter expertise.”— Steve Hasker, President & CEO
“For the full year 2025, our free cash flow was $1.95 billion, slightly ahead of our approximately $1.9 billion outlook. EBITDA growth was the primary driver of the year-over-year increase in free cash flow, and we continue to forecast our adjusted EBITDA margin in 2026 rising by 100 basis points from 39.2% in 2025.” — Mike Eastwood, CFO
Historical Performance
Thomson Reuters – Q4 2025 vs Q4 2024
| Category | Q4 2025 | Q4 2024 | Change (%) / bps |
| Revenue | $2.009 billion | $1.909 billion | 5% |
| Net income (reported) | $332 million | $587 million | ‑43% |
| Operating expenses | $1.231 billion | $1.183 billion | 4% |
| Adjusted EBITDA margin | 38.70% | 37.60% | +110 bps (about +3% relative) |
Net income and EPS were pressured by the absence of prior-year disposal gains and tax benefits, even as the business continued to show healthy organic growth and margin expansion.
Historical Performance By Competitor
To benchmark Thomson Reuters against a close peer in legal, risk and information services, the table below uses RELX plc results for the six months ended June 30, 2025 (H1 2025) versus H1 2024.
| Category | H1 2025 | H1 2024 | Change (%) |
| Revenue | £4,741 million | £4,641 million | +2% reported |
| Net income | £976 million | £985 million | ‑1% |
| Operating profit | £1,490 million | £1,431 million | 4% |
RELX is also delivering steady top-line growth and margin expansion, highlighting that information and analytics peers continue to benefit from strong demand for data-rich, software-enabled solutions even as investors debate the long-term impact of generative AI on incumbents.
How the Market Reacted
Despite posting solid Q4 and full-year 2025 results and guiding to faster growth and higher margins in 2026, Thomson Reuters’ stock came under pressure around the release. One post-earnings summary noted that the shares fell about 3.9% to roughly $127.87 on the day of the report. That decline followed an even steeper ~18% drop earlier in the week, as investors reassessed the competitive threat from AI entrants such as Anthropic in legal-tech workflows.
In other words, the earnings print itself was fundamentally constructive — revenue essentially in line, EPS a modest beat, guidance reiterated — but sentiment remains cautious. The market appears more focused on whether Thomson Reuters can translate its significant AI investments and proprietary content into durable, premium-priced, professional-grade tools that defend and extend its moat over the coming years.
Sources
Barry Elad is a passionate technology and finance journalist who loves diving deep into various technology and finance topics. He gathers important statistics and facts to help others understand the tech and finance world better. With a keen interest in software, Barry writes about its benefits and how it can improve our daily lives. In his spare time, he enjoys experimenting with healthy recipes, practicing yoga, meditating, or taking nature walks with his child. Barry’s goal is to make complex tech and finance information easy and accessible for everyone.
