Thomson Reuters Reports Third-Quarter 2026 Results

Thomson Reuters posts strong revenue growth but Q3 profit and cash flow dip on one-offs.

What the company is saying

Thomson Reuters, trading as TSX:TRI and NASDAQ:TRI, is emphasizing a 10% year-over-year increase in total company revenues for Q3 2026, reaching $1,833 million, with organic growth matching at 10% for both the overall business and its core 'Big 3' segments: Legal Professionals, Corporates, and Tax, Audit & Accounting Professionals. The company highlights the completed sale of a 51% stake in its Global Print business to KKR for $500 million and the completion of a $600 million share repurchase program. Management, led by President and CEO Steve Hasker, frames the quarter as exceeding expectations for both revenue growth and margins, attributing the Q3 operating profit decline to a prior-year gain from the sale of the Elite business and increased software amortization, rather than underlying business weakness. The narrative stresses strong customer engagement with next-generation AI products like CoCounsel Legal and Tax, Audit & Accounting, and ongoing commercial discussions for Thomson LLM, though without providing quantitative evidence. The company also notes the issuance of $1.3 billion and CDN $1.0 billion in notes for $2.0 billion in proceeds, and an updated 2026 outlook excluding Global Print, projecting total revenue growth of 9.5% and organic growth of 8.5–9.0% with an adjusted EBITDA margin of 39%. The tone is confident, focusing on innovation and long-term value creation.

What the data suggests

The disclosed numbers show robust top-line momentum, with Q3 2026 revenues up 10% to $1,833 million and organic growth sustained at 10%. Segment-level results are consistent: Legal Professionals revenues rose 9% to $788 million, Corporates 11% to $544 million, and Tax, Audit & Accounting Professionals 11% to $276 million. Adjusted EBITDA increased 10% to $651 million, though the margin slipped slightly to 35.5% from 35.8%. Operating profit fell 22% to $402 million, primarily due to a prior-year gain from the Elite business sale and higher software amortization, not core operations. Diluted EPS dropped to $0.78 from $0.94, but adjusted EPS rose to $0.81 from $0.71, reflecting higher adjusted EBITDA and fewer shares outstanding. Net cash from operating activities declined 15% to $599 million, and free cash flow dropped 23% to $408 million, both impacted by working capital changes and higher tax payments. For the nine months, trends are positive: revenues up 11% to $5,651 million, operating profit up 7% to $1,471 million, diluted EPS up 9% to $2.83, and adjusted EBITDA up 11% to $2,140 million with a margin of 37.9%. The company completed major capital actions, including the $500 million Global Print sale and $2.0 billion in note issuances. Qualitative claims about customer engagement and innovation lack supporting metrics, and forward-looking statements on AI product commercialisation remain unquantified.

Analysis

The announcement is generally positive and supported by comprehensive financial disclosures, including realised revenue, profit, cash flow, and margin figures for both the quarter and year-to-date. Most key claims are realised and substantiated with numerical data, such as 10% revenue growth and improved adjusted EBITDA. However, the tone is somewhat inflated by qualitative statements about 'strong' customer engagement and confidence in innovation, which are not backed by specific metrics or evidence. Forward-looking elements, such as guidance for the remainder of 2026 and optimism about AI-driven products, are present but limited in proportion to realised results. The capital actions (sale of Global Print, note issuance, share repurchase) are completed and quantified, with no indication of large, uncertain, long-term outlays. The gap between narrative and evidence is modest, mainly in the qualitative assertions about future growth and innovation.

Risk flags

• ●The Q3 operating profit decline of 22% to $402 million, despite strong revenue growth, signals sensitivity to non-recurring items such as prior-year gains and higher amortization, which could mask underlying trends if such effects recur.
• ●Cash flow from operations and free cash flow both fell sharply in Q3 (down 15% and 23%, respectively), mainly due to unfavorable working capital and higher tax payments, raising questions about the consistency of cash generation even as headline revenues rise.
• ●The company's qualitative claims regarding strong customer engagement with new AI-driven products and optimism around Thomson LLM are not supported by adoption metrics or revenue contribution, making it difficult to assess the real commercial traction or timing of future growth from these initiatives.
• ●While the sale of the Global Print business and large note issuances strengthen the balance sheet, the redeployment of proceeds and the impact of increased leverage on future interest expense and capital allocation are not detailed, creating uncertainty around the long-term financial profile.
• ●Guidance for the 'Big 3' segments is described as unchanged, but no specific segment-level targets or margin figures are disclosed, limiting transparency into management's expectations and segment performance drivers.

Bottom line

Thomson Reuters delivered strong revenue and adjusted EBITDA growth in Q3 and year-to-date 2026, with the core 'Big 3' segments maintaining double-digit organic growth. The company has executed major capital actions, including a $500 million asset sale, $2.0 billion in note issuances, and a $600 million share buyback, all of which are already completed and reflected in the balance sheet. Despite these positives, Q3 operating profit and cash flow both declined due to non-recurring prior-year gains and higher amortization, highlighting the impact of one-off items on bottom-line results. Management's confidence in AI-driven products and innovation is not yet substantiated by quantitative adoption or revenue figures, making future upside from these areas speculative at this stage. The updated 2026 outlook is for the current year and does not introduce long-dated execution risk, but the lack of detailed segment guidance and the dip in cash flow warrant continued scrutiny. Investors should focus on the company's ability to translate top-line growth into sustained profit and cash generation, and watch for concrete evidence of commercial traction from new AI offerings. The most important takeaway is that while the growth story is intact, operational leverage and cash conversion remain key areas to monitor.

Announcement summary

(TSX:TRI, NASDAQ:TRI) Thomson Reuters reported strong revenue growth for the third quarter ended September 30, 2026, with total company revenues increasing by 10% to $1,833 million from $1,658 million in the prior-year period. Organic revenues also rose 10% in total and for the "Big 3" segments: Legal Professionals, Corporates, and Tax, Audit & Accounting Professionals. On October 1, 2026, Thomson Reuters closed the sale of a 51% stake in its Global Print business to capital accounts advised by KKR for gross proceeds of approximately $500 million. The company updated its full-year 2026 outlook to exclude the Global Print business, now expecting total revenue growth of approximately 9.5% and organic revenue growth of approximately 8.5% to 9.0%, with an adjusted EBITDA margin of approximately 39%. Revenue growth and adjusted EBITDA margin guidance for the "Big 3" segments remain unchanged from the August 5, 2026 outlook. In September 2026, Thomson Reuters issued $1.3 billion and CDN $1.0 billion of notes, raising total proceeds of approximately $2.0 billion. The company also completed a $600 million share repurchase program announced in February 2026. For Q3 2026, operating profit was $402 million, down from $517 million in Q3 2025, primarily due to a prior-year gain from the sale of the Elite business and higher software amortization. Diluted EPS decreased to $0.78 from $0.94, while adjusted EPS increased to $0.81 from $0.71. Net cash provided by operating activities was $599 million, down from $704 million, and free cash flow was $408 million, down from $526 million. Adjusted EBITDA rose 10% to $651 million, with a margin of 35.5% versus 35.8% last year. By segment, Q3 revenues were: Legal Professionals $788 million, Corporates $544 million, Tax, Audit & Accounting Professionals $276 million, and Reuters $232 million. Adjusted EBITDA by segment was: Legal Professionals $368 million, Corporates $197 million, Tax, Audit & Accounting Professionals $83 million, and Reuters $56 million. For the nine months ended September 30, 2026, total revenues were $5,651 million, up from $5,113 million, and operating profit was $1,471 million, up from $1,370 million. Diluted EPS for the nine months was $2.83, up from $2.59, and adjusted EPS was $2.78, up from $2.43. Net cash provided by operating activities for the nine months was $2,024 million, up from $1,895 million, and free cash flow was $1,467 million, up from $1,369 million. Adjusted EBITDA for the nine months was $2,140 million, up from $1,930 million, with a margin of 37.9% versus 37.6%. The "Big 3" segments combined accounted for 88% of Q3 revenues and 89% of nine-month revenues. Recurring revenues comprised 88% of Q3 total revenues and 85% of nine-month total revenues. Transactions revenues grew 27% in Q3 and 18% in the nine months. The company completed the $600 million share repurchase program and closed the Global Print sale for $500 million. Steve Hasker, President and CEO, stated that revenue growth and margins exceeded expectations, customer engagement with next-generation CoCounsel Legal and Tax, Audit & Accounting products was strong, and discussions around Thomson LLM commercial opportunities continue. The company remains confident in its innovation engine and long-term value creation.

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