Thomson Reuters Posts Strong Q4 Revenue as AI Tools Boost Core Businesses

Thomson Reuters Corp. reported higher fourth-quarter revenue for fiscal 2025, crediting solid demand for its artificial-intelligence-enhanced products across legal, corporate and tax segments. The company released the figures on Thursday, outlining year-over-year gains in sales, free cash flow and adjusted profitability despite a decline in net income under generally accepted accounting principles (GAAP).

The New York-listed information services provider generated total revenue of $2.009 billion, a 5 percent increase from the same period a year earlier and slightly ahead of the $2.001 billion consensus estimate. Organic revenue, which excludes currency movements and acquisitions or divestitures, advanced 7 percent, led by 9 percent growth in the company’s three largest operating units: Legal Professionals, Corporates, and Tax & Accounting Professionals.

GAAP diluted earnings per share came in at $0.74, down 43 percent from the prior-year quarter that had included one-time gains tied to the sale of the FindLaw business. On an adjusted basis, earnings rose 6 percent to $1.07 per share, edging past the $1.06 analysts had forecast.

Segment Performance

Legal Professionals, the company’s biggest division, posted revenue of $738 million, up 1 percent after factoring in the prior disposal of FindLaw, which lowered both recurring and transactional revenue. Excluding that impact, organic growth was 9 percent, supported by continued demand for Westlaw, the CoCounsel generative-AI assistant and the Practical Law platform. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the unit improved 9 percent to $327 million, lifting the margin to 44.3 percent.

Revenue in the Corporates segment advanced 7 percent to $496 million. The figure incorporates the negative effect of selling several non-core assets during the year; organic revenue climbed 9 percent. The division, which supplies compliance, risk and workflow tools to in-house legal and finance departments, reported an adjusted EBITDA margin of 32.2 percent.

Tax & Accounting Professionals delivered the fastest growth among the major units. Revenue increased 13 percent to $414 million, aided by the acquisition of SafeSend, while organic revenue rose 11 percent. Adjusted EBITDA expanded 14 percent to $222 million, pushing the margin to 53.6 percent.

Reuters News, a standalone segment that supplies news content to media outlets and corporate clients, produced revenue of $232 million, a gain of 6 percent, or 5 percent on an organic basis. The growth reflected higher transactional licensing fees for generative-AI-ready content within the Agency business and the scheduled price increase in its long-term news supply contract with London Stock Exchange Group’s Data & Analytics division.

Profitability and Cash Flow

Company-wide adjusted EBITDA rose 8 percent to $777 million, raising the overall margin to 38.7 percent from 37.6 percent a year earlier. Operating profit under GAAP fell 25 percent to $540 million because the fourth quarter of fiscal 2024 had booked other operating gains, mostly from the FindLaw divestiture.

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Recurring revenue, which encompasses subscriptions and other predictable sales streams, climbed 6 percent and accounted for 84 percent of total revenue. Transactional revenue, driven by usage-based services, was up 11 percent, while global print revenue declined 6 percent.

The company generated $756 million in net cash from operations, a 35 percent increase year over year. Free cash flow reached $581 million, up 38 percent, reflecting stronger earnings and working-capital efficiencies.

Management Commentary on AI Initiatives

Chief Executive Officer Steve Hasker told investors that artificial intelligence is already translating into “tangible gains” across core offerings. Products such as Westlaw Precision and the CoCounsel assistant, which integrate large language models to expedite legal research and drafting tasks, contributed to the quarter’s organic growth. According to industry data from Reuters, adoption of AI-powered tools within professional services has accelerated over the past year as firms seek productivity improvements.

The company reiterated that it plans to continue investing in AI capabilities, content enrichment and cloud-based platforms to maintain momentum in 2026. No changes were announced to previously issued full-year guidance.

Crédito da imagem: Thomson Reuters