Thomson ReutersTRI

Key highlights

• One-time gain inflated prior profit: Reported operating profit fell 22% to $402 million because the previous year included a large gain from selling a stake in the Elite business. Excluding this and other one-time items, underlying profit grew 10% as the company successfully converted more revenue into actual earnings.
• Big 3 segments gaining speed: Organic revenue for the three main divisions, which include Legal, Corporate, and Tax, grew 10% to reach $1.61 billion. This shows the core business is finding more ways to sell to its existing professional customers without relying on buying other companies for growth.
• Generative AI boosting Reuters: Revenue at the Reuters news division rose 13% partly due to licensing content to companies building generative artificial intelligence models. This helped the division increase its profit margin to 24.3%, up from 19.9% a year ago.
• Global Print stake sold: The company sold a 51% stake in its printing business for $500 million on October 1, 2026, which will shift that division to a royalty model. Management expects this change to increase the company's annual organic revenue growth rate by 0.6% to 0.7% because the slow-growing print business is no longer dragging down the total.
• Outlook raised for the year: Management now expects organic revenue to grow between 8.5% and 9.0% for the full year 2026, which is higher than the roughly 8.0% growth previously predicted. They also expect profit margins to reach approximately 39%, reflecting a business that is becoming more efficient as it grows.

Our take: This was a strong quarter that showed the company can grow even while selling off its older, slower printing business. The 10% organic growth in the core segments is the highest in recent memory and proves that new AI tools are already helping sales. This performance strengthens the long-term case for the stock.