TRI US NASDAQ-100 Earnings call
Thomson Reuters (TRI) · Q2 2026 results and valuation
Share price: $108.83 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 5 Aug 2026 and 5 May 2026
Net income down 2.4% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−2.4%
Net income vs Q1 2026
Outlook given
Net income 448.0M vs 459.0M
Revenue −6.4%
2 · How management spoke
Upbeat
More upbeat than 87% of company calls
Answers to analysts: upbeat, in line with the script.
Last call it was different: the answers were more upbeat than the script.
3 · What stood out
Thomson Reuters raised its full-year 2026 organic revenue growth outlook to approximately 8% and increased the Big 3 total and organic revenue outlook to a range of 9.5% to 10%.
Valuation
Is Thomson Reuters undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 4.1% growth a year (3-year revenue growth), the model's fair value is $67.76 a share — the stock trades 61% above it. Today's price assumes 10.3% growth a year.
Current price
$108.83
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+10.3% for 10 yrs
Fair value / share
$67.76
Buy below
$50.82
Price vs fair value
Overvalued 61%
Price vs buy-below price
Overvalued 114%
Management expects
Revenue +1% · from the Q2 2026 report: “Government growth improved to 5% year-over-year from 1% in Q1, though a softer growth rate is anticipated in Q3 as certain transactional revenue is not…”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Rising
The company raised its full-year 2026 organic revenue growth outlook to approximately 8% because growth in Legal Professionals and Corporates accelerated to 10% from 9% last quarter.
Source quote
“We are raising our full year 2026 outlook for total and organic revenue growth to approximately 8% or the high end... The acceleration was driven by Legal Professionals and Corporates, which both also accelerated to 10%, up from 9% last quarter. We're also raising our Big 3 total and organic revenue outlooks to a range of 9.5% to 10%, up from the prior approximately 9.5%.”
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Guidance
Government growth improved to 5% year-over-year from 1% in Q1, though a softer growth rate is anticipated in Q3 as certain transactional revenue is not expected to recur.
Source quote
“Government growth improved to 5% year-over-year from 1% in Q1, though we anticipate a softer growth rate in Q3 as certain transactional revenue in the quarter is not expected to recur at the same level.”
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Guidance
The company updated its 2026 guidance to expected adjusted EBITDA margins of approximately 40% and free cash flow of approximately $2.1 billion.
Source quote
“We continue to see 2026 adjusted EBITDA margins of approximately 40%, and we expect free cash flow of approximately $2.1 billion.”
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Fading
The company expects 11% to 13% annual revenue growth because two product updates shifted revenue recognition toward the second half of the year.
Source quote
“For the full year, we remain confident in our 11% to 13% revenue growth outlook, with acceleration from Q1 levels... ...by 2 product updates that shifted revenue recognition towards the second half of the year. Moving to orders.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Legal organic revenue accelerated to 10%, driven by continued strong law firms momentum and improved government growth.”
“We are confident in the full year margin outlook and see strong year-over-year margin expansion in the fourth quarter, driven by the impact of severance actions in recent quarters, growing...”
“As Steve indicated, we see this as a positive development as it will leave a stronger and more focused portfolio with improved growth and a higher quality revenue mix.”
Full figures
USD · ROIC.AI fundamentals (NASDAQ:TRI, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.95B | 2.09B | −6.4% | 1.78B | +9.5% |
| Gross profit | 1.47B | 1.59B | −8.0% | — | |
| Operating income | 560.0M | 636.0M | −11.9% | 436.0M | +28.4% |
| Net income | 448.0M | 459.0M | −2.4% | 313.0M | +43.1% |
| EPS | 1.02 | 1.05 | −2.8% | 0.69 | +47.7% |
| P/E | — | — | — | — | — |
Topics
Most discussed now
- Legal Professionals, excluding government, again, grew 11%, matching the first quarter growth rate and up 9% in the second half...
- You may access these documents on Thomson Reuters' website or by contacting its Investor Relations department.
- Legal Professionals organic revenue accelerated to 10%, as underlying law firm momentum continued and government growth improved…
- The strength was broad-based with Thomson Reuters' large, mid, small law and international subsegments, all at or near record growth rates.
- Daily usage tick up in really healthy ways
Faded since Q1 2026
- Dropped Safe Sign is a collection of of scientists working under the direction of Jonathan Schwarz who's a Google DeepMind researcher.
- Fading Thomson Reuters remains committed to a balanced capital allocation approach, and it continues to assess a number of inorganic opportunities…
- Fading Through 8 months, adoption is running faster than what Thomson Reuters has seen with the 2 prior Westlaw upgrade cycles, contributed...
- Fading As a reminder, the sequential decline in Thomson Reuters' margin into Q2 is primarily due to the normal seasonality of its...