Thomson Reuters Corporation

Second-quarter organic revenue increased 8%, with organic recurring revenue up 9% and transactional revenue up 11%; print revenues declined 3%. Adjusted EBITDA increased 10% to $745 million, with a 38.1% margin, and adjusted EPS was $0.99 versus $0.87 a year ago. Free cash flow was $727 million, up 29% from $566 million. For the full year, management raised total and organic revenue growth guidance to the high end of the prior 7.5% to 8% range, raised Big 3 growth guidance to 9.5% to 10%, kept adjusted EBITDA margin outlook at approximately 40%, and reiterated free cash flow of approximately $2.1 billion. For Q3, the company expects organic revenue growth of approximately 8% and adjusted EBITDA margin of approximately 36%.

Steve Hasker framed the quarter as a continuation of a strong start to 2026, emphasizing broad-based momentum in Legal Professionals, Corporates and AI-enabled offerings. He highlighted the successful beta and rollout of the next-generation CoCounsel Legal, the development of Thomson as an in-house LLM, and the Global Print JV as part of a portfolio shift toward content-powered AI solutions for fiduciary professionals. His tone was confident and expansive, stressing that the company is “just getting started” on innovation and sees long runway in legal and tax workflows.

Gary Bischoping said the quarter came in slightly ahead of expectations on consolidated organic revenue, with margins in line and adjusted EBITDA up 10% to $745 million. He noted Q2 adjusted EPS of $0.99, free cash flow of $727 million, $605 million of return of capital completed in May, $338 million of additional repurchases in July, and $500 million of notes paid down in the quarter. On margins, he said Q3 will include $19 million of severance plus continued investment and some M&A dilution, while Q4 should show stronger margin expansion, with about $40 million of automation savings and lower severance than last year. He also said the Global Print transaction is expected to be 60 to 70 basis points accretive to organic growth and approximately neutral to margins after closing.

Analysts focused on how fast CoCounsel is growing, whether Thomson will feed into CoCounsel, and how much of the legal growth is from AI versus broader spend expansion. Management said CoCounsel has surpassed 1 million users, usage is rising, and the rebuilt agentic version is seeing very strong feedback; Thomson will first power Tabular Analysis and could later support more CoCounsel capabilities for lower latency and cost. On pricing, management said AI offerings are sold as premium tiers today, but they are considering consumption-based elements over time. On tax and accounting, management said execution issues were more about go-to-market confusion around product vision than competition, and they expect improvement in the second half.