Thomson Reuters said on Wednesday it will repurchase up to $500 million of its common stock under a program that may include as many as 7 million shares, representing approximately 1.6% of its issued and outstanding shares. The repurchase window is scheduled to open on November 13, 2026 and close on November 12, 2027.
The company indicated that Woodbridge, its controlling investor with an ownership stake of about 70%, intends to take part in the buyback on a proportional basis, preserving its percentage holding in the business.
Earlier this month Thomson Reuters reported higher quarterly revenue. Despite that top-line improvement, the stock has come under selling pressure as some investors have raised concerns about the impact of elevated artificial intelligence spending on future profits. Market moves this earnings season have reflected broader worries that rising AI-related costs could erode corporate margins - a dynamic that has affected a wide range of companies, from software firms to larger tech names such as Alphabet and Amazon.
On a market-performance basis, Thomson Reuters' Canadian-listed shares have fallen by roughly 15% year-to-date. The company is the parent of Reuters News.
Context and mechanics
- The authorization allows purchases of up to 7 million common shares, equal to about 1.6% of the company's issued and outstanding common stock.
- The purchase period runs from November 13, 2026 through November 12, 2027.
- Woodbridge, which owns around 70% of Thomson Reuters, will participate proportionally so as to maintain its stake.
Market reaction and drivers
Although revenue grew in the most recent quarter, the stock's decline has been attributed by some investors to fears that growing investments in AI could pressure earnings. Similar investor behavior has been observed across technology and software sectors during this earnings season, where concern over rising costs tied to AI deployment has led to share-price declines among a range of companies.
Note: This article reports the details supplied by the company regarding the size, timing and participation of the buyback program, and summarizes market commentary about investor concerns around AI spending that have affected the stock.