Stock Markets February 5, 2026

Thomson Reuters Posts Modest Q4 Revenue Gain, Flags AI Competition as Market Focus

Company raises fiscal-2026 revenue outlook while investors weigh potential disruption from AI entrants into legal and professional services markets

By Sofia Navarro TRI
Thomson Reuters Posts Modest Q4 Revenue Gain, Flags AI Competition as Market Focus
TRI

Thomson Reuters reported a 5% increase in fourth-quarter revenue to $2.0 billion and delivered $1.07 in adjusted earnings per share, in line with expectations. The firm projected full-year 2026 revenue growth of 7.5% to 8%. Market attention centers on the arrival of AI competitors in core legal and professional services segments and the potential implications for future earnings and market share.

Key Points

  • Fourth-quarter revenue rose 5% to $2.0 billion, in line with LSEG estimates.
  • Reported earnings per share were $1.07, versus an expected $1.06 per share excluding items.
  • Company forecasts full-year 2026 revenue growth of 7.5% to 8%; investors are focused on the competitive threat from AI entrants.

Thomson Reuters said its fourth-quarter revenue climbed 5% to $2.0 billion, matching market expectations, and reported earnings per share of $1.07 for the period. The company reiterated a full-year 2026 revenue outlook that calls for growth in the range of 7.5% to 8%.

The revenue improvement was driven by stronger results across its legal, tax and accounting, and corporates segments, according to the company. The reported revenue figure was in line with estimates compiled by LSEG, and the $1.07 per-share result compared with a consensus expectation of $1.06 per share excluding items.

Investors are expected to scrutinize how Thomson Reuters will respond to new entrants using artificial intelligence in adjacent markets. Equity markets have already reacted: shares of the Toronto-based content and technology company declined sharply, falling nearly 18% on Tuesday amid broader weakness in software, data and professional services stocks.

Market participants have singled out AI-focused firms as a developing competitive threat. One example cited by investors is Anthropic, which on January 30 launched a legal plugin for its Claude Cowork coding tool. That plugin is designed to support tasks such as reviewing legal documents, producing briefings and monitoring compliance, functions that overlap with services provided by established professional information providers.


Analysts and shareholders will likely focus on two areas going forward: whether Thomson Reuters can sustain the revenue momentum across its core businesses, and how effectively it can adapt product offerings and go-to-market approaches in response to AI-driven entrants. Management’s guidance for mid-single-digit to low-double-digit revenue growth for the fiscal year provides a forward-looking benchmark, but investor sentiment appears sensitive to competitive developments in the AI space.

For now, the quarter’s results were viewed as consistent with expectations on both the top and bottom lines, while the stock’s recent volatility reflects heightened concern about competitive dynamics rather than the quarter-to-quarter operating performance.

Risks

  • Increased competition from AI-focused firms entering legal and professional services markets could pressure market share - impacts software, data and professional services sectors.
  • Sharp recent stock volatility - the shares declined nearly 18% on a single trading day amid sector-wide selloff, indicating investor sensitivity to competitive news - impacts equity markets and investor sentiment.
  • Uncertainty about the company’s strategic response to AI entrants means future revenue and margin outcomes depend on management actions and market adoption - impacts corporate strategy and financial performance.

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