Thomson Reuters (TRI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues grew 10% year-over-year to $2.09B, with organic revenue up 8% and strong performance in the Big Three segments (Legal, Corporates, Tax/Audit/Accounting), which delivered 9% organic growth and comprised 85% of total revenues.

• Adjusted EBITDA increased 9% to $881 million, with a margin of 42.2%.

• AI-enabled offerings, especially Westlaw Advantage and CoCounsel, drove strong adoption and revenue acceleration, with CoCounsel reaching 1 million users.

• Dividend was increased by 10% to $2.62 per share, and $605 million was returned to shareholders via a special distribution and share consolidation.

• Maintained full-year 2026 outlook for organic revenue growth, adjusted EBITDA margin, and free cash flow.

Financial highlights

• Q1 2026 revenues rose 10% year-over-year to $2,087M; operating profit increased 14% to $639M.

• Adjusted EPS increased 10% to $1.23; free cash flow rose 19% to $332M; net cash from operations up 13% to $505M.

• Recurring revenues (77% of total) grew 10%, while transactions revenues rose 15%; Global Print declined 4%-5%.

• Net debt increased to $2,322 million, with a leverage ratio of 0.8x adjusted EBITDA.

• Adjusted EBITDA margin was 42.2% (down 10bps year-over-year).

Outlook and guidance

• Reaffirmed 2026 organic revenue growth guidance of 7.5%-8%; Big Three expected to grow ~9.5%.

• Adjusted EBITDA margin guidance for 2026 is ~40%, up 100bps year-over-year.

• Free cash flow guidance maintained at ~$2.1 billion for 2026.

• Q2 2026 organic revenue growth expected at 7%-8%, with adjusted EBITDA margin around 38%.

• Net interest expense for 2026 revised upward to $180-$190 million due to capital return and share repurchase activities.