Thomson Reuters Corp (NYSE: TRI) stock declined after the company reported its fiscal second-quarter 2025 results on Wednesday. The company reported quarterly revenue growth of 3% year-over-year to $1.785 billion, compared to the analyst consensus estimate of $1.792 billion. Total company revenue growth was negatively impacted by net acquisitions and disposals of 5%.
Also Read: Thomson Reuters Maintains Strong FY25 Outlook, Highlights Innovation, AI As Key Growth Drivers
Foreign currency had a slightly positive impact on revenue growth.
The business information services provider's adjusted EPS of 87 cents beat the analyst consensus estimate of 82 cents.
Organic revenues increased by 7%, driven by 9% growth in recurring revenues (82% of total revenues), 7% growth in transaction revenues, and a 7% decline in Global Print.
The "Big 3" segments (Legal Professionals, Corporates and Tax & Accounting Professionals) comprised 82% of total revenues and reported organic revenue growth of 9%.
Legal Professionals' revenue declined by 2% Y/Y to $709 million
Corporates' revenue rose 7% Y/Y to $472 million
Tax & Accounting Professionals' revenue increased by 11% Y/Y to $277 million.
Reuters News revenue rose 7% Y/Y to $218 million
Global Print revenue fell 7% Y/Y to $114 million.
Adjusted EBITDA margin expanded by 70 bps to 37.8%.
Free cash flow was $566 million during the quarter, with $664 million in cash and equivalents as of June 30.
CEO Steve Hasker emphasized the company's focus on product innovation, highlighting the launch of CoCounsel Legal, including Deep Research on Westlaw and guided workflows, as well as CoCounsel for tax, audit, and accounting. Hasker noted that these advanced agentic AI tools reflect the company's strategy to harness its trusted content and expertise to deliver transformative, professional-grade AI solutions to its markets.
FY25 Outlook: Thomson Reuters reiterated revenue growth of 3%-3.5%, implying $7.48 billion-$7.51 billion (versus actual 7% growth in fiscal 2024) against an analyst consensus estimate of $7.49 billion.
The company reaffirmed organic revenue growth of 7.0%-7.5% (versus actual 7% growth in fiscal 2024) and an adjusted EBITDA margin of ~39% (versus 38.2% in fiscal 2024).
TRI Price Action: Thomson Reuters stock is down 7.54% to $184.49 at publication on Wednesday.
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