Thomson Reuters' stock (TRI) soared 5.01% on Thursday after the company reported better-than-expected fourth-quarter results and provided an upbeat outlook for 2025 and 2026.
In the fourth quarter of 2024, the company's adjusted earnings per share of $1.01 beat analysts' estimates of $0.96, driven by strong revenue growth and cost management. Total revenues increased 5% to $1.91 billion, surpassing expectations of $1.88 billion.
Thomson Reuters' "Big 3" segments – Legal Professionals, Corporates, and Tax & Accounting Professionals – continue to drive growth, with combined organic revenues rising 8% in the quarter. The Legal Professionals segment saw a 7% organic revenue increase, while Corporates and Tax & Accounting Professionals reported 10% and 7% organic growth, respectively.
Looking ahead, the company expects organic revenue growth of approximately 7.0% to 7.5% in 2025, with an adjusted EBITDA margin of around 39%. For 2026, Thomson Reuters anticipates organic revenue growth in the range of 7.5% to 8.0% and an adjusted EBITDA margin expansion of at least 50 basis points.
The company also raised its annualized dividend by 10% to $2.38 per share, marking the 32nd consecutive annual increase. This reflects Thomson Reuters' strong cash flow generation and confidence in its long-term growth prospects.