Thomson Reuters (TRI) Q4 2025 earnings summary

Executive summary

• Achieved 7% organic revenue growth and 3% full-year revenue growth, with "Big 3" segments delivering 9% organic growth for both Q4 and the year, comprising 82% of total revenues.

• Adjusted EBITDA margin expanded to 39.2% for the year and 38.7% in Q4, meeting or exceeding guidance.

• Free cash flow reached $1.95 billion for the year, up 7%, with Q4 free cash flow up 38%.

• Significant progress in AI-enabled product launches and internal adoption, with over 85% employee engagement and 300+ use cases in development.

• Announced a 10% dividend increase and completed a $1 billion share repurchase program, marking 33 consecutive years of dividend growth.

Financial highlights

• Q4 revenues were $2,009M (+5%); full-year revenues $7,476M (+3%).

• Q4 adjusted EBITDA was $777M (+8%), margin 38.7% (+110bp); full-year adjusted EBITDA $2,936M (+6%), margin 39.2% (+100bp).

• Q4 adjusted EPS was $1.07 (+6%); full-year adjusted EPS $3.92 (+4%).

• Q4 operating profit was $540M (-25%); full-year operating profit $2,132M (+1%).

• Dividend increased 10% to $2.62/share.

Outlook and guidance

• 2026 organic revenue growth expected at 7.5%-8.0%, with "Big 3" segments targeted for ~9.5% organic growth and margin expansion.

• Adjusted EBITDA margin to expand by ~100bps from 2025, with Q1 2026 margin projected at ~42%.

• Free cash flow projected at ~$2.1B; accrued capex as % of revenues to be ~8%.

• Effective tax rate on adjusted earnings expected at ~19%.

• Guidance assumes constant currency and excludes future acquisitions/dispositions.