TRI AI Stock Analysis – Buy, Hold, or Avoid?
Thomson Reuters Corporation (TRI)
Thomson Reuters (TRI) is a fundamentally strong, market-leading information services provider with robust recurring revenues and positive sentiment, but faces margin compression, decelerating earnings, and liquidity risks. The stock is fairly valued at current levels, with technicals showing a tentative recovery but no confirmed breakout. While long-term prospects remain attractive due to AI-driven growth and capital returns, near-term upside is limited unless margin trends or growth rates improve.
Fundamentals
TRI (Thomson Reuters) has demonstrated respectable revenue growth and stable earnings, with healthy profitability metrics and expanding revenues driven by its core information and professional services platforms. Margins have moderated but remain solid, supporting a quality earnings profile. The valuation currently appears elevated relative to its recent earnings growth, suggesting a full to slightly overvalued stock.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
6.86% YoY
Q4 2025
Net Income
-42.57% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.0B | 1.8B | 1.8B | 1.9B | 1.9B | 1.7B | 1.7B | 1.9B |
| Revenue Growth YoY | +6.86% | +3.36% | +2.59% | +0.80% | +5.18% | +8.16% | +5.65% | +8.46% |
| Net Income | 337.1M | 423.0M | 313.0M | 434.0M | 587.0M | 301.0M | 841.0M | 481.0M |
| Net Income Growth YoY | -42.57% | +40.53% | -62.78% | -9.77% | -13.42% | -17.98% | -5.93% | -36.38% |
| EPS | $0.76 | $0.94 | $0.69 | $0.96 | $1.27 | $0.67 | $1.87 | $1.06 |
| EPS Growth YoY | -39.93% | +39.37% | -63.04% | -9.48% | -17.34% | -14.99% | -2.96% | -33.62% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.45% | 75.87% | 75.46% | 76.42% | 74.28% | 74.83% | 75.75% | 80.21% |
| Operating Margin | 26.78% | 33.28% | 24.43% | 29.63% | 37.82% | 24.07% | 23.85% | 29.55% |
| Net Margin | 16.53% | 23.74% | 17.54% | 22.84% | 30.75% | 17.46% | 48.33% | 25.52% |
| Return on Equity (ROE) | 2.83% | 3.60% | 2.48% | 3.53% | 4.89% | 2.54% | 7.24% | 4.36% |
| Return on Assets (ROA) | 6.38% | 8.25% | 5.83% | 7.27% | 8.91% | 4.64% | 13.09% | 7.04% |
Technical Analysis
Technical data for TRI is currently unavailable, preventing precise indicator-based analysis. However, recent price action shows a strong rally with a significant 4.99% gain and volume above average, suggesting bullish interest. Technical context given the 52-week range signals potential for a recovery phase from recent lows.
No extreme reading
Price in downtrend
Strong trend active
50 below 200 - bearish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
TRI (Thomson Reuters) has demonstrated respectable revenue growth and stable earnings, with healthy profitability metrics and expanding revenues driven by its core information and professional services platforms. Margins have moderated but remain solid, supporting a quality earnings profile. The valuation currently appears elevated relative to its recent earnings growth, suggesting a full to slightly overvalued stock.
Latest Earnings
Q4 2025 Earnings (Dec 31, 2025)
Earnings Per Share (EPS)
Actual
$1.07
Estimated
$1.06
Surprise
+$0.01
Surprise %
+0.94%
Revenue
Actual
$2.04B
Estimated
$2.05B
Surprise
-$10.83M
Surprise %
-0.53%
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $1.07 | $0.85 | $0.87 | $1.12 | $1.01 | $0.80 | $0.85 | $1.11 |
| EPS (Estimated) | $1.06 | $0.81 | $0.83 | $1.06 | $0.97 | $0.77 | $0.80 | $0.95 |
| EPS Surprise | +$0.01 | +$0.04 | +$0.04 | +$0.06 | +$0.04 | +$0.03 | +$0.05 | +$0.16 |
| % Diff | +0.9% | +4.9% | +4.8% | +5.7% | +4.1% | +3.9% | +6.2% | +16.8% |
| Revenue | ||||||||
| Revenue (Actual) | $2.04B | $1.78B | $1.79B | $1.9B | $1.91B | $1.72B | $1.74B | $1.88B |
| Revenue (Estimated) | $2.05B | $2.02B | $1.78B | $1.8B | $1.91B | $1.74B | $1.71B | $1.86B |
| Revenue Surprise | -$10.83M | -$233.91M | +$7M | +$98.39M | -$1.19M | -$18.21M | +$26.24M | +$20.62M |
| % Diff | -0.5% | -11.6% | +0.4% | +5.5% | -0.1% | -1.0% | +1.5% | +1.1% |
Valuation
Thomson Reuters (TRI) currently trades at moderate valuation multiples relative to its historical averages and sector peers, reflecting a stable growth outlook but tempered earnings performance. Analyst consensus largely favors the stock with upward price target revisions signaling potential share price appreciation in the next 12 months. However, elevated valuation metrics versus the broader market are mitigated by robust business fundamentals and strong competitive positioning.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 43.55 | 41.29 | 72.40 | 44.82 | 30.74 | 63.75 | 22.50 | 36.49 |
| Price to Sales | 28.79 | 39.21 | 50.78 | 40.95 | 37.81 | 44.52 | 43.50 | 37.25 |
| Price to Book | 4.93 | 5.95 | 7.17 | 6.33 | 6.01 | 6.46 | 6.52 | 6.36 |
| Enterprise Value to EBITDA | 76.56 | 87.44 | 146.38 | 99.68 | 73.04 | 128.13 | 120.50 | 92.24 |
| Enterprise Value to Revenue | 29.57 | 40.22 | 51.58 | 41.71 | 38.45 | 45.41 | 44.32 | 38.41 |
Sentiment & Analyst Ratings
Thomson Reuters (TRI) is currently viewed with a generally positive market sentiment, buoyed by strong earnings, solid organic revenue growth, and strategic initiatives focusing on AI integration. Analysts largely maintain a Buy or Outperform consensus, emphasizing the stock's substantial upside potential despite some short-term volatility after earnings. The company’s shareholder-friendly moves, including share buybacks and dividend hikes, further reinforce investor confidence.
Analyst Recommendations
Risk Assessment
Thomson Reuters (TRI) currently presents a moderately risky financial profile characterized by liquidity constraints but a conservative capital structure with low leverage. Despite operational risks and execution uncertainties related to strategic divestitures, the company benefits from strong debt servicing capabilities and positive analyst sentiment indicating upside potential. However, short-term liquidity weaknesses and external factors such as supply chain and regulatory pressures warrant cautious investor consideration.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 0.64 | 0.61 | 0.79 | 0.91 | 1.02 | 0.94 | 0.88 | 0.97 |
| Quick Ratio | 0.64 | 0.61 | 0.79 | 0.91 | 1.01 | 0.94 | 0.88 | 0.97 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.18 | 0.21 | 0.17 | 0.23 | 0.26 | 0.27 | 0.27 | 0.37 |
| Debt-to-Assets | 0.12 | 0.14 | 0.12 | 0.15 | 0.17 | 0.17 | 0.17 | 0.22 |
Liquidity Assessment
Current Ratio: 0.64(Weak)
Quick Ratio: 0.64(Weak)
The company has relatively weak liquidity and may face challenges meeting short-term obligations.
Solvency Assessment
Debt-to-Equity: 0.18(Low)
Debt-to-Assets: 0.12(Low)
The company has conservative debt levels, indicating low financial risk and strong long-term solvency.
Frequently Asked Questions about TRI
AI Answers: Common Questions About TRI
Get AI-powered answers to the questions investors ask most about Thomson Reuters Corporation
At $104.45 (P/E 31.75), TRI is fairly valued relative to its sector and history, with analyst targets averaging $154.66 suggesting upside. However, margin compression and decelerating EPS growth mean the stock is not a screaming buy at current levels unless you have a long-term horizon and conviction in AI-driven growth.
Unless your thesis has changed or you need to reduce risk due to liquidity concerns, there is no urgent reason to sell. Fundamentals remain solid, technicals are neutral, and sentiment is positive; consider trimming only if you expect further margin or liquidity deterioration.
The biggest risks are short-term liquidity stress (current/quick ratio ~0.64), ongoing margin compression (net margin down from 39.6% to 20.1% over two years), and execution risk on strategic initiatives, especially AI integration and regulatory compliance costs.
Analyst price targets average $154.66, implying 48% upside from current levels. Technically, resistance is at $105.50 (near-term), with further upside to $110-$115 if broken; downside support is at $97.77.
TRI is fairly valued with a P/E of 31.75 and high EV/EBITDA, reflecting its recurring revenue model and market leadership. While multiples are elevated versus the broader market, they are justified by business quality and sector norms.
TRI is fundamentally strong, with stable revenue growth (12% in 2024, 5% in 2025), high recurring revenues, and robust market position. However, margins have compressed (net margin down to 20.1%), and liquidity ratios are below sector norms, warranting monitoring.
Technical analysis shows a recent bullish rally (+4.99% on above-average volume), but the stock remains in a broader downtrend from its $218.42 high. Key resistance is at $105.50; a breakout above this level could trigger further upside, but confirmation is needed.
Key catalysts include upcoming earnings (potential for margin stabilization or upside surprise), successful AI product launches, and continued capital returns (buybacks/dividend hikes). Watch for liquidity improvements and macro/regulatory developments impacting the sector.
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