Thomson Reuters reports 28% rise in second quarter operating profit
The professional information services provider saw second-quarter revenues increase 9% to $1.95 billion.
Thomson Reuters Corporation (TRI), a provider of software and insights for legal, tax, audit, accounting, compliance, government, and media professionals, reported second-quarter revenues of $1.95 billion, a 9% increase from $1.79 billion in the prior-year period. Operating profit for the three months ended June 30 rose 28% to $558 million, up from $436 million.
Growth was primarily driven by the company's "Big 3" segments, which represent 83% of total revenues. Revenues from these segments increased 11% to $1.62 billion during the quarter. On an organic basis, the Big 3 segments grew 10%, supported by 9% growth in recurring revenues and 13% growth in transactions revenues.
Recurring revenues, which accounted for 82% of total revenues, rose 9% to $1.60 billion. Transactions revenues increased 16% to $242 million. Conversely, Global Print revenues declined 3% to $111 million.
Profitability metrics showed modest expansion. Adjusted EBITDA for the second quarter rose 10% to $745 million, with the adjusted EBITDA margin increasing 30 basis points to 38.1%. Diluted earnings per share rose 48% to $1.02, compared to $0.69 in the second quarter of 2025.
Cash flow from operating activities for the three months ended June 30 was $920 million, compared to $746 million in the same period last year. The company used $605 million for the return of capital on common shares and $100 million for repurchases of common shares during the quarter.
For the third quarter of 2026, the company expects organic revenue growth of approximately 8% and an adjusted EBITDA margin of approximately 36%. The full-year 2026 outlook for organic revenue growth remains unchanged at 9.5% to 10.0%, with an adjusted EBITDA margin target of 43.6%.