Thomson Reuters (TRI:CA)
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Thomson Reuters is a Canadian stock for long-term exposure to artificial intelligence, professional information services, and recurring subscription revenue.
The main investment thesis for Thomson Reuters is that the company owns highly valuable professional information and is increasingly using artificial intelligence to make that information more useful and easier for customers to access. The company operates across legal, tax, accounting, audit, and corporate markets, where customers place a high value on accurate, authoritative, secure, and trusted information. This gives Thomson Reuters an advantage over generic AI companies because it can combine AI technology with its proprietary professional content and databases.
The company’s recent financial performance supports this investment thesis. In the second quarter of 2026, Thomson Reuters reported approximately 9% revenue growth and 8% organic revenue growth. Its three major businesses, Legal Professionals, Corporates, and Tax, Audit & Accounting grew approximately 10% organically. Adjusted EBITDA increased approximately 10%, while adjusted earnings per share increased approximately 14%. Free cash flow was particularly strong, increasing approximately 29% to about US$727 million.
The artificial-intelligence opportunity is one of the most attractive aspects of Thomson Reuters. The company has been incorporating generative AI into products such as CoCounsel, Westlaw, and other professional software and information services. By the end of the second quarter, approximately 32% of the company’s annualized contract value was coming from products with generative-AI capabilities. This suggests that AI is already becoming a meaningful part of the company’s revenue model rather than simply being a future possibility.
Another positive factor is that Thomson Reuters raised its expectations for 2026. Management expects approximately 8% organic revenue growth, roughly 9.5% to 10% organic growth from its three major businesses, an adjusted EBITDA margin of approximately 40%, and free cash flow of approximately US$2.1 billion. The combination of steady revenue growth, expanding margins, and strong free cash flow is one of the reasons the company continues to attract investors.
The company is also becoming more focused on its higher-value digital businesses. Its agreement to sell a 51% stake in its Global Print business to KKR for approximately US$500 million is consistent with a strategy of reducing its exposure to traditional print operations and focusing more heavily on digital products, professional software, data, and artificial intelligence.
The analyst consensus is also positive, with a current consensus “Buy” rating, The average 12 month price target is approximately C$176 per share, which represents approximately a 20% upside for the stock.
Thomson Reuters’ stock could become a long-term growth investment as professional customers increasingly adopt AI. If Thomson Reuters can maintain organic growth of approximately 8% to 10%, continue expanding margins, and successfully monetize its AI products, the company’s earnings and free cash flow could grow substantially over the next several years.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.