$TRI

Sector Update: Consumer Stocks Decline Late Afternoon

Consumer stocks were lower late Tuesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) falling 1.4% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) decreasing 0.1%.Redbook US same-store sales rose by 8.2% from a year earlier in the week ended July 11 after an 11.5% year-over-year increase in the previous week. "Discounts continue to drive sales performance and often vary weekly based on store promotions and product availability," Redbook said.In corporate news, Lucid (LCID) on Tuesday denied rumors of exploring a potential bankruptcy filing. "The rumors are completely false," the company said in an emailed statement to. Lucid said it has "sufficient liquidity to carry its operations well into next year" and has not created a special board committee to assess the scenarios reported. Lucid shares were down past 15%.Yum! Brands' (YUM) Taco Bell has stopped serving lettuce and cilantro at some restaurants in the Detroit metro area amid a growing cyclosporiasis outbreak in Michigan, multiple news outlets reported Tuesday. Yum! Brands shares were shedding 2.5%.Uber (UBER) is in advanced talks with Delivery Hero regarding a potential takeover of the German food-delivery company, Delivery Hero said on Tuesday. Uber shares were down 2.8%.Thomson Reuters (TRI) said Tuesday it has agreed to sell a 51% stake in its global print unit to KKR (KKR) for roughly $500 million in a joint venture transaction expected to close in Q4. Thomson Reuters shares were shedding 1.5%.

Sector Update: Consumer Stocks Decline Tuesday Afternoon

Consumer stocks were lower Tuesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) falling 1.2% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) decreasing 0.2%.Redbook US same-store sales rose by 8.2% from a year earlier in the week ended July 11 after an 11.5% year-over-year increase in the previous week. "Discounts continue to drive sales performance and often vary weekly based on store promotions and product availability," Redbook said.In corporate news, Uber (UBER) is in advanced talks with Delivery Hero regarding a potential takeover of the German food-delivery company, Delivery Hero said on Tuesday. Uber shares were down 2%.Thomson Reuters (TRI) said Tuesday it has agreed to sell a 51% stake in its global print unit to KKR (KKR) for roughly $500 million in a joint venture transaction expected to close in Q4. Thomson Reuters shares were shedding 1%.TaskUs (TASK) shares climbed 4.4% after investment management firm Dalton Investments disclosed in a regulatory filing that it owned around 2.1 million shares in the company, or about 5.8% of the outstanding shares.

Thomson Reuters' Stock Pricing Reasonable Risk on Competition, Pricing Debates, RBC Says

Thomson Reuters' (TRI) stock is pricing in a reasonable amount of risk on the competition, moat, and pricing debates relative to its near-term organic revenue growth outlook, RBC Capital Markets said in a note Thursday.Analysts said the total addressable market is the most important determinant in sizing Thomson Reuters' growth and risk profile.Incremental developments over the past week skew directionally positive for the debate on the total addressable market, negative for competition and pricing debates, and largely neutral for moat and margin debates, RBC said.Analysts said that these developments include Harvey's disclosure that monthly token consumption surged 12x from January to May, CoCounsel Legal customers gaining access to CoCounsel Next, and Anthropic launching Claude Tag as a persistent enterprise AI agent.RBC has an outperform rating on the stock and a $129 price target.Shares of Thomson Reuters were up 3.8% in Friday trading.Price: $84.11, Change: $+3.10, Percent Change: +3.82%

Thomson Reuters Shares Reflect Competition, Pricing Risks, RBC Says

Thomson Reuters (TRI) shares already reflect reasonable risks tied to competition and pricing relative to the company's near-term organic revenue growth outlook of 7% to 8%, RBC Capital Markets said Thursday in a report.Several developments in the first half of June point to greater competitive and pricing pressure, while appearing neutral for the company's margins and long-term market opportunity, the analysts said.New AI tools are reducing reliance on traditional billable-hour work while expanding demand for technology-based workflows, the report said. The shift is likely neutral to slightly positive for Thomson Reuters because it benefits from more work moving in-house to software platforms, the report said.RBC said distributor revenue-sharing is unclear, though it still sees near-term margin gains supported by operating leverage, cloud costs as the main AI expense, and rising AI adoption by US audit firms.RBC reiterated its outperform rating on Thomson Reuters stock with a $129 price target.Price: $78.24, Change: $-1.01, Percent Change: -1.27%

Thomson Reuters Building AI, Data Platform on Snowflake

Snowflake (SNOW) said Tuesday that Thomson Reuters (TRI) is building its enterprise AI and data platform using Snowflake products.The company said over 1,500 Thomson Reuters internal users like data engineers, analysts, and others use Snowflake to access governed data and generate insights for their workflows.Thomson Reuters is using Snowflake's Cortex AI to turn complex regulatory data into real-time insights and accelerate intelligent app development, as well as coding agent CoCo to allow its employees to turn legacy systems into Snowflake faster, Snowflake said.Snowflake and Thomson Reuters shares were falling 7.3% and 4.9%, respectively, in Tuesday trading.Price: $259.72, Change: $-20.44, Percent Change: -7.30%

Thomson Reuters and Anthropic Expand Partnership to Connect Claude AI with CoCounsel Legal

Thomson Reuters (TRI.T0, TRI) on said Tuesday announced a new model context protocol integration with Anthropic that connects Claude AI directly to CoConounsel Legal.According to the statement, legal professionals can now move seamlessly between general-purpose AI and citation-grounded legal work, from either working environment."Thomson Reuters is building CoCounsel Legal to be the fiduciary-grade system at the center of how legal work gets done, connected to the tools lawyers use and built to the standard their work demands," said David Wong, chief product officer, Thomson Reuters. "Today's integration with Claude is one example of how those connections will continue to grow as we move toward general availability for the next generation of CoCounsel Legal expected this summer."The company said CoCounsel Legal is used by legal professionals across law firms, corporate legal departments, and government agencies.Shares of the company were last seen down $3.88 at $ 118.14 on Toronto Stock Exchange.Price: $118.50, Change: $-3.52, Percent Change: -2.88%

Thomson Reuters, Anthropic Integrate CoCounsel Legal Into Claude Workflows

Thomson Reuters (TRI) said Tuesday it expanded its partnership with Amazon-backed (AMZN) Anthropic by connecting Claude directly to CoCounsel Legal, allowing legal professionals to move between general-purpose AI workflows and citation-grounded legal research work.The company said the integration, which uses the Model Context Protocol (MCP), is designed to offer "fiduciary-grade AI" standards.The company said the next generation of CoCounsel Legal is being rebuilt on Anthropic's Claude Agent SDK and will allow lawyers to describe matters in plain language while the system conducts research, drafts responses with citations, and validates references.Price: $87.07, Change: $-2.16, Percent Change: -2.42%

Research Alert: CFRA Upgrades Rating On Shares Of Thomson Reuters Corporation To Buy From Hold

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our target to $110 from $97, based on a P/E of 21.9x our 2027 EPS view vs. the peer average of 20.2x. We increase our 2026 EPS by $0.10 to $4.45 and 2027's by $0.30 to $5.02. We think Q1 results provide the tangible evidence needed to move off the sidelines, directly mitigating the competitive AI risks that underpinned our previous cautious stance. Management's fiduciary-grade AI framework offers a more compelling defense of its moat, and this narrative is now supported by accelerating top-line momentum, with the core Legal segment (ex-Govt) growing 11%. While execution risk on the H2 2026 margin expansion target and subdued government segment growth remain primary concerns, these are well-cushioned by the company's fortress balance sheet (0.8x net leverage) and substantial capital capacity ($9B+ through 2028). With the market having priced in significant erosion (shares down 28% YTD), we believe the disconnect provides better downside protection and supports a more favorable risk-reward profile.

Research Alert: CFRA Upgrades Rating On Shares Of Thomson Reuters Corporation To Buy From Hold

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our target to CAD150 from CAD133, based on a P/E of 21.9x our 2027 EPS view vs. the peer average of 20.2x. We increase our 2026 EPS by $0.10 to $4.45 and 2027's by $0.30 to $5.02. We think Q1 results provide the tangible evidence needed to move off the sidelines, directly mitigating the competitive AI risks that underpinned our previous cautious stance. Management's fiduciary-grade AI framework offers a more compelling defense of its moat, and this narrative is now supported by accelerating top-line momentum, with the core Legal segment (ex-Govt) growing 11%. While execution risk on the H2 2026 margin expansion target and subdued government segment growth remain primary concerns, these are well-cushioned by the company's fortress balance sheet (0.8x net leverage) and substantial capital capacity ($9B+ through 2028). With the market having priced in significant erosion (shares down 28% YTD), we believe the disconnect provides better downside protection and supports a more favorable risk-reward profile.

Research Alert: Tri Q1: Revenue Beat On Ai Adoption, Margin Expansion Pressured

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Thomson Reuters edged out Q1 2026 earnings with adjusted EPS of $1.23 vs. $1.12 a year ago, beating consensus by $0.02, while revenues rose 10% (+8% organic) to $2.09B, surpassing expectations by $50M. The outperformance stemmed from the "Big 3" segments that grew 11% (+9% organic), representing 85% of revenues and demonstrating strength in mission-critical professional workflows. We believe increasing adoption of "fiduciary-grade AI" products like CoCounsel, along with recurring revenues growing 8% organically, supports the resilient subscription-based model. Management maintained full-year 2026 guidance for organic revenue growth of 7.5%-8.0% and adjusted EBITDA margin expansion of 100 bps, though it increased net interest expense guidance to $180M-$190M. We expect continued momentum from AI integration across the Legal Professionals and Corporates segments, while robust free cash flow of $332M (+19% Y/Y) and $867M in capital returns demonstrate strong cash generation and shareholder-friendly allocation.

Research Alert: Tri Q1: Revenue Beat On Ai Adoption, Margin Expansion Pressured

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Thomson Reuters edged out Q1 2026 earnings with adjusted EPS of $1.23 vs. $1.12 a year ago, beating consensus by $0.02, while revenues rose 10% (+8% organic) to $2.09B, surpassing expectations by $50M. The outperformance stemmed from the "Big 3" segments that grew 11% (+9% organic), representing 85% of revenues and demonstrating strength in mission-critical professional workflows. We believe increasing adoption of "fiduciary-grade AI" products like CoCounsel, along with recurring revenues growing 8% organically, supports the resilient subscription-based model. Management maintained full-year 2026 guidance for organic revenue growth of 7.5%-8.0% and adjusted EBITDA margin expansion of 100 bps, though it increased net interest expense guidance to $180M-$190M. We expect continued momentum from AI integration across the Legal Professionals and Corporates segments, while robust free cash flow of $332M (+19% Y/Y) and $867M in capital returns demonstrate strong cash generation and shareholder-friendly allocation.

Earnings Flash (TRI) Thomson Reuters Corporation Reports Q1 Revenue $2.09B, vs. FactSet Est of $2.05B

Earnings Flash (TRI) Thomson Reuters Corporation Posts Q1 Adjusted EPS US$1.23 per Share, vs. FactSet Est of $1.21

Thomson Reuters Shareholders Approve of Return of Capital and Share Consolidation Transactions

Thomson Reuters (TRI.TO, TRI), was last seen down 3% in after-hours Nasdaq trading, said Tuesday that shareholders approved a plan of arrangement to implement the company's proposed return of capital and share consolidation transactions.The company said a final report on voting results will be filed with Canadian securities regulators and furnished to the U.S. Securities and Exchange Commission.The return of capital and share consolidation transactions consist of a special cash distribution of US$605 million, or approximately US$1.36 per share.The plan of arrangement for the return of capital and share consolidation transactions is subject to final approval by the Ontario Superior Court of Justice as well as the Toronto Stock Exchange and the Nasdaq. The court hearing for a final order to approve the plan of arrangement is scheduled on April 29.The company's shares were down US$2.66 to US$87.23 in after-hours after closing up C$1.56 at C$123.04 on TSX.

UBS Adjusts Price Target on Thomson Reuters to $183 From $215, Maintains Buy Rating

Thomson Reuters (TRI) has an average rating of overweight and mean price target of $132.01, according to analysts polled by FactSet.Price: $89.20, Change: $-3.66, Percent Change: -3.94%

CIBC Lowers Price Target on Software and Services Stocks

CIBC Capital Markets lowered its price target on eight software and services stocks ahead of Q1 results for the sector."We expect high single-digit growth in revenue and EBITDA within our coverage in Q1, despite AI-disruption concerns that have reduced the market cap of our Software coverage by an average of 24% year to date," analyst Stephanie Price said in a note to clients."With limited AI-related read-throughs from near-term earnings, investors have been reducing multiples and rethinking terminal values," Price said."For Q1, we are roughly in line with consensus expectations," the analyst said. "We expect a volatile earnings season and a focus on AI narrative for companies that meet or beat consensus expectations.""We expect that earnings misses could result in outsized market reactions," Price said. "That said, with an average 8% consensus EBITDA growth expectation for the quarter, we also see the possibility of upside from multi-year valuation lows."Price made the following changes:CGI Inc. (GIB-A.TO) to $112 from $132 (Neutral)Computer Modelling Group Ltd. (CMG.TO) to $5 from $5.50 (Neutral)Constellation Software Inc. (CSU.TO) to $4080 from $4610 (Outperformer)Descartes Systems Group Inc. (DSG.TO, DSGX) to US$116 from US$126 (Outperformer)Docebo Inc. (DCBO.TO, DCBO) to US$28 from US$34 (Outperformer)Kinaxis Inc. (KXS.TO) to $171 from $203 (Outperformer)Open Text Corp. (OTEX.TO, OTEX) to US$27 from US$32 (Neutral)Thomson Reuters Corp. (TRI.TO, TRI) to US$124 from US$140 (Outperformer)(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)