Thomson Reuters Corp. has reaffirmed its commitment to its growth strategy, even as its shares faced significant declines this week amid a broader sell-off of technology stocks. CEO Steve Hasker described the recent dip in the value of software and data firms as a reflection of investor anxiety rather than underlying business fundamentals. In a recent interview, he expressed optimism about the company’s AI initiatives and its established position in the market, despite witnessing an 18 per cent drop in share price over three days.
Financial Performance and Outlook
In the wake of these market fluctuations, Thomson Reuters reported a robust 5 per cent increase in quarterly profit, maintaining its financial targets for 2026. The company anticipates revenue growth of 7.5 to 8 per cent for the current year, following nearly US$7.5 billion in revenue for 2025. Hasker noted that the firm is well-positioned to leverage its extensive resources in legal, tax, and accounting content, curated by over 2,700 professionals, to develop superior AI-driven products compared to newer entrants in the market.
The surge in anxiety among investors was partly triggered by Anthropic’s introduction of AI-powered productivity tools specifically designed for legal professionals. This has led to uncertainty regarding which companies will emerge as leaders in the evolving AI landscape. Thomson Reuters, however, remains resolute, arguing that its longstanding expertise and content repository will enable it to outperform its competitors who lack similar depth.
Investment in AI Development
Thomson Reuters is not only confident; it is also heavily investing in the development of advanced AI tools. The company has allocated more than US$200 million towards AI enhancements in 2025 and plans to maintain this investment level moving forward. Hasker emphasised the importance of precision for its clients, particularly lawyers and tax professionals, stating, “They have to be correct.”
The firm’s strategy involves creating “agentic” AI tools capable of managing complex tasks autonomously, which they believe will set them apart from competitors who primarily focus on automating more generalised tasks. Hasker remarked that without substantial investments in quality content and expertise, companies like Anthropic may struggle to replicate the comprehensive services Thomson Reuters offers.
Stock Market Response
Despite the positive financial outcomes, Thomson Reuters’ stock experienced a 7.8 per cent decline, settling at $117.92 on the Toronto Stock Exchange, following a brief recovery earlier in the week. The shares have plummeted by 57 per cent over the last six months. However, analysts remain optimistic. Maher Yaghi from Scotia Capital Inc. noted in a client communication that the current market fears surrounding AI have unjustly impacted the information technology and software sectors. He stated, “Today’s results and outlook do not show any anticipated slowing down by management.”
In its fourth-quarter results, Thomson Reuters reported revenue of US$2 billion, reflecting a 7 per cent year-on-year increase, excluding the effects of a recent business sale and currency fluctuations. The three primary divisions—legal, corporate, and tax/accounting—each reported 9 per cent revenue growth. The firm’s revenue from AI-backed products also rose, now accounting for 28 per cent of total revenue, up from 24 per cent three months ago.
Why it Matters
Thomson Reuters’ bold stance amid market volatility highlights its commitment to innovation and long-term growth, especially in the AI sector. As the competition intensifies, the company’s extensive experience and resource base could well position it as a leader in the legal technology space. Investors and industry watchers will be keenly observing how successful Thomson Reuters is in translating its strategic vision into tangible results, especially as the landscape continues to evolve rapidly. The implications for legal professionals and the broader market are significant, as firms like Thomson Reuters strive to redefine workflows through advanced AI solutions.
