Thomson Reuters Corp. has encountered significant turbulence in the stock market this week, with chief executive Steve Hasker attributing the dramatic decline in the value of software and data providers to investor anxiety rather than underlying fundamentals. In a recent interview, Hasker expressed growing confidence in the company’s AI strategy and its competitive position within the technology ecosystem, despite an 18 per cent drop in share price over a three-day period.
Resilience in Financial Targets
Despite the market’s fluctuations, Thomson Reuters remains steadfast in its financial projections, reaffirming its targets for 2026. The company’s latest quarterly report reveals a 5 per cent increase in profit, signalling a positive outlook even as it grapples with a broader sell-off affecting the tech sector. The downturn was exacerbated by Anthropic’s introduction of new AI productivity tools aimed at legal professionals, which has stirred investor unease regarding the future landscape of AI in the legal sector.
Thomson Reuters forecasts a revenue growth of 7.5 to 8 per cent for the current year, building on nearly US$7.5 billion in revenue reported for 2025. The firm delivered solid results for the fourth quarter, which included a revenue increase to US$2 billion—a rise of 7 per cent year on year, excluding the impact of a recent business sale and currency fluctuations.
Expertise as a Competitive Edge
Hasker emphasised that Thomson Reuters’ extensive archive of legal, tax, and accounting content, cultivated over decades by a team of over 2,700 attorney editors and tax specialists, positions the firm favourably against newer entrants in the market. He asserted that the company’s established expertise will enable it to develop superior AI-driven products compared to competitors who may lack the same depth of resources.
“Our conviction is that we can leverage our content and expertise to maintain a leadership position in the evolving landscape of legal workflows powered by AI,” Hasker stated. He contrasted this with competitors like Anthropic, which may excel in general-purpose automation but face challenges in replicating Thomson Reuters’ specialised offerings without substantial investments in both content acquisition and expert personnel.
Heavy Investment in AI Development
Thomson Reuters is actively investing in advanced “agentic” AI tools—capable of executing complex, multi-step tasks with minimal human input. In 2025 alone, the company allocated over US$200 million towards these AI enhancements, with plans to sustain similar investment levels in the current year.
Hasker noted the critical importance of accuracy for legal and tax professionals, stating, “For those professionals, the stakes are remarkably high. They have to be correct.” This emphasis on precision underscores the necessity for Thomson Reuters to remain at the forefront of AI innovation within its sector.
Market Reactions and Analyst Insights
On the Toronto Stock Exchange, Thomson Reuters’ share price fell by 7.8 per cent to $117.92 early in the afternoon, following a brief recovery the previous day. Over the past six months, the stock has plummeted by 57 per cent. However, some analysts, such as Maher Yaghi from Scotia Capital Inc., maintain a more optimistic view. Yaghi noted, “The info tech and broader software sector has been decimated by fears about AI, but today’s results and outlook do not show any anticipated slowing down by management.”
The company’s revenue from AI-backed products has also seen an increase, rising to 28 per cent from 24 per cent three months prior. On an adjusted basis, Thomson Reuters reported earnings of US$1.07 per share, slightly above analysts’ expectations of US$1.06. Additionally, the company announced a 10 per cent increase in its annualised dividend to US$2.62 per share, and it holds US$11 billion in capital for potential acquisitions or to return cash to shareholders.
Why it Matters
Thomson Reuters’ ability to navigate market volatility amid rising competition in the AI sector is crucial not only for its stakeholders but also for the broader tech landscape. As the company continues to leverage its vast repository of legal knowledge and invest in innovative AI solutions, it may redefine the standards of accuracy and efficiency within legal workflows. This resilience could serve as a beacon for investors, potentially restoring confidence in tech stocks and setting a precedent for how established firms adapt to emerging technologies.
