Thomson Reuters (TRI) Stock Forecast & Price Target

Thomson Reuters has demonstrated a positive outlook driven by its major segments achieving mid to high single-digit revenue growth, suggesting sustained momentum in its financial performance. The company's adjusted EPS for the quarter surpassed both internal estimates and consensus expectations, indicating effective operational management and resilience in earnings. Furthermore, the reaffirmation of 2025 guidance, projecting a top-line growth of 3-3.5% supported by robust organic growth of 7-7.5%, reinforces the company’s solid position and growth trajectory in the business information services sector.

Thomson Reuters faces multiple fundamental challenges contributing to a negative outlook, highlighted by lower organic revenue growth and reduced margin expansion that have resulted in weaker-than-expected EBITDA figures, particularly in its Legal segment. Economic pressures, including an inflationary environment driving up labor costs and an economic slowdown impacting client budgets, threaten to further erode revenue streams. Additionally, the company is likely to experience capital constraints due to reduced divestiture cash flows and the need for increased investments in technology to fend off competitive threats and adapt to market dynamics.