(Reuters) -Thomson Reuters reported higher third-quarter revenue on Tuesday, boosted by investments in artificial intelligence products in its legal and tax and accounting divisions.
The Toronto-based content
and technology company also reaffirmed its full-year 2025 guidance of a 7% to 7.5% rise in organic revenue, which tracks income from existing businesses on a constant currency basis.
"Our third-quarter results reflect continued momentum and the ongoing execution of our AI-driven innovation strategy," Thomson Reuters CEO Steve Hasker said in a statement.
The owner of Westlaw legal database, Reuters news agency and the Checkpoint tax and accounting service reported third-quarter adjusted earnings per share of 85 cents, slightly exceeding Wall Street expectations, according to LSEG data.
Thomson Reuters revenue rose 3% to $1.78 billion, meeting expectations for the third quarter, during which it launched new AI features in products in its legal and tax and accounting divisions. It also purchased Additive AI, an artificial intelligence-powered tax document processing specialist.
Revenue at its "Big 3" businesses - legal, tax and accounting and corporates - rose 9% on an organic basis, while Reuters News revenue rose 3% and global print revenue fell 4%.
Thomson Reuters said it now expects an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin expansion of about 100 basis points, up from a prior expectation of 50 basis points.
It also said it had completed a previously announced $1 billion share repurchase plan.
Up to Monday's market close, Thomson Reuters shares have fallen about 5.4% this year, underperforming the 16.5% rise in the S&P 500 index, which has been boosted by increases in AI-heavy big tech stocks.
(Reporting by Kenneth Li in New York; Editing by Alexander Smith)
