Thomson Reuters' Q1 Earnings Exceed Expectations with 1% Revenue Growth, Dividend Yield of 1.13%

Thomson Reuters reported Q1 revenue of $1.9 bln, up 1% YoY, with an operating profit of $563 mln, also up 1% YoY. The company's cash position was strong, with an operating cash flow of $445 mln and a free cash flow of $277 mln. Thomson Reuters offers a quarterly dividend of $0.595 per share and has grown its dividends for 31 years in a row.

Thomson Reuters Corp (NASDAQ: TRI) reported its Q1 earnings on July 2, 2025, showing a robust financial performance. The company reported a quarterly revenue of $1.9 billion, marking a 1% year-over-year (YoY) increase. The operating profit was $563 million, also up 1% YoY. Thomson Reuters' strong cash position was evident with an operating cash flow of $445 million and a free cash flow of $277 million. Additionally, the company offers a quarterly dividend of $0.595 per share, continuing its 31-year streak of dividend growth.

The company's strong fundamentals have not gone unnoticed by analysts. BMO Capital has recently raised its price target on Thomson Reuters to $308.00, maintaining an Outperform rating [1]. The firm cited Thomson Reuters’ superior fundamentals relative to peers in the Legal and Tax & Accounting segments as key factors supporting the price target increase. BMO Capital introduced 2027 estimates for the company, projecting continued high-single-digit revenue growth and margin expansion to over 40%.

Thomson Reuters’ strategic focus on AI and innovation has been a significant growth driver. The company reported a 9% growth in its government contracts segment, despite minor headwinds from non-renewals. The company’s focus on AI and innovation, including the increased use of GenAI-enabled products, has been a significant growth driver. Despite minor headwinds anticipated from non-renewals in government contracts, the company reported a 9% growth in this segment.

Furthermore, Thomson Reuters has reported a promising start to 2025, with a 6% organic revenue increase in the first quarter, primarily driven by growth in its legal, corporate, and tax & accounting segments. The company saw its adjusted earnings per share rise slightly to $1.12 from $1.11 year-over-year. Thomson Reuters also raised its annual dividend by 10% to $2.38 per share, reflecting confidence in its financial health.

Barclays (LON:BARC) analyst Manav Patnaik responded positively to these results by raising the stock’s price target from $200 to $210 while maintaining an Overweight rating [2]. The analyst noted the company’s robust recurring revenue growth and strong profit margins, despite some revenue decline due to product sunsets and foreign exchange impacts.

The company’s focus on AI and innovation, including the increased use of GenAI-enabled products, has been a significant growth driver. Despite minor headwinds anticipated from non-renewals in government contracts, the company reported a 9% growth in this segment. These developments underscore Thomson Reuters’ strategic focus on innovation and resilience in its revenue streams.

References:
[1] https://za.investing.com/news/analyst-ratings/bmo-capital-raises-thomson-reuters-stock-price-target-to-308-on-strong-growth-93CH-3791466
[2] https://stockstotrade.com/news/thomson-reuters-corp-tri-news-2025_07_14-2/