TRI

Overall Financial & Strategic Momentum

• Q2 2026 results delivered revenue growth ahead of prior expectations, with margins in line, extending a strong start to 2026. Total company organic growth reached 8%, and the Big Three core segments accelerated to 10% organic growth.

Portfolio Transformation

• Signed a definitive agreement with KKR to sell a 51% majority stake in the global print business for $500 million, expected to close in Q4 2026. Post-close, Global Print will be classified as discontinued operations, and Thomson Reuters will retain 49% equity stake, maintain intellectual property rights and full editorial control, with the JV paying a 20% royalty on 85-90% of Global Print revenue that will offset stranded separation costs. The transaction is expected to be 60-70 basis points accretive to organic growth and margin neutral.
• Targeted divestments (including Elite, FindLaw, and now the majority print stake) have left a more focused, higher-growth, higher-quality revenue portfolio centered on content-powered AI solutions for fiduciary professionals.

AI & Product Innovation

• Completed beta testing for the next-generation agentic Co-Counsel Legal ahead of schedule, opened early access to all existing customers, and is on track for a full broad launch by the end of July 2026. Customer usage and feedback have been exceptionally strong, with high praise for its verifiable, auditable workflow transparency critical for legal fiduciaries.
• Released the first production-ready version of Thompson, Thomson Reuters' proprietary domain-specific large language model, built from the 2024 SafeSign Technologies acquisition. Trained on less than 10% of Thomson Reuters' legal content with only $40 million in investment to date, Thompson matches the performance of leading frontier large language models on general tasks, outperforms them on legal tasks, and delivers meaningful lower cost and reduced latency. Thompson will power the bulk document review tabular analysis feature in Co-Counsel Legal starting later in July 2026, with further capabilities planned to be migrated over time.
• Added new AI capabilities to the OneSource portfolio, including touchless compliance for US sales and use tax returns, and AI-powered global trade research. Expanded geographic coverage of Peguero to five additional European markets, and is developing a next-generation agentic Co-Counsel for Tax and Audit planned for launch in fall 2026.
• Launched the CoCo brand campaign, the company's largest in over a decade, to build awareness and demand for Co-Counsel, highlighting its differentiated position as trusted fiduciary-grade AI built on authoritative domain content and expertise.

Capital Allocation

• Returned $1.205 billion of capital to shareholders in H1 2026, completing the previously announced $600 million share repurchase program and executing a $605 million capital return transaction, reducing total share count by approximately 3%. Paid down $500 million in maturing notes during the quarter.
• Maintains a balanced capital allocation approach, with approximately $9 billion in estimated available capital capacity through 2028 to pursue organic innovation, strategic M&A, and additional shareholder returns.

• Full-year 2026 total and organic revenue growth guidance is raised to ~8%, hitting the high end of the prior 7.5-8% range.
• Full-year 2026 Big Three total and organic revenue growth guidance is raised to 9.5-10%, up from the prior expectation of ~9.5%.
• Full-year 2026 adjusted EBITDA margin guidance remains unchanged at ~40%, representing year-over-year expansion, and full-year free cash flow guidance remains unchanged at ~$2.1 billion.
• Q3 2026 organic revenue growth is expected to be ~8%, with an adjusted EBITDA margin of ~36%, including $19 million in severance expense. TAA growth is expected to accelerate in H2 2026 as execution challenges are addressed and timing-related revenue shifts reverse.
• Q4 2026 adjusted EBITDA margin is expected to reach the low 40s, driven by $40 million in expected productivity savings from severance and automation, lower year-over-year severance expense, operating leverage from strong revenue growth, and moderating M&A dilution, putting full-year margin expansion on track to meet guidance.

1. Legal Professionals: 10% organic revenue growth (accelerated from 9% in prior quarters). Legal excluding government maintained 11% organic growth, with broad-based record growth across large/mid/small law firm and international sub-segments. Government growth improved to 5% year-over-year from 1% in Q1. Adjusted EBITDA for the Big Three segments (Legal, Corporate, Tax Audit & Accounting) was $691 million, up 12% year-over-year, with a 42.7% margin.
2. Corporates: 10% organic revenue growth (accelerated from 9% in prior quarters), with 9% recurring revenue growth and 24% transactional revenue growth. Key drivers included Peguero, Indirect Tax, Clear, Co-Counsel Legal, and international businesses. Peguero delivered particularly strong performance and market share gains in transactional compliance.
3. Tax, Audit and Accounting (TAA): 8% organic revenue growth, with 9% recurring revenue growth and 6% transactional revenue growth. Q2 transactional growth missed expectations due to timing shifts and go-to-market execution challenges, with a ~1% drag on growth from revenue recognition timing shifts that will reverse in H2. Key drivers were the Latin American business, Co-Counsel for Tax and Audit, SafeSend, and cloud audit offerings.
4. Reuters: 4% organic revenue growth, driven by the news agency business and the content agreement with LSEG. Adjusted EBITDA was $48 million, with a 20.8% margin.
5. Global Print: 3% organic revenue decline, in line with expectations. Adjusted EBITDA was $42 million, with a 37.7% margin.

Total company Q2 2026 organic revenue grew 8% year-over-year. Total adjusted EBITDA was $745 million, up 10% year-over-year, with a 38.1% margin (30 basis points of year-over-year expansion). Adjusted EPS was $0.99, up 14% year-over-year. Free cash flow was $727 million, up 29% year-over-year. Post the planned 51% stake sale of Global Print, the Big Three segments will contribute 87% of total Thomson Reuters revenue (up from 81% in 2023), and recurring revenue will rise to 86% of total adjusted revenue (up 6 percentage points from 2023). As of Q2 2026, 32% of annualized contract value (ACV) comes from GenAI-enabled products, up from 30% last quarter.

• Go-to-market execution challenges in the Tax, Audit and Accounting segment created near-term headwinds, as messaging around the company's long-term integrated workflow vision created customer and sales team confusion that suppressed Q2 transactional sales. Management has already made leadership and talent changes to address the issue.
• Legal government segment Q3 growth is expected to soften, as certain one-time transactional revenue recorded in Q2 will not recur at the same level.
• Actual results may differ materially from forward-looking guidance due to general market and regulatory risks, and transaction risks related to the closing of the Global Print joint venture, which remains subject to regulatory approval and customary closing conditions.

Q: What is the current size/growth of Co-Counsel, how does the proprietary Thompson LLM connect to Co-Counsel, and how is legal growth split between content/research and workflow? / A: Co-Counsel already surpassed 1 million users and continues to see healthy user and daily usage growth across both legal and tax/audit versions. The next-generation fully agentic Co-Counsel Legal has received extremely strong customer feedback for its transparent, verifiable workflow that is unique for fiduciary legal users, with strong sales pipeline conversion. Thompson will first power Co-Counsel's bulk document tabular analysis feature in August 2026, with more capabilities planned to be migrated over time, delivering lower cost, lower latency, and better scalability. Management does not disaggregate growth between research and workflow, as AI has blurred these lines by expanding Thomson Reuters' addressable scope into more advanced lawyering tasks, driving overall accelerated growth.

Q: What factors drive the 36% expected Q3 2026 EBITDA margin, and is a ~45% Q4 margin required to hit full-year guidance? / A: The lower Q3 margin reflects continued planned investments in innovation and automation, incremental marketing spend for the new Co-Counsel brand campaign, the recorded $19 million in severance expense, and modest M&A dilution, which aligns with the full-year plan. Q4 margin is expected to land in the low 40% range, with ~$40 million in productivity savings and lower year-over-year severance than the prior year, which combined with operating leverage from strong revenue growth will deliver the expected full-year margin expansion in line with guidance.

Q: What is driving the upward revision to 2026 organic growth, what is repeat transactional revenue, and will Thompson's capability improve as more content is added? / A: The upward revision is driven by stronger-than-expected growth from the large legal segment (which hit 10% growth at scale) and standout transactional growth from the corporate segment, led by Peguero's global expansion in trade and indirect tax, where new agentic capabilities are driving strong customer traction. Repeat transactional revenue refers to predictable annual repeat transaction volume in offerings like certain tax products, giving the company high near-term revenue visibility. Thompson was intentionally built on a limited content set first to establish a solid foundation; there are no current constraints to adding more content, and performance on legal-specific tasks is expected to improve as more Thomson Reuters legal content is added. Thompson also creates new opportunities to deliver sovereign AI solutions to large customers that want to keep their proprietary data in-house, a fast-growing demand among fiduciary clients.

Q: How is Co-Counsel performing versus competing AI legal products, and what is the capital allocation outlook after completing the recent share buyback? / A: The legal AI market remains fluid as customers experiment with multiple tools, but the new rebuilt Co-Counsel, which natively integrates Thomson Reuters' unique authoritative content and domain expertise, is already seeing very strong sustained usage growth from customers that switch from competing offerings. Co-Counsel's fully agentic capabilities open up new white space growth beyond Thomson Reuters' existing legal business. Capital allocation remains focused first on organic innovation investments and strategic M&A, followed by growing the dividend and returning excess capital to shareholders. There is no active approved buyback program currently, but the company will continue to evaluate new share repurchases alongside other priorities, with ~$9 billion in total capacity available through 2028.