Thomson Reuters Corp. reported first-quarter revenue of $2.09 billion and adjusted earnings of $1.23 per share, beating analyst expectations and signaling resilience against fears of artificial intelligence disruption.
"The model is starting to outperform the very latest cutting edge frontier models for certain legal tasks, which gives us a great deal of confidence," CEO Steve Hasker said in an interview, referencing the company's forthcoming proprietary AI model trained for legal work.
The results surpassed the consensus estimate of $1.21 per share on $2.05 billion in revenue, according to data from FactSet. Revenue grew 10 percent from the prior year, or 8 percent on an organic basis. The company maintained its full-year organic revenue growth forecast of 7.5 to 8.0 percent.
Shares of the Toronto-based information services company rose 2.9 percent to $98.52 following the report. The stock had previously fallen more than 50 percent from its 2025 highs, partly on investor concern that new AI tools from companies like Anthropic could disrupt Thomson Reuters' core legal information business.
Hasker addressed the AI concerns directly, noting that the portion of the company's annualized contract value from AI-enabled products grew to 30 percent as of March 31, up from 28 percent at the end of 2025. He stated the company should be a beneficiary of increasing AI adoption in the legal and corporate sectors.
The strong earnings and proactive AI strategy appear to be steadying investor nerves after a period of intense market skepticism. The guidance reaffirmation suggests management is confident in its ability to maintain pricing power and growth momentum.
The performance of the company's new legal-specific AI model upon its launch will be a key focus for investors. Continued growth in the percentage of revenue from AI-enabled products will be a critical metric to watch in the upcoming Q2 earnings report.
This article is for informational purposes only and does not constitute investment advice.
