Thomson Reuters (NYSE: TRI) reported strong financial results for Q1 2024, with total revenue rising 8% year-over-year to US $1.885 billion, and organic revenue growth of 9%. This performance was driven primarily by its “Big 3” business units—legal, corporate, and tax/accounting—each experiencing a robust 10% organic increase.
CEO Steve Hasker described the quarter as “an encouraging start to 2024, underscored by a strong financial performance and raised outlook, building on the momentum of the past year”. During the earnings call, leadership attributed part of the growth to transactional and seasonal revenue, while emphasizing ongoing long-term growth fueled by innovation and strategic investment.
As a result of this performance, Thomson Reuters raised its full-year guidance. Organic revenue growth for 2024 is now forecast in the 6%–6.5% range, up from the earlier estimate of 6%, with the Big 3 segments expected to deliver 7.5%–8% growth.
The company also reported a 10% increase in its annualized common dividend, lifting it to $2.16 per share, marking its 31st consecutive annual increase. Complementing the dividend boost, Thomson Reuters returned over $350 million through share buybacks during Q1 and sold 10.1 million LSEG shares for proceeds totaling $1.2 billion.
The company’s adjusted earnings per share (excluding the variable valuation of LSEG investments) came in at $1.11, surpassing expectations of approximately $0.94. Net income, which incorporates the LSEG valuation change, was $478 million, or $1.06 per share, down from $756 million ($1.59 per share) a year ago.
Operating profit rose by 10% to $557 million. Notably, the Reuters News unit benefited from AI-related licensing, boosting its results compared to a year earlier. However, the Q1 growth was partly due to timing effects, such as transactional revenues and seasonal upsides, which are expected to normalize later in the year.
The balance sheet strengthening through share disposals and buybacks, combined with a rising dividend, signals confidence in the company’s sustained cash flow generation. Analysts expect adjusted EBITDA margins around 38% and free cash flow of about $1.8 billion.
Thomson Reuters remains heavily invested in content-driven technology, including generative AI. In 2024, it allocated over $200 million to AI initiatives and expanded its capabilities through acquisitions like Pagero and Materia. The company plans to maintain a similar spending pace into 2025. CFO Mike Eastwood confirmed confidence in meeting the 2026 organic revenue growth target of 7.5–8%, despite global economic headwinds.
Segment performance was mixed: Legal revenue showed softer results due to the sale of its FindLaw legal marketing business, while the tax and accounting unit grew strongly—especially following the SafeSend acquisition. Overall, the “Big 3” again led the charge with 9% organic growth.
Looking forward, management expects Q2 organic revenue growth to improve from Q1’s performance, targeting about 7%, and affirmed full-year guidance. It also signaled potential for continued M&A activity with up to $10 billion earmarked for deals through 2027 .
In summary, Thomson Reuters delivered a robust first quarter underpinned by solid organic growth across its core professional markets, strategic capital allocation, and a proactive push into AI-enhanced services. Moderate optimism is warranted as leadership tightens guidance and continues to invest in long-term innovation.
