Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Goldman Sachs upgraded Thomson Reuters (NASDAQ:TRI) from Neutral to Buy while setting a price target of $186.00, down from $192.00 previously. The stock, currently trading near its 52-week low of $149.47, has seen its market capitalization reach $69.72 billion, according to InvestingPro data.
The upgrade comes as Thomson Reuters has significantly strengthened its artificial intelligence positioning, driving robust and accelerating high-single-digit organic revenue growth in its Big 3 segments, according to Goldman Sachs. InvestingPro data shows the company achieved 4.04% revenue growth in the last twelve months, maintaining its 37-year streak of consistent dividend payments.
The firm noted that Thomson Reuters’ annualized contract value from Gen AI-enabled products reached 22% in the second quarter of 2025, up from 15% in the third quarter of 2024, driven by significant product innovation and effective monetization.
Goldman Sachs highlighted recent product launches including Westlaw Advantage, CoCounsel Legal, Ready to Review, and Ready to Advise in Tax & Accounting as drivers of product upgrade cycles and accelerating pricing increases expected over the next several years.
The broader Information Services sector has de-rated from an average of 35x next-twelve-month price-to-earnings ratio in late July 2025 to 27x currently on AI concerns, with Thomson Reuters’ multiple compressing from 48x to 36x despite accelerating organic revenue growth and quarterly outperformance.
In other recent news, Thomson Reuters reported its Q2 2025 financial results, highlighting a 7% organic revenue growth, which met expectations. The company also reported an adjusted earnings per share (EPS) of $0.87, slightly up from the previous year. In addition to the earnings report, Thomson Reuters announced a $1 billion share repurchase program, approved by the Toronto Stock Exchange, allowing the company to buy back up to 10 million common shares. This program is set to run from August 19, 2025, to August 18, 2026. To facilitate this initiative, Thomson Reuters has established an automatic share purchase plan with its broker to enable purchases during blackout periods. Furthermore, Wells Fargo upgraded Thomson Reuters from Equal Weight to Overweight, raising its price target due to anticipated AI benefits, despite previous concerns. These developments reflect significant strategic moves by Thomson Reuters in the current financial landscape.
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