Thomson Reuters CEO Attributes Software Stock Drop to Market Anxiety
Thomson Reuters CEO Steve Hasker acknowledged that recent declines in software and data provider stocks are driven by market anxiety rather than underlying fundamentals. In a recent interview, he expressed optimism about the company’s AI strategy and its standing in the market ecosystem.
Thomson Reuters Financial Performance
The company has maintained its financial targets for 2026, reporting a 5% increase in quarterly profit. Despite an 18% drop in share price over three days amid a wider technology stock sell-off, Thomson Reuters is expecting its revenue to rise by 7.5% to 8% this year. In 2025, the company reported nearly $7.5 billion in revenue, bolstered by solid fourth-quarter results.
Impact of AI Competition
Thomson Reuters was notably affected this week when Anthropic launched AI-driven productivity tools aimed at legal professionals. This development has contributed to uncertainty among investors in the legal software sector.
- Thomson Reuters’s share price fell by 7.8% to $117.92.
- The stock has declined 57% over the past six months.
Analyst Maher Yaghi of Scotia Capital noted potential positive momentum for Thomson Reuters, indicating that its results do not indicate anticipated slowdowns despite the broader challenges faced by the tech sector.
Strategic Focus on AI Development
Hasker emphasized the company’s dedication to developing advanced AI tools. Thomson Reuters believes their extensive collection of legal, tax, and accounting content positions them favorably against competitors primarily focused on general-purpose tasks. Currently, the company has over 2,700 attorney editors and tax experts, reinforcing their claim to superior training data for AI.
The commitment to AI is evident in the company’s significant investments. Thomson Reuters allocated over $200 million for AI upgrades in 2025 and plans to continue this level of spending in 2026.
Fourth-Quarter Financial Highlights
| Financial Metric | Value |
|---|---|
| Fourth-quarter Revenue | $2 billion (7% increase year-over-year) |
| Fourth-quarter Profit | $332 million (74 cents per share) |
| Adjusted Earnings | $1.07 per share (analysts expected $1.06) |
| Annual Dividend | Increased by 10% to $2.62 per share |
| Capital Available | $11 billion for acquisitions or shareholder returns |
In conclusion, while Thomson Reuters faces challenges related to market anxiety and competition in AI, its strong financial performance and strategic investments position it to navigate these uncertainties effectively. The leadership remains confident in the company’s direction and capabilities within the evolving technology landscape.
