The Bull Case For Thomson Reuters (TSX:TRI) Could Change Following $1B Buyback and New AI Launch

• Thomson Reuters recently announced a share repurchase program to buy back up to 10 million common shares, or 2.2% of its issued capital, for US$1 billion, with shares to be cancelled by August 2026.
• At the same time, the company launched CoCounsel Legal, a next-generation AI solution for legal professionals designed to streamline research and workflows, highlighting ongoing investment in advanced technologies.
• We'll discuss how this major AI product launch may strengthen Thomson Reuters' investment narrative of innovation and long-term value creation.

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Thomson Reuters Investment Narrative Recap

To be a shareholder in Thomson Reuters, you need confidence in its ability to deliver sustainable long-term growth through innovation in legal technology and content integration, while navigating intense competition and evolving client needs. The newly announced US$1 billion share repurchase program signals continued capital discipline, but does not materially alter the most important near-term catalyst, the successful adoption and monetization of the company’s AI-enabled solutions, or address the biggest risk around competitive threats to its legal segment.

The recent launch of CoCounsel Legal stands out as highly relevant, demonstrating the company’s push to remain at the forefront of AI-powered legal workflow automation. CoCounsel Legal’s integration of agentic AI and access to deep legal content brings the catalyst of increased premium subscription revenue sharply into focus, as customer adoption and competitive differentiation will be closely watched by investors.

However, despite this momentum, investors should remain mindful of a different set of risks, particularly the rising competition from both new AI entrants and established technology providers, which could ...

Read the full narrative on Thomson Reuters (it's free!)

Thomson Reuters' narrative projects $9.2 billion revenue and $2.1 billion earnings by 2028. This requires 7.8% yearly revenue growth and a $0.5 billion earnings increase from $1.6 billion currently.

Uncover how Thomson Reuters' forecasts yield a CA$273.56 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community put fair value estimates for Thomson Reuters between CA$186.45 and CA$273.56, reflecting a wide range of outlooks. While the company's new AI launches fuel investor optimism, growing competitive pressure could raise concerns about longer-term profit margins, explore more viewpoints to form your own conclusion.

Explore 4 other fair value estimates on Thomson Reuters - why the stock might be worth 21% less than the current price!

Build Your Own Thomson Reuters Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Thomson Reuters research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Thomson Reuters research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Thomson Reuters' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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