Thomson Reuters Corporation Just Beat EPS By 33%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Thomson Reuters Corporation (TSE:TRI) filed its quarterly result this time last week. The early response was not positive, with shares down 9.2% to CA$196 in the past week. Revenues were US$1.8b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.94, an impressive 33% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Thomson Reuters' 15 analysts is for revenues of US$8.06b in 2026. This reflects a decent 9.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 2.9% to US$4.06. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$8.07b and earnings per share (EPS) of US$3.83 in 2026. So the consensus seems to have become somewhat more optimistic on Thomson Reuters' earnings potential following these results.

Check out our latest analysis for Thomson Reuters

There's been no major changes to the consensus price target of CA$270, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Thomson Reuters, with the most bullish analyst valuing it at CA$301 and the most bearish at CA$236 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Thomson Reuters' rate of growth is expected to accelerate meaningfully, with the forecast 7.4% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 4.3% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 6.1% per year. Thomson Reuters is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Thomson Reuters following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Thomson Reuters. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Thomson Reuters analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Thomson Reuters that you need to be mindful of.

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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.