Thomson Reuters profit rises as AI demand drives legal, tax growth

Thomson Reuters (NASDAQ:TRI) posted a double-digit increase in quarterly revenue and raised its dividend, signaling sustained momentum for its legal and tax software businesses as they integrate generative artificial intelligence.

The Toronto-based information giant reported total revenues of $2.087 billion for the first quarter ended March 31, a 10% increase from a year earlier.

Organic revenue, which excludes the impact of acquisitions and currency fluctuations, rose 8%.

Growth was even more pronounced in the company’s "Big 3" segments—Legal Professionals, Corporates, and Tax & Accounting—which saw a combined organic revenue climb of 9%.

Operating profit for the period rose 14% to $639 million, while adjusted EBITDA reached $881 million, up 9% from the prior year.

The company also reported diluted earnings of $1.03 per share.

In tandem with the results, Thomson Reuters boosted its annualized common share dividend by 10% to $2.62 per share.

The company also highlighted its aggressive capital allocation strategy, having completed a $605 million return of capital and a share consolidation on May 4.

Year-to-date, the firm has repurchased $262 million of its shares as part of a broader $600 million buyback program.