Can Thomson Reuters' Recurring Model and AI Expansion Sustain Growth?

Thomson Reuters TRI has momentum across its core professional markets. Its platforms sit inside essential legal, corporate, tax, audit and accounting processes, supporting dependable revenues. Recurring sales supplied 82% of quarterly revenues, while the Big 3 businesses generated 83%, with 10% organic growth. Legal Professionals and Corporates advanced 10% apiece, and Tax, Audit & Accounting Professionals increased 8%. After 9% first-half Big 3 organic growth, management raised its 2026 total and organic growth outlook to about 8% and Big 3 guidance to 9.5-10%.

AI Broadens the Opportunity

Artificial intelligence is becoming a commercial driver. Generative-AI offerings reached 32% of annualized contract value at quarter-end, versus 30% three months earlier. CoCounsel has surpassed one million users, and its redesigned agentic legal version progressed from beta testing to early access. Meanwhile, Thomson Reuters trained its first production-ready proprietary large language model for about $40 million, using less than one-tenth of its legal database. Competitive benchmark results suggest the model could reduce costs, improve response times and strengthen integration across professional workflows. Tabular Analysis is expected to provide an initial practical use case.

Peer Landscape: Wolters Kluwer and RELX

Wolters Kluwer WTKWY similarly combines trusted professional content with software used in regulated workflows, making Wolters Kluwer a useful gauge of subscription durability. RELX RELX also pairs specialized datasets with analytics and decision tools, placing RELX close to the same AI-enabled information opportunity. Investors should compare product adoption and margin execution at Wolters Kluwer while monitoring AI monetization and data advantages at RELX.

Conclusion

A high recurring-revenue mix, broad segment growth and accelerating AI adoption reinforce Thomson Reuters’ outlook. Execution on CoCounsel commercialization and proprietary-model economics will determine whether these investments translate into lasting margin and competitive gains over the longer term.

TRI, WTKWY and RELX carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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