Thomson Reuters Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Thomson Reuters Corporation (TSE:TRI) shareholders, because the company has just released its latest second-quarter results, and the shares gained 3.3% to CA$142. Revenues were US$2.0b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.02 were also better than expected, beating analyst predictions by 17%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Thomson Reuters from 16 analysts is for revenues of US$8.11b in 2026. If met, it would imply a satisfactory 3.5% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 4.6% to US$4.05. In the lead-up to this report, the analysts had been modelling revenues of US$8.08b and earnings per share (EPS) of US$3.98 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Thomson Reuters

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CA$179. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Thomson Reuters at CA$200 per share, while the most bearish prices it at CA$154. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Thomson Reuters shareholders.

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 7.2% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 4.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.3% annually. 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CA$179, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Thomson Reuters going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Thomson Reuters that you should be aware 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.