Thomson Reuters Ends 3-Day Slide with 0.52 Rise but Volume Dives 58.2 to 324th Rank Shares Still 58.56 Below 2025 High

Market Snapshot

Thomson Reuters (TRI) closed on February 26, 2026, with a 0.52% gain, adding to a recent rebound after a three-day losing streak. Despite the modest rise, the stock’s trading volume dropped sharply, with $0.43 billion in turnover—a 58.2% decline from the previous day—ranking it 324th in market activity. The muted volume suggests limited investor engagement, even as the stock snapped its losing streak. Over the longer term, TRITRI+0.52% remains significantly underperforming, down 32.7% year-to-date and 58.56% from its all-time high of $214.21 on July 14, 2025.

Key Drivers

The stock’s recent movement reflects a mix of short-term catalysts and structural challenges. On February 17, Bank of America analyst Curtis Nagle reinstated coverage of TRI with a “Neutral” rating and a $100 price target, signaling cautious optimism for the Information and Business Services sector. The analyst highlighted expectations of 7% revenue growth, 12% earnings-per-share (EPS) growth, and 11% free cash flow expansion in 2026, positioning TRI as part of a broader sector recovery. This reinstatement followed TRI’s fourth-quarter results, where revenue rose 5% to $2 billion—matching estimates—driven by strength in legal, tax, and corporate services. The firm also raised its annualized dividend by 10% to $2.62 per share, a move that could attract income-focused investors.

A critical factor underpinning TRI’s strategic outlook is its integration of generative artificial intelligence (AI) into legal and professional services. The company’s Legal Professionals segment, which serves law firms and government clients, has been leveraging advanced technologies to enhance research and workflow tools. This aligns with broader market scrutiny of how AI firms are encroaching on traditional data and content markets. However, TRI’s AI-driven offerings have yet to translate into outsized revenue growth, with full-year 2026 guidance of 7.5–8%—largely in line with Wall Street’s 7.7% projection. Analysts at LSEG noted that while the company’s performance is stable, it lags behind peers in terms of growth potential and innovation momentum.

The recent 9.77% intraday surge on February 24 (the highest since 2021) suggests short-term volatility, but the stock’s long-term trajectory remains bearish. Year-to-date declines of 32.7% and a 58.56% drop from its 52-week high highlight structural headwinds, including macroeconomic pressures and competition from AI-driven alternatives. The BofA analyst’s $100 target implies approximately 13% upside from the February 26 closing price, but this assumes sustained sector-wide growth and TRI’s ability to differentiate its offerings in a crowded market.

Underlying the stock’s performance is the broader Information and Business Services sector’s mixed outlook. While BofA’s “generally constructive” stance reflects optimism about 2026 revenue and earnings growth, TRI’s market position remains vulnerable. The firm’s reliance on legacy segments—such as legal and tax services—may struggle to offset the disruptive potential of AI companies. Additionally, the dividend increase, while a positive for shareholders, may not be sufficient to attract long-term capital in a low-interest-rate environment where investors increasingly favor high-growth tech stocks.

In conclusion, TRI’s recent price action is driven by a combination of sector optimism, improved quarterly results, and a renewed dividend strategy. However, the stock’s long-term underperformance and competitive pressures from AI innovators underscore the challenges it faces in regaining market confidence. The coming months will likely test TRI’s ability to balance defensive strengths—such as its stable cash flow—with the need for aggressive innovation to remain relevant in a rapidly evolving industry.