Thomson Reuters Stock

Good day, everyone, and welcome to the Thompson Reuters Third Quarter Earnings Call. Today's conference is being recorded. At this time, I would like to turn the call over to Gary Bisbee, Head of Investor Relations. Please go ahead.

Thanks, Ruth. Good morning, and thank you all for joining us today for our third quarter 2026 earnings call. I'm joined by our CEO, Steve Hasker; and our CFO, Gary Bischoping. Steve and Gary will discuss our results, and then we'll take your questions following our prepared remarks. To enable us to get to as many questions as possible, we would appreciate it if you limit yourself to 1 question and 1 follow-up each when we open the phone lines.

Throughout today's presentation, when we compare performance period-on-period, we discuss revenue growth before currency as well as on an organic basis. We believe this provides the best basis to measure the underlying performance of the business. I'd also note that our third quarter results reflect our former Global Print business reported as discontinued operations. Prior period financials have been revised to this basis.

Today's presentation contains forward-looking statements and non-IFRS and other supplementary financial measures, which are discussed on the special note slide. Actual results may differ materially due to a number of risks and uncertainties discussed in reports and filings that we provide to regulatory agencies. You may access these documents on our website or by contacting our Investor Relations Department. Let me now turn it over to Hasker.

Thank you, Gary, and thanks to all of you for joining us today. Momentum continued in the third quarter with revenue growth and margins ahead of our prior expectations. Total company organic revenues improved to 10%, while the Big 3 grew by 10% for a second consecutive quarter. We're updating our full year 2026 outlook to incorporate the global transaction and now see total and organic revenue growth of approximately 9.5% and 8.5% to 9%, respectively, versus 8% previously.

Our Big 3 total and organic revenue outlooks remain unchanged at 9.5% to 10%. We forecast margins of approximately 39%, which includes the impact of reflecting global print as discontinued operations. Excluding this impact, our margin outlook is unchanged. Good momentum continues from many areas across the portfolio, with double-digit growth from key products, including CoCounsel

Legal, Pagero, CoCounsel Tax and Audit, SafeSend, Global Trade and our international businesses. We continue to invest heavily and remained encouraged by the growing traction of our innovation engine, commercial momentum across our AI-enabled offerings continues to build, and our pipeline of features and offerings in development continues to expand.

As it relates to the next-generation version of CoCounsel Legal, we are very encouraged by the initial customer engagement. We're also excited about the recent launch of the next-generation version of CoCounsel Tax Audit and Accounting and about the continued e-invoicing growth opportunity through Pagero. I will expand on these topics in a moment. As an update to our discussion last quarter on Thompson, our family of proprietary large language models, we are working with Skadden Arps on a strategic AI design partnership that brings together Thompson, our authoritative legal content and Skadden's extraordinary institutional expertise.

As these discussions progress, we believe this has the potential to shape the legal AI industry and validate the role purpose-built AI will play in professional work, particularly as firms look to protect their data and demand a higher standard of trust, accuracy and accountability. We look forward to sharing more on this topic in the future. Our capital capacity and liquidity remain a key asset that we are focused on deploying to create shareholder value. We remain committed to a balanced capital allocation approach, and we continue to assess a number of inorganic opportunities.

Our capitalization remains robust, positioning the company to be both aggressive and opportunistic going forward. Turning to the third quarter results by segment. The Big 3 segments delivered 10% organic revenue growth for a second consecutive quarter up from 9% in prior periods. Legal organic revenue grew 9%, driven by continued momentum with law firms and slightly lower government growth than in Q2. The Westlaw and CoCounsel Legal were key drivers. Corporates organic revenue grew 10%, driven by offerings in our legal, tax and risk portfolios and the segment's international businesses.

Pagero remains a key driver. Tax, audit and accounting organic revenues grew 10%, driven by CoCounsel for Tax and Audit, our Latin American business and SafeSend. And Roy's organic revenues rose a strong 12%, with healthy underlying trends boosted by AI-related transactional content licensing revenue. In summary, we're pleased with the continued good momentum in the third quarter. I'll now provide a few updates on our product innovation progress. We remain excited about the accelerating pace of innovation across our businesses, which is contributing to an expanding market opportunity and stronger growth for our company.

Let me provide a few recent updates. I'll start with Legal. The next-generation version of CoCounsel Legal is off to a very encouraging start. In September, the first full month after the general availability launch. CoCounsel's NextGen has surpassed the prior version's best month to date on every engagement and retention measure that we track. It now carries the majority of the user base for the CoCounsel Legal AI bundle and its active user base up more than 60% in September from August.

CoCounsel legal next-gen users are completing 2.4x the work versus the peak for the prior version and are active 44% more days per month. And they're also retaining at higher levels. While it's early, product NPS scores are also more than twice the best month on record for the prior version. As we have delivered the rebuild of CoCounsel, we have sharply accelerated our pace of future development with the number of new releases into CoCounsel, up by nearly 50% in Q3 and from the pace in Q1. I'll briefly mention a few of the recent advancements.

In August, we introduced Westlaw Brief builder into CoCounsel to support the highly complex and time-consuming work of drafting litigation briefs, brief builder grounded in Westlaw and Practical Law enables lawyers to work iteratively with AI to draft compelling, authoritative and correctly formatted briefs in their own style in far less time. Like with the introduction of Westlaw advantage, we believe brief buildup is a major step forward in capability that TR is uniquely positioned to deliver. It currently supports 5 litigation brief types, including motion to dismiss and motion to compel and tomorrow, we'll expand coverage to 24 brief types, including motion for summary judgment.

In mid-October, we announced the new multinational profile in CoCounsel Legal, which brings legal content from more than 100 countries into CoCounsel workflows. Legal teams can now research cross-border questions, compare requirements across jurisdictions. Flag issues that need local counsel and trace every finding back to its source, all without leaving the platform. It's grounded in Thompson Reuters trusted legal content and official legal and regulatory resources.

In October, we bought next-generation agentic versions of CoCounsel legal to the U.K., Canada and Australia following the U.S. general release by only 2 to 3 months. This is a meaningful acceleration from our history where overseas capability launches have frequently trailed the U.S. by as much as 12 months. Two weeks ago, we launched the next generation of CoCounsel Tax Audit and Accounting, a fully agentic AI platform built specifically for tax audit and accounting professionals. This next-generation product takes professionals from source documents and client data to finished, defensible work product in a single workflow.

The prior generation offering could plan work and answer questions with this latest release CoCounsel agents expand deeper into actually doing the work. Tax and audit work turns on judgment, not just math. So CoCounsel grounds every calculation in the correct authority runs verified calculations and delivers outputs including multi-tab XL workbooks and memos that follow a firm zone templates. Through clear order trails, professionals can see how CoCounsel reached each answer and validate outputs themselves. That's where our foundation matters.

CoCounsel draws on checkpoint with more than 12 million primary source and analytical documents maintained by hundreds of experts to deliver to our fiduciary grade AI standard. It connects through MCP and integrates with tools like Ultratax so it fits the way our customers already work. The result is faster execution without sacrificing quality, freeing up our customers to work on higher-value tasks.

Lastly, let me comment on Pagero, which has been a strong performer since our acquisition in January 2024. We continue to invest in Pegaro to expand its geographic coverage, adding 8 more countries year-to-date. We now support our country's growing -- our customers' growing e-invoicing compliance needs in more than 90 jurisdictions. The e-invoicing industry is benefiting from a wave of new government regulations as tax authorities increasingly move from periodic, backward looking to real-time and continuous reporting regimes. We see this regulatory demand-driven growth opportunity continuing as an additional 50 mandates are expected to go live in the next 3 years.

Our broader transactional compliance footprint, which in addition to e-invoicing includes our OneSource indirect tax and global trade offerings is growing well into the teens and is gaining market share versus our competition. We believe the breadth of our offerings and quality of our solutions are unique differentiators in the market, a view that has been consistently endorsed by third parties. For example, our invoicing solution was recently named as a leader in the IDC MarketScape 2026 worldwide compliant invoicing vendor assessment. Our OneSource solution has previously been named a leader in 4 IDC MarketScape reports for value-added tax, sales and use tax and global trade, which makes Thomson Reuters the only provider named a leader across all our transactional compliance categories.

I'll now turn it over to Gary for a review of our financial results.

Thanks, Steve. as a reminder, through all my remarks, I will talk to revenue growth before currency and on an organic basis. Third quarter organic revenues grew 10%. Organic recurring and transactional revenue grew 8% and 23%, respectively. Adjusted EBITDA increased 10% to $651 million, with a margin of 35.5%. One other item to note, the year-over-year decline in our IFRS profitability measures reflects the impact of a gain on the sale of our remaining minority equity interest in the Elite business in the third quarter of 2025. .

Continuing on the growth theme, Big 3 organic revenue again grew 10% in the quarter, continuing the improved pace achieved in the second quarter. Legal Professionals organic revenue grew 9% as underlying law firm momentum continued, driven by Westlaw and CoCounsel Legal. Our U.S. large, mid- and small law subsegments all remained at or near record growth rates. Government growth slowed slightly to 4%. Legal professionals, excluding government rounded down to 10% in the quarter, though the growth rate was only 20 basis points below that of last quarter. International growth slowed slightly, but we are confident that it will improve in coming quarters following the Q4 launch of the next-generation version of CoCounsel legal in the U.K., Canada and Australia.

Our corporate segments grew 10% organically, in line with last quarter. Recurring revenue rose 8% and transactions revenue grew by an impressive 23%. The Garo, Clear, CoCounsel Legal, indirect tax and our international businesses were key contributors. The transaction strength over the last 2 quarters was boosted by Pegaro implementation revenue, particularly around the large and complex e-invoicing mandate in France that went live on September 1. We expect transactions revenue to moderate in the fourth quarter, but to remain healthy by historical standards.

Tax, audit and accounting organic revenue growth improved sequentially to 10%. Recurring and transactional revenues grew 10% and 11%, respectively. Our Latin America business, CoCounsel for tax and audit, SafeSend and sure Prep were key contributors. We continue to progress with efforts we mentioned last quarter to sharpen our go-to-market execution and drive customer migrations to our latest products. The improved revenue growth in the quarter is encouraging, though we have more work to do to deliver our aspirations for stronger future growth for our business.

Our orders business, organic revenue grew 12% for the quarter, boosted by approximately $19 million of transactional degenerative AI content licensing in the quarter. Excluding transactional AI licensing revenue in the third quarter of both 2026 and 2025, Reuters grew 7% with positive contributions from the agency and professional businesses and from the news agreement with the data and analytics business of LSEG. We expect Reuters growth to be flattish year-over-year in the fourth quarter due to lapping $5 million of transactional AI licensing revenue from the prior year period, along with tougher comps at Agency and in portions of the professional business.

On a consolidated basis, third quarter organic revenues increased 10%, ahead of our expectations from a quarter ago. At the end of Q3, our annualized contract value, or ACV, from products that are Gen AI-enabled was 34%, up from 30% last quarter and 24% a year ago. From a profitability perspective, we delivered adjusted EBITDA for the Big 3 segments of $648 million, up 7% from the prior year period with a margin of 40.3%. Reuters' adjusted EBITDA was $56 million with a margin of 24.3%. In aggregate, total company adjusted EBITDA was $651 million, a 10% increase versus Q3 of 2025, reflecting a 30 basis point year-over-year margin decline to 35.5%.

Our Q3 results included $22 million of severance expense related to our initiatives to reimagine how we work, which is 120 basis points drag on our adjusted EBITDA margin. I'll comment in a moment on the impact of reporting our former Global Print segment as discontinued operations. But if we had included print results, our margins were nearly 100 basis points ahead of the initial outlook for Q3, we provided on August 5. Adjusted EPS was $0.81, up 14% from $0.71 in the prior year period. Currency added $0.01 of adjusted EPS in the quarter.

In the third quarter, our free cash flow was $408 million versus $526 million in the prior year period. Working capital changes plus higher cash taxes drove the decline. I will also provide a quick update on several capital allocation items. In July, we repurchased $238 million of our shares, completing the $600 million NCIB announced in February. In September, we issued just over $2 billion of new senior notes. And through early October, we have repaid the $1.6 billion of commercial paper borrowings we had on June 30. Our balance sheet remains robust with leverage of 1x as of September 30.

The $500 million of proceeds received from the sale of a 51% stake in our Global Print business to KKR on October 1 further strengthen our financial position. Now let me share a few thoughts to help with your modeling on the Global Print transactions. On October 19, we issued a schedule providing revised historical financial information, treating Global Print as its discontinued operations, which is the basis on which we have reported our third quarter results.

I'd like to clarify 1 point about the discontinued operations reporting. Prior to the transaction closed on October 1, 2 key arrangements between TR and West Bridge print are not included in results. First, WestBridge Print will pay a royalty to Thomson Reuters for the exclusive license to distribute the company's intellectual property in Print form and on ProView its e-book platform. Royalties equal to 20% of WestBridge Print's professional revenue, which is 85% to 90% of its total.

Second, WestBridge print entered into a multiyear agreement where over reimbursed Thomson Reuters for certain transaction services as the joint venture migrate to a stand-alone entity. We refer to these as transaction services agreement or TSA. When these 2 ranges are included, which will begin with our fourth quarter results, they are expected to largely offset stranded costs from the separation. As a result, we continue to expect the impact from the Global Print transaction to be approximately neutral to adjusted EBITDA margins following the close.

However, the discontinued operations treatment in periods prior to the transaction close, which include both the revised historical periods and the third quarter are dilutive to margins as the royalty in TSA are not included. The right half of the slide illustrates this impact as the total company adjusted EBITDA margins of 35.5% would have been 36.6% if the transaction had closed on July 1 and thus the royalty and TSA were included in the quarter.

Going forward, we report the royalty from WestBridge Print in revenue and show it in the corporate center in our segment reporting schedule. The TSA will be accounted for as a contra expense within our corporate center expense line in the segment reporting. We continue to see the transaction being approximately 60 to 70 basis points accretive to our organic revenue growth. I will conclude with a few thoughts on our outlook.

As Steve mentioned, we are updating our outlook -- our 2026 outlook to incorporate the impact of the Global Print transaction that I just discussed. For revenue, we are raising our total and organic revenue growth outlooks from approximately 8% for both metrics to approximately 9.5% for total in a range of 8.5% to 9% for organic. Our outlook for Big 3 revenue growth remains unchanged with total and organic both projected to be in a range of 9.5% to 10%. We see 2026 adjusted EBITDA margins of approximately 39%, which, as I discussed a moment ago, results from the impact of the discontinued operations treatment of the Print business.

Adjusting for the print transaction impact, the margin outlook is unchanged from our prior view. For the Big 3, our margin outlook also remains unchanged. Our outlook for free cash flow continues to be approximately $2.1 billion, and that's despite the loss of 1 quarter of Global Print cash flow, slightly improved cash taxes and working capital provides a positive offset. We now see our capital expenditures being 8.5% to 9% of revenue as there was minimal incremental capital investment in the Global Print business.

We are fine-tuning our depreciation and amortization forecast and raising net interest expense to the upper end of the prior range. As we incorporate proceeds from the print transaction and the recent debt issuance into our forecast. Our outlook for the effective tax rate remains unchanged. Turning to the fourth quarter. We expect organic revenue growth of approximately 8% and our adjusted EBITDA margin to be approximately 42%. Note that Reuters contribution to year-over-year revenue growth in Q4 will be approximately 1.5 percentage points less than in Q3. Looking forward, we are currently in our annual planning cycle, and we'll provide more detailed 2027 guidance on our Q4 conference call in February. But I want to share our early thinking.

Given the significant opportunities to expand our medium- to longer-term growth profile through AI-driven investments, we currently anticipate reinvesting a portion of our underlying operating leverage during 2027. We remain confident in our ability to continue to expand margins, given our business model's operating leverage and our ongoing automation efforts. We have conviction any incremental investments we choose to make will pay off over the next few years through accelerated revenue growth.

We will continue to provide more detail on our Q4 call. Now I'll turn it to Gary Bisbee for Q&A.

Thank you, Rurth. We're ready for the Q&A.

[Operator Instructions]

We'll go first to Drew McReynolds with RBC Capital Markets.

Yes. Two for me. First, with respect to Q4 organic revenue growth 3%, I think in the prepared remarks, the sequential kind of downtick when you just stripped out some of the licensing revenue in Reuters of Q3 is really related to a deceleration of transaction revenues and then a lower contribution from Reuters Server. Just wondering if that's the right take here if there's other puts and takes. If you could just comment on those, that would be great.

And then Second question with respect to CoCounsel Legal, great to see all of the traction and momentum there. Just as you head into, I think, what is still a seasonally high order for renewal activity? Just what are you seeing with respect to kind of uplift with respect to co-council legal including just customer reaction and maybe pricing dynamics to the extent you can comment on those?

Drew, you really got the key factors related to that 8% revenue growth in Q4. As we mentioned, the slower growth in the fourth quarter, our expectations are for flattish Reuters growth some moderation in transactional revenue growth as we talked about, given the rise we saw in the prior quarter from the France implementations. On Reuters, I would just add that in the fourth quarter, we'll lap $5 million in transactional AI licensing revenue from the prior period. And they also are facing, like I said, kind of tougher comps in the agency and professional business. The last piece I would add is this includes a decision that we made from a Reuters event to cancel it in the Middle East due to security concerns.

Steve, do you want to talk about the cold console opportunity in the fourth quarter?

Yes, sure. So Drew, as you know, Cocounsel for us, attacks a white space opportunity. So if you think about sort of law firm and general counsel spend beyond legal research, beyond sort of know-how and practical law and support. Cocounsel is in that legal AI assistance space and it's white space growth. What we see is a 5- to 10-year TAM expansion. And I think we're just at the start of that. And I've talked about that on these calls before. But essentially, what law firms and general counsels will do, law firms is as a portion of revenues, they are starting to retool so that they're spending more on technology and for $1 of revenue, less on people and less on real estate.

And we think that that's a 5- to 10-year journey of TAM expenditure. CoCounsel legal and it's rebuilt form gives us a great deal of confidence that we're going to win our fair share of that white space opportunity. And the reason for that is that this new version for the first time has native access to Westlaw. And it's an agent that's trained and built by 2,700 practice experts. And so it can do things that others can't do. And certainly, the customers who have been using it are telling us that, providing that feedback in spades. Firstly. And secondly, as we look forward to building out our brief builder set of capabilities that I outlined, we think that's going to further differentiate us.

So in terms of its pricing, we're obviously in a competitive market here. We're priced competitively. What I would say though is that over the last month or so, we've ported a heavy token usage function in the form of bulk document review and tabular analysis across to the Thomson model, and that's given us an uptick in speed, an uptick in accuracy and we think a cost advantage that we plan to take advantage of over the next year or so. So I think relative to August 5, we've got -- the summary is we've got more excitement and more optimism about CoCounsel legal than we did at that point.

We'll go next to George Tong with Goldman Sachs. .

You attributed the 4Q organic growth moderation, largely to lower orders contribution to moderating corporate transactional revenue. Does the outlook assume legal and tax and accounting organic growth remains near 3Q levels? Or is there any underlying moderation embedded in either segment?

Look, we sustained our outlook for the full year for the Big 3. So I think we'll continue to see the growth that we want in the Legal Professionals business, in particular, ex government. On the TAP side, we saw an acceleration from Q2 to Q3 that team is still kind of making some of the changes in leadership and go-to-market activities we've talked about. And we'll look for them to continue to find that growth trajectory, we think they'll sustain here in the long run. So kind of no material change, I would say, as we think about Q4.

Got it. That's helpful. And then with respect to margins, Big 3 EBITDA margins fell year-over-year, even though you had very strong organic growth. Beyond the severance impact, can you talk a little bit more about what drove the underlying margin performance and how you're thinking about reinvesting operating leverage into product and market share gains and how that's going to translate into margin performance into next year? .

Yes. Look, there's, I think, 1 or 2 other things I would add to kind of the margin number in Q3. First, we are driving investments in automation and innovation. So we are reinvesting certainly in those areas. Again, I think if you kind of go up periscope a little bit here and think about what we've done over the last couple of years, right? We've rebuilt CoCounsel. We've built Thomson and then we've accelerated what we're doing organically with regard to CoCounsel Tax, Audit and Accounting. And I've done all of that while still delivering that margin accretion we talked about. So there's plenty of productivity we're seeing in drop rate through that business model. The other thing that you would see is just modest dilution from bolt-on M&A in the period.

We'll go next to Aravinda Galapedige with Canaccord Genuity.

Steve, thanks for sort of the update on the innovation side of things. I wanted to switch gears to T&A. Obviously, you're deploying core council more meaningfully there. I feel like we have a better sense of where you stand versus the competition on the legal side in terms of your innovation and deployment of AI, anything you can share any sort of thoughts around where your T&A product stands versus so that the broader space with respect to sort of the deployment of AI and some of the innovation that you're talking about? I know it's early days, but some initial thoughts would help.

Yes. Thanks, Aravinda. We think there's a similar but different dynamic in Tax & Accounting and Audit as there is in Legal. -- insofar as the professional services firms in those areas will undertake a multiyear process of increased automation and that -- and a large portion of that will be AI-driven. So we think there's a white space opportunity Tax Accounting and audit similar to the one in Legal. If anything, in Tax Accounting and audit, the sort of transformation process might be a little bit smoother because of the talent shortage. So in Legal, there's a question of sort of how many lawyers will there be going forward.

In Tax & Accounting, it's a different question, which is when will the technology enable the Tax & Accounting profession to overcome talent shortages. The number of tax returns goes up, the complexity of those returns goes up, the number of audits goes up and the complexity of those audits goes up. So there's a need for technology to fill that gap. So that's sort of the backdrop here. The starting point for us is we're one of the 2 largest players in terms of provision of tax calculation engines.

So we've got 3 marquee tax calculation engines that span everything from a sole practitioner providing completing tax returns all the way up to the big 4 and the heads of tax and the Fortune 500 companies. So that's UltraTax, it's go system tax, and it's one source. Those products are high functioning, they're efficient to run. They're very, very accurate, and they're constantly updated for federal state and local tax changes. So the switching costs away from those tend to be high because tax season rolls around regularly and the products are, as I said, very high functioning. What we have done to date is introduce CoCounsel tax accounting and audit.

And we've put a new version of that in the marketplace in the last couple of weeks to significant positive reaction from our customers because it's fully agentic. It actually delegates the tasks, and it has native access to applications like XL. So that's the sort of the basis that our AI play to date. Going forward, we plan to integrate many of what I would call the shoulder activities around that tax calculation engine. So I'm talking about things like document ingestion, the patent recognition, e-filing, follow-up and so forth.

And that's where our ready to review and ready-to-advise propositions, we think will be market-leading. And they'll be market-leading for 2 reasons. One, they'll be seamlessly integrated into our tax calculation engines. So where our customers are already working. And secondly, as a result of the talent and the capabilities that we have acquired and built through acquisitions like SurePrep and SafeSend, Material and Additive.

So we're positioned, we think, to pretty rapidly accelerate our rate of product innovation in tax Acounting and audit and introduce that as seamlessly as we can into our customer base over the next year or so and optimistic about both the growth and profitability characteristics of those entries building on the tax calculation engines and CoCounsel.

We'll go next to Manav Patnaik with Barclays.

My first question, Steve, is just around the white space you refer to the workflow opportunity. I was hoping you could give us some quantification or anecdotal color on kind of the size and growth that you're seeing there today? Because obviously, from all your legal tech competitors, you see the updated ARR growth almost every week on some kind of social media post. Just curious if you could help us frame where you guys are at? .

I think, Manav, thanks for the question. My take is it's still fairly early innings. I think what we've seen to date is most law firms of varying sizes and many general counsel's offices experimenting with multiple AI legal assistants. And those assistants have, I think, by and large, received positive feedback from associates who are using them. But the underlying change management required to sort of drive wide-scale productivity or wide-scale increase in capacity for revenue growth and therefore, ROI, I think a lot of that work is still to come.

And so step 1 for us was to rebuild CoCounsel and to fully integrate native access to Westlaw and Practical Law and to make it fully Agentic. Step 2 is to rapidly enhance the capabilities there in and BriefBuilder, I think, is a compelling proof point and one that we think will grow again starting tomorrow. And then step 3 is the sort of forward deployed support to ensure that the individual lawyer, the teams and the practices and the firms and general counsels more broadly get the ROI that they need to develop that out.

As I said, I think we're in the first innings or 2 here. And I think this will be, as I said earlier, a 5- to 10-year journey that we'll see that TAM expand in healthy ways provided that ROI is delivered. And that's -- we're hell bent on supporting that process for our customers.

Okay. Got it. And then maybe just 1 for Gary, in terms of the legal margins, they felt a little bit soft this quarter. So just curious if you could talk about some of the moving pieces there and how we should think about Q4 and your comments on '27, I guess, the investments. Is that specific to legal or broadly all?

Yes. I think there's a number of factors running around in the kind of legal results in the quarter from a profitability perspective. First, we do push that severance down into the segment level. And so the severance impact in the quarter caused the decline. there's an impact from the Noetica transaction and a drag in margins there. We are seeing an increase in LLM costs.

That being said, like in my prior remarks, we're more than getting paid for that with the premium tier pricing that we're offering for CoCounsel and the demand uptick that we're seeing from that as well as our ability to optimize the engineering kind of choices around which model is chosen to solve which prompt and optimizing that for kind of speed, accuracy and cost. And then as we think about all that going forward, we'll see those margin rates kind of get back to the level we've observed in the legal business here as we exit the year.

Can I add to that, Gary, Manav. So the first thing is I'd push back on the idea that it was soft in the third quarter. I think the combination of severance of the investments in our own internal automation and some minor dilution from M&A contributed to the numbers you see, but they were ahead of where we suggested they'd be on August 5. The second thing is going forward, the fundamental characteristics of our business is such that we think that the operating leverage is very, very attractive. And as we grow faster, that operating leverage expands. We don't see any change to that or impairment to that as a result of dynamics that are going on in the marketplace.

But we have, as Gary said earlier, just this year, as an example, we rebuilt CoCounsel Legal. We have launched a new version of CoCounsel Tax and order. We've put 8 new countries in the marketplace for Pagero and we built and launched and marketed the Thompson model, all of that within the sort of financial envelope that Mike provided a few years ago. So I think the question for us going to 2027 is over and above that leverage, do we see opportunities for additional growth.

And to the extent we see them, we're going to invest in them. And we'll be transparent with you and everybody else as to what we think the impact of those investments will be. But I wouldn't like to sort of leave you with a view that there's softness here or that there's sort of investments required to hold ground. We see this as the fundamental strength of the business and a question of what we invest in and what the timing of those investments are.

Our next question comes from the line of Tim Casey with BMO Capital Markets.

Steve, can you talk a little bit about how your thinking is evolving with respect to Thomson LLM, I mean you mentioned that you have offloaded some some token work there, so that's helping margins. But the Skadden Arps discussion is quite interesting. So how should we think about that in terms of a revenue generator versus a cost mitigator. .

Yes. Thanks, Tim. Thanks for the question. So -- as you point out, there are sort of 2 vectors here based on what we've seen in the first couple of months of conversations with our customers. The first is we have taken a particularly token heavy set of tasks around bulk document review and tabular analysis and ported them away from the frontier models to Thompson, and that gives us a speed and accuracy and maybe most importantly, a cost advantage because if we can get the capacity utilization of that model up to near 100%, then there's a cost advantage there. And what that enables us to do is, in many cases, stick with [indiscernible] pricing for CoCounsel Legal. And we think that, that's a compelling a particularly compelling offer for private partnerships. So that's the first one.

Now we're in early days, but certainly, the reaction of our heaviest users to tabular analysis has been very strong. So they like the speed. They like the accuracy and we're confident in the sort of costs associated there. The second is the idea that the world's most sophisticated and largest firms, Skadden being the first that we can support them to create sovereign AI solutions. So in other words, to have a version of the Thomson model family behind their firewall to run our applications on top of that and to enable them to create their own applications, which protects their IP, gives them greater control over the application of AI within their firms internally.

And maybe most importantly, enables them to build specific applications by practice and by jurisdiction that they view as competitive advantages. So we're very excited to be working with Skadden. It's one of the wealth preeminent firms. And we think we're going to learn a lot. We think that they'll learn a lot and this will lead to an attractive revenue stream. We have not quantified it yet, Tim. I think it's too early to do so. But as soon as we start to get more visibility into the depth and breadth of that opportunity, we'll come back to you.

We'll go next to Kevin McVeigh with UBS.

Great. And then I guess just a follow-up on that. Was that a template used for the other large law firms as well? Or would this be unique to Skadden in terms of that type of alliance or partnership.

Kevin, the opportunity exists to license in various forms, the Thomson model family to many of the world's most sophisticated firms, Skadden are first and have some particularly unique and in-depth concepts and ideas that we're working with them on. And so I think the opportunity is scalable, but I would put Skadden at this point in the category of 1 .

That's helpful. And then just with the $2 billion of Canadian notes issued, the $500 million from the print proceeds, any thoughts as to capital allocation relative to inorganic opportunities. And obviously, exhausted the buyback already. But just any thoughts, obviously, there's a lot of excess capital building on the balance sheet. .

At the highest level, we're very confident in a balanced capital allocation approach that we've been pursuing, and we'll continue down that path or on investing organically those organic investments that Steve just mentioned are driving that top line growth that we talked about, right, investments in Westlaw, investments in CoCounsel, you're seeing the acceleration in the legal professionals growth rate from that. And so we like the organic investments that we see on the horizon, and we'll continue to put efforts behind those.

The second priority is what you just alluded to, which is inorganic growth. In that context, we have a nice pipeline of opportunities that we see across multiple platforms in our business to provide either bolt-on or material, I would say, improvement in the scale of some of our platforms as well as the ability to get talent through those acquisitions. So inorganically, we like the pipeline, and that's part of the reason why we've got this pristine balance sheet, we'll go put that to work.

And the third point is returns of capital. And we've done that in the form of an NCIB and other returns of capital over time, and we will consistently deliver that balanced approach. And we remain committed to delivering 75% of our free cash flow back to shareholders via returns of capital. So a balanced approach is the answer, but we quite like where assets are sitting right now in our space and see a nice pipeline in the inorganic side, Steve, would you add.

We'll comment, Gary.

We'll go next to Stephanie Price with CIBC

Congratulations on the 34% of ACV being Gen AI enabled. I think it's up about 40 basis points sequentially. Just curious if you could dig into that a little bit more around where you're seeing the strongest uptake and how you think about AI pricing here and evolving over time? And then my second question is just on GenAi CoCounsel feedback from customers. Can you talk a little bit of what clients are viewing as the biggest strength of the next-gen product and where you see some opportunities for further enhancements? .

The 34% in the quarter was encouraging in ACV. I would just clarify there, that's up from 32% in the prior quarter, up from 24% just 1 year ago. I would say Westlaw Advantage continues to be part of that story. CoCounsel Legal and the GA of that here in the U.S. And now the GA of that in Canada, Australia, in the U.K., we are very excited about that. Our international teams have a great pipeline building there. They're excited to have that out and available to their customers. We're getting the uptake from demos and seeing good client interaction and engagement with that.

We are bullish on that being continue -- continuous driver here as we get this out into our customers' hands outside the U.S., which again, I would reiterate the fastest transition we've made going from USGA to global GA in 2 to 3 months. So that's just another proof point around the innovation acceleration we've seen. That's going to continue with what we just saw in CoCounsel Tax, Accounting and Audit. That is a unique product, and that product now delivers outcomes as well as the research capabilities that previously had. So we see that story continuing.

I'll turn it over to Steve for the second part of your question.

Yes. Stephanie, with regard to CoCounsel, I'll give you a couple of anecdotes. I think there are at least 2 themes that are coming back from customers and users of Cocounsel legal in its latest form. The first is appreciation that of its accuracy and of its dip. And I'll give you 1 example. We had a head of AI innovation and technology at a major firm do a bake-off between CoCounsel and a couple of the Frontier models and a couple of the of the start-up applications.

And what she did was he asked the same very, very in-depth question of each of the 5 or 6 applications. She then compared the answers by running each of those answers through all of those applications and ask them to rank them. And all of them ranked CoCounsel's answer as the best. And so it's a test like that, but it takes a while for those to sort of permeate through the firms and through the industry. But it's that -- the first thing I'd say is the accuracy and the depth, and that shouldn't come as a surprise, given that we have more reference attorneys and attorney editors and we have Westlaw and Practical Law, and we've got native access to those things.

And we're using CoCounsel Bench to constantly and iteratively improve the product and the underlying data sets. So that's the first one. I think the second one, which cannot be underestimated is we have rebuilt CoCounsel to be the opposite of a black box. And so one of the principal concerns of managing partners and firm chairs is if indeed, there are fewer lawyers coming in, which is not the case yet, but if 3.5 years from now, there are fewer lawyers in take years and firms of various sizes, how are they going to train young lawyers, what is going to be the apprenticeship model.

And if instead of sitting around the conference table or in the office of a senior partner and gaining their apprenticeship through that direct feedback and learning that a lot of the work is automated and done using these tools, how is that going to happen? Now if you use CoCounsel Legal, what you'll see, it is the opposite of a black box. So the agent spells out in great detail the 10 or 20 or 30 steps that it's undertaking in order to answer a question. And equally importantly, at each and every step it describes the authoritative citation or source material that it used to reach a conclusion to that step before moving to another 1 and why it went to 1 step versus another.

And so we think, and more importantly, our customers think that this is going to be a very, very important training and learning tool for young attorneys and that it will in large part, overcome this concern around the next generation of the apprenticeship model within the firms. So those are really the 2 things we're hearing. It's deeper, and it's more accurate. And the second is it's more transparent, more auditable, more verifiable.

Our next question comes from the line of Vince Valentini with TD Cowen.

First, hoping I get a clarification and a question. The clarification will be the royalty revenue in the print segment that will start to show up in the fourth quarter, do you include that in consolidated organic revenue? I would assume not given there was no royalty revenue in Q4 last year. So it's not part of your 8% guidance for Q4. It would be just a clarification. The broader question would be on your sort of margin commentary for for next year, Gary. I mean, correct me if I'm wrong, but it certainly clearly sounds like you're not saying 41% as possible anymore.

You're going to reinvent more into good sort of product development and and driving this healthy revenue growth momentum that you have. Remember, you did 30 -- prior to the [indiscernible], it was 39. I suppose you have 100 this year, I suppose to be up another 100 next year. So I mean it was supposed to be 41%, and you say print is is neutral that once you get the KKR revenue streams flowing in. So it would have been 41%, but it now sounds like you're not at 41% anymore. I just want to understand, is that because you're investing to drive faster growth in harvest from these things you've already launched.

There's been a lot of launches and a lot of product innovation this year. Is the margin sort of slow down next year because you're going to see even better revenue growth from things like the Thomson LLM or the brief builder or just the new version of CoCounsel you've just been talking about? Or is this you saying we are going to go into the next wave of product development and be watching just as many, if not more, new products next year, which won't actually contribute to revenue immediately.

So there's a bit of a drag on margin, but you'll see that revenue in 2028 and beyond. I'm just trying to unpack the margin not being quite as high as before. Is it a problem? Or is it -- and is something we should be actually be happy about, given you're leaning in?

Yes, Vince, great questions. Let me ask Gary Bisbee to cover the first 1 in terms of the royalty treatment and then Gary Bischoping to talk about the -- how we're looking at investing in 2027.

Yes. Vince, we -- in our organic growth calculation going forward, we will pro forma in royalty in both periods. And so as you know, the royalty declines modestly over time as print revenue declines. So it is a drag relative to if you didn't include that. So I'd argue it's been more conservative way to calculate that organic revenue growth. I can take any follow-ups on that off-line, if that doesn't make sense. Gary?

The short answer here is we have still great productivity that's coming through this business model, both at operating leverage as well as the continuous improvement we see in our productivity. Since this is a choice based on the organic options that we see in front of us and those investments, just like we demonstrated with Westlaw Advantage and CoCounsel legal, make an investment, and we see a subsequent increase in growth from that investment. And that's what we're working our way through for 2027.

We're working our way through given the productivity we're seeing, given the operating leverage we see, but more importantly, the investments we have on the horizon to accelerate those investments. So to your question, it's an acceleration of the investments into new products and solutions to continue to accelerate the innovation engine, delivering more value to the customer. And what we're working our way through that is, therefore, the timing of that revenue is probably, like you said, maybe not in the period of the investment, but we have strong conviction that will deliver incremental increases in the growth rate over the medium to longer term.

So we could deliver if we chose to, 41% next year, to your question, on a preprint basis, apples-to-apples basis. We could choose to do that. We're choosing to make investments in those ongoing incremental AI accelerators and increase that to drive an increase in the revenue growth over time. Steve, what would you add .

No, I think that's the point. I mean the fundamental business is robust and is growth increases, that operating leverage increases spend -- and the question that we're going through now as a team is, okay, of that operating leverage, are there additional growth options that we see, whether that is in and around our Domino franchise, expansion internationally, expanding out the brief builder within CoCounsel Legal, further developing ready to review and ready to advise the launch of more countries within Pagaro. .

We have done, I suppose, the great luxury. We don't take it for granted that we have a lot of growth opportunities. And we're rigorous and disciplined about assisting those and stack ranking them. And then where we invest, we want to see a return, and we want to see that if not in period, to Gary's point, soon after. So please allow on us to be very, very rigorous about going through that. And to the extent that any of that sort of expanded leverage is being reinvested. It will be for a good reason.

The only thing I'd add, Vince, is there are some things that happen in the short run, too, around sales hires that have a more near-term return perspective and some other things that take a little bit longer given the development cycle. So we'll balance both the timing and the quantum of investments as we think about 2027, but more to come in the Q4 call events.

We'll go next to Maher Yaghi with Scotiabank.

Great. Just wanted to go back on the sustainability of the legal revenue growth in the past, you've highlighted that Westlaw Advantage was 1 of the primary growth drivers for your growth in that business and that you still had a good runway to grow that part of the portfolio I wanted to ask you, as we head into 2027, do you still have enough runway for growth in Westlaw Advantage to continue to support the growth rate, the organic growth rate in your legal business? Or do we need CoCounsel to take the baton here and grow in order to continue that performance that you've had in legal.

Yes. So thanks, Maher. Look, I think the answer is yes, we do. We continue to be very excited about what Mike Dan and the Westlaw team under Emily Colbert's leadership and with a very, very talented set of labs and engineering executives are doing. And I think the latest example of that is brief builder, where as I said, we put 5 motions in the market initially. We've got -- we'll expand to 24 tomorrow. As you probably know, there's 350 in total. And so whether we get all the way to 350, but it sort of speaks to the runway in and around the legal research and litigation space specifically for Westlaw, Westlaw Advantage and CoCounsel.

And so that's the first part. I think the second 1 is we talked for many quarters about CoCounsel sitting in white space opportunity. So as we look at both of those, and we look back, our growth rate in legal has gone from 7% to 8% to 9% ex government sort of 10% and 11% and hovering in that space. We think we can maintain and enhance that over the time period. The most important thing for us is to continue to innovate and to light our customers. As long as we continue to do that, we'll be in, I think, good shape, both in the research space, but also in the broader legal AI assistance space.

Okay. And just a follow-up on the question on the margins. I know this is not a 2027 guidance call. I just wanted to get maybe just 1 clarification and are we talking about holding margins steady or there could be even more investments than the 100 basis points that Gary was talking about earlier.

Yes. I would -- let me just reiterate, again, the business model produces that operating leverage. It produces ongoing productivity and we'll make decisions around investment levels and share more of that when we talk to you in the fourth quarter. But the margin profile is important to us and will expand over time. And that level of productivity and what we see in the operating leverage will expand over time. At.

any given point in time, we faced the choice of how much to invest, and we're not going to kind of talk today into the details of what that means for '27, but we will update everybody with clarity when we do that in our Q4 call.

Our next question comes from the line of Toni Kaplan with Morgan Stanley.

I wanted to ask a little bit of a broader question. Steve, looking out, say, the next 5 years, what do you see as the biggest changes in terms of product innovation, distribution, the way that customers are using your products, just wanted to understand how you're thinking about how this all evolves in the sort of medium term?

Yes. Thanks, Toni. I think there's a couple of quarters at work. The first is something I've talked about for a while, which just continues to, in my view, strengthen, which is the increasing complexity associated with compliance, whether that's legal compliance, whether that's a tax accounting audit risk related. And the idea that corporations and their advisers just can't add head count to meet the needs of that increasing complexity and ensure that they remain compliant. They need software and automation tools to do so.

And that's the space in which we operate. That's where our Big 3 sit, and we're maniacally focused on meeting and exceeding that demand firstly. Secondly, AI expands our TAMs. Put simply, it expands the role in which we can play in the success of our customers. So instead of being the sort of primary, the Westlaw being the best and most efficient way to get a list of relevant precedent cases, Westlaw will now draft the brief. Westlaw will increasingly perform the advanced analytics required to win the case.

And the same goes with transactions activity. The same goes with in-house activity. So this expands our TAM. And we don't think anyone else has brings the same assets and advantages to that white space and to that expanding TAM that we do. And I would humbly suggest that our step-ups in growth over the last few years suggests that we're on the right track and we're going to keep going. So I think that's sort of the 2 dynamics.

The first is this ongoing trend to greater complexity and the need for software to meet that complexity and ensure compliance. And I think the second is AI as a means to expand TAM. The third I think we're seeing is the development of of headless solutions. So in other words -- and this is where the Thomson model is interesting. So the idea of sort of putting the model and harness and a set of applications that firms can then build on instead of a fully integrated software stack. I think we're just at the start of that, Toni. It's hard for me to sit here and tell you exactly how that's going to play out.

But what I will tell you is that the Thompson model starting in legal to be extended into tax accounting and audit gives us, I think, a really interesting play in that space as it develops amongst the world's most sophisticated professional services firms.

We will go to Jason Haas with Wells Fargo next.

I'm curious if you do decide to bring up the investment levels in 2027, what are the products or areas of the business that you're most interested in investing in .

Yes, Jason, thanks. We've mentioned a few of them. I think ongoing investment in CoCounsel Legal and ensuring that we've got the right forward deployed teams and the right the right sales resources to support that. That's one. I think CoCounsel tax and audit. And the development and introduction of ready to review and ready to advise in the tax accounting space.

Next is transactional compliance. So that's invoice and global trade indirect tax. We've got, I think, some very exciting plans in terms of adding agentic capabilities and leveraging CoCounsel into those franchises in addition to further expanding our market coverage to ensure that we're ready to meet the demands of customers as 50 countries or more roll through invoicing mandates what my [indiscernible] and Adrian and the team are doing, Fernando and others down in Brazil with Dominion embedded finance propositions there, I think, is starting to look interesting to us.

So assuming that stays on track, we keep investing. So it's -- I know it's a long list, but I think it speaks to the point I made in response to Toni's question, which is we're uniquely positioned to meet a growing and long-lived market demand around compliance and the complexity of compliance. And AI is a means for us to expand our role in meeting or exceeding our customers' needs around that.

Steve, the only 1 I would add to that is the general counsel's office. We've been very focused on cold console for legal professionals. It's a great opportunity in the general accounts office with our relationships that we have with our large corporate customers to bring the differentiated elements of CoCounsel legal to the Office of the General Counsel. We're excited about that opportunity here as we had into 2027 as well. Got it.

That's very helpful. And then just as a follow-up, I'm curious if you expect to see any impact from the closure of Wild Godshall on your business?

Not a material impact.

We'll go next to Doug Arthur with Huber Research.

Yes. Great. I'm covered.

We'll go next to Curtis Nagle with Bank of America.

Great -- so just 2 quick ones for me. So Steve, I think you noted 60% of the cocoa base is now on the next joint model, which is great to hear. I guess any sizing in terms of how much contribution you're seeing from new user new users versus upgrading the existing base?

We haven't published that, Curtis. We'll go back and review that. Suffice to say, though, we're -- we're very focused on gaining more than our fair share of the market over the next 12 months. So we'll come back to you as we achieve that. .

Okay. Fair enough. Then maybe just another 1 just on legal 4Q. So I think you noted margin difference in the growth rates from 2Q to 3Q like 20 bps, do you think you can accelerate that in 4Q? Just again, Westlaw still doing great. You've got [indiscernible] coming in. Comps are easier, right? I think you've previously alluded to maybe seeing better growth in 4Q. So just help us sort of size that and sort of what's the opportunity near term in legal?

Yes. I mean Q4 is an important quarter for us across the Big 3. So we're always at this time of year, cautiously optimistic, but we've got to deliver it. We certainly see great traction from our various product franchises, and it's early days for Thompson. So I think I'm going to remain optimistic that there's upside there. The question is sort of what's the timing of that and when do we deliver.

We will go next to [indiscernible] and with Jefferies.

Steve, as I think about the need for your commentary around more technology at law firms, corporations and especially as I think we think about more agentic capabilities that get deployed. So whether you're taking on a lot more responsibility maybe displacing individuals. How should we think about the potential change or impact to your pricing power, meaning that I think as you maybe provide more value as you do more of the work in the organizations, should you be able to take a bigger part of the economics if that makes sense.

When I think about like the promise of cloud and the reliance on technology and everybody has offered all of these amazing savings, but ultimately, a large portion of the economics accrue to like the hyperscalers. So how does that really embedding yourself in these organizations, maybe change the equation or the partnership profile?

Yes. No, it's a great question. So we, as a philosophy, do our best to price to value. And if you look across the portfolio, there are examples where we do that very well. And I would argue there's some examples when we don't do it as well. But certainly, we are optimistic about exactly the sort of arc that you described in terms of embedding the tools within the firms and the General Counsel's office within the the judiciary and the court systems and so forth.

And then ensuring that we're then able to support our customers and the underlying change management to ensure they get the requisite ROI and that's an attractive proposition first and foremost for them. And then in doing so, price to value. So that's the journey we're on. I think as I said in asked to an earlier question, it's still early days. And I think we're in the first, second or third chapter here of a 5- to 10-year journey. And so I think it's too early to sort of describe a price-to-value journey around CoCounsel legal as an example. But we are very focused on getting there for sure. Gary?

We have already seen demonstrated value and customers willing to pay for that value with achieving the price increases we've seen in the last 2 years relative to Westlaw Advantage and CoCounsel and we expect that price to value equation to continue as we continue to accelerate the innovation engine. The last clarifying point is we don't have a seat-based kind of approach to pricing. It's enterprise license agreements for the most part. And that really adds value and enables our customers to have certainty over cost over time, which they also value. So we like the pricing proposition and the ongoing benefits from that model.

That's helpful. And then as a follow-up on the commentary around kind of the all you can eat. How does that impact kind of the token cost and contractually were declined flat? Is those costs treated separately or accounted for a separate leader. How should we think about that as growing agentic use? And does that also boost the top line here as well, that they show up in the revenue line?

Yes. So we have enterprise-wide pricing. So we're not priced on a per seat basis or a per token usage. And so far, that's enabled us to maintain attractive margin profile for CoCounsel legal, and we'll continue on that path. We want to keep it as simple as we possibly can. I think the reference I made before is to in moving Tableau analysis across a high token usage application across and where we've got a speed and accuracy and a cost advantage that means we can stick with in many cases or you can eat pricing, which is a very attractive proposition relative to the some of the competitors.

As to whether there's upside for power and super users, we have not yet explored that. But certainly, in line with the with your earlier question around price to value, that's certainly something we're exploring.

Okay. I think that gets us to the end of the queue. Thanks, everybody. We're around if you have any follow-ups.

This concludes the questions and answers. I would like to turn the call back over to Gary for any closing remarks.

That's it. Have a nice day.

Thanks, Ruth. Bye-bye.

Thank you. This concludes today's call. Thank you for your participation. You may now disconnect.

Good day, everyone, and welcome to the Thomson Reuters Second Quarter Earnings Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Mr. Gary Bisbee, Head of Investor Relations. Please go ahead.

Thanks, Jennifer. Good morning, and thanks, everybody, for joining us today for our second quarter 2026 earnings call. I'm joined by our CEO, Steve Hasker; and our CFO, Gary Bischoping. Steve and Gary will discuss our results, and then we'll take your questions following the prepared remarks. [Operator Instructions]

Throughout today's presentation, when we compare performance period-on-period, we discuss revenue growth before currency as well as on an organic basis. We believe this provides the best basis to measure the underlying performance of the business.

Today's presentation contains forward-looking statements and non-IFRS and other supplementary financial measures, which are discussed on the special note slide. Actual results may differ materially due to a number of risks and uncertainties discussed in reports and filings that we provide to regulatory agencies. You may access these documents on our website or by contacting our Investor Relations department.

Let me now turn it over to Steve Hasker.

Thank you, Gary, and thanks to all of you for joining us today. Our strong start to 2026 continued in the second quarter, with revenue growth ahead of our prior expectations and margins in line. Total company organic revenues rose 8%, with the Big 3 accelerating to 10% organic growth, up from 9% in recent quarters. The acceleration was driven by Legal Professionals and Corporates, which both also accelerated to 10%, up from 9% last quarter. We are raising our full year 2026 outlook for total inorganic revenue growth to approximately 8% or the high end of the prior 7.5% to 8% range. We're also raising our Big 3 total and organic revenue outlooks to a range of 9.5% to 10%, up from the prior approximately 9.5%. We continue to forecast margins rising year-over-year to approximately 40%.

On July 14, we were pleased to announce the signing of a definitive agreement with KKR to form a joint venture to operate the Global Print business, where we will sell a 51% stake for approximately $500 million. We're excited about this transaction, which will sharpen our focus on content powered AI solutions serving fiduciaries, while setting up an independent business to serve our customers' print needs. The transaction provides attractive proceeds to TR and will be modestly accretive to organic revenue growth. Gary will provide additional details in a few minutes.

We continue to invest heavily and remain encouraged by the growing success of our innovation engines. Commercial momentum across our AI-enabled offerings continues to build, and our pipeline of features and offerings in development continues to grow. In a moment, I'll provide an update on Thomson, our proprietary large language model, which we see as an increasingly important tool to deliver accurate and cost-effective AI solutions. In addition, I'll highlight the successful completion of the next-generation CoCounsel legal beta, the introduction of AI-driven capabilities into ONESOURCE and our excitement about a next-generation version of CoCounsel for tax and audit currently in development.

To support our product investments, last month we launched The CoCo, our largest brand campaign in more than a decade to accelerate awareness and demand for CoCounsel. The campaign reinforces our differentiated position in professional AI by highlighting what our customers value most, trusted fiduciary grade AI grounded in authoritative content, domain expertise and the accountability required in professional workflows.

Our capital capacity and liquidity remain a key asset that we are focused on deploying to create shareholder value, and we made solid progress on this during the quarter. In May, we executed a $605 million return of capital. And on July 21, we completed the $600 million share repurchase program announced in February. Together, these transactions have reduced our share count by approximately 3%. We remain committed to a balanced capital allocation approach, and we continue to assess a number of inorganic opportunities. With approximately $9 billion of estimated capital capacity through 2028, we are positioned to be both aggressive and opportunistic.

Turning to the second quarter results by segment. The Big 3 segments accelerated to 10% organic revenue growth, up from 9% in recent quarters. Legal organic revenue accelerated to 10%, driven by continued strong law firms momentum and improved government growth. Legal, excluding government, continued to grow at the 11% pace we saw in Q1, driven by momentum from Westlaw and CoCounsel Legal.

Corporates organic revenue accelerated sequentially to 10%, driven by offerings in our legal, tax and risk portfolios and the segment's international businesses. Pagero was particularly strong and continues to drive market share gains for Thomson Reuters in the transactional compliance space. A recent significant Pagero win with Google is one example.

Tax, Audit & Accounting organic revenues grew 8%, driven by CoCounsel for tax and audit and Latin American business and SafeSend. Reuter's organic revenues rose 4%, driven by growth in the agency business and our contract with LSEG. And lastly, Global Print organic revenues declined 3% year-on-year, in line with our expectations. And in summary, we're pleased with the building revenue momentum we've delivered in the first half of 2026.

I'll now discuss our continued portfolio evolution and provide several product innovation updates. The Global Print transaction I mentioned earlier continues the positive evolution of our portfolio. As you know, we have invested heavily in innovation in recent years, both organic and through strategic M&A. We've also pursued targeted divestitures, including Elite, FindLaw and now a majority stake in Global Print. These efforts leave us with a stronger, more focused and more strategically aligned portfolio, with improved growth prospects versus the TR of just a few years ago.

Adjusting our last 12 months performance for the Global Print transaction, the Big 3 segments would contribute 87% of our revenue, up from 81% in 2023. Our Big 3 revenue growth has accelerated from 7% in 2023 to 9% on a last 12-month basis, and we remain focused on building upon the 10% growth this quarter. Total TR improved from 6% in 2023 to 8% on a last 12 months basis. The quality of our revenue mix has also improved, with recurring revenue rising to 86% of total on an as adjusted basis, up 6 percentage points from 2023. When including repeat transactional revenue, we have good visibility into over 90% of our annual revenue. Looking forward, our focus remains on driving an accelerating pace of innovation as we deliver authoritative content powered AI solutions that provide fiduciary grade outcomes for our professional customers and markets.

Let me close with a few thoughts on our innovation roadmap. If this chart looks familiar, it is an updated version of one we shared a year ago. Like last year, we are delivering a significant portfolio of innovation in 2026, including new offerings, additional capabilities and geographic expansion.

Let me share a few highlights. In June, due to the strength of customer feedback, we completed the beta for the new generation version of CoCounsel Legal ahead of schedule, and began providing early access to all existing CoCounsel Legal customers. Customer usage is ramping, and we remain on track for the broader launch by the end of this month.

Outside of Legal, we have added several AI features into our ONESOURCE portfolio, including touchless compliance, which automates the creation of U.S. sales and use tax returns and AI research for global trade, which leverages our authoritative content to simplify trade research. Pagero has continued its geographic coverage expansion with the addition of 5 more countries, including France, Poland and Belgium, building on its market leadership position, and we are working on an agentic next-generation version of CoCounsel for tax and audit expected this fall.

Let me now provide an exciting update on Thomson. As a reminder, in mid-2024, we made a modest but highly strategic acquisition of Safe Sign Technologies, a start-up that was developing legal specific large language models. Over the last 2 years, highly talented teams from Safe Sign and TR Labs have continued the development of these models, leveraging TR content and expertise along the way. They recently completed development of the first production-ready version of the model, which we call Thomson. Joel Hron, our Chief Technology Officer, recently issued a blog post discussing the results of a detailed benchmarking study of [ Thomson ONE ].

Despite relatively modest investment of approximately $40 million and training Thomson on less than 10% of our legal content to date, the benchmarking study indicates that Thomson delivers results on par with the latest versions of the leading frontier models on a broad range of general domain tasks. And as expected, Thomson performed strongly for legal tasks, with further improvement potential as we add more TR legal content. This best-in-class performance is delivered at a meaningfully lower cost, and in many cases, at significantly reduced latency versus third-party models.

One might ask how we can deliver results on par with frontier models at a fraction of the cost. The answer lies with our content and our expertise. When building on leading open source models, the quality and sophistication of training data matters far more than the volume of data used. Our deep repositories of expert curated or authoritative content across Westlaw, Practical Law and Reuters are a key advantage as are our attorney editors and practice experts.

The benchmarking results embolden our strategy for Thomson and provide growing confidence in its potential. We are on track to power tabular analysis, a bulk document review tool in CoCounsel Legal with Thomson later this month. And we see an opportunity to port over a broader range of capabilities in the future to leverage Thomson's cost and speed advantages. In addition, initial conversations with our largest and most sophisticated customers indicate potential for additional commercialization opportunities.

The success to date with Thomson demonstrates the value of our content, expertise and talent in this AI environment. It also provides important optionality for TR as we work to deliver market-leading and cost-effective AI solutions for our professional markets.

I'll now turn it over to Gary for a review of our financial results.

Thanks, Steve. As a reminder, throughout my remarks, I will talk to revenue growth before currency and on an organic basis.

Second quarter organic revenues grew 8%. Organic recurring and transactional revenue grew 9% and 11%, respectively, while print revenues declined 3%. Adjusted EBITDA increased 10% to $745 million, with a margin of 38.1%.

Moving to the Big 3. Organic revenue growth accelerated to 10% in the second quarter, improving from the 9% pace in recent quarters. Legal Professionals organic revenue accelerated to 10%, as underlying law firm momentum continued and government growth improved sequentially. Key drivers from a product perspective remain Westlaw and CoCounsel Legal. Legal Professionals, excluding government, again, grew 11%, matching the first quarter growth rate and up 9% in the second half of 2025. The strength was broad-based with our large, mid, small law and international subsegments, all at or near record growth rates. Government growth improved to 5% year-over-year from 1% in Q1, though we anticipate a softer growth rate in Q3 as certain transactional revenue in the quarter is not expected to recur at the same level.

Our Corporates segment accelerated to 10% organically, up from 9% in recent quarters. Recurring revenue grew 9% and transactions revenue grew by an impressive 24%. Pagero, indirect tax, CLEAR, CoCounsel Legal and our international businesses were key contributors.

Tax, Audit & Accounting organic revenue increased 8%. Recurring and transactional revenues grew 9% and 6%, respectively. Our Latin American business, CoCounsel for Tax and audit, SafeSend and the cloud audit suite of offerings were key drivers. The Tax, Audit & Accounting second quarter transactional growth rate fell short of our expectations due in part to timing, but also due to go-to-market execution challenges. We have made several talent additions and leadership changes and expect to get back on track in the second half. In addition, the second quarter growth rate was again impacted by 2 product updates that shifted revenue recognition toward the second half of the year. This was an approximate 1% drag, but is expected to largely normalize in the second half. We continue to expect [ CAP ] revenue growth to accelerate in the second half, driven by rising revenue contribution from our newer AI-driven offerings in the U.S., a key product line extension at Dominio in Brazil, and the benefit from the revenue recognition timing change I just mentioned.

Moving to Reuters. Our organic revenue rose 4% for the quarter, driven primarily by growth from the news agreement with the Data and Analytics business segment of LSEG in our agency business.

Finally, Global Print revenues decreased 3% on an organic basis. On a consolidated basis, second quarter organic revenues increased 8%, slightly ahead of our expectation from a quarter ago. At the end of Q2, the percent of our annualized contract value, or ACV, from products that are Gen AI-enabled was 32%, up from 30% last quarter.

Turning to our profitability. Adjusted EBITDA for the Big 3 segments was $691 million, up 12% from prior year period or 10% constant currency, with a margin of 42.7%. Reuters' adjusted EBITDA was $48 million, with a margin of 20.8%. Global Print's adjusted EBITDA was $42 million, with a margin of 37.7%. In aggregate, total company adjusted EBITDA was $745 million, a 10% increase versus Q2 of 2025, reflecting a 30 basis point year-over-year margin increase to 38.1%. Our Q2 results included $8 million of severance expense related to our initiatives to reimagine [indiscernible].

Turning to earnings per share. Adjusted EPS was $0.99, up from -- up 14% from $0.87 in the prior year period. Currency added $0.01 to adjusted EPS in the quarter.

Let me now turn to our free cash flow. For the second quarter, our free cash flow was $727 million, up 29% from $566 million in the prior year period. EBITDA growth and working capital changes were the primary drivers of the year-over-year increase.

I'll also provide a quick update on several capital allocation items. We completed our $605 million return of capital transaction on May 4 and repurchased 100 million of our shares in the quarter. In July, we repurchased an additional $238 million, completing the $600 million NCIB announced in February. In aggregate, these transactions have reduced our share count by approximately 3%. We also paid down $500 million of maturing notes in the quarter.

Now let add some incremental color on the Global Print transactions mentioned. In mid-July, we reached agreement to sell a 51% stake in our Global Print business to KKR for cash proceeds of approximately $500 million. As Steve indicated, we see this as a positive development as it will leave a stronger and more focused portfolio with improved growth and a higher quality revenue mix.

We anticipate the transaction closing in the fourth quarter, subject to satisfaction of regulatory approvals and customary closing conditions. After the close, Global Print will be deconsolidated from our financial statements, with our 49% stake treated as an equity method investment. Beginning with our Q3 results, we intend to report Global Print as discontinued operations in our financial statements. To help with your modeling, we plan to issue a schedule with restated historical results based on this discontinued operations treatment ahead of our Q3 report.

As part of the transaction, Thomson Reuters will maintain intellectual property rights and full editorial control over its content portfolio. The joint venture will hold an exclusive license to publish and distribute the content in print, on ProView -- on print and on ProView Global Print's eBook platform.

In return, the JV will pay a royalty to Thomson Reuters equivalent to 20% of its professional revenue, which is 85% to 90% of the total Global Print revenue. The royalty will be reported within a new revenue line in our segment reporting. The royalty plus a multiyear transition services agreement will likely offset -- will largely offset stranded costs from the separation. As a result, we see the Global Print transaction being 60 to 70 basis points accretive to organic growth -- revenue growth and approximately neutral to our margins following the transaction close.

I'll conclude with my thought -- with a few thoughts on our outlook. Let me start by noting that our guidance is based on the current reporting format, including the Global Print segment. Following the close of the transaction, we will update our outlook and -- to incorporate the financial impact. As Steve outlined, we are raising our full year outlook for both total and organic revenue growth to the high end of the prior 7.5% to 8% ranges, incorporating the stronger first half performance. We are also raising the total and organic revenue growth outlooks for the Big 3 to a range of 9.5% to 10% from the prior approximately 9.5%. Our other outlook metrics remain unchanged. We continue to see 2026 adjusted EBITDA margins of approximately 40%, and we expect free cash flow of approximately $2.1 billion.

Turning to the third quarter. We expect organic revenue growth of approximately 8%, and our adjusted EBITDA margin to be approximately 36%. Included in this outlook is an expectation for $19 million of severance expense related to our initiatives to reimagine how we work. We are confident in the full year margin outlook and see strong year-over-year margin expansion in the fourth quarter, driven by the impact of severance actions in recent quarters, growing automation savings, moderating M&A dilution and underlying leverage on our strong revenue growth. Savings from severance actions and automation efforts are expected to be approximately $40 million in the fourth quarter.

Now I'll turn it to Gary Bisbee for the Q&A.

Thank you. Jennifer, we're ready to begin the Q&A session.

[Operator Instructions] We'll take our first question from Manav Patnaik with Barclays.

I was just wondering if you could give us a sense of how CoCounsel was doing in terms of its growth rate and size? And just previously, the build out of Thomson, is that -- can be beneficial to CoCounsel ? Like how interconnected are those 2?

Yes. Manav, thanks for the question. So I'll start. Gary will likely add.

So a quarter or so ago, we reported that CoCounsel had reached the 1 million user mark. We see healthy growth beyond that. I think equally importantly, though, we see exciting growth in terms of its usage. It's one thing to get it in the hands of people. I think it's another to see daily usage tick up in really healthy ways. And that's across the legal and the tax and order versions of CoCounsel. So that's my first comment.

The second comment is we put a completely rebuilt version, fully agentic version of CoCounsel legal into the market in beta form and we're ramping that up as we go through here. We'll be talking a lot about it at the ILTACON conference in a couple of weeks.

And the feedback on that has been extremely strong. I haven't seen feedback as strong in my career for a new product. And specifically, the accuracy and the breadth of agentic capabilities, and maybe most significantly, the transparency. It is the opposite of a black box. And for the fiduciary professions that we serve, particularly the legal profession, -- the idea that a young mid-tenure senior lawyer can see that 12 or 20 or 30 steps that the agent is going through and see all the citations and references, and in a sense, access a product that is verifiable, auditable and they're able to validate each and every step, I think that's a step forward for the profession, and that's one of the things that the customers are excited about. So that's the first part of your question.

The second part of the question, we're going to put, as I mentioned, tabular analysis, which is an important bulk document analysis feature across onto the Thomson model later this month. And over time, I would see us supporting more and more capabilities as we develop the Thomson model and its capabilities are enhanced. And that will give us, we think, the benefit of reduced latency, so greater speed, more scalability, and a cost advantage. And all of those things, we think will be compelling in the marketplace.

The only thing I would add is, I think relative to the CoCounsel, the pipeline is building nicely here coming out of beta and heading into what we've seen in June and July. And so the team is out there selling all the benefits through, and we're seeing also good conversion early on in that pipeline. So that's the only thing I would add.

Got it. Maybe just asked a slightly different way. I mean the acceleration in the legal organic growth has been impressive the last 2 quarters. Is there any way to disaggregate that growth by the market that you described before seeing any other content through research and then the workflows or any way to just aggregate to help us appreciate the growth rates there?

So -- it's a great question, Manav. The answer today is no. We don't have that ready for you. And I think one of the reasons we don't is that these things are becoming increasingly intertwined. So -- the most exciting thing for us about this agentic AI environment, for example, is it expands the role we play in a meaningful way. So you take a product like Westlaw Advantage and CoCounsel. It gets us into the draft -- it gets us into the drafting business. It gets us into the brief building business. It gets us into sort of advanced litigation analytics. And so we start to do more and more advanced lawyering tasks for the professionals that we serve using our content, using our expertise, using the access to the best AI tools. And so that sort of clear distinction between research and workflow software is meaningfully, and I think, purposely blurred. And that's sort of what's driving the uptick in growth that you cite.

We'll go next to Vince Valentini with TD Cowen.

Can I focus on the margins for a second? If you do 36% in the third quarter, obviously, that's down from 37.7% last year. $19 million in severance would be just about 100 basis points of the impact, but there's still seemingly year-over-year decline even after the severance. So is there anything else onetime in nature, timing-ish in nature that you can point to? And you mentioned earlier the largest ever brand campaign you've done for the next generation of CoCounsel, so maybe there's some somewhat nonrecurring costs there?

And secondly, just keying off of that, if your full year guidance hasn't changed, it would still be up around 100 basis points full year. Unless my math is wrong, you need to do just about 45% EBITDA margin in the fourth quarter. I just want to make sure that's what you're telling us is possible given the automation savings from reimagining work plus other benefits of leverage from the good revenue growth you're doing. So if you can clarify those margin things, that would be very helpful.

Yes, you got it, Vincent. Thanks for the question. I'll address your third quarter question first and then go to the full year. So in the third quarter, it's really a continuation of factors we've described in the first half, the severance that we mentioned here in the third quarter. We are continuing to make investments, in addition to the increase in the marketing spend Steve mentioned, to drive automation and innovation. And then we also have some modest dilution from an M&A perspective. So it's the amalgamation of all those things that, like you rightly pointed out, is driving that guide in the third quarter.

The thing that I would then pivot to in terms of the full year, margins are progressing largely as we have planned. And so this has kind of been how we thought about the year as we've gone through it. We remain confident in delivering that full year outlook. Year-to-date, we've had a number of targeted investments as we focus on, like I said, innovation and automation. We have absorbed a lot of that acquisition dilution, and there's been meaningful severance. Like I said, in the third quarter, we expect $19 million of severance.

In the fourth quarter, to your question, maybe not quite as high as you just referenced, but kind of in the low 40s EBITDA margin is what we have line of sight to. And we expect to deliver $40 million of savings from our efforts to drive automation or reimagine how we work. And we expect to have significantly lower year-on-year severance than last year, we had $19 million of severance in Q4 of 2025. So you kind of put that all together, Vince, what that says is that combining the underlying operating leverage from our healthy revenue growth. And the factors I pointed out, that provides confidence we feel and we do have line of sight to the strong year-over-year margin expansion implied for the fourth quarter and our full year outlook.

We'll go next to Drew McReynolds with RBC.

Yes. First question on the increase in Big 3 organic revenue growth for 2026. Obviously, great to see. Wondering if you could unpack the key driver, key drivers underneath. You're clearly seeing strong transaction revenues on a year-over-year basis. And just wondering, is there a segment that's driving it? Is it transaction revenue? And then, Steve, in your prepared remarks, you talked about repeat transaction revenue. Can you just explain that forth?

And then second question, just a follow-up on the Thomson LLM, was it [ trained ] on less than 10% of your content? Is its capability presumably going to grow with a function of training it on more of the content? And what's the gating factor for, just to date, training it on less than 10%?

Yes. I'll handle the growth drivers here quick. Yes, I mean the Corporates segment had a standout transactional revenue growth quarter. And that was ahead of our expectations. They had a bit of an easy compare embedded in that. But Pagero and the global expansion really has accelerated that business. Global trade indirect tax, we're seeing strong traction there. We continue to add agentic capabilities to those platforms, which is driving kind of a new conversation for the field to have and therefore, delivering strong growth.

Look, our legal professional business, the size and scope of that, for it to grow and accelerate its growth rate, that's a lot of dollars of growth as well in addition to growing and accelerating kind of from 7, 8, 9 to 10, 11. And so I just want to make sure we all understand that we're driving that kind of growth at scale across that and its Westlaw, and it continues to be CoCounsel as we continue to drive that forward. So those are kind of some of the growth drivers that we saw delivering that growth rate here in the second quarter.

Steve, did you want to talk about the other part of the question?

Yes. Well, just to repeat the 2 parts. To repeat transactional revenue through, that was really -- this is the reference to the improving quality of our book of business as we divest 51% of print. As you know, we're very focused on the long-term customer relationships and driving our NPS up and translating that into multiyear agreements. And that forward visibility, we think, is important in terms of the way we manage the business and the way in which investors view us. So that was really just a reference to that shift.

In terms of the Thomson model, there's no particular constraint that led us to use less than 10% of the legal content, other than the architecture of the model wanted to create something that is rock solid in terms of its foundation. And as I said, ended up creating something which has produced extraordinarily strong general domain results. And I think that was sort of the order of business in terms of creating the model. So there's no particular constraint in here that we're trying to navigate. What we will now do is continue to invest in that and start to open the spigot in terms of that legal content. We expect the legal specific results to improve as we apply more and more content and expertise to it. And we'll keep you apprised as to sort of what that looks like as the quarters roll through here.

Let me make a couple of comments about why we're calling out the Thomson model and why we think there's reason for real sort of optimism and that we're encouraged by what the team has been able to achieve. The first thing, Drew, is I think it speaks to innovation at Thomson Reuters. So -- if you look at the last couple of years, we've been able to put a fully agentic deep research version of Westlaw into the marketplace, which has been, by far and away, the leading legal research product in this deep research environment. We've reinvented CoCounsel legal. And as I said, in response to Manav's question, we're very encouraged by the early feedback there.

CoCounsel audit and tax is performing well. We've started to add agentic capabilities to our ONESOURCE, into our transaction compliance portfolio. And then for us to create a large language model, it performs at the level it does in its first version, I think, speaks to us owning our future. I think it gives us a level of sort of leverage with suppliers, that's healthy.

And importantly, as we've taken this out in the very early going to customers, our most sophisticated customers are increasingly seeking advanced AI models operating within their own environments, where they retain control over their IP and their data. And this is incredibly important we serve as we do fiduciaries, right? Their preference for what -- what I would call sovereign AI is strongest where they have the concerns over compliance, and those concerns are particularly [ our cue ] and the sort of consequences of IP bleeding out from their environment, but particularly acute. So I think there's an opportunity here for us to meet and exceed that demand for sovereign AI within the legal community within the tax accounting and audit communities using Thomson.

And then lastly, I referred to this as -- in response to Manav's question, but I'll just reiterate it. It does provide us some really compelling optionality as a potential to CoCounsel. But we'll start with tabular analysis. We'll run that in August. And then based on our evaluation of that, well then, I think, put more capabilities across -- within the CoCounsel suite to Thomson, and that will give us reduced latency, a significant cost advantage and this ability to provide sovereign AI solutions that will meet the needs of our most sophisticated customers. So look, what I've said to the teams here is I think they've done something amazing, but we're just getting started.

Drew, the only thing I would add to that, just to your -- reoccurring transactional revenue, I would call it reoccurring, if you will, in some of our tax products, a few of our tax products. Well, we call it transactional, it's a repeat kind of year in and year out, and kind of what goes up and down is a little bit of the volume elements of that. And so that's what I would call reoccurring. And again, we have good visibility to that here as we get closer to when that demand shows up.

We'll go next to Andrew Steinerman with JPMorgan.

This is Rohan Kalra on for Andrew Steinerman. I just wanted to touch maybe on LLM costs, maybe how you guys are thinking about this going into the back half and also maybe seeing if there's any interest in shifting to a consumption or subscription and overage model for any of the AI offerings?

Yes. Thanks, Ryan. Great question. So a couple of thoughts, and I'm sure Gary will build here. So the first thing is we've built our agentic solutions to be optimally efficient. And kudos to [ Kirsty ] and [ Joel ] and everybody involved here because we do see more efficient usage of tokens than some of the other sort of competitors and in-market products. So that's one thing.

The second thing is, as I just referred to, the Thomson model gives us a lot of optionality here. And if we can reach anywhere near capacity of our GPU [ fact ] compute around that model, we're going to have a meaningful cost advantage, which means we can keep our pricing and our sort of propositions, very, very simple, clean and clear, to our customers. Having said that, I think like many others, we are considering a consumption-based component to pricing, some of our options in the future. And certainly, customers are open to that. And we're making a series of infrastructure investments to support this as soon as the new year.

Gary, what would you add?

Yes. I mean I think the only point I would make here is that our AI solutions are typically sold as a premium tier that includes the agentic capabilities. And the pricing for that key AI offering like in Westlaw Advantage is [ comfortably ] covering the growth in the LLM costs and the customer usage here we're seeing in 2026. And that pricing structure that we have today really also is aimed at supporting the cost of growing customer usage over time. So I feel good about the current mechanisms, like Steve said, that are simple for customers to understand, but also providing the right economic outcomes as we move forward.

We'll go next to Aravinda Galappatthige with Canaccord Genuity.

I'll start with a quick follow-up on CoCounsel. Steve, I think you've said in the past that you've observed with many of your law firm clients that the level of experimentation and trying out new products remains high. I know that you speak to some very good feedback on CoCounsel, including sort of the recent beta version. But vis-a-vis the competitors, the startups, any kind of head-to-head feedback that you can share? I'm not sure how easy that is to extract, but I'm keen to maybe hear your thoughts on that.

And then in terms of sort of my main question, with the buyback programs completed, maybe just how you're thinking of capital allocation? I know the stock has recovered a bit off the bottom, but obviously, I think in the minds of many, it remains attractively priced. I wanted to hear your thoughts on that as well.

Yes. Thanks, Aravinda. So I'll defer the buyback question to Gary, but let me address the CoCounsel legal question. So I think you've captured the environment correctly up until now, which is law firms, small, medium, large and to some extent, general counsels offices have been experimenting with most multiple tools and have signed up for trials or 1-year agreements. And so it remains a pretty fluid market. And it was with that as the backdrop that we completely rebuilt CoCounsel, and we've done that under the leadership of [ Emily Colbert ] and [ Rabia Ashwath ], who I think have done a wonderful job with the Head Engineer, [ Viola ], in redoing it. And it's given us enough confidence to launch The CoCo campaign and spend some real money in terms of getting the merits of that product into the mind -- the hearts and minds of our customers.

It is the first time that we have used the depth and breadth of our content and expertise. So Westlaw Practical Law, 2,600, 2,700 attorney editors and practice experts to train that product. And it's the first fully agentic version. And so the early feedback we're getting, as customers compare it to other offerings in the marketplace, is that it is different -- highly differentiated because of its access, it's native access to our content and our expertise. So it's barely going in terms of launch. It's only literally a number of weeks that it's been in the marketplace.

But the customers that have ported across from the prior version of CoCounsel and the new customers to this offering are showing a very, very strong usage growth, which for me is the most important thing that I look for in terms of are people coming back all day long and using the product and getting value from it. And that looks really encouraging. So how it plays out from a competitive landscape, I think, remains to be seen. But we're very optimistic about this new offering. We're going to keep investing behind it with [ bob ] document review capabilities, with collaboration tools increasingly linking it to our other propositions.

And bear in mind one last comment. This is white space for us. So this whole sort of legal AI assistant is a white space growth opportunity for us. And we're confident we'll capture more than our fair share as we go through the next 12, 24, 36 months, but it is new spend and a new growth opportunity over and above the existing components of our legal business.

Gary, what else would you add on CoCounsel and buybacks?

Yes. On CoCounsel, I would just emphasize Steve's point around usage with just a click down. And so we're seeing the number of interactions go up but also the duration and persistence of those interactions sustained. And so they're in it more often and they're using it for longer in kind of getting to end of job, if you will. And so it's demonstrating a real impact, I think, by those usage patterns. So encouraging for sure.

In terms of your question around kind of capital allocation, I'll just kind of go up periscope in a minute and then directly answer your question. So I definitely support a balanced capital allocation approach that TR has followed in recent years. Our objective, as Steve outlined, is to drive innovation, really to beat our competitors, delight our customers while maintaining a key focus on shareholder value creation.

Against that objective, our first priority for capital allocation is -- remains investing in our business, in innovation, both internally and through strategic M&A. We remain committed to growing the dividend over time, and we'll consider kind of capital returns through share repurchases and another return of capital to shareholders. And so that's the broad philosophy. And directly related to the rest of the year, but we don't have an approved program in place right now. We just completed that program. We'll continue to evaluate that relative to that prior kind of stated set of priorities and determine if it would be prudent to get back in for a share repurchase or not, but no plans at the moment.

We'll go next to Tim Casey of BMO.

Steve, could you outline how we should think about the Thomson LLM model in terms of discrete product offerings? Like is this going to be a product that is marketed in itself? Or will it power and complement existing platforms? And there has been a lot of -- or some stories of major law firms deciding to do it alone and protect their IP and content. Is the Thomson LLM something that could help them do that? And just -- I'm just trying to -- if you could help us think about how we should place Thomson LLM in your product set.

Yes. Thanks, Tim. So we're working through that now. The first production version eval results came out 10 days ago, and we've been hard at work to sort of look at what's the best way for us to take advantage of that, which we've added and built. And I think it provides at least 2 parts. So one is, as you say, major law firms who want to create and -- a sovereign AI environment and run a version of the model, co-mingle their own information within their own environment and potentially run CoCounsel on the top of that. So that is one part and we're in conversation with a number of firms now around what that might look like and what that sort of primary use cases will be and how we would implement that.

The second that I've referred to a couple of times is to build upon tabular analysis running on Thomson and add more and more of the CoCounsel capabilities. And as I said, I think that gives us a sort of a degree of ownership over our future and sort of independence and autonomy as well as speed and cost advantages. And so we'll be thoughtful about that because CoCounsel is working well. And so we don't want to be overly disruptive. But it's pretty exciting as to the options that it puts in front of us.

But notionally, when do you think you'll be in a position to monetize Thomson LLM on a discrete basis?

I think we'll -- I mean, we certainly, as I said, exploring the opportunities now. I think we'll have more to tell you in the next couple of earnings calls about where it's going. I'm hopeful we've got sort of an announcement or 2 to make between now and then. But we'll be thoughtful and we'll be sort of trying to optimize its value for the long term versus any particular quarter.

We go next to Kevin McVeigh of UBS.

Great. Congratulations. I guess on the print business, can you just remind us what the after-tax proceeds are going to be from that? And then if you were to really size the buyback, like size it, how big can you go?

Yes. Thanks for the question. So right now, you'll hear more about kind of the net proceeds as we continue through the overall kind of updating from a regulatory requirement and what we'll file on that. For now, we're just going to leave it at kind of gross proceeds of $500 million.

And as it relates to the size we would go to, I mean, it's an interesting question, but I would just go back to, again, the overall philosophy here, Kevin, is we've got tremendous kind of growth options internally and externally to fund. And we're excited about those. We'll be prudent as we deploy that capital and get the expected returns that we would want out of that. That's point one.

Point two, the dividend is an important aspect of what we do, and we want to continue to sustain and grow that. In this environment, we just need to make sure that we have the capacity to take advantage of those growth options that I talked about. So how big could you go? I mean everybody can kind of do the math. And -- so I'll leave that up to you. But that capital allocation approach is important that we understand and identify and clear the market on those organic and inorganic options and then consider other returns of capital.

Great. And then, Steve, it sounded like the commentary on the organic growth, it didn't sound like a ceiling to me in terms of that 10%. Is there any way to think about where you think that can go and what the drivers of that? Maybe just a range as whether it's kind of CoCounsel legal or kind of Thomson start to scale? How does that contribute to the growth?

Yes. Kevin, I mean I'll sort of let you in on the way I think about this, and that is just driving it, just incrementally driving it up. I don't think there's a ceiling. And the reason I don't think there's a ceiling is that we're serving fiduciary professions that are retooling, at the start of retooling their businesses to take advantage of automation and AI, and we're one of the players that have the sort of assembly of assets to take advantage of that and to provide those tools.

So our focus is to sort of up our rate of innovation. And as I said, in answer to an earlier question, we're happy with the last sort of 12, 24 months and the success rate that we're delivering and the results on our growth to date. We're just helping on increasing that rate of innovation and translating that into higher organic growth. So bit by bit, year-by-year, we just want to drive it up and make sure that it flows through in terms of healthy leverage, and we're able to reinvest some of that back in the opportunities that Gary just described that are ahead of us. So I won't quantify it because I think it would be inappropriate to do so. But that's really where the focus is. And I think everything we see from our customers suggest that, that opportunity is real, and it will play out over the next few years.

We'll go next to Stephanie Price with CIBC.

I wanted to follow up on Gary's comments about AI pricing. So with 32% of ACV now Gen AI-enabled, I wonder if you could talk a little bit about the revenue uplift you're seeing from CoCounsel and the Gen AI solutions? How you kind of structure the AI pricing here? And how do you think about that evolving over time?

Yes. No, thanks for the question. It's a great point. I've seen a several of these technology transitions over the years, and you can think about an analog around the cloud kind of transition to migration and uplifts from that. And so -- as I stated, I think I would start with the fact that it's -- the agentic offering is a premium tier pricing kind of mechanism for us. The innovation, the accelerating in that pricing mechanism, we want to make sure that the contracts are appropriately capturing the accelerating pace of innovation and therefore, benefits to our customers from getting that innovation path as we move forward. So if you think about kind of a multiyear contract, right, we'll enter and then see the progression in price, it would be commensurate with the progression and innovation and benefits that you'll see in the customers and what they're realizing.

The interesting, I think, development from a migration and uplift perspective is, like Steve mentioned, we're increasingly performing more and more complex kind of lawyer tasks with those solutions, and that solving those complex lawyer tasks is commensurate with a higher degree of value. And therefore, how do we continue to think about the appropriate value between exchange between customers and our offerings. And so that's a large part of what we're digging through and working our way through. I think right conversations with customers regarding consumption. But I'm not going to give you a specific kind of migration uplift that we're seeing today, but it is more than sufficient relative to the cost of consumption and the underlying cost base that we're seeing. And we think that it's a good balance between kind of growth and profitability over time.

We'll go next to George Tong with Goldman Sachs.

Legal organic revenue growth accelerated to 10% and legal ex government remained at 11%. You highlighted Westlaw and CoCounsel as key contributors. As AI adoption increases, are you seeing that spend come primarily from new budget creation or from customers reallocating existing legal technology spend? In other words, to what extent is AI expanding wallet share versus just shifting spend within the legal ecosystem?

Yes. Thanks, George. It's a great question. So -- so I think if you run a survey of law firms, small, medium, large, the vast majority are spending more on technology this year than they did last, and the vast majority plan to further expand that going forward. And it reflects, I think, a couple of things. I think it reflects a sense of optimism about what automation and AI can do for their practice areas. It reflects, I think, a competitive need to do so, whether that's coming from pressure from their biggest customers or pressure from their most talented prospective recruits.

But essentially, the transition that they're on is to spend less on real estate, potentially less on head count per dollar of revenue, although that remains, I think, very much up for debate. But unequivocally, more on technology. And essentially, some of the announcements you've seen in recent months are a part -- some of the world's biggest legal partnerships saying, we're going to take some -- a proportion of partner profits and invest them in our tax spend over a period of time. And that's, I think, one manifestation of that new spend that we're seeing.

Very helpful. And then following up on that, you highlighted very strong CoCounsel usage growth, engagement, customer feedback. What metrics do you watch most closely to determine whether that engagement is translating into sustainable revenue growth and market share gains?

Yes. I mean, I think you can see it in our results relative to, again, the legal professional growth at 11%, accelerating from 9% in our recent history. That's a pretty good indicator that I think we're winning in the marketplace.

I would say that the second thing is that the -- that ongoing pricing mechanism is something we continue to evaluate and do we go to more of a consumption-based pricing approach. Some customers certainly want to engage in that conversation. But I think overarching, what you're going to see is the continued acceleration in the legal professional ex government growth rate. And again, a large part of that is coming from the agentic offerings, both Westlaw and CoCounsel.

We'll go next to Toni Kaplan of Morgan Stanley.

This is Yehuda Silverman on for Toni. Just had a quick one on the tax and accounting challenges you mentioned in the quarter. Can you dive a little bit deeper into some of the execution challenges, if it was environmental, internal competition based? And what gives you confidence to move past this going forward?

Yes, it's a good question. I appreciate the follow-up. If you kind of go up here, go up a little bit. We entered 2026, I think, focused on messaging our future product vision for an expanded ready to review that integrates capabilities from a number of our offerings into a single tax workflow platform. And that's absolutely the direction of travel, that combined with ready to advise to then take advantage of the outcomes and the agentic pieces that go with that.

However, I'd say the messaging and the future vision, while it's been well received, may have caused some confusion with our customers and our sales organizations over what products they're set, they should be buying today versus kind of where are we headed with that vision. And this kind of transitional period and kind of what do we buy today, where are we going from a vision perspective, while the vision is clear and coming into focus and we'll be able -- we're executing against that, impacted some sales momentum in products like SurePrep here in the past tax season. So I would say, like I said, we've got a clear vision as to where we're going. It's resonating. You'll hear more about that in coming events, but it may have caused a bit of confusion here in the short run.

Yes. The thing I would add, Yehuda, is just -- it's not competitive. So we don't see any sort of change in the dynamics in that marketplace. I mean, if you step back, what we have is a privileged position in terms of providing tax calculation engines to a wide variety of tax professionals, whether they're the head of tax within a Fortune 500 company, the Big 4, large strategic firms all the way down to sort of 1- and 2-person [ burns ] on the high street. We've got an array of tax calculation engines that serve all of those marketplaces.

Those engines are very accurate. They are constantly and almost instantly updated for the latest rules and regulations. They're cost efficient to run and they're deeply entrenched with years of back data and so on and so forth. So if you think about sort of applying AI to that environment, there's not a lot of room to improve those tax calculation engines. And the extent to which there is, we're able to do that with minimum disruption.

Where AI is helpful, to Gary's point, is in all the shoulder activities, whether it's a document ingestion, the e-filing, all the way through to the sort of follow-up and advisory recommendations. And that's our belief set as we've built out ready to review and ready to advise, the sort of integrated workflows. And so we think this is a place where we're building on that -- those positions with the tax calculation engines. We can automate more and more of the shoulder activities to help alleviate a pretty acute talent shortage that exists across the entire industry across the entire CPA space. And so that's our vision.

We haven't executed from a go-to-market sales perspective as well as we'd like to. We've made some changes to the composition of the team, and we're optimistic that we'll be on track very, very quickly.

We'll go next to Jason Haas with Wells Fargo.

If you could comment on where you're finding some efficiencies just given some of the severance expense that you're calling out, I'm curious, yes, where those efficiencies are being out in the organization?

Yes, I'll start, and I'm sure Gary will add. So as you know, Jason, we've taken the team that drove the change program. So under [ Kirsty ] leadership, [ Andrew Pearce ], the addition of [ Mike Goddard ] and [ Liz Bank ], and they're running the play here to make sure that every aspect of TR adopts agentic technology and is able to deliver higher growth and scale up without [indiscernible] head count potentially over time, making things more efficient.

The places where we've seen progress, I think, are fairly well documented. So Joel Hron has, I think, made great strides within our software engineering space and adoption of the latest cutting-edge tools. And I think importantly, improving the quality of output and about code base. The customer -- secondly, the customer support areas have seen some really promising early signs. And as we think about all of our functions all the way through to our go-to-market, we see opportunity across that. So we'll be pursuing that over the next 12, 24 months with great rigor and application from all of us.

Yes, I would just add to that, the ongoing focus on buying, identifying and executing against productivity is a muscle that TR has built over many years, and we'll continue to stay in focus, and will help us drive some of that investment back on the organic side as well. So it's an organizational capability to drive productivity and some of that's done systematically.

Got it. That's very helpful. And then as a follow-up, I wanted to go back to the transactional revenue was really strong in both Legal and Corporates. I guess by nature, we shouldn't assume that continues. Is that the right assumption to make? And can you talk about like was there any onetime revenue in there, any certain products that like really stood out that like won't repeat going forward? Just trying to think about how to model that going forward.

Yes. I would say the one place maybe where it wouldn't repeat as strongly in the third quarter as in the second quarter will be in the government space. As I called out in my remarks, that might not be as strong hitting in the third quarter. Still confident in the full year call for the government business and accelerating through that kind of end of year [indiscernible] fiscal year. That feels good. I mean, Pagero, like I just said, has been really a [ shooting ] star for us and has exceeded our expectations. We'll continue to look for that progress here in the second half.

I don't know, Steve, that there's other areas you would add?

No, I think it's well said.

We'll go next to Curtis Nagle of Bank of America.

Great. So great to see continued momentum in Westlaw Advantage. Maybe if you could just comment in terms of how far we are through the contract cycle, in terms of how much of the base has been addressed, and how much longer of a tailwind do you think this could be to ongoing legal growth?

Thanks, Curtis. Gary, do you want to take that?

Yes, yes. So we've not quantified the penetration or adoption on it. But there remains a good runway in Westlaw Advantage. I think more importantly, CoCounsel legal, the bundled offer that bundles Westlaw Advantage, Practical Law dynamic and the CoCounsel capabilities, I think we're still very much early innings, both in our legal customer base and our general counsel customer base of the adoption of that. And as you've heard, we're excited about the next-generation version of that, really continuing or bolstering the momentum we're seeing.

All right. I think that's the end of the queue. Thanks, everybody. We're around and happy to follow up if you'd like. Have a good day.

This does conclude today's conference. We thank you for your participation.

Okay. Greetings, everyone, and welcome to the 2026 Thomson Reuters Annual Meeting of Shareholders. Thank you for joining us today. I'm David Thomson, Chairman of Thomson Reuters, and I will be chairing the proceedings today. In addition to myself, I would like to introduce Steve Hasker, our CEO, and I'm pleased to recognize other members of the Board on my right and other members of senior management on my left who are with me today.

I would like to briefly outline the format of the meeting. First, we will deal with the formal business of the meeting as outlined in the circular. I will then make a few general comments on our business. Steve will then comment on our 2025 performance and what lies ahead for our company. Following that, we will answer questions or comments from shareholders.

I would like to note that this meeting is also being webcast live on thomsonreuters.com.

While the format I have outlined will assist in the handling of the formal matters, it is not intended to discourage anyone from asking a question or making a comment in reference to any resolution after it has been proposed and seconded. We will address any questions that directly relate to a particular resolution at the appropriate time during the meeting, and we will save general questions for the question-and-answer period following the formal business of the meeting.

Now on to voting. Matters before us today will be moved and seconded by a shareholder or a proxy holder of Thomson Reuters. We will conduct the vote on each resolution by ballot. The ballots will be tabulated and the results announced before the end of the meeting.

We will have 4 items of business today for shareholders to vote upon: the election of directors, the appointment of the auditor, an advisory resolution on executive compensation and a shareholder proposal as more fully described in the circular sent to shareholders.

All of the matters to be considered today require the approval of a simple majority of votes cast.

I've asked Norie Campbell, Chief Legal Officer and Company Secretary, to ask -- to act -- I'm sorry, I would like to ask her to table the notice calling the meeting and proof of such notice and the related circular and proxy forms have been distributed and made available to shareholders.

Mr. Chairman, I have done so.

Thank you, Norie. I've appointed representatives of our transfer agent, Computershare Trust Company of Canada, to act as scrutineers of the meeting. They advised me that a quorum is present. Only shareholders of record as of the close of business on April 13, 2026, or their duly appointed proxy holders are entitled to take part in and vote at this meeting.

I now declare this meeting is regularly called and properly constituted for the transaction of business.

I will now ask Norie to table the consolidated financial statements of the corporation for the fiscal year ended December 31, 2025, and the auditor's report thereon.

Mr. Chairman, I have done so.

Thank you, Norie. A copy of the annual report, which includes the financial statements was mailed to shareholders requesting copies, and has been made available in the Investor Relations section of our website at thomsonreuters.com. Extra copies of the report are available at this meeting.

Steve will be commenting on these results in a few moments. Should anyone have questions relating to the annual report, the financial statements or questions of a more general nature, our independent auditor, PricewaterhouseCoopers LLP and our team would be pleased to respond to them following Steve's remarks.

The first item of business is the election of directors. 14 directors are to be elected at the meeting this year. Information regarding the nominees proposed for election as directors is set out in the circular that accompanied the notice of this meeting. 12 of these nominees are currently directors of our company, and Michael Medline and Liz Hilton Segel are new director nominees. I will now call upon Barb Conway, VP HR at Thomson Reuters to make a motion for the election of directors for the upcoming year.

Mr. Chairman, I move for the election of each nominee whose name is set out under the heading Nominee Information as directors of the corporation to hold office until the next Annual Meeting of Shareholders.

Thank you, Barb. May I call upon Jenn Ruddick, Deputy General Counsel, Corporate and Securities at Thomson Reuters to second that motion.

Mr. Chairman, I second the motion.

Thank you, Jenn. If there are no further nominations, I declare the nominations closed. We will now proceed with voting on this matter. You will have received a ballot from the scrutineers when you registered. If you are a shareholder who has not already voted by proxy, or if you are a proxy holder who did not receive a ballot upon registration, please raise your hand and a scrutineer will assist you.

Please mark for or withhold as appropriate in the box next to the name of each director as it appears on the ballot.

Your Board of Directors is recommending you vote for this motion. You will use the same ballot to vote on all items of business today, so please retain this ballot until all voting is completed.

[Voting]

We will now proceed with the next item of business, which is the appointment of the auditor and the authorization of the directors to fix their remuneration. I will now call upon Kathryn Ouellette, Director, Canada Financial Controller at Thomson Reuters, to make a motion in connection with this item.

Mr. Chairman, I move that PricewaterhouseCoopers LLP be appointed auditor of the corporation until the next annual meeting and that the directors be authorized to fix their remuneration.

Thank you, Kathryn. May I call upon Heather O'Hagan, Head of Tax, Canada and Latin America at Thomson Reuters to second that motion.

Mr. Chairman, I second that motion.

Thank you, Heather. Please indicate for or withhold in the appropriate box on the ballot. Again, please retain your ballot until all voting is completed. Your Board of Directors is recommending you vote for this motion.

[Voting]

We will now proceed with the next item of business, which is the advisory resolution on our approach to executive compensation described in the circular. As this is an advisory resolution, the results will not be binding on the board. However, the board intends to take the voting results into account as appropriate when considering future compensation matters. This type of resolution is often referred to as a say-on-pay vote. This item of business is described in the circular. I will now call upon Nawal Zaarab, Assistant General Counsel, Corporate and Securities at Thomson Reuters, to move a motion in connection with this item.

Mr. Chairman, I move that the advisory resolution on executive compensation set forth in the management proxy circular be approved.

Thank you, Nawal. May I call upon Kathryn Hanley, Senior Director, Corporate Communications at Thomson Reuters, to second that motion.

Mr. Chairman, I second the motion.

Thank you, Kathryn. Voting on the advisory resolution will be conducted by ballot. Please mark for or against in the appropriate box on the ballot. Again, please retain your ballot until all voting is completed. Your Board of Directors is recommending you vote for this motion.

[Voting]

The final item of business before Steve Hasker and I make our remarks and you have an opportunity to ask questions, is a shareholder proposal submitted by the B.C. Government and Service Employees Union General Fund and the B.C. Government and Service Employees Union Defense Fund. The shareholder proposal is set out in Appendix B of the circular. I understand that Emma Pullman, the representative of the shareholder, would like to present and move the motion.

Thank you, Mr. Chairman. Good morning, fellow shareholders. B.C. General Employees Union is a long-term shareholder, and we have been engaging with the company since 2020. We have appreciated the frank and open dialogue with the company during that time. Thomson Reuters delivers software and data solutions to the U.S. government, including its flagship CLEAR product and related to CLEAR for law enforcement, Clear LPR, and other services through Thomson Reuters Special Services. CLEAR is reportedly able to aggregate billions of data points to build comprehensive profiles on individuals, and I'm told there're profiles on hundreds of millions of people.

The software's -- the company's software reportedly helps DHS, the Department of Homeland Security and Immigration and Customs Enforcement target undocument immigrants for detention and deportation and the company's technologies have been directly linked to deportations and raids across the U.S., potentially involving family separation and the detention of immigrants in conditions that violate their human rights.

Contract documents from DHS have described CLEAR as "the most comprehensive investigative database platform available," and they have called it mission critical to its operations. In 2022, Thomson Reuters agreed to enhance its approach to human rights due diligence and completed its first human rights impact assessment and ESG materiality, a move that we welcomed. We were, however, disappointed at the lack of disclosure provided through this process. The company, we understand, completed a subsequent assessment in 2025. And from what I have seen in the 2025 social impact report, there is very limited disclosure again.

Operation Metro Surge in Minneapolis brought the conduct of U.S. Federal Immigration Enforcement into international and sharp focus with credible widely reported evidence of civilian deaths, warrantless, arrests, racial profiling, do process violations and systemic human rights abuses condemned by the United Nations, among others. ICE's activities are the subject of significant lawsuits, and the products used by these operations, potentially including Thomson Reuters, may feature in legal proceedings in the future. Thomson Reuters and its investors are materially exposed to compounding reputational, legal and governance risks. And we believe its current disclosure of controls and enforcement do not specifically or adequately address these risks. It is not only shareholders asking for answers right now, the company's own employees have spoken out signing letters to the company and employees have allegedly been fired for speaking out.

Since at least 2022, CLEAR has sourced real-time location data with timestamps from Penlink. Reporting and research have also documented how Thomson Reuters' CLEAR can be used to work with Palantir's analytical platform in a system to system configuration despite the company's assertion that "Palantir is not a customer of CLEAR." And finally, in 2017, Thomson Reuters brought Vigilance, license plate recognition data into the CLEAR investigative platform.

Thomson Reuters and its investors, as I have said, are materially exposed to compounding legal, reputational and governance risks. Therefore, I would like to move a motion. Shareholders request the Board commission an independent human rights impact assessment evaluating the extent to which Thomson Reuters' products may contribute to adverse human rights impacts when used by law enforcement agencies, including when Thomson Reuters' products are combined with other surveillance technologies. This assessment should address reasonably foreseeable risks from aggregated or integrated use of surveillance tools by law enforcement or immigration authorities and recommend measures to mitigate such risks. This report should be publicly available, subject to confidentiality and competitive considerations.

Mr. Chairman, I move this motion. Thank you.

Thank you, Emma, for your comments. Jenn, can I ask you to second that motion?

Mr. Chairman, to facilitate the business of the meeting, I second the motion.

Thank you, Jenn. On behalf of Thomson Reuters, we appreciate our ongoing engagement with BCGEU. For shareholders, please note that we have presented the company's views on Appendix B of the circular. So in the interest of time, we will not repeat those.

Voting on the shareholder resolution will be conducted by ballot. Please mark for, against or abstain in the appropriate box on that ballot. Your Board of Directors is recommending you vote against this motion for the reasons outlined in the circular.

[Voting]

Once you have marked your ballot, please print your name, indicate whether you are a shareholder or a proxy holder and sign your name to the ballot. When you are finished, please raise your hand and a scrutineer will collect your ballot. We would ask that everyone who received a ballot, please return it.

While we wait for the results of the voting, we will proceed with the remarks.

I wish to acknowledge the passing of our dear colleague and Board member, Michael E. Daniels. Mike delivered exceptional judgment, perspective and integrity to Thomson Reuters, informed by a distinguished 36-year career at IBM. We remain deeply grateful for his countless insights and contributions to our company and Board. We extend our heartfelt condolences to his family.

The past year deserves reflection. The accelerating pace of change is formidable and ceaseless. We're shaping industries and redefining professions. At the center of this transformative change is artificial intelligence, bringing both immense opportunity and profound responsibility.

Leadership in this emerging era of artificial intelligence must adapt quickly, act with integrity and stay anchored in deeply human values. Thomson Reuters is built for precisely this moment. We play an instrumental role in powering the professions that underpin our society, law, tax, audit, risk and compliance and the news. We have earned the trust of those professionals who rely upon us, and we must continue to do so every day.

Our company enters 2026 with strong momentum and clear conviction. 1 million users worldwide now rely on CoCounsel, our AI-powered technology. The latter speaks to the trust our customers place in us where the accuracy and precision are essential. We do not carry that responsibility lightly. I wish to thank our Board of Directors for the stewardship over the past year and applaud senior management and the entire team at Thomson Reuters for their unswerving dedication.

Lastly, I extend my sincere gratitude to our customers and shareholders for their continued confidence and goodwill.

I shall now hand over to Steve Hasker for his remarks.

Thank you, Mr. Chairman, and thanks to all of you for joining us here today. I would like to note that today's meeting contains forward-looking statements and non-IFRS financial measures. Actual results may differ materially due to a number of risks and uncertainties, including those discussed in reports and filings that we provide from time to time to regulatory agencies. You can find these documents on our website or by contacting our Investor Relations department.

I'd like to start by reviewing our 2025 performance and then share my views on why we are the best company to train fiduciary grade AI agents and how this sets us apart from our competitors.

In 2025, Thomson Reuters delivered a solid performance with full year organic revenue growth of 7%, driven by 9% for the Big 3, which comprises Legal Professionals, Corporates, and Tax, Audit & Accounting Professionals. Our adjusted EBITDA margin exceeded -- expanded 100 basis points to 39.2%, and we generated $1.95 billion in free cash flow. Overall, we met or exceeded all of our 2025 guidance metrics.

In 2025, we executed on our product road map built around agentic AI that can carry out complex multistep work with accuracy and accountability. The professionals that we serve need to verify their work, stand behind it and earn their clients' trust every single time. That's the standard that we're delivering.

We see 3 tiers of AI solutions that have emerged. First, general purpose productivity tools, broadly useful, but lacking domain depth. Second, professional grade AI built for specific fields where some margin of error is tolerable. And third, fiduciary grade AI, the tier that defines our business at Thomson Reuters.

Fiduciary grade AI sets the bar where accuracy, accountability and trust are paramount. It comes down to 4 clear advantages for us. First, our proprietary and authoritative content. Without authoritative data, there is no source of truth and AI outputs cannot be validated. General purpose models trained on broadly available information lack this source of truth. We have spent decades curating proprietary content for Westlaw, Practical Law and Checkpoint, and these are not easily replicable. Second, our deep domain expertise. We have 2,600 subject matter experts that help create our content, train our AI agents and evaluate and validate their outputs. Third, our data privacy and governance. Our message to customers is very clear. Their inputs will not become part of our AI output. Their inputs will not become part of our AI output. When a client's privacy is paramount, we protect their workflows, strategic approaches and confidential information. And fourth, our customer support infrastructure. When a litigator is working through a complex research matter in Westlaw or a CPA needs help understanding intricate tax regulations as they prepare a tax return, they can call out expert reference attorneys and tax analysts. We invest heavily in these capabilities to support our customers and their outcomes. No Frontier model or AI-focused start-up offers this.

This past year, our fiduciary grade AI has translated into real momentum. We introduced CoCounsel Legal, powered by deep research and grounded in Westlaw and Practical Law. It marks our first agentic product, an important step forward in how we bring AI into professional workflows. Its strong adoption has given us a clear, repeatable playbook for building AI agents across our portfolio. Early feedback from customers piloting the next generation of CoCounsel Legal has been very encouraging, reinforcing our position as a leader in the legal market.

In Tax, Audit & Accounting Professionals, we introduced CoCounsel for tax and audit, ready to revise and ready to review. CoCounsel users who were surveyed see meaningful efficiency gains. And for our corporate customers, we introduced touchless compliance in our OneSource portfolio, which can help reduce compliance cycles by integrating fiduciary grade AI with enterprise tax workflows.

We're also building our own legal specific large language model called Thomson, that uses our existing talent, technology trained on our proprietary content and shaped by our deep domain expertise. It has begun to outperform the leading Frontier models on specific legal tasks.

We're also applying these capabilities internally. In 2025, more than 85% of our employees were active users of our AI tools, and we had over 300 AI use cases in development across the business.

In a world where trust and information is under extraordinary pressure, the independence and integrity of Reuters is not just an asset, it's a higher calling. We are deeply saddened this year by the deaths of our Reuters colleagues, Hussam Al-Masri and Moaz Abu Taha reporting in Gaza. Now more than ever, we are steadfast in our commitment to independent journalism and the safety of journalists worldwide. Reuters recently won 2 Pulitzer Prizes for national reporting and Beat Reporting, bringing our total to 15 Pulitzer Prizes. Excellence in journalism isn't just what we strive for, it's what we deliver.

It is with that same enduring commitment to justice, truth and transparency that defines how we show up for the world around us. Through our institute's partnership with the National Center for States Courts, we are helping judges and clerks make more informed decisions around AI adoption and effective use. And I am so proud that our colleagues who contributed more than 63,000 volunteer hours in 2025 through initiatives like our Social Impact Sprint and Global Volunteer Day, a true reflection of the dedication and care that they bring to everything they do.

Across Thomson Reuters, from our engineers and our customer success teams to our enabling functions, our colleagues are the driving force behind our progress. What sets them apart is their expertise, their curiosity and their relentless focus on our customers. They turn complexity into clarity and help us deliver trusted solutions that give our customers confidence.

To every colleague listening today, you truly inspire us. We will continue to obsess over our customers, compete to win, act and learn fast and grow stronger together. To David and the Board, thank you for your continued guidance and for the trust that you have in our team. And to our shareholders, we remain very grateful for your ongoing dedication and support of Thomson Reuters, allowing us to deliver for all of our stakeholders. Thank you.

So we would now like to take this opportunity to open the floor for questions. If you have a question or remark, please go to one of the microphones so that everyone can hear you clearly. Please identify yourself by name and indicate whether you are a shareholder or a proxy holder representing a shareholder. And as a matter of courtesy, we ask that you please limit yourself to one brief question or remark so that everyone who wishes to participate in this morning's meeting will have a chance to do so. But you're, of course, welcome to line up again, if you'd like to ask another question or offer another remark. So thank you for that, and the microphones are now open.

My name is David Peters, and I'm a shareholder. During the past couple of years, a certain thought has been going through my mind thinking about Thomson Reuters. As in your focus towards artificial intelligence, I'm curious how this affects your human resources strategy? In particular, one human resource management professor explained to me there are companies that in their -- with human resources they try to fill positions. And there's other companies that try to hire people. Anyway. How has this -- how have things affected your human resource strategy and people?

Yes. Well, David, firstly, thank you for your support and for your shareholding. Our Head of HR, chief People Officer, Jason Williams is here, and I'm sure he'd be happy to answer your question in great detail afterwards. But -- so we take great pride in the 27,000 colleagues that work for Thomson Reuters every day, and we take great pride in the culture that has been within this company for generations. And the way I think about it is we have a level of expertise in acumen that's unparalleled in terms of serving the professions that we serve, so legal, tax accounting, audit, government court systems and so forth. And added to that, this is a very collegial company. And I think that comes from the Thomson family, it comes from the Canadian routes and it comes from our routes in the Midwest, particularly around the acquisition many years ago of West Publishing and our position in Eagan, Minnesota.

And so added to that in a very, very dynamic environment, we are committed to continue our advantage through that expertise and through that culture. So what you won't see us do as we migrate into this agentic AI era is take our eye off that ball. We're always looking to attract, retain, develop the best people and to create an environment in which they can flourish and thrive and also be themselves. And so we've put all sorts of mechanisms around enabling people sufficient flexibility to live their lives and contribute meaningfully to TR and in the communities that they operate.

So again, David, happy to talk more about that afterwards, but I would finish with 2 thoughts. One is we are very, very proud of our track record in attracting, retaining and developing the best talent to date, but we are not, for a nanosecond, arrogant or naive about how competitive this marketplace is and will continue to be for the best talent globally. And so we need to continue to improve and continue to refine and develop the support we provide to our employees. Thanks, David.

Our remarks seem to have covered the territory, David. All right. Well, since there are no further questions, I'd like to hand the meeting back to our Chairman, David Thomson. And again, thank you all for being here today and for your support.

Thanks, Steve. I will now report on the voting tabulation based on preliminary results provided to us by the scrutineers. We wish to report that more than 92% of the eligible shares are voted at this meeting. I'm pleased to report that the 14 Director nominees standing for election have been elected as directors of the corporation to hold office until the next Annual Meeting of Shareholders. Each nominee received in excess of 97% votes in favor. I can also report PricewaterhouseCoopers LLP has been appointed as auditor of the corporation until the next Annual Meeting of Shareholders, and that the directors have been authorized to fix their remuneration. Over 99% voted in favor. I'm pleased to confirm that the advisory resolution on our approach to executive compensation has been approved. Over 99% voted in favor. And I can confirm that the shareholder proposal set forth in the circular has not been approved. Over 95% voted against the shareholder proposal and over 3% voted for the proposal.

The specific details of the voting results are expected to be made publicly available and posted on SEDAR tomorrow. If there are no further questions, I believe Jenn Ruddick has a motion to terminate the meeting.

Mr. Chairman....

I wonder if I could just ask 1 question. My name is Terry Constant, and I'm a shareholder. A few weeks ago, I had 500 shares, now I got 492 shares. I know there was some return of capital. I just wondered if you could explain what the reasoning was for making such a minor change in the share numbers because it means now going back to the market to round it off again.

I think our CEO would like to answer that question, but I do share your trepidation. You need to get back up. Do you know?

Terry, first, thanks for your support and for being here today. So the sort of overly simplistic answer to your question is, we have what we call a balanced capital allocation approach. So we focus on expanding the dividend. We focus on making acquisitions that will create value for shareholders. And then we have a relatively regular cadence of returns of capital, which is the transaction you referred to and when the opportunity arises, the share buybacks. And so the return of capital was another one of those, which reflected the last portion of the proceeds of the sale of the Financial and Risk business to the London Stock Exchange Group and the sell-down of our shareholding in LSEG. And so we felt it important to return that capital and complete in a sense that transaction through that return of capital. But I apologize that it's created a headache for you in terms of rounding up the holding.

Yes. Okay. I guess that explains it. Just complicates life.

Yes. I understand. Apologies for that.

Thank you.

Mr. Chairman, I move that the meeting terminate.

Thank you, Jenn. May I call upon, Chad MacLean, Treasurer at Thomson Reuters, to second that motion.

Mr. Chairman, I second the motion.

Thank you, Chad. Ladies and gentlemen, that concludes this meeting. On behalf of Thomson Reuters and our Board, I would like to thank you for attending our annual meeting today. This meeting is now terminated. Please join us for refreshments. Our directors and officers are wearing Thomson Reuters name tags and are available for questions. Thank you very much.

Thank you for being here. For those of you who don't know me, my name is Manav Patnaik. I cover business and information services with Barclays. We're pleased to kick off the afternoon session here with the team from Thomson Reuters. As you can see on the screen, we've got Steve Hasker, who's the CEO, but we also have Gary Bisbee, who's Head of IR; and Kirsty Roth, who is the Chief Operations and Technology Officer joining us here. So we're in battleground mode here, so bear with us.

Steve, maybe just to start at a high level, given all the debate, the noise. Maybe it's worth just taking a step back. And from your perspective, how do you describe Thomson Reuters and its positioning in its moats today to a new investor?

Yes. I mean we've been saying for a number of years now that we have a nice tailwind behind us, which is the growing complexity associated with compliance. So that's legal compliance, tax and accounting, audit-related compliance. And we're one of the few companies that have the content-driven technology to enable companies and their advisers to meet or exceed the needs of those compliance requirements without adding a lot of headcount. So that's the first tailwind, and that's helped drive us from when Kirsty and I joined the company 5, 6 years ago, we were growing our Big 3 at low single digits to now we're in high singles, and we've got line of sight to, we think, double-digit growth in the years to come for the Big 3 franchises.

I think the second tailwind for us is AI. We've been in the advanced machine learning space for 30 years. We put a functioning search algorithm on the front of the Westlaw data set in the early 1990s before Google was commercialized. So it's not -- when ChatGPT passed the bar exam, it wasn't sort of entirely new territory for us, and it's certainly something that Kirsty and her teams have worked on before that, and very intensively since. And essentially, what agentic AI enables us to do is play a much larger role in the success of our customers.

So in other words, for a tax and accounting professional instead of merely being the tax calculation engine, we can now provide an end-to-end agentic solution which covers all aspects of the tax return process. And then for a litigator, instead of being the primary litigation research data set, we're now in the drafting business. So whether that's a contract, a motion to dismiss, a motion to compel, a rebuttal and so forth. And so the reason we are confident in this AI environment, despite all the noise is our positioning.

So we're the only company, we believe, that can provide fiduciary-grade AI. And this is a term we've coined in the last couple of months, particularly with the sort of emergence of the horizontal players like Claude and Gemini and so forth. Fiduciary-grade is basically serving those professions where they cannot afford to be wrong. They cannot afford to hallucinate. And for those of you who follow the legal profession, you will have seen that several of the global large law firms have stumbled very badly in the last couple of months in the context of big transactions, big litigations whereby they have used a generic chatbot, produced the wrong results and then had the opposing counsel, in most cases, supported by Thomson Reuters AI solutions, point out the holes. In other words, pull their pants down in front of a judge or in front of their clients.

And so the reason we are advantaged in this environment is, firstly, we have the content. So 85% of our content is not publicly available. It's been created and curated by our experts. Secondly, we have the experts to help train our agents. And Kirsty's team have done a wonderful job of taking all of that expertise out of the heads of 2,700 deep practice experts and ensuring that our agents, including CoCounsel Next, which was launched in beta a couple of weeks ago, behave like a highly tenured expert.

Thirdly, we've got data privacy and protection protocols that no one else has. And what I mean by that is we make a promise to our customers, which is their input will not become part of our AI output. And that is quite unique in Silicon Valley, right? Everyone else is sort of putting an agent out there, putting a chatbot out there and learning from the queries, we are not. And the reason we're not we don't have to is because we have our own experts in-house, and we have our own content.

And then last but not least, we've got exhaustive customer support. And the reason I point that out, it sounds quite mundane. But if you use Westlaw Advantage, our AI, agentic AI product or you use CoCounsel, and you get a result that you don't understand, you can call a highly tenured attorney, live 24/7 and he or she will have access to the query that you've run and also has a deep understanding of that particular practice area. And you can ask them, "Well, why is it producing this result? I mean, in front of a judge tomorrow, I cannot afford to be wrong, I don't understand the result that's coming up." And you can track and trace it all the way back to its source and the same in the Tax & Accounting, the same in the audit professions.

And you've got to ask yourself, are the -- some of the start-ups or the frontier models themselves going to have that level of personal support? I mean they're not, right? And so we think that, that positions us to coexist with the frontier models. But to be the only player who can truly serve this fiduciary-grade AI. And that's why we're bullish and we're particularly bullish on the back of yesterday's results where our Legal Professionals business ex the government component grew by 11% organically. That's the highest we've seen. And we're confident that we can sort of drive this AI road map through our offerings and see accelerating organic growth.

Got it. Kirsty, maybe from your standpoint as well, you were a Chief Transformation Officer when you guys first created what's now just Legal and Tax and Accounting. What is the biggest change or your competitive advantages from your standpoint from your tech role as well?

Yes. I mean if you think about it, right, like all roles are impacted by AI. And certainly, whilst as Steve described, we're putting a huge amount of effort in what we put in the products, we're also changing the way we operate as a company. And I just think that has huge implications, right? Like the speed with which we can -- we're launching features faster than we ever have done. We are putting out new products in market, we're really able, as Steve described, therefore, to help our customers move from if you take tax, just a world where they're returning -- providing returns to getting into advisory services, right, because you crunch the amount of time they're spending on a return. And so the up leveling we've seen in early days, particularly in the engineering and the support teams for how much work they can get through that means we can move more quickly, I think, is sort of super exciting. And then we'll see that sort of through every function, Manav.

And I think that also gives us a real advantage. And we started that kind of work about 2.5 years ago. And I talked to a lot of peers who are COOs of -- I call it all legacy companies, right? All those kind of companies, and I know we're in a really good spot as to what we're doing. And I think that's really important. I don't think you can be in this world and be standing still and just taking advantage, you've actually got to reinvent the whole way you operate right now so that you're moving more quickly and serving your customers even better. And that's exciting because we're seeing real results.

Got it. And talking about real results, Gary, maybe firstly, thank you for reporting and getting on a plane right away to come here. But maybe just help us with last quarter -- last night's results, a quick summary. I mean it wasn't perfect. It was one of the stronger quarters you guys have reported. So if you can just quick highlights there?

Yes, yes, for sure. So we reported 8% organic revenue growth across the total company. We had -- that's up from 7% that we reported throughout 2025, and we had guided for the quarter for 7%. The outperformance was driven by our Legal business and our Corporates business. In Legal, we -- as Steve referenced, we grew the law firm customers so that excludes the government customers by 11%. That was up from 9% last quarter. And the acceleration there is driven by the tremendous success we've had with the launch of Westlaw Advantage, the new top tier that we launched last August and continued strong growth of CoCounsel, the AI assistant product.

And so I think we feel really good about the result. We also, as Steve said, discussed fiduciary-grade AI and shared for the first time some incremental customer usage data that I think supports the story we're telling and we're seeing, which is that we're seeing strong customer adoption and usage of these products that you see flowing through to better revenue growth. And so for the full year, we reiterated our guidance across revenue and profits and feel really good about the start to the year we've had and the outlook for the business, particularly on the back of that strengthening in the Legal -- business.

Steve, maybe let's start talking about some of this noise that you're alluding to. So maybe let's start with the Claude releases. Last night, there was something around the financial plug-ins in February, specific to the Legal plug-ins. There was obviously a crazy reaction in February. Harsh reaction yesterday, but just -- but then you were on stage with Claude as well. So what's really going on? What's the partnership right there?

Yes. So the way we've built our AI offerings, we're model agnostic. So we can and we do chop and change between whatever is the best frontier model at any particular time. So for CoCounsel Legal, that's the Claude Sonnet 4.6, now Sonnet 4.7, and it may change as things go on. For our Tax and Accounting products, that has been the latest ChatGPT models. We also have built our own model. It's called Thomson. And that's going to go into sort of full release as we go through this year. And the reason I point that out is it's a large language model built specific for Legal. It's entirely owned and operated by us, built by a number of former Google DeepMind scientists who are on staff. And starting to outperform the very best of the frontier models in terms of speed and accuracy for certain legal tasks. So that gives us a level of optionality as we go forward.

So we have a relationship with Anthropic. They're a big vendor to us. We've done a lot of co-development with them. And I think there are opportunities for us to expand that set of arrangements in various ways. I think though there's a sort of an assumption from investors that these frontier models are going to sort of eat all before them, right? They're going to machine learn their way into the content sets, they're going to be able to perform with sort of great levels of accuracy. We are very firmly of the view based on everything we see, the customer interactions we have and the accuracy of our products that this fiduciary grade is a spot that a general purpose model can't and won't meet that standard.

If you're a lawyer, you cannot afford to be wrong. If you're a Tax & Accounting professional, you cannot afford to be wrong. The fines, the risk of losing your license, the loss of client relationships. All of those things mean that you need to have CoCounsel in addition to a Cowork plug-in or a Copilot plug-in or a Gemini plug-in or whatever it might be.

And we're pretty confident that, that's how the market will evolve. But I think at the moment, investors have sort of decided, well, if you're a native AI company in one of these frontier models, you're a winner. And if you've been around for a while, you're a loser. And of course, and this is why Kirsty's role is so important. The winners will be those who execute. I think our product road map is fairly clear, at least to us and to our customers. And the rate of innovation is accelerating at Thomson Reuters. And for me, the only thing we're watching is just can we go faster and can we produce better and better products and more innovative products as we go. If we do that, we'll emerge not only as the unequivocal winner as we have been over time in legal research and the tax calculation engine space, we'll also move into this broader workflow space, and that's a new TAM for us. And that's why we're confident we can see this accelerating growth rates.

Got it. And to your point and move faster, I mean, some of this might just be perception, Kirsty, you can jump in as well. But when the fintech competitors or the legal tech competitors are talking, people think that these are the smartest guys out there. But I think a lot of your progress is buried on...

Yes. Can I give you an example. When I joined the company 6 years ago, we used to put out a new version of Westlaw sort of a couple of times a decade. It was a meaningful upgrade at each time and price premium associated and so forth. Now we put out a new version every 4 months. And we started the work on Westlaw deep research, which is a fully agentic product, at the same time that ChatGPT's deep research product came out. And we're able to outrun their deep research product in terms of its utility for high-end legal practice. And so this is something where we've got to earn the right every single day in terms of our rate of innovation and the success of those innovations. But I would -- for the professions that we serve, so tax, accounting, legal, audit, risk, fraud and compliance, I'd stand up our rate of innovation against anyone's.

Got it. And MCP is a big buzzword right now. Can you just clarify like your partnership with these LLMs and the monetization model and what's actually being shared?

Yes. So at the moment, they're fairly vanilla vendor relationships. So we haven't gone into sort of complicated rev shares or any of those kinds of things because it really is a case of picking the -- doing comprehensive evals, picking the best model, utilizing that at that particular time. I think there will be options going forward. The asks we get very regularly from all manner of players is they want to get access to our content and to our experts. And we see no reason to share that IP with anybody at this point in time.

Fair enough. And then maybe shifting to, I guess, you guys -- there's the content and research side of the market, and there's the workflow side of the market where it's more of the debate. So I know, Steve, Kirsty, both of you talk to clients a lot. So can you just help us peel back the onion behind the scenes? What are the lawyers, your counterparts telling you about CoCounsel versus Harvey, Legora, all these other alternatives out there, what's really going on?

Well, I'd say the first thing is at the moment, the tools are 18 to 24 months ahead of the change management within the firms. So I think there's this sort of narrative that these tools are there, it's all said and done. The pick a profession that's being transformed. I think within software coding, that is a real -- a simplistic but realistic picture. When it comes to legal profession, the tax and accounting profession, it is very early days. And so what we find amongst our customers is we have a number of customers who are Thomson Reuters only, and then we'll have a number of customers who are trialing on a paid basis, Harvey or Legora or some other tool and ours as well.

And as I said, we're confident, particularly on the back of the Westlaw -- or the CoCounsel Next beta test that's now going on that will emerge amongst that pack for the reasons I described. But at the moment, there's a lot of experimentation and there's -- and the firms are just starting the underlying change management, which basically means rewiring the way in which the work product is produced and the interactions between a senior lawyer and a partner.

So maybe it's the experimentation that's a disconnect because I think the view is that Harvey is growing whatever, Legora, so that means you've lost that opportunity. But it sounds like these are shorter-term contracts?

Yes. I mean, look, this is a market we weren't in, right? So I think it's interesting to see. And to Steve's point, I mean, I was actually with a core group of the sort of COOs of many of the biggest law firms yesterday. And these are companies that have never really been through a huge amount of change. They're not great at change anyway, right, even compared to corporates that are often not great at change. So I think it's just fascinating to see. They've got all these tools they've bought to sort of feel like they're trying stuff out and feel like they're ticking a box, but they don't quite know what they want them to do. I think what they do know and where we get a lot of feedback is people don't really want to buy 5 things.

So they might buy a Claude or a Copilot for some of the generic things that are sort of doing office admin, et cetera, they really like one tool. And that's partly why we've moved to sort of packaging, CoCounsel gives you access to Westlaw and Practical Law and everything and sort of that -- so to speak, sort of single pane of glass that does everything for you, as I think that's going to play very much in our favor.

But honestly, the change management right now is in super early days, I would say, in these firms and a lot of -- where I'm spending time with them is to help them figure out how you do that because it's not just about which tool you want to be using. They've got to think about their data and their integration and how that works. And there's a lot of anxiety to Steve's point earlier on, they can't afford to be wrong. Actually, one of the interesting discussions yesterday was, obviously, they're getting GCs or the general counsels that are obviously using many of these tools and then sending them wrong inputs to do their work. And that's not great either.

So a lot of concern. I think Steve mentioned many of our winning points earlier, but one I get involved with a lot is the security and privacy. Our customers can't afford for that data to end up in the wrong place, and they want to work with partners that can do that. So really think about how they put their whole sort of integrated suite of products together in a way that's effective for them. So a lot for them to do. And I don't think that -- I think that's going to be a multiyear journey.

If I could just add, Manav. In our simplistic way of thinking about it, we have our legacy markets of content-enabled technology. So Westlaw, in legal research, practical law, content around transactional areas of the law. The competitive dynamics there haven't changed a lot. It's a duopoly for the most part. LexisNexis is a strong #2 in both categories. We're both innovating with AI. We think we're ahead there, but we're seeing that drive growth as we drive upgrades to these new AI-enabled offerings. Then you've got another market, which we think is a significant incremental new TAM whitespace for us. That's AI workflow solutions. There are more competitors there. We're one of the leaders in that. We've had strong growth in that market.

The question for us is how much of that incremental TAM do we win? And then how impactful is it on our growth rates. And we've been a leader to date, we think with the next-gen version of CoCounsel, which more powerfully uses our content for the AI to do more. That's our play as we execute to be a clear winner in that market going forward. But even if we're one of a handful of players playing there, it's a significant incremental growth opportunity for us.

That makes sense. And you guys obviously gave us some user stats on CoCounsel recently. But obviously, some of the legal tech competitors give us like an ARR number and growth rate. Anecdotally, any way to compare CoCounsel...

We haven't sort of come out with a precise number as some of those companies have. Ours is in the same zip code. So we're notwithstanding that the CoCounsel Next that Gary just mentioned, is really the first time that we've harnessed the full power of our content sets and our expertise to train that agent, that CoCounsel agent. Notwithstanding that, we're at 1 million users. We're in an ARR that's similar to some of those players. So we've made a good start and now watch us accelerate.

I mean I think 2 dynamics to add. One, the main sort of fireside lobbying I got yesterday was people are hearing the beta is really good and they want to get on the beta. And obviously, we're still in beta phase until the summer. And the other thing is we're now solving about 3x more problems. So for many of our clients, they'll tell us we love CoCounsel, but it doesn't do this and that and the other, and we'd like it to do more. The folks who are in the beta are now immediately going back and retesting those things, they would hope it would do and it didn't do them, and it does them all. And so that's literally getting a sort of 3x uplift on the things that it can do. So we expect that to accelerate very quickly. I think in my day job, I'm going to have a scalability challenge as to make sure we can go fast enough to keep up with demand. That's certainly what keeps me up at night at the moment.

Got it. So outside of the workflow, the other debate, like you said, I mean, you're in a basket and nobody listens to these hallucination stories that come out every day, which should help you. But the other debate, obviously, is the data, right? Like you said 85% of it is close to proprietary, fiduciary grade, can you just double-click on that? Like talk a little bit more about where the raw data comes? How do you get to 85%?

Gary, do you want to take that one? He and I have debated this over time and I know it's near and dear to your heart.

Yes. So the first thing I'd say is we went in quite a bit of depth on our third quarter conference call in November. And so there are a couple of, I thought, reasonably compelling slides and 5 minutes of Steve's talk time on this. So I'd point people to that to understand this. But we think there's a significant moat around Westlaw and our other content assets. And I'd just make a couple of points. One, a lot of the data is just not publicly available. So when a court issues a ruling, the judge will put out a summary judgment effectively a summary of the outcome and what happened in the case. We get lots of other content briefs and other things from the courts and from other sources. There's also a bunch of it, like the docket information that's behind paywalls. So the models can -- a competitor could buy those but billions of pages. At $0.10 a page, it's a significant cost.

Then all the data we get is completely unstructured. We get it from more than 3,500 sources. We process more than 300 million documents a year into Westlaw. And there is a significant process, people, technology to standardize and be able to use that data, how you organize it is really key. We've got a ton of software tools that we've developed that are part of this. Things like the Key Number System, it's our taxonomy, or indexing system, 140,000 legal matters deep updated twice a year. Everything in Westlaw, from summaries to headnotes to citations are all organized against that. That is a difficult thing to do, and it is why we can be both comprehensive and accurate because it's all organized that way.

Things like KeyCite. It checks citations. It also tells you when a case has been overruled and you need to know that, right? It's not just about, hey, a model could go find something online about some case that's relevant. Is that still valid law? And a lot of those tools we have to wind this down and not talk too long, are really key to the final step of anyone who does legal research, which is verifying the outcomes. That's incredibly key with an AI output where they can make it up. And so we have the best tools around verification, and that is something that our customers, I think, really need.

There was -- Steve alluded to this, there was a very public, a couple of weeks ago, incident, where a large law firm turned in a brief that had some hallucinations in it. And the other side that found the hallucinations and showed them to the judge used Westlaw Advantage. Put the other teams brief into a tool we have in there called Litigation Document Analyzer. It said, here's the 4 mistakes they turned in. This is a great example of this fiduciary-grade AI, really hard to do. We've spent a ton of time and effort, process technology, people to create not only the content but the tools that deliver this, and we think that would be incredibly difficult to replicate.

The other debate within the data we get is like relevance of the size of the firm and if they're doing transaction law versus case law? Like how much of them really need this data? How do you approach that?

Well, law firms, I mean, they're always looking for new clients and new growth opportunities, and they are prepared, therefore, to extend into new practice areas, where they don't have necessarily a corpus of information in their own document management system or in the minds of their partners and associates. So one of the things that we bring in both Westlaw on the litigation side, Practical Law on the transaction side is a comprehensive across jurisdictions, across practice areas, robust, up to date. And so even if a firm is really deep in a particular area, chances are they're going to want to go elsewhere and they want that source of truth. So that's -- and there's a set of investments that we just continue to make.

Got it. And if we kind of moved a little bit into the Corporates segment, sticking to the legal side, like how do you think of the opportunity there with the...

Yes. So it's a great question because the sort of -- the heritage of Thomson Reuters Legal Professionals or Legal business has been Westlaw, which is litigation, and that's the law firms predominantly. I mean, they're obviously general counsels who are in industries where there's a lot of litigation. But by and large, the litigation practice tends to focus on the outside counsel. And so that's been the sort of heritage of the company.

The opportunity with general counsels for us is we've been chipping away at it for a few years, but it is to a very large degree, white space. And what we're starting to see is general counsels who perhaps work with a CTO who's saying, okay, to Kirsty's earlier point, let's use Copilot or let's use Gemini for various sort of aspects of knowledge work. But the general counsel and for that matter, the Head of Tax or Head of Internal Audit, needs a specialist tool that ensures they're accurate. And they come to TR because we've already got a set of relationships with their corporation, particularly through the ONESOURCE suite. And so we think there's a pretty big opportunity for us to grow and become the leading provider of that workflow solution set to the general counsel. And in doing so, help them drive significant efficiency and effectiveness through both their in-house and external spend.

Got it. That's helpful. Before we move to Tax & Accounting, just on the Corporate side, towards the end of last year, you talked about realignment in the sales and creating a little bit of a timing hiccup...

Yes. It's basically, what we did was we sort of moved more of our activity to a global accounts model. And in doing so, we upset sort of territory and quotas for a bunch of salespeople. We're now 12 months sort of through that, and we're starting to see that really settle down. So we like the look of that. We've had some big wins among some of the marquee sort of Fortune 10 and Fortune 50, both in the general counsel's office and particularly in the indirect and the e-invoicing space. So I'm optimistic about the sort of rest of this year into next.

Got it. A lot of those basket traders are not giving Legal a shot. They don't give Tax & Accounting a shot either. So can you just help us with what the moats there are and why that's growing so nicely for...

Yes. I'll start, and I'm sure Gary and Kirsty will add. But essentially, we are in duopolies in terms of the tax calculation engine space. So as it pertains to serving Tax & Accounting professionals so tax preparers, we and one other player have sort of pretty equal shares in that space. And then when you go across to the -- serving the Head of Tax and the Big 4 tax and accounting firms, we're the largest provider of direct and indirect. So direct being income tax and indirect being sales, excise, VAT and so forth.

We made an acquisition a couple of years ago of the leading e-invoicing supplier. So as e-invoicing mandates are rolled out by tax authorities across the world, we're seeing tremendous growth from that asset in Pagero. And so this is a space where the sort of moat to use your term is around the fact that these tools are extremely accurate. I think we spent a lot of time and effort making sure that all of the important information is perfectly accurate. They are very cheap to run and they're very efficient. So there's not a lot of incentive for a Head of Tax between tax filing systems to go tear that tax calculation engine and try something else, right? Because we've got the last 7 or more years of data in that. So you've got that sort of time series of tax return data. You've got a team that are used to using the system, and you've got all the interconnects to the IRS and the other tax authorities.

So it really is a bit like concrete. And the opportunity for us is to add the agents in terms of sort of on the shoulders of that so that the document ingestion is fully automated, all the way through to the e-invoicing and the cues for advisory services. And so that's the ready-to review proposition that we put in the marketplace earlier this year and the ready to advise proposition we put in the marketplace last year in a series of CoCounsel agents that are around it. So we think that's a deep and broad moat and it gives us the ability to drive fundamental efficiencies throughout the tax preparer space by adding agents and automating some of the things that take a long time and candidly, a sort of drudgery in terms of the work.

Got it. And it's also -- I'd add one thing to that, which is this concept of automation is key for this industry because the number of people coming out of university with accounting degrees is down. The number of people sitting for the CPA exam down by like 1/3 in the last 15 years. And so this industry needs technology to do more. Number of returns goes up every year, a number of audits goes up, the complexity of both is rising, and yet headcount is, in the best case, stable. And so in some ways, the propensity to adopt new technology, including our AI offers, one could argue is actually better in that industry than legal.

Got it. Investors are often surprised when I tell them that the pricing and Tax & Accounting is firmly in the mid-single digits and more than legal. But then the counter is because of AI and solutions, it's going to be price deflationary. So how do you guys think of pricing in T&A and across?

Well, as I said, I think these tax calculation engines represent a very significant moat. There's neither the incentive at the customer side to experiment with a new mousetrap nor is it an easy thing to do. And it's not something that AI sort of cracked the code on. And so I think we -- our rate of innovation and adding the agentic capabilities or to outpace sort of any start-ups that look to get into that space. So we think that there's both -- we can continue the sort of pricing component, but also there's a quantity component. That if we play a larger role in that broad end-to-end tax prep process that we're saving significant amounts of money for our customers. And therefore, with value-based pricing, we'll extract some of that.

Think about sort of the macros of what's going on, right, whether you're a CPA or you're a corporate, basically, now everyone is looking at it in roles like mine and saying, okay? I used to spend 100% or 95% of my cost on people and 5% on software. Now I'm going to shift it. And so actually, surprisingly, very little or very rarely does this come down to price. People are just making a different choice. They're not going to hire as many people, they are just going to spend more on software. And so I think that gives us a really nice sort of new market to sort of step into. So it's quite a different dynamic to probably what we even saw 12 months ago. So that's how people think about it.

And Kirsty, actually this time last year, I remember you're saying you were more excited about some of the AI stuff going on in Tax & Accounting than in Legal. What's the latest?

Still hugely excited. So I think as Steve described, I think we've acquired all of the pieces that mean you can go from sort of -- we all pay taxes, right? So we all know that lovely joy of how long it takes you to get everything together right the way through to filing. But when you talk to CPAs, that's, a, not where they have the most fun, it's also not where they make the most money. So they want that process to be as effective and accurate as possible, but they want to get into the advisory side of the business. And that's why we launched the product, Ready to Advise. And so they want to be able to come back to you and say, "Look, Manav, you're spending too much on this or that and you could do these other things." And there's an awful lot more revenue for them to pick up with those products. So it's, again, a whole sort of brand-new space for us where I think there's a ton of opportunity. So that's what I get excited about.

Got it. Maybe in the last 5 minutes, if you can touch on capital allocation. I mean, we know the dividend, we know the buyback philosophy. We can touch on that later too if we have time. But more on the M&A side, Steve, I mean, you generated a lot of cash flow. You have a lot of balance sheet flexibility and you talked about $9 billion available capital. How has your thought process around M&A change maybe a year or so ago, you would consider buying a software company? I'm sure you're not doing that today. So just what should we think about the priorities there?

Yes. I mean we've -- as you said, we've got about $9 billion in dry powder. So that's the sort of cash on hand plus the additional leverage we can put on plus the natural free cash flow generation of the business, which will hit $2.1 billion or so this year. And that affords us, I think, an advantaged position in this environment where there's a dislocation in terms of the valuation of a bunch of businesses. And I think a lot of uncertainty as to how this sort of AI environment will play out. We have, if you look over the last 6 years, we've been, I think, very disciplined. So we haven't done any sort of any outsized deals. Certainly, I don't think, Manav, have done any head scratches.

We've basically stuck to the following criteria, which is let's focus on the big 3, so that's Legal, Tax, Corporates. Let's look at products that are additive to the customer experience within that group, products that are pristine in terms of the tech stack. So we don't want to acquire tech debt. And that typically means that they are AI-native products. Products that are, of course, accretive in terms of their financials to our shareholders, not just the outgoing shareholders. And then last but not least, a culture that is additive to ours. And that's not to say they need to look and feel like TR people. But we want to make sure that when the businesses come together, there will be a real focus on better serving our customers from the combined teams.

And so if you look across the portfolio, Pagero, SafeSend, SurePrep, Additive, Materia, Noetica. These have been relatively small deals that have sort of pretty seamlessly plugged in. The playbook tends to be to buy those products and then push them through our distribution. I would expect, Manav, that we will continue to do those. We've got a keen eye on valuations, just given the dislocation I described. We are open to doing something bigger. Again, you're not going to see any head scratches from us. But we're open to doing something bigger. But at the moment, I think there's still a difference between the bid and the ask, particularly of those assets that are owned by private equity. To the extent that sort of the world has changed in the public markets, there's still private equity firms, the multiple is still up here. And so you'll probably see us continue to do the sort of singles and doubles and be patient in looking and opportunistic in terms of anything bigger. But Gary, Kirsty, anything to add?

No, I would agree with that. We'd like to do something somewhat bigger, but we don't have to because we have such strong underlying momentum so we can be patient and I think we think that will work well. And to your framing, I would say one thing. We just had an investment committee last week to discuss a bunch of things. The first question we ask now, what is the AI disruption risk? Because we don't want to take on more and we need to make sure we understand that it has to be as durable as we see our existing franchises.

Okay. Maybe just to wrap it up then, $9 billion is a lot. You don't need all that for singles and doubles. And so we always get the question, why don't they just lever up and buy back shares, but there is some consideration...

Yes, we're open minded about it. I mean we recently completed a $605 million return of capital, which is tax-deferred for the Canadian shareholders. And we're 1/3 of the way through a $600 million NCIB. And so when the Board meets again in a month or so's time, we'll sort of relook at that. We could certainly do something bigger. But again, it's weighing up being opportunistic and focused in terms of the M&A versus returning to shareholders. Certainly, at these share price levels, it's highly accretive.

Fair enough. All right. Let's leave it there then. Thank you, Steve, Gary and Kirsty, for your time. Thank you, everybody.

Good day, everyone, and welcome to the Thomson Reuters' First Quarter Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the call over to Gary Bisbee, Head of Investor Relations. Please go ahead, sir.

Thanks, Margo. Good morning, and thank you all for joining us today for our first quarter 2026 earnings call. I'm joined today by our CEO, Steve Hasker; our CFO, Mike Eastwood; and our incoming CFO, Gary Bischoping. Steve and Mike will discuss our results, and then we'll take your questions following our prepared remarks. [Operator Instructions]

Throughout today's presentation, when we compare performance period-on-period, we discuss revenue growth rates before currency as well as on an organic basis. We believe this provides the best basis to measure underlying performance of the business.

Today's presentation contains forward-looking statements and non-IFRS and other supplementary financial measures, which are discussed on this special note slide. Actual results may differ materially due to a number of risks and uncertainties discussed in reports and filings that we provide to regulatory agencies. You can access these reports on our website or by contacting our Investor Relations department.

Let me now turn it over to Steve Hasker.

Thank you, Gary, and thanks to all of you for joining us today. Before I begin our prepared remarks, I'd like to recognize our colleagues at Reuters, who learned yesterday that they have won two 2026 Pulitzer Prizes for journalism, bringing the total Pulitzer Prizes to 15 since 2008. So congratulations to Alessandra and everyone at Reuters.

We have had a strong start to 2026 with revenue growth ahead of our prior expectations and margins in line. Total company organic revenues rose 8%, up from 7% throughout 2025, driven by 9% growth from the Big 3 segments. We are reaffirming our full year 2026 outlook for organic growth in a range of 7.5% to 8%, including approximately 9.5% for the Big 3 segments, and for our margins to rise by 100 basis points year-over-year to approximately 40%.

Good momentum continues from many areas in our portfolio. This includes double-digit growth from key products, including CoCounsel, Pagero, SafeSend, SurePrep and our international businesses. We continue to invest heavily in innovation, and we remain focused on delivering against our robust product road maps. Commercial momentum across our AI-enabled offerings continues to build, highlighted by strong adoption trends for Westlaw Advantage. Later in my remarks, I will discuss why we are uniquely positioned to provide fiduciary-grade AI and provide an update on adoption and usage trends.

We also remain excited by the development of Thomson, our proprietary legal-focused large language model. Thomson has begun to outperform leading frontier models on specific legal tasks and provides us with important optionality as we continue to execute our AI innovation road map.

Our capital capacity and liquidity remain a key asset we are focused on deploying to create shareholder value, and we made solid progress on this during the quarter. In February, we raised our annual dividend by 10% for the fifth consecutive year. We repurchased $262 million of our shares in the first quarter. And yesterday, we completed the previously announced $605 million return of capital and concurrent share consolidation. Together, these transactions have reduced our share count by approximately 2%. We remain committed to a balanced capital allocation approach, and we continue to assess a number of inorganic opportunities with more than $9 billion of estimated capital capacity through 2028, we are positioned to be both aggressive and opportunistic.

Now to the results for the quarter. First quarter organic revenues grew 8%, organic recurring and transactional revenue grew 8% and 10%, respectively, while Print revenues declined 5%, in line with our expectations. Adjusted EBITDA increased 9% to $881 million with a margin of 42.2%.

Turning to the first quarter results by segment. The Big 3 segments delivered 9% organic revenue growth. Legal organic revenue again grew 9% despite softer Government growth. Legal, excluding Government, accelerated to 11% in Q1 from 9% last quarter. Continued momentum from Westlaw and CoCounsel Legal were the key drivers. Corporates organic revenue grew 9%, driven by offerings in our legal, tax and risk portfolios and the segment's international businesses. Tax, Audit & Accounting organic revenues grew 10% driven by CoCounsel for tax and audit, our Latin American business and SafeSend. Reuters' organic revenues rose 6%, driven by growth in the Agency business and our contract with LSEG. Lastly, Global Print organic revenues declined 5% year-on-year. In summary, we're pleased with our start for 2026.

I'll now discuss a concept we've recently coined what we call fiduciary-grade AI and provide a few updates on customer adoption and usage. The AI workflow market is evolving rapidly, and we see 3 tiers of solutions emerging. First, general purpose productivity tools that are broadly useful but lack domain depth. Second, professional-grade AI built for specific fields, but operating environments where some error is tolerable. And third, the one that defines our business, which is fiduciary-grade AI.

Work in law, tax and audit operates under strict regulatory and professional standards because the consequences of being wrong are severe. A small error can mean a lost case, a failed audit, a meaningful financial exposure or worse, the loss of customer trust. And that's why professionals in these fields cannot rely on probabilistic answers. They need deterministic solutions that produce work that they can verify, validate and stand behind. We believe that the winners in fiduciary-grade AI will be those who train agents to automate complex work with the accuracy and accountability that fiduciary professions demand. This is a difficult standard, but one we are equipped to meet. In fact, one where we believe we have met with Westlaw Advantage because we bring 4 key assets, which set a standard that cannot be matched.

The first asset is our proprietary authoritative content. Without authoritative data, you have no source of truth and thus cannot ground or validate your AI outputs. General purpose models trained on broadly available information, lack this source of truth. We have spent decades building and curating unique proprietary content repositories in legal, tax and compliance, including Westlaw, Practical Law, Checkpoint and CLEAR. These are not easily replicable.

The second asset is our deep domain expertise. We have the largest team of subject matter experts in our markets, totaling approximately 2,600 people. This domain expertise is critical, as our experts not only help create our content, but also play a key role in training our AI agents and evaluating and validating their outputs. Let me share an example. Since last July, teams of seasoned attorneys and data scientists have invested thousands of hours building the CoCounsel bench evaluation framework, a growing repository of gold-standard answers to real-world legal queries. CoCounsel bench is used to evaluate and improve the performance of our AI products throughout development so that our AI solutions meet the exacting standards legal professionals require.

The third is data privacy and governance. Our messaging to customers is very clear. Their inputs will not become part of our AI output. When a client's privacy is paramount, we protect their workflows, strategic approaches and confidential information. The idea that a fiduciary is training a third-party platform with their clients' confidential information is a third rail issue for the professions that we serve, which makes our commitment in this area, an important trust factor with our customers.

The fourth is our customer support infrastructure. When a litigator is working through a complex research matter in Westlaw or a CPA needs help understanding intricate tax regulations as they prepare a tax return, they can call our expert reference attorneys and tax analysts. We invest heavily in these capabilities to support our customers and their outcomes in real time. No frontier model or AI-focused start-up offers this.

In summary, our authoritative content, trained domain experts, data privacy and governance and our customer support together uniquely position Thomson Reuters to deliver fiduciary-grade AI solutions to the standards our professional customers demand.

Let me next share a few updates on the success we're having with customer adoption of our AI products. I'll start with an update on Westlaw Advantage. As is shown on the left side of the slide, customer feedback has been strong, supporting our view that the new agentic Deep Research capabilities offer a meaningful step forward in performance. Through 8 months, adoption is running faster than what we have seen with the 2 prior Westlaw upgrade cycles, contributed to our revenue growth from law firms accelerating to 11% in the quarter. Last quarter, we mentioned our work on the next-generation version of CoCounsel Legal, which incorporates a similar agentic framework that has been so successful with Westlaw Advantage. Rebuilt from the ground up, it delivers on the vision we set out from the start, an AI companion that works alongside lawyers through every task and every stage of a matter grounded in the trusted sources of knowledge that they can rely on.

On the right half side of the slide, we share feedback from 3 customers that have participated in the alpha development stage, which supports our optimism. We recently entered beta with a broader set of customers using the product and look forward to a full launch of next-generation CoCounsel Legal in the third quarter. In February, we announced an important milestone, achieving 1 million users for the advanced AI features in our product portfolio through CoCounsel.

On the topic of usage, let me share several other statistics to describe the growing customer interaction with our AI features and offerings. Firstly, monthly CoCounsel skills users in legal have quadrupled year-over-year with strong growth in both the U.S. and international markets. Secondly, we've seen significant growth following the Westlaw Advantage launch with the number of Advantage users and Deep Research searches, both up more than 7x in the last 6 months. And thirdly, CoCounsel for tax and audit weekly conversation volume has grown approximately 5x since September, reflecting accelerating adoption. And in summary, we remain excited about the building momentum from our AI solutions and the opportunities ahead as we execute against our innovation road maps.

Before turning to the financials, I'd like to acknowledge a very important leadership transition. Our Chief Financial Officer, Mike Eastwood, will be retiring at the end of this week after 26 years with Thomson Reuters. Mike has been a trusted partner to me and the Board and has played a central role in strengthening the company's financial discipline, capital allocation and operational execution through a period of significant transformation. I want to sincerely thank Mike for his many contributions and wish him well in his retirement.

At the same time, I'm pleased to welcome Gary Bischoping as our incoming Chief Financial Officer. Gary is an accomplished tech executive and finance leader who brings deep financial expertise, strong operational experience and a long and successful track record of driving growth. Gary has been working closely alongside with Mike, me and the leadership team to ensure a seamless transition. We're confident in Gary's leadership and look forward to partnering with him as we continue to execute our strategy.

I'll now turn it over to Mike for a review of our financial results.

Thanks, Steve. Thanks again for joining us today. As a reminder, I will talk to revenue growth before currency and on an organic basis. Let me start by discussing the first quarter revenue performance for our Big 3 segments. Organic revenue grew 9% in the first quarter, continuing the strong trend from recent periods. Legal Professionals organic revenue grew 9% again this quarter despite the slower growth from Government we discussed last quarter. Key drivers from our product perspective remain Westlaw and CoCounsel. While Government slowed to 1% year-over-year growth, Legal Professionals, excluding Government, accelerated to 11% growth, up from 9% in the fourth quarter. The strength was broad-based with our large, mid and small law segments, all growing at double-digit growth rates.

Our Corporates segment grew 9% organically, driven by 8% recurring and 12% transactional growth. Pagero, Confirmation, Westlaw, CoCounsel, and our international businesses were key contributors. Tax, Audit & Accounting organic revenue increased 10%, recurring and transactional revenues grew 10% and 11%, respectively. Our Latin America business, CoCounsel for tax and audit, SafeSend and SurePrep were key drivers. The Tax, Audit & Accounting first quarter growth rate was impacted by two product updates that shifted revenue recognition towards the second half of the year.

For the full year, we remain confident in our 11% to 13% revenue growth outlook, with acceleration from Q1 levels, driven by rising revenue contribution from our newer AI-driven offerings in the U.S., a key product line extension at Dominio in Brazil, and the product updates I just mentioned.

Moving to Reuters. Organic revenue rose 6% for the quarter driven primarily by growth from the news agreement with the Data & Analytics business of LSEG and our Agency business. The latter included $3 million of intercompany transactional licensing revenue related to Reuters News content being used for other Thomson Reuters products. Finally, Global Print revenues decreased 5% on an organic basis.

On a consolidated basis, first quarter organic revenues increased 8% up from 7% throughout 2025 and slightly ahead of our expectation from a quarter ago. At the end of Q1, the percent of our annualized contract value, or ACV from products that are gen AI-enabled was 30%, up from 28% last quarter.

Turning to our profitability. Adjusted EBITDA for the Big 3 segments was $829 million, up 9% from the prior year period with a margin of 46.7%. Reuters adjusted EBITDA was $34 million with a margin of 16.1%. Global Print's adjusted EBITDA was $43 million with a margin of 38.6%. In aggregate, total company adjusted EBITDA was $881 million, a 9% increase versus Q1 2025, reflecting a flattish year-over-year margin of 42.2%. Our Q1 results included $12 million of severance expense related to our initiatives to reimagine how we work.

Turning to earnings per share. Adjusted EPS was $1.23, up 10% from $1.12 in the prior year period. Currency had no impact on adjusted EPS in the quarter.

Let me now turn to our free cash flow. For the first quarter, our free cash flow was $332 million, up 19% from $277 million in the prior year. EBITDA growth was the primary driver of the year-over-year increase in free cash flow. I will also provide a quick update on several capital allocation items.

In the first quarter, we repurchased $262 million of our shares through the NCIB announced in February. Yesterday, we completed the previously announced $605 million return of capital and concurrent share consolidation. Together, these transactions reduced our share count by approximately 9 million shares or 2%.

I will conclude with a few thoughts on our outlook. As Steve outlined, we are largely reaffirming our full year 2026 guidance. We continue to expect organic revenue growth of 7.5% to 8%, with the Big 3 growing approximately 9.5%. Within the Big 3, we now expect Legal Professionals to grow by approximately 9% or the upper end of the prior 8% to 9% framework. We see 2026 adjusted EBITDA margins of approximately 40% up 100 basis points versus 2025, and we expect free cash flow of approximately $2.1 billion.

We are raising our interest expense outlook by $30 million to a range of $180 million to $190 million to incorporate the $1.2 billion share repurchase and return of capital we announced on February 25, inclusive of the higher interest, we expect these transactions to be accretive to our per share earnings and cash flow. We continue to expect the tax rate for the full year to be approximately 19%. I would also note, we plan to pay down the $500 million bond that matures later this month with cash and commercial paper borrowings.

Turning to the second quarter. We expect organic revenue growth in a range of 7% to 8% and our adjusted EBITDA margin to be approximately 38%. As a reminder, the sequential decline in our margin into Q2 is primarily due to the normal seasonality of our Tax, Audit & Accounting Professionals business segment.

I would like to thank you all for your trust and engagement over my 6 years as CFO. It has been an honor to lead such a strong team, and I am really excited for and confident in the company's future.

Let me now pass to Gary Bischoping.

Thank you, Mike. I'm truly excited to be joining Thomson Reuters at such a pivotal moment in the company's evolution. Throughout my career, from my years at Dell to my CFO roles at Varian Medical Systems and Finastra and most recently as an operating partner at Hellman & Friedman, I've been drawn to organizations at the intersection of innovation, transformational growth and value creation. Thomson Reuters is exactly that.

What brought me here is the unique position this company holds, a trusted global content-driven technology company with strong competitive advantages, a clear strategic vision, a dynamic innovation engine and an extraordinary opportunity ahead in the AI era. I look forward to partnering with the leadership team to drive the next chapter of growth and value creation for our customers, our people and our shareholders.

Now I'll turn it to Gary Bisbee for the Q&A.

Thanks. Margo, we're ready to move ahead with Q&A.

[Operator Instructions] We'll go to our first question from Drew McReynolds with RBC.

And Mike, congrats on everything, real powerhouse and appreciate all the transparency just in your role as CFO. It's been great working with you.

The two questions that I had. I think first, maybe for you, Steve, on the legal LLM or the proprietary LLM, Thomson. Can you just kind of flesh that out a little bit, just obviously getting good results from it, but how it kind of integrates into your product road map and maybe a little bit more granularity around that?

And then secondly, as you look at the fiduciary-grade AI segment of the market, at a high level, obviously, in terms of potential TAM expansion within that segment as you roll out new AI capabilities, just comment on some of the moving parts and how you're viewing TAM overall.

Yes. Thanks, Drew. And thanks for your comments about Mike. I share your thoughts on his transparency.

So with regard to the Thomson model, so you may remember we made a very small acquisition a number of years ago of a business called Safe Sign as distinct from SafeSend. And Safe Sign is a collection of scientists working under the direction of Jonathan Schwarz, who's a Google DeepMind researcher, and they're split between Cambridge and Harvard and Imperial College. And essentially, what they had done, we thought was some very early exciting work in building a large language model for legal. And Jonathan was attracted to Thomson Reuters because of the access to our data and our experts, and we are attracted to the quality of the team that Jonathan had built.

And so we've really poured fuel on that fire. And Jonathan and his team, to their credit, have built a model, which as I mentioned in my prepared remarks, is outperforming the frontier -- the very latest frontier models for certain legal tasks. And I think the punchline here, Drew, is it provides us with optionality. So for example, we may -- we've built a series of AI products that are model agnostic. So that's CoCounsel and Westlaw Advantage. We may decide to put some or all of the tasks performed by those agents across to the Thomson model, particularly if it continues to develop at the rate that it has been. So that's one option for us.

I think one of a number of other options is we've attracted a significant amount of interest from our largest and most sophisticated customers. So law firms and General Counsel's office as to whether they can access models and start to use those models in conjunction with their own information. And so I think the punchline there, Drew, is we're very excited about the work that Jonathan is doing and the early results. And I think towards the back end of this year, we'll start to make some of the calls as to exactly how we're going to exercise the options I described amongst others.

In terms of fiduciary-grade AI and the TAM expansion, I think for some time, as you know, we've been talking about the idea that law firms would replace some of their real estate spend with increased technology spend. And then ultimately, as these tools develop and the change management within the firms starts to take hold, that they may be able to automate significant tasks, particularly at the sort of entry levels and particularly some of the research and document preparation, document analysis work. And with CoCounsel next, the next version of CoCounsel Legal, which, as I mentioned, is now in beta and is testing very, very strongly. We're starting to see, I think, that the process whereby the very high stakes work that has to be right that can't hallucinate. We're starting to see real confidence in and around CoCounsel next as a tool to support that.

And with that, we think that the TAM expansion is just starting. I think we're starting to see it with the 11% organic growth in legal in the first quarter. And we're confident that, that is a trend that will continue for a number of years to come. And so you couple that with our product road map and the sort of change management support that we're increasingly providing to law firms and to General Counsel's offices. And I think our confidence is growing in the sort of organic growth characteristics of that Legal Professionals business and the legal portion of our Corporates business.

And we'll next go to Stephanie Price with CIBC.

Two questions from me. Just on the 2026 revenue guide. Hoping you could talk a little bit about the cadence of revenue here. With the Q2 outlook, it does look like H1 revenues are kind of tracking a bit ahead of the full year guide. Can you kind of think about what gets you to the top and bottom end of that revenue guide?

And then my second question is just on Anthropic. Obviously, views TRI as a key client. Just curious how you think about vendor relationships here that you have with the LLM and how you envision these partnerships evolving over time?

Yes. Stephanie, I'll start and then ask Steve and Gary to supplement. I'll provide a few different viewpoints in regards to your question on the 2026 revenue guidance. First, you alluded to, our Q1 at 8% was slightly higher than the guidance that we provided in February at 7%. Two key factors there. Our Legal Professionals had really strong demand for Westlaw Advantage, which we launched back in August of 2025 at ILTACON. And second, we continue to have strong demand from our CoCounsel Legal product.

Secondly, within Corporates, we had really strong growth from Pagero, thanks to Laura Clayton McDonnell, Ray Grove and the full team there, Gustav. And then secondly, within Corporates, we had higher transactional revenue growth in Q1. A portion of that, we had a few million dollars that shifted of transactional revenue from Q2 into Q1.

Second part of your question you alluded to in regards to Q2, our revenue guide for [ total TR ] is 7% to 8% organic revenue growth for Q2. Obviously, we're pleased with the Q1 start. A couple of factors to consider for Q2. Q2 does not include any forecasted additional content licensing deals in Q2, which means more modest revenue growth for Reuters. And then secondly, in Q2, we expect Corporates transactional growth to moderate from the Q1 levels that we saw.

That takes us into, I think, the third element of your question in regards to our total revenue guide of 7.5% to 8%. We remain very confident in delivering on that 7.5% to 8% and for each of the Big 3, Legal Professionals, as noted in my prepared remarks today, approximately 9%. Corporates, our revenue guide for the full year is 9% to 11%. And then for Tax, Audit & Accounting Professionals, 11% to 13%. So for the Big 3, we remain very confident there.

In regards to factors to consider, Stephanie, in regards to that range of 7.5% to 8%. Big 3, once again, is approximately 9.5% is the quarterly net sales. And if you look at our quarterly distribution of sales quota, Q1 is traditionally the lowest sales quarter -- sales quota quarter, which was again Q1 2026. Q4 traditionally is our highest sales quarter. It will be again in 2026. So we're really pleased with the momentum of the Q1 sales. And as we go into Q2, we're very pleased with the pipeline across the Big 3.

So I think that is a key factor, Stephanie, if you think about that 7.5% to 8% range. Certainly, we have transactional revenue, transactional revenue varies by quarter and also by the segment, but the biggest factor for me is the continued momentum in the net sales or bookings throughout the remainder of the year, which we have very strong confidence in. Westlaw Advantage, as we discussed in February, had a strong December, strong Q4, which helped drive that increase in Legal Professionals revenue growth in Q1. We expect that to continue CoCounsel Legal, if you go through each of the segments, overall confidence, Stephanie. I'll pause before we go into the Anthropic question to see if that was helpful?

It was. Thank you.

Yes. Stephanie, so as I mentioned, our AI platforms and agents have been built to be model agnostic. And so what we do is sort of constantly evaluate the latest frontier model releases to see which are best suited. And currently, we think for products like Westlaw Advantage and CoCounsel Legal that the Anthropic Claude models are best suited. But as I said, we can and -- we are model agnostic and we can and have in the past change the models out. So we've been -- Anthropic are an important vendor to us. We were one of the earliest enterprise customers to Anthropic and continue to work closely with them in terms of the co-development in our products. But we have a level of independence there as we go forward.

And next, we'll go to Kevin McVeigh with UBS.

We'll next go to Vince Valentini with TD Cowen.

My congrats to Mike as well on well-deserved retirement. It's been great working with you. Steve, everything seems so good that the overall results seem strong. You obviously are going to call out areas of the business where you're doing well and where there seems to be a lot of them. Is there anything that's worrying you these days? Do you see any customers who have left your platform, either in Legal or in Tax? And if so, have you done exit interviews to sort of say what are you leaving for? Or anybody going to Harvey or Legora or maybe just a native AI service like Quad and thinking that's good enough? Are you seeing any -- I don't know with the opposite of a green shoot, a dark shoot here of anything that worries you that if more customers started doing that, it could be problematic in the future? Or is it just simply nothing and you're still winning across the board?

Yes. Yes. Thanks, Vince. It's a great question. So everything worries me. The team here will tell you that I'm paranoid about a lot of things. So I won't bore you with everything there. But what I would say is a couple of things. As you know, we've been focused on retention since the Change Program. And I think we're finally starting to see the green shoots and things tick up in terms of our customer retention. And that's across -- it varies across the different segments, but we're seeing a broad-based positive signs in terms of retention.

So there is nothing new or worrying in terms of customers moving away from our experts, moving away from content-driven technology products across the Big 3. What I would say is I think we're at a phase where there's lots of law firms trialing lots of different tools. So if you speak with a law firm, they'll be running a trial of -- or they'll have implemented CoCounsel, they've implemented 1 or 2 other tools. And I think that's why we're so excited about CoCounsel next. We think that it's a big step forward, and it represents the combination of content, expertise, data privacy and support in ways that none of our competitors can match. And so we're increasingly confident that as we put that into full release and scale it up in the U.S. and beyond, that will start to separate from some of the competitors that exist.

Okay. Fair enough. And can I just try to clarify something. I'm not sure I understand the 7x and the 5x figures you gave, both Westlaw Advantage, Deep Research and the CoCounsel for tax were not available a year ago. So I assume that's not a year-over-year figure, and it wouldn't be relevant if you measured it from day 1 to now, it's obviously going to increase exponentially. But I assume you wouldn't have given us the number, if there wasn't some relevance to it. So can you just help me unpack that one? What the starting point is?

Gary, do you want to expand on each of those?

Yes. Vince, so on the Westlaw Advantage, what Steve mentioned was over the last 6 months. And so that began a few months after launch. And for CoCounsel for tax and audit, it was the number of customer conversations in the product has gone up 5x since September.

Yes. And let me sort of expand on it, Vince, to explain why we mentioned those stats and why we're excited. I think to an earlier question, we see the TAM expanding from law firms, from general counsels, from tax and audit firms for different reasons, but basically spending more on technology and starting to get to levels that are comparable with other professions in terms of the percent of revenues that are spent on technology. We think over the next few years, they're going to start to approximate or at least get within the same ZIP code as some of the other professions. So that's the first sort of TAM expansion.

I think the second is we've talked since our last Investor Day about AI being the means with which Thomson Reuters can play a larger role in the success of our customers. And if you take something like prior versions of Westlaw, which was the leading sort of point solution for litigation research, and you compare that to Westlaw and Practical Law integrated in CoCounsel. We envisage a world where the first thing a lawyer does when they get into the office in the morning is switch CoCounsel on. And it's a companion throughout the entire day, whether they're doing litigation research, whether they're drafting, whether they're drafting a motion to compel or a motion to dismiss, whether they're doing an SEC filing, whatever it might be. And it's similar with Ready to Review and Ready to Advise in the context of our Tax & Accounting business.

So we really do believe this is the vehicle for a pretty significant increase in the number of touch points with our customers and the users. And that, I think, is an exciting growth vector that we plan to fully explore in terms of the product road map in the coming couple of years.

We'll next go back to Kevin McVeigh with UBS.

And let me add my congratulations, Mike. You've obviously done an exceptional job helping set you folks on the path today, and I wish you well. I guess, maybe can we talk about the AI-related ACV? You're seeing pretty good momentum there. I think the number was 30%, which is up from last quarter. Any sense of where that ultimately settles? And I guess the spirit of my question is, I think there's been so much concern, which we think is overdone. We think there's a real big opportunity beyond the core. So maybe talk about just the ACV growth. And then ultimately, Steve, maybe some of the other addressable markets, whether it's mid- to down market that you can really start to focus on with the technology.

Kevin, happy to start there, and thank you for your kind remarks there. I'll just go back in time 5 quarters ago, we introduced the AI-enabled ACV metric, we were at 15% 5 quarters ago. As you stated, we're now at 30% as of March 31, 2% increase versus year-end. We expect that to continue to increase each month, each quarter, Kevin. We'll continue to provide that on a quarterly basis. Gary will there, we think that's a really important signal for us.

As we've discussed in the past, Westlaw, Westlaw Advantage the high end of Practical Law, CoCounsel Legal, CoCounsel tax and audit are some of the drivers there. As we launch CoCounsel next later this year, we think that will be a further stimulus for this AI-enabled metric. Also, I think we mentioned in prior quarters, some of our products, especially in the ONESOURCE array or suite of products as they become AI-enabled. At some point in time, I speculate, Kevin, there's going to be more of a step change. Right now, we're seeing 2 to 3 percentage points increase on a quarterly basis. I think that certainly continues to increase over the time horizon. We're very encouraged by our product pipeline, innovation pipeline. And as that continues to go forward, the underlying ACV metric will continue to increase.

You specifically asked, Kevin, about maybe a point in time, where does it get to? I think it just continues to increase over time on a quarterly basis.

Yes. Let me talk about the some of the dynamics to your point, Kevin, about mid- to down market opportunities. I'd point to a couple of things. So typically, when we put out a new version of Westlaw, it was the most -- it was the largest firms with the biggest budgets and the most sort of want of a better term sophisticated procurement organizations, whether that was a Chief Knowledge Officer or a CTO that would evaluate the tool and adopt it first. And then we'd sort of grow the ACV number as it penetrated further and further down market.

If you look today at CoCounsel, we get sole litigators and sole transaction attorneys in the Midwest of the U.S. and in Canada and Australia, the U.K. elsewhere. Who'll take one look at it and say, okay, sign me up. And Aaron Rademacher, who runs the small law segment, Liz Zimick, who runs mid-law, have done a wonderful job of getting these tools in the hands of customers of all sizes. And that's a fundamentally new dynamic, and I think it's starting to contribute to that growth acceleration that we saw in the first quarter. So that's the first one.

I think the second one is, at the very most sophisticated end, you have sort of legendary litigators and transaction attorneys who -- a litigator whose entire sort of profession has been based on sitting in conference rooms with the collection of peers partners and refining their arguments over hours or even days in advance of a trial. Those same attorneys are increasingly using Westlaw Advantage for that process and decreasingly spending the time of their partners. And that has certainly exceeded my expectations in terms of the sophistication of the products that we're putting into the marketplace and the kind of the sophistication of work that we're able to, in a sense, automate and supplement.

And then I think in the tax space, we're seeing the same thing. Typically, it was the largest firms with the biggest budgets. But with products like Ready to Review and Ready to Advise, these are appealing at least in the early going, and it's still early for those products, these are appealing to the smallest firms that have a collection of clients in one particular geography.

So AI, as I said, I think the TAM is growing on the back of these firms spending more money on technology, but it's also growing in terms of, as you said, the mid- to down market opportunities and the opportunity at the very top end. So we see sort of multiple vectors of growth, as I said, that we're planning to explore in the coming years.

And next, we'll go to Tim Casey with BMO.

Could you talk a little bit about EBITDA margins going forward? I mean, you kept the guide stable. Just wondering about the balance between operating leverage and business mix and so forth. And as a follow-on, how should we think about transactional revenues? Are they similar margins to recurring revenues? Or are they lower margin?

Yes. Tim, I'll start with each of those. First, in regards to EBITDA margin. I'll share a few comments in regards to both Q2, but for the full year. In regards to the Q2 margin, as noted in my prepared remarks, 38% EBITDA margin for Q2, we remain confident in our full year outlook for 100 basis points margin expansion. Two key drivers there: the underlying operating leverage that we continue to have and achieve; and second is the growing benefits from our efforts to reimagine how we work through AI-driven automation. Andrew Pearce, Liz Bank, Jason Williams, Mike Goddard, Kirsty Roth, various leaders within our business, continue to drive our productivity initiatives in regards to reimagining how we work.

So if you look at the full year, Tim, that's why we're confident in that 100 basis points. If we look at just Q2 separately, three factors to consider. We do have increased LLM cost. Second, we have some modest M&A dilution in Q2, and as I mentioned in my prepared remarks, the Tax, Audit & Accounting Professional business led by Elizabeth Beastrom, has seasonality there.

So then that takes us naturally into H2, and why are we confident with higher margins for the second half of 2026. One, we have continued productivity from the AI automation, reimagining how we work that I just mentioned, that is building in Q1, Q2 that continues to build and have an uplift in Q3, Q4. Second, the M&A dilution that occurred both in Q1, Q2, that begins to lap in Q3, Q4, meaning it goes away. And then the third item I would mention is the LLM cost. We saw LLM costs begin to increase in August of 2025 with the launch of Westlaw Advantage. As we go into Q3, the degree of increase for the LLM cost lessens because it, in essence, begins to lap and begins to normalize there. So hopefully, Tim, that was helpful, in regards to really the evolution of our margin in Q2, and there will be a step-up in Q3, Q4, which we have line of sight on, as I mentioned, which gives us confidence to deliver the 100 basis points improvement for the full year.

Your second question related to transactional revenue. Transactional revenue profitability does vary. Areas like professional services will traditionally have a lower margin than some other products, say, some of the AI content licensing revenue that we have in Reuters would be at the high end. And then if you look at the continuum on the left side, the lowest piece would be things like professional services. On the right side, the high end would be the Reuters AI content licensing revenue and then you have a distribution across that. So there is a pretty good wide distribution on the transactional revenue, Tim. Hopefully, that was helpful.

Yes, it was. Mike, just a follow-up. What -- is there not a concern that LLM costs will continue to increase as you lean into your proprietary Thomson model?

With the LLM cost, as we have more and more AI offerings, certainly, that increased on a variable basis. But if you look at LLM costs, although they're increasing, they remain a relatively small overall cost for Thomson Reuters. So we have it appropriately factored into our forecast and in our guidance. Steve talked about the Thomson LLM earlier. As we go through the end of '26 into '27, could that be an avenue to help us manage the LLM cost? The answer is yes there. But I'll emphasize the LLM costs overall for total TR is a relatively small cost. But what's happening is why I mentioned it for Q1 and Q2, it began in Q3 of 2024 and is building. Steve, anything to add?

No, I think as I said, the optionality around the Thomson model is twofold. One, the quality and accuracy of that model, given that it's been specifically created for legal task. And secondly, the fact that we can run it on a per unit basis at a fraction of accessing a frontier model. So those two things are attractive, and we're going to keep investing in it as we have been, and update you as we go.

And next, we'll go to Andrew Steinerman with JPMorgan.

I just wanted to know within the revenue guide, particularly for Legal Professionals for the year, what's assumed in terms of the government practice as we move through '26? And then also overall for the '26 revenue guide, are you assuming a contribution from CoCounsel Legal next?

First, in regards to Government, Andrew, we expect the growth to remain subdued near term. We are optimistic regarding the reacceleration of Government revenue led by Pat Eveland. Once we lap the losses and downgrades that occurred last fall, so we'll see as we approach the end of 2026, an uptick in the overall Government revenue. So we have assumed when we think about Legal Professionals overall that the Government growth rate remains subdued near term, and then begins to increase towards the end of 2026, and then that will increase as we go into 2027. And can you repeat the second part of your question, Andrew?

Sure. I just was asking in the 2026 revenue guide, are you assuming any revenue contribution from the new product CoCounsel Legal next?

Yes. Certainly, we're very pleased with the progression of CoCounsel Legal. And when it's launched sometime in Q3, we're very optimistic with the sales momentum there. So it will provide some degree of revenue for us in the latter part of 2026. But the larger contribution from CoCounsel next will happen in 2027, just with the revenue recognition. I would call out Emily Colbert and Rawia Ashraf in regards to the work that they're doing on it, very pleased with beta. I think now we're in the third week of beta for CoCounsel next. So good momentum and progress there. And we expect really good sales momentum, Q3, Q4, Andrew, but then the rev rec really beginning to take hold as we go into the latter half of '26 and then '27.

And next, we'll go to Aravinda Galappatthige with Canaccord Genuity.

I want to offer my best to Mike as well, an outstanding tenure as CFO from my vantage point. All the best, Mike. And I just wanted to start on the capital allocation side. Obviously, you announced a sizable buyback and return of capital. Is it -- correct me if I'm wrong, you bought back $262 million worth of shares as of March 31. Am I correct in assuming there haven't been any more utilization of that block since the remaining $340 million or whatever, since April? And then perhaps generally your view on stepping that up. I mean the companies that have seen sell-offs in their stock, including some of your comps have announce more sizable buybacks and you certainly have the flexibility to do that. I wanted to get your thoughts on that.

Sure, Aravinda, multiple questions there. First, just a reminder, we did complete the $605 million return of capital yesterday with the cash distribution being executed. Your question in regards to the NCIB, we have not done any additional purchases beyond the $262 million that occurred in Q1. We do plan Aravinda to complete the remaining $338 million in the second quarter. That is our intent.

In regards to our overall balanced capital allocation approach, certainly, we have the annual dividend increase 5 years in a row now at 10%, still focused on strategic M&A. And that leads to your point in regards to the optionality to consider additional capital returns. It is something that we will continue to discuss with our Board. The next meeting is in June, followed by September. So certainly, with the very strong balance sheet that we have, Aravinda, is something that we will continue to have discussions with our Board with no specific commitments today to announce or to discuss but we agree that it is certainly an option for us to consider additional NCIB share backs. We agree that they are accretive today and we certainly have to balance it with strategic M&A opportunities.

And just a quick follow-up, smaller question on Westlaw Advantage Deep Research. I forget, Mike, if you had given any numbers on adoption there, any targets or any sort of recent adoption numbers that you've quoted? I was wondering if you can speak to that.

Yes. We have not quoted specific adoption numbers on Westlaw Advantage. Five quarters ago when we pivoted to the overall gen AI-enabled metric, we thought that was more encompassing of our total portfolio. I can share some additional points on Westlaw Advantage. It is definitely trending faster that being the ACV penetration, trending faster than the prior 2 Westlaw upgrade cycles that we had there. We're certainly very encouraged with the fast start on sales and very strong customer usage there.

I can confirm again, very strong sales for Westlaw Advantage in the first 8 months since it was launched August of 2025. As I look at the pipeline for Q2, whether it be Global large law, midsized firms or small law in Europe, very strong pipelines. We would anticipate and forecast that Westlaw Advantage continues to have a strong Q2 and a strong 2026 overall and 2027. Very encouraged with the progress there. I think Steve may have mentioned Mike Dahn earlier, Emily Colbert, who lead Westlaw Advantage, just a hell of a job there.

And next, we'll go to Jason Haas with Wells Fargo.

I'm curious, was there any negative impact to sales cycles or anything from the conflict in the Middle East in 1Q?

Yes, go ahead, Mike.

No negative impact, Jason, in regards to the conflict.

It certainly amongst other global events caused an uptick in the Reuters subscription business. And I think put the spotlight on the quality of that coverage, Jason, but as we've described over the years, our business, we're fortunate enough to have a business that is largely immune to the cycles.

Okay. That's great to hear. And then just as a follow-up, on the Tax, Audit & Accounting Professionals business, can you just reiterate why that was slower at 10% organic growth in 1Q and what drive the deceleration through the year?

Sure. I'll take each of those, Jason. First, in regards to Tax & Accounting, 10% organic growth in Q1. It was impacted by revenue recognition timing shift for two products that will normalize in H2. In simple words, we had some revenue recognition that shifted from Q1, Q2 into Q3, Q4. If you look at it on a full year basis, it normalizes or harmonizes, that was the biggest factor.

If you look at the full year in regards to why we're confident, once again, Elizabeth Beastrom and team drives that, we're confident in delivering the 11% to 13% range that we have previously provided. I would emphasize 3 factors. First, the revenue recognition timing that I just mentioned, that normalizes. Second, Adrian Fognini has a key product line extension with our Dominio business in Brazil. I can confirm that Dominio continued to grow approximately 20% again in Q1. But with the key product line extension and launch for Dominio, that will provide incremental growth in revenue internationally for the TAP portion of the business. And then thirdly, Jason, is the newer AI-driven offerings in the U.S. will provide additional lift as we go through the year. But once again, very confident in achieving 11% to 13% for the full year.

And next, we'll go to Doug Arthur with Huber Research.

Yes, Mike, just staying with Tax & Accounting for a second. The costs in the quarter were up quite a bit. I know you had mentioned that on the fourth quarter call. Was that partly or mostly the SafeSend acquisition impact?

We had three factors, Doug. First, we had some modest dilution from the Additive acquisition that we closed last fall. Second, we made some additional investments in our product line in Dominio that I just mentioned that has an upcoming launch. And then thirdly, a portion of the $12 million of severance that I referenced for total TR that impacted TAP. So the convergence of those 3 factors was the reason for the lower margin for TAP in Q1.

And next, we'll go to Maher Yaghi with Scotiabank.

Great. And congrats, Mike, on great tenure at Thomson. I wanted to ask you, I know you disclosed the ACV on GenAI, but could you provide some KPIs that prove that AI is lifting net revenues and not just increasing usage, example like Westlaw Advantage upgrade attachments versus CoCounsel paid expansion into new horizontal segments of the market something that can give us some sense of that AI is adding top line revenue growth, not just on your existing subscription basis that you used to have in the past, but expansion into new segments of the market.

Yes. I think, Maher, the most prominent metric that I provide both Steve and I mentioned in our prepared remarks, Legal Professionals or law firms revenue, excluding government, 11% organic growth in Q1, up from 9% in Q4, really speaks to the penetration that we're getting across every segment of Legal Professionals and law firms, that's led by Raghu Ramanathan and his team there. We had double-digit organic growth in global large law firms, midsized firms and small law firms, and we had the highest growth ever in each of these segments in Q1. I apologize if that's overly simplistic, Maher, but driving that 11% growth in Q1, up (sic) [ up from ] 9%, I think, it's a pretty tangible metric for us to just continue to monitor. And we have confidence as we go into Q2 and the full year in regards to that 11%.

Okay. Great. And just one follow-up question on the margin expansion in the second half. Can you give us maybe some -- like a bridge that helps us understand where the improvement in the margins year-on-year will be coming from in the second half? Is it all from the reimagine how we work business productivity improvement that you have? Or some of it can also come from AI revenue growth?

Yes. Certainly, as we continue to expand our overall revenue growth, that will help us on margin, just given the significant operating leverage that we have. Secondly, I'll just reemphasize the work that we're doing on reimagine how we work, that will accelerate as we go into Q3, Q4. So that continued operating leverage, higher revenue, the benefits from reimagining how we work. And then also just, sorry to be repetitive, if I mentioned earlier, the M&A dilution lapse or decreases in the second half of 2026, that also helps us. And then also [indiscernible] of LLM costs since we had them last year also helps when you do a year-over-year, and if you look at a bridge on the full year margin expansion.

Next, we'll go to Toni Kaplan with Morgan Stanley.

And I'll add my congrats to Mike. It's been really terrific working with you over the years. So all the best.

Steve, I wanted to go back to your comment that many customers are utilizing multiple AI and technology tools, which is something we've seen as well. And I see the advantage of having your AI product utilizing the Westlaw Legal data and research. And so I guess my main question is, if you have the strong AI product, which I think you do. And I guess, why isn't it more compelling that, and you are seeing success, so I don't want to take that away. But I guess it seems like a natural that someone would want to choose the strong AI product with the really strong legal research. And so I just wanted to understand why this hasn't taken off across the top 100 law firms, for example.

Yes. Toni, I think as we recently published, we've got to 1 million CoCounsel users across the various instances of the product. So we're proud of that, and we're sort of happy with this, if you like, the starting point as we sit here today. I think, though, back to Vince's questions to what worries me. I think if I were giving us a hard grade, I would say that within the legal realm, it has taken us too long to really unleash the sort of power, if you like, in the authority of our content, Westlaw, Practical Law and so forth and our experts. And that's why we're excited about CoCounsel Legal. We think it's a big step forward. It's fully agentic. It's a deep research built product. It's been built by, in large part, the same engineers and data scientists that did Westlaw Advantage.

And I think for the first time, what the market is going to see is an agentic legal assistant that is grounded in that authoritative content. The prior versions in the legal realm were built on the Casetext methodology without full access to our content. And so you could critique us for taking a while to do that, but we wanted to get it right, and we think we have. And certainly, the early beta testing suggests that we have. So we'll keep refining it. We'll keep learning and investing and scaling it. But Toni, I think that explains why you've got a pretty sort of fragmented market with multiple tools being measured and why we're increasingly confident going forward.

Next, we'll go to Curtis Nagle with Bank of America.

Great. Maybe just staying on that topic, Steve, just elaborate a little bit more on the feedback you're hearing from clients on next-gen version of CoCounsel underlying demand. And I guess just how material of an upgrade cycle do you think we could see? And to what degree that is, I guess, factored in guidance? It doesn't sound like much at this point.

Yes. I mean, Curtis, we're -- I think we've got to sort of look at exactly where the marketplace is at. And in my view, and this is a view that's shared by many of the managing partners that I interact with on a daily basis. The tools, including ours, and we think especially ours now that we've got CoCounsel next in the marketplace, are ahead of the change management within the firms, right? It's one thing to sort of give a lawyer access to one of these tools and have him or her save a few hours a day, in some cases, many hours a day. It's another thing to rewrite the basis on which a young attorney produces a work product, run that up the chain, gets feedback, refines it and eventually it goes from a partner to a client for review and discussion, that process, I think, is just beginning.

And that's why from a revenue standpoint, as I said, we're proud of the 1 million users. I think we're off to a good start, CoCounsel, the next version of Legal is a really exciting step forward for the entire industry in our view. But it's going to take the change management to sort of mirror that for this sort of virtuous circle to really kick in. And as that happens, we are confident in the revenue and the growth prospects and we like the margin profile, but I think it's still fairly early days.

And next, we'll go to George Tong with Goldman Sachs.

I'll add my congrats, Mike, on your retirement. In terms of the Legal ex-Government organic growth acceleration from 9% to 11%, can you discuss how much of that acceleration came from volumes versus upsell versus pricing?

George, I don't have at my fingertips the breakdown between those 3 components. What I can reiterate is that we had really strong performance across all of our segments. As I've mentioned before in prior releases of new versions of Westlaw, we would see first traction in the large law firms and then it would begin to evolve in the mid and small. With Westlaw Advantage, we're seeing consistent traction across large law, mid law and small law, and we're seeing the retention rates continue to hold there, George.

I think the given seeing strong performance across -- and I should also mention John Shatwell in Europe across all geographies, across all segments of Legal Professionals and law firms, we're seeing really strong adoption of Westlaw Advantage and CoCounsel Legal, and that's what's driving that 11% for Legal, excluding Government.

Got it. That's helpful. And as a follow-up, can you share how Legal, Government performed in the quarter?

Legal had a 1% growth in Q1. That was down from Q4. As I mentioned in the February earnings call, we had the cancellations and downgrades in Government in the second half of 2025. So we also indicated in February that Q1 would have a lower growth rate for government in Q1 given that rev rec impact. And as a follow-up to one of the questions I received earlier as we go into Q3 and Q4, and we begin to lap those cancellations and downgrades, we're very confident that Pat Eveland and team will drive accelerated organic growth for Government and the latter part of '26 and then into '27.

And at this time, I'd like to turn the call back over to Gary Bisbee. Please go ahead.

Yes. Thanks, everybody. We're around if you want to follow up. Have a good day.

Thank you.

Thank you. And this does conclude today's call. We thank you for your participation. You may now disconnect.

Greetings, everyone, and welcome to Thomson Reuters Special Meeting of Shareholders to consider and approve the company's proposed return of capital and share consolidation transactions. Thank you for joining us today. I'm David Thomson, Chairman of Thomson Reuters, and I will be chairing proceedings today. In addition to myself, I would like to introduce Steve Hasker, our CEO.

I would like to briefly outline the format of the meeting. First, we will summarize the rationale for the return of capital and share consolidation transactions. We will then deal with the formal business of the meeting as outlined in the circular sent to shareholders in respect of such transactions. Following that, we will answer questions or comments from shareholders regarding the transactions. I would like to note for the record that the procedures being followed for today's meeting have been established based on the advice of the company's legal counsel, including its external legal advisers. I would like to note that this meeting is also being webcast live on thomsonreuters.com.

The matter before us today will be moved and seconded by a shareholder or proxy holder of Thomson Reuters. We will conduct the vote on the special resolution by ballot. As is generally the case, the vast majority of shares represented at this meeting have been voted in advance by proxy. I want to thank all those shareholders who exercised their right to vote in advance. The preliminary voting results based on proxies received in advance of the meeting will be announced before the end of the meeting. Details regarding the final voting results will be made available in the next few days.

The only item of business to consider and vote on today is the approval of the special resolution approving a plan of arrangement to implement the return of capital and share consolidation transactions as more fully described in the related circular sent to shareholders. To be effective, the special resolution must be approved by at least 2/3 of the votes cast by shareholders present in person or by proxy and entitled to vote at the meeting.

I have asked Norie Campbell, Chief Legal Officer and Company Secretary, to act as Secretary of the meeting, and I would like to ask her to table the notice calling the meeting and proof that such notice and the related circular and proxy forms have been distributed or made available to shareholders.

Mr. Chairman, I have done so.

Thank you, Norie. I have appointed representatives of our transfer agent, Computershare Trust Company of Canada, to act as scrutineers of the meeting. They've advised me that a quorum is present. Only shareholders of record as of the close of business on March 6, 2026, or their duly appointed proxy holders are entitled to take part in and vote at this meeting.

I now declare that this meeting is regularly called and properly constituted for the transaction of business.

As previously mentioned, the only item of business for shareholders to consider and vote on today is the approval of the special resolution approving a plan of arrangement to implement the return of capital and share consolidation transactions. This special resolution is being considered pursuant to an order of the Ontario Superior Court of Justice. A copy of the order is attached as Appendix C to the circular that accompanied the notice of this meeting and a copy is available for inspection at this meeting.

If the special resolution is approved, the final hearing of the court to approve the plan of arrangement to implement the return of capital and share consolidation transactions is scheduled to be held by video conference on April 29, 2026, at 11:00 a.m. or as soon thereafter as is reasonably practicable before the court at 330 University Avenue, Toronto, Ontario.

Before I turn to the voting for this item, I would like to ask Steve Hasker, our President and CEO, to comment on the rationale for the return of capital and share consolidation transactions. Should anyone have any questions relating to the return of capital and share consolidation transactions, we would be pleased to respond to them following Steve's remarks.

Thank you, Mr. Chairman. Since 2018, we have received approximately $24.9 billion of gross proceeds derived from, firstly, the sale of a 55% interest in our Financial and Risk business, also called Refinitiv, to a Blackstone-led consortium in 2018; and secondly, subsequent dispositions of London Stock Exchange Group plc, or LSEG, shares received as consideration from the sale of Refinitiv between March 2021 and May 2024 and have returned a significant portion of such proceeds to shareholders by way of share repurchases under our normal course issuer bid, a substantial issuer bid or tender offer and return of capital transactions in 2018 and 2023.

We are now proposing a third return of capital transaction to return to shareholders $605 million of the gross proceeds derived from approximately 32.4 million LSEG shares in May of 2024. If the transactions are approved and implemented in accordance with the plan of arrangement, you will receive a cash distribution of approximately $1.36 for each Thomson Reuters common share that you hold, estimated based on the number of common shares issued and outstanding as of the record date for this meeting and assuming no shareholders opt out of the return of capital. After returning $605 million of capital to shareholders, we will reduce our company's share count on a basis proportional to the return of capital distribution in accordance with the plan of arrangement. You can think of the consolidation as similar to a reverse stock split.

Shareholders who are taxable in a jurisdiction other than Canada were provided with the right to opt out of the return of capital as described in the circular. We provided these shareholders with this opt-out right because of the tax consequences of opting out of the return of capital may be preferable to participating in it. Shareholders who opted out of the return of capital will not receive the cash distribution, and they will continue to hold the same number of shares that they currently hold. If the return of capital and share consolidation transactions receive all required approvals, including at today's meeting, we expect that they will be effective on or about Monday, May 4. Further details about the return of capital and share consolidation transactions can be found in the related circular that was sent to shareholders.

We would now like to take this opportunity to open the floor for questions regarding the return of capital and share consolidation transactions. If you have a question or remark, please go to one of the microphones so that everyone can hear clearly. Please identify yourself by name and indicate whether you're a shareholder or a proxy holder representing a shareholder. As a matter of courtesy, we ask that you please limit yourself to one brief question or remark so that everyone who wishes to participate in the meeting will have a chance to do so, but you are welcome to line up again if you wish to ask another. The microphones are now open.

All right. Well, since there are no questions, I would like to hand the meeting back to our Chairman, David Thomson. Thank you.

Thank you, Steve. The Board of Directors, upon careful consideration of a number of factors, has determined that the return of capital and shareholder consolidation transactions are in the best interest of our company and unanimously recommends that you vote to approve the special resolution approving the plan of arrangement to implement the return of capital and share consolidation transactions. I will now ask Jen Ruddick for a motion to approve the special resolution, the full text of which is set out in Appendix A to the circular.

Mr. Chairman, I move that the special resolution set forth in Appendix A of the Management Proxy Circular is hereby approved.

Thank you, Jen. May I call upon Nawal Zaarab, Assistant General Counsel, Corporate and Securities, Thomson Reuters, to second that motion.

Mr. Chairman, I second the motion.

Thank you, Nawal. I will now report on the voting results based on the proxies received in advance of the meeting. We wish to report that more than 90% of the eligible shares were voted in advance of the meeting. I'm pleased to confirm that based on votes received in advance of the meeting, the special resolution approving the plan of arrangement to implement the return of capital and share consolidation transactions has been approved. Over 90% -- 99%, excuse me, voted in favor. The final voting results will be made publicly available in the next few days. If there are no further questions, I believe Jen Ruddick has a motion to terminate the meeting.

Mr. Chairman, I move that the meeting terminate.

Thank you, Jen. May I have a seconder for that motion.

Mr. Chairman, I second the motion.

Thank you, Nawal. Ladies and gentlemen, that concludes this meeting. On behalf of Thomson Reuters and our Board, I would like to thank you, our shareholders, for attending the special meeting today. The meeting is now terminated. Please join us for refreshments. Thank you.

Good afternoon, everyone. Thanks for joining us. Curt Nagle, I'm the new Senior Business and Information analyst here at BofA. Session today, during lunch, is going to be Thomson Reuters. Really, really pleased to have CEO, Steve Hasker; and CFO, Mike Eastwood with us. We're going to structure this as a fireside. Any questions, if we have time, we'll field the audience. But Steve and Mike, again, thank you for coming. I really appreciate it.

Thank you.

And why don't we kick off? Yes. So as you can probably imagine, obviously, very topical. We're starting these conversations on AI. In terms of the first one I ask, Steve, you've spoken really, really directly, and I think really -- really directly about the criticality, right, of professional as you put it, fiduciary grade A models, right, versus general purpose models when we're thinking about all these potential risk and opportunities, right? And how much of that matters specifically for your legal end markets and of course, for tax accounting and audit as well, high cost of failure, right? So in terms of data assets, domain expertise, right, and increasing the use, right, not integration, but use of models. How are you differentiating yourself from both established competition and entrants?

Yes. Thanks, Curt. So we've also got Rawia Ashraf, who manages the CoCounsel product suite here. And of course, Gary Bisbee who's a prime mover in our finance and operations at TR. So thanks, Curt, for having us, and thanks for the question.

So as we sort of enter this agentic era of AI, we see it as an opportunity for growth. We see our TAMs expanding and -- in legal and in tax and we see at least 4 assets that pretty clearly differentiate us as it pertains to serving fiduciaries. And when I say fiduciaries, I mean lawyers, tax preparers, auditors and the like. So these are people who have to be right, right? They can't use a probabilistic solution, they need a deterministic solution. They need to be right, and they need to be able to verify, constantly verify and validate their arguments and their results. And so the 4 assets that we bring to bear, that equip us to provide fiduciary grade AI versus sort of broader knowledge work, AI or even professional grade AI for salespeople or coders or whomever are as follows: The first is our vast repositories of unique and proprietary data. So if you don't have it, you can't ground and train your output and you don't have a source of truth, you just don't have it. And so we have it in 1 or 2 other players, and we've got more of it than anyone else.

The second is thousands and thousands, at last count, 4,500 highly trained domain experts that we have repurposed -- and Rawia has been a leader in this, repurposed them to train our agents and so we have, for example, CoCounsel bench, which basically will train CoCounsel to perform a particular set of tasks. So it will plan, it will reason and it will execute. And before it gets released into the product, that bench of experts need to validate the results and they just sign off it.

And once they sign off it, Rawia pushes it into the product. And so first is data, second is experts. The third is our data privacy and protection. So we provide an ironclad guarantee to our customers, which is their input will not become part of our AI output. And we suggest that they ask any other provider that question because to the extent you've got a start-up with a great product or a great UX or whatever they might have, but that it's learning from their workflows and from their IP and embedded in that product, that is a third rail issue for fiduciaries, right? That is a third rail issue for fiduciaries. The idea that you're going to train a tech player to perform the tasks just in the long term, we don't think is durable or sustainable. We think that's going to be a real sort of moment of correction, if you like.

And then the last, which is -- so we don't talk about much, but if you're a subscriber to Westlaw or Practical Law and you've been a subscriber a period of time, and now you're a subscriber amongst the million users of CoCounsel, we have an extensive support network. So you can actually pick up the phone in the middle of the night and say, I am working my way through a particular piece of litigation research. And Westlaw has produced the following answer and I don't understand it. And I'm in front of the judge tomorrow morning. Help me, explain to me where my logic is wrong. And by the way, we have the same for our tax calculation engines. I'm at line 1079 of the state return. And I don't understand how to apply the depreciation schedule of my client into the deduction that I can or can't claim.

And so I think when you talk about the sort of -- some of the start-ups, some of the foundation models, ask them whether they're going to have that level of support for fiduciaries because fiduciaries are doing 2 things. They're generating arguments, and then they're constantly validating and checking it. And AI cannot be trusted to check AI. So the data, the experts, the data privacy and protection and the governance and then the support, we think, positions us uniquely to serve fiduciaries and 1 million CoCounsel users and the uptick in the growth of our Legal business as well as the successful deployment of Westlaw Advantage, which is the first deep research agentic product that truly unleashes the benefit of those things for the -- in the conduct of the agent. That gives us great confidence that the upcoming launch of the next version of CoCounsel will be similarly successful and differentiated.

Got it. Maybe sticking on that point, Steve. Yes, just in terms of the importance of -- maybe we'll just zero in on CoCounsel Legal, I think new one's coming out in maybe a few months.

Yes. So Rawia has got an alpha at the moment, with a couple of hundred customers. Goes into beta on April 20. And then as soon as we start getting the right signal, we'll put it into general release in the summer.

So yes, in terms of what to me, sounds like a much more integrated tool, right, across kind of the whole corpus of...

It's really the first time we've taken content and the expertise and embedded it into the agents.

Right. So in terms of -- a lot of ways you could look at it, whether it's stickiness, whether it's wallet share, whether it's upgrades, how should we think about that?

I think it's a bit of all of those. If you think about TR's Legal business, we've traditionally sort of historically been very focused on litigation and very focused on the law firm, potentially sort of less focused on transaction and less focused on Corporates on the General Counsel. And so we think CoCounsel both strengthens our position within the litigation space and the law firm space, but it enables us to extend in a really meaningful way into the transactions activity within our legal customers. And also build on practical law, build on legal tracker and the sort of early forays that we've made into the General Counsel's office. And certainly, the announcement that we made at the last earnings call that Microsoft General Counsel group are adopting CoCounsel top to bottom, we think is sort of the start of some interesting growth around corporate and corporate legal.

Interesting client, too. Yes. So maybe talk a little bit more generally about what you're seeing in terms of across the different segments, renewal cycles, upgrade cycles, and you've got a lot of new product coming in. How much of that is driving the 9% organic, at least in legal? And just over the next, let's call it, I don't know, 24 months, what you envision for an upgrade cycle because of all these new products coming on.

Mike, do you want to take that?

Yes, happy to. We had a similar question in our last session before lunch today. And the question relates to in regards to what's driving the 9% organic growth for Legal Professionals. And the way I frame it, it's the entire portfolio that's lifting it. I think there's some natural reaction thinking that it's our CoCounsel given the significant growth that we have with it and thanks to Rawia for it. So the CoCounsel is certainly a key component of the Legal Professionals growth of 9%, but also Westlaw. Many of you will remember, we launched Westlaw Advantage in August of 2025 at ILTACON. It is performing incredibly well, as we mentioned on the last earnings call, and we're very pleased with the Q1 sales of Westlaw Advantage.

Also within Legal Professionals, we have practical law, which is how Rawia joined us 13 years ago. That business continues to perform incredibly well, $650 million of revenue, about 60% of that is in Legal Professionals, 40% is in corporate. So Curtis, really the entire portfolio that Legal Professionals that has -- is performing really well and driving the 9%. I'll just put a plug in with the May earnings call, we will start providing you with information on how Legal Professionals, excluding government is performing.

That's something that I think will be very important because we did have some cancellations that we discussed during the February earnings call. I think you'll be very pleased with that trajectory of Legal Professionals, excluding government.

Great. We always love more disclosure. Steve, going back to you, just to quickly touch on the Anthropic relationship. You gained a lot of exposure, up on stage with them a couple of weeks ago. I guess 2 fairly simple questions. Just one, just define the relationship you have with them, I think there's a little bit of confusion in terms of scope, depth or however you want to put it. But that would be the first one.

Yes. So Anthropic are a vendor to us today. I was actually there in San Francisco with them on Monday. So we've built our agentic products, so Westlaw Advantage, the next version of CoCounsel to be model-agnostic. So in other words, we can and we do change to the best foundation model. So we've used ChatGPT over time. We've used Gemini over time, and we're currently doing a lot of the work on top of the latest Claude models. And we think that at the moment, those are the highest performing enterprise models. And so they are a vendor to us, and we do it constant -- as you expect us to constant evals on whose model is performing best for our products and our use cases.

We have, in addition, developed our own large language model specific for legal. It's called Thomson and we will talk about it more and more over the coming months. And the reason we'll talk about it is that Jonathan Schwartz, who's a former Google DeepMind scientist. He has developed a model, which is outperforming the very best foundation models for some of the specific legal tasks that we are going out after.

And so if you think about that from Mike and Gary's perspective, it gives us a degree of optionality in terms of both the cost and the speed and the accessibility to that and the exclusivity of that. And if you're thinking about it from Rawia's point of view, it's a great means in which we keep the foundation model as honest in terms of accessing the very best model and getting favorable terms. So that's really the relationship with Anthropic.

And we think that CoCounsel and Cowork will fit together quite nicely. If Cowork is well suited to provide AI tools to knowledge workers more broadly and in some cases, professionals, were at the fiduciary grade and Cowork is not designed for the fiduciary graph because it doesn't have the content. It's not supported by thousands of experts, different data privacy and governance rules and not the customer support.

Okay. And then just one more quick question on Anthropic just with the -- and I think this has changed today, the supply risk designation of the U.S. government. Presumably, that may preclude maybe even yourselves or clients from using it, I guess, being agnostic, is that not an issue?

Yes. I mean it's not an issue because we are model agnostic. I mean, obviously, Rawia's teams want to spend time developing the product and just driving further and further into more sophisticated use cases rather than chopping a model out and so it's not completely costless to us in terms of time. But being model-agnostic means that should that supply chain risk designation hold, we can move away from that model. We hope that that's not the case, but we're not sort of overly exposed to that.

Okay. Fair enough. Yes. So just sticking with AI, another, I think, maybe developing or a large theme, right, is how pricing models evolve over the next few years. The ones that have the mission critical, the fiduciary, proprietary data, however you want to call it, and potentially moving to more consumption models, value-based models or based on outcomes for your customers. I guess to what extent is Thomson Reuters considering that? I guess just given the potential for changes in the legal workforce. It seems like it's pretty pertinent. So how are you looking at?

Well I think -- I mean I think the first sort of misunderstanding that a lot of the sort of ups and downs, mainly downs that we've seen on in terms of market caps and valuation. So for the first one is I think there's sort of not an understanding of what it takes to be a fiduciary and what it takes to serve fiduciaries. I think -- and sort of undervalues that set of aspects. Sorry, what was the other part of your question?

Well, on pricing, just, it'll look...

At the moment, we -- the other, I think, misunderstanding was that we might have seat-based pricing.

Well, it's not so much the seat-based pricing, right? But with -- against all the points you made about the value and I mean, fiduciary, right?

Yes. So typically, we've got enterprise-based pricing, and it is sort of -- it's in some way, shape or form tiered. Where we will move, particularly as the industry goes from the billable hour to value-based pricing and more and more of the work is performed by agents and ideally our agents, we will look to shift to value-based pricing. So we'll be able to sort of price differentially for more sophisticated tasks. We'll be able to price differentially for much more volume in usage. I think it's too early today to sort of prescribe exactly how that's going to progress and what benefits that's going to provide to our shareholders. But certainly, we're keeping a key eye on the overall usage of the product in terms of user numbers, the degree to which it's been used for highly sophisticated tasks versus more sort of repetitive operational routine tasks and ultimately, the impact on our equity partner profits, and the impact on the sort of efficiency of a general counsel.

Yes. So at this point, I mean, you basically preparing to, I guess, you call it a valuation framework for that, not something that you're having active discussions with customers.

No, we certainly are having active discussions with customers. But you can understand the tools at the moment, I had at least one general managing partner of a law firm here in New York said to me. Look, the tools are 18 months ahead of the change management in terms of the rewiring of the underlying legal work that's performed within his teams and so as that change management starts to pick up steam and the impact starts to flow through, through his organization and ultimately to his bottom line. That's when we'll be able to kick the value-based pricing.

Sure which is I think other thing you commented on, right? So tools are ahead of the usage.

Which is sort of no different than any other significant tech development. It takes a while for the sort of processes to be rewired to take full advantage.

And the rate of change.

No, exactly.

Yes. Okay. Maybe Michael, I'll throw this one to you, just changing up a bit if we can talk about the audit tax and accounting side of your business. I think fairly long-standing structural issues in terms of being able to source labor. You've got a tax engine, right? You've had that for a while. It's the core of the business, a couple of new acquisitions, right, to supplement that. It kind of sounds like you're building more of an end-to-end ecosystem, right? I think right, integrating AI.

I would say we have built that. Sorry to interrupt your -- I'd say we have built it. If you go back over the last 3 years to January of 2023, we've had 4 key acquisitions with SurePrep, with SafeSend, Materia and Additive. Those acquisitions, coupled with the existing assets have allowed us to really fill the gap that existed 3 years ago. So we go to market today with the full end-to-end solution, which gives us the confidence when we talk about 2026, we've committed to 11% to 13% organic growth for our Tax & Accounting Professional business, which we now call it Tax Accounting Audit Professionals there.

Our confidence remains there, just given the -- we have transactional revenue within the TAAP business. So there could be some variations quarter-to-quarter. But the confidence overall is significant there. You touched on the determination engine, which is critically important for us. Steve talked about the talent of Rawia, but we have Kevin Merlini, who joined us from an acquisition about 2 years ago. He's just doing a fantastic job for us our ready to review, ready to advise products. So if you think about our confidence level in that business, we have a full suite of offerings given the recent acquisitions, the organic product developments that we have there. So we're really, really pleased with the progression.

Okay. Very good. And then maybe just sort of a who knows question, but in terms of kind of meeting those needs for taking up, right? The work of your clients, is that something that's happening as we speak? Are you getting more requests to basically digitize, I suppose.

Certainly within the Tax and Accounting Professional market, I think most people realize in regards to the level of professionals there. We've had significant retirements. I think is what you're getting at which is advantageous for us. We know the tax laws are complex. The U.S. is very complex. Brazil, when we think about our Dominio business in Brazil, that's grown 20% CAGR over the last 12 years since we acquired it there. So the inherent complexity but also the shortage of workers within Tax and Accounting Audit Professionals, that weighs into our favor in regards to us helping our clients every day.

Okay. Fair enough. Michael, I'll stick with you for just a couple more. Margins, right? So 100 bps this year and thereafter the next 2. One of the strongest outlooks, I think, at least in terms of what's guided at least in infill services, maybe just break down kind of some of the biggest contributing factors and obviously, the fixed cost leverage, maybe mix in terms of the operating segments. And then they reemerge on how we work initiative? How much is that kicking in. Another kind of big theme in terms of, I guess, labor and asset utilization, which could be pretty meaningful. So just break that down and kind of level of confidence in the 100 bps?

Yes. Just to level set, we were slightly over 39% EBITDA margin for calendar year 2025. We've committed to 100 basis points improvement in '26, '27 and '28. What gives us the confidence? We have very significant operating leverage, given 60%, 65% of our cost base is fixed in nature. That's been consistent.

I oftentimes get the question, in the last 3 years is more of the AI and now agentic AI. Do I see any significant change in that operating leverage? I do not. So that's intact. Second, you mentioned the reimagine our workforce which more simply stated, driving productivity. That is a key contributor in regards to our confidence. So those 2 are kind of the pluses, slightly offsetting those items. We continue to reinvest in 2026. We will in '27 and '28. And in areas where we think we'll have significant returns to help us accelerate organic growth, our guidance for this year is 7.5% to 8% for total TR, approximately 9.5% for the Big 3. So those reinvestments will help us there.

And then also, we are absorbing some dilution from acquisitions in 2025, and we've closed 1 acquisition in 2026. So given the operating leverage and our line of sight in regards to the progress and what we know -- we think we will achieve on the productivity initiatives. Those are the factors that give us confidence in our EBITDA margin expansion for '26, '27, '28.

Okay. And maybe I'll just kick it back to you, Steve, in terms of reinvestment priorities, where are you thinking you can perhaps accelerate growth? I mean what are you most excited for and where you're dedicating the most capital in the business.

I mean, it's fairly well balanced across the Big 3. So within Legal, we think that, as I mentioned before, we think that CoCounsel is an engine for growth and TAM expansion in the transactional space and in the general -- in the General Counsel's office. As Mike said, within Tax and Accounting and Audit Professionals, we have these anchor properties around tax calculation engine, which are very, very deeply entrenched within the corporation's tax group. They're lightning fast. They're very accurate and they're cheap to run. And so the opportunity is to use agents to link into those and to perform more and more of the tasks to alleviate the talent shortage that Mike talked about.

And as we think about our Corporates business, we think more and more Fortune 1000 companies have to sort of come out of -- to some extent, Excel based calculations of tax and come into ONESOURCE. We think that indirect tax and e-invoicing is comfortably a double-digit or better growth proposition for the time horizon, particularly as the invoicing mandates roll out across the world. We think that the General Counsel is going to undertake the effort as with every function and every corporation to use AI to automate that plays to CoCounsel.

And then, of course, we have a really interesting proposition that's been -- was designed mostly for the U.S. federal government and security classified work in the form of the CLEAR and TRSS assets that we think has a growing role to play in AML and KYC in particular in that sort of broader risk landscape. So as we look across the Big 3, we see a nice balanced portfolio of growth opportunities that ought to see us get into the sort of double digits in most cases for those franchises.

Okay. I've got a big audience. So maybe I'll just pause for a second if anyone wants to ask questions. Happy to field them. Okay. No problem. So a couple more. Mike, kind of a perspective question. So transitioning to a new role, right? Maybe the chair of the Thomson Foundation, I think, come April 30 -- April, 30-year career at Thomson. I think it'd be valuable just in terms of kind of into your 30 years biggest takeaways, how the org has changed? And what you're most excited for in the coming years?

Yes. I'll remain CFO through May 8. Our next earnings call is May 5, so we'll participate in the May 5 and then May 8. Just to clarify, that point. So your question on regards to perspective or reflections. The most important word is gratitude, nearly 3 decades. Thomson Reuters afforded me more opportunities than I deserved. I had the opportunity to work in nearly every business, including many that we have divested over 3 decades and also had the opportunity to work in many countries throughout the U.S., Argentina, Brazil, Switzerland and Canada, which was very rewarding personally and professionally. I think it also helped me with the business, hopefully.

The second item at the gratitude is what the team has accomplished. Steve and I have been in our chairs 6 years, March 15 will be the sixth year anniversary. And if you benchmark and Gary can check me here, 2019 versus 2026, kind of a 2x factor comes into play in 2019. Our total TR organic growth was 4%, our guidance for 2026 is 7.5% to 8%. If you look at our Big 3 organic growth in 2019, we were at 5%. Our guidance for 2026 is approximately 9.5%.

If you look at free cash flow, 2019, we were $1.1 billion, free cash flow in 2026, $2.1 billion. So that's what I say, the 2x factor. And over that time period, the team has also significantly increased our EBITDA margin. We were 31.5% back in 2019, we'll be over 40% in 2026. And the way I view it, that's not about Steve Hasker and Mike Eastwood, that's about the team. And that's kind of my last point reflecting on your question is optimism. I'm -- I can't say this in front of her, a little bit pissed that my wife is encouraging me to retire. I hit 60 years old in 2 weeks, and the level of optimism I have for the business, given the talent that we have here, the $10 billion worth of capital capacity, if you go out to 2028, we're very low leverage now, roughly 0.5 turns. Take that up, we can do a hell of a lot for our customers and our shareholders in '26 through '28 with that. So those are just some initial thoughts in regards to...

Can I add 2 things? I think firstly, I've witnessed firsthand the tension between Mike who wants to stay for another couple of years and sort of fight our way through this moment of skepticism from some of the investors versus Mike, the man of his word, and the promises we made to his wife in terms of retiring at -- in or around 60. I think the other -- the only thing I'd add to Mike's point is the rate of innovation.

So when we started our roles, TR used to put out a new version of Westlaw every 3 or 4 years and was good at that. so not here to denigrate our predecessors or anything like that, but we didn't do much else. There wasn't a lot of innovation across the portfolio whereas now we're putting out new versions of Westlaw from sort of start to finish in deep research and agentic in 4 months from initial ideation to general availability in 4 months. Rawia and her colleagues have completely rebuilt and will relaunch CoCounsel starting now in alpha, beta April 20th.

And then as I said, released through the summer, CLEAR Investigate, which is an Agentic AI offering. New additions to and integrations around Pagero and ONESOURCE. And you go across the portfolio, and we're now I think a truly content an AI-driven tech company that's able to go toe to toe with the most innovative players in and around B2B software in the world. And so our sort of commitment is to just continue to improve that velocity and impact of innovation through the Big 3 and we have the luxury been very, very focused on those fiduciary professions, and we're not going to get distracted from that. We don't see a need to sort of branch out into different areas or try different things. We think there's lots of growth, as I said, within and across those Big 3 segments.

Yes, Curt, if I could just supplement there. The pace of innovation, which we discussed a lot in the sessions this morning, especially the last 3 years, with AI, agentic AI, just within our company, the pace of movement has just been incredible.

Got it. And with a very healthy balance sheet.

Very healthy.

So yes, maybe just ending on that and then I'd love to do just a quick lightning round world association. So yes, I mean, kind of your point capital allocation or deployment is a bigger theme. The leverage, you just did a $1.2 billion buyback and capital return. I think in terms of, again, very specific focus on your core markets, right, but there is a desire to maybe do a big bolt-on, right? So in terms of just thinking about, let's just call it, the next 24 months, the balance between the buybacks and where the valuation is versus potentially acting at the right valuation on a larger bolt-on?

Yes. I mean I think I'll let Mike sort of talk about the capital allocation. I think the sort of beating we've taken over the last few months and more broadly over the last 6 months, in a sense, is energizing because it makes us the underdog, and we sort of love that. I personally love that. And so we've really taken this opportunity to get our folks fired up about competing and outrunning everybody. And so that's the first thing.

I think the second thing is we look across the landscape, we've got $10 billion, $11 billion in dry powder between cash on hand, leverage what is 0.3, 0.4x at the moment and a business that's now producing north of $2 billion in free cash flow. And we're somewhat optimistic that some of the sort of disruption is going to create some interesting opportunities for us. You're not going to see us do anything that is a head scratcher. We might do something bigger if we really saw the value for our shareholders and we felt that it was an asset that's around which we're an advantaged owner, we might do bigger sort of returns of capital and share buybacks and so forth. But our mindset and stance is to take advantage of this moment in every possible way we can. And we think we've got the franchises, the talent and the balance sheet to do so.

And the energy?

And the energy.

Yes. I would say we'll remain disciplined in regards to our balanced capital allocation approach and strategy there. This year was our fifth year of increasing dividends, 10%. We recognize dividends are more important to certain geographies than others. But I would anticipate a continued increase of 10% per year. Obviously, that has to be approved every year by our board, but that's an important aspect. Steve talked about strategic M&A. We talk internally in 3 tiers. Tier 1 for us are bolt-ons, think about with valuations of $500 million to $1 billion, then Tier 2 larger then Tier 3. Your point there, Curt, we're certainly willing to consider larger than bolt-ons, which are to Tier 1. Will we consider a Tier 2? Yes. But certainly, the level of confidence, the thresholds has got to meet some pretty high expectations there. And that still leaves us, to your point, Curt, for capital returns. We did the $1.2 billion that we announced on April 25.

Questions about why we did. I think it was [ Bentley ] this morning asked about the $600 million return of capital under Canadian law and paid up capital there's a provision. We received proceeds for monetizing our stake in the London Stock Exchange Group. And the tax benefit expires May 7. That's why we did the return of capital, if there are questions there. So I think just given the low leverage that we have, the capacity that I mentioned, $10 billion plus it gives us flexibility as we move forward, whether it's dividends, strategic M&A or more capital returns.

And I think if you think about strategic M&A, I think Steve touched on it. But right now, we have about $400 million within the indirect tax e-invoicing space, opportunity to scale, $400 million in revenue in that risk, fraud and compliance area that Steve mentioned. So opportunities to scale. So -- and then certainly, continued very focused expansion in areas internationally like Brazil, Southeast Asia.

Okay. Board Association? lightning round.

Rawia is smiling because she's way better at this than me so maybe we'll swap.

Legal workflows?

CoCounsel.

Tax engine?

ONESOURCE.

Westlaw?

Preeminent.

Preeminent. Reuters?

The source.

The source. General-purpose AI models?

Wide space growth opportunity for TR.

I like that. Okay. Very good. Really appreciate the conversation.

Thank you. Curt. Thanks very much. Cheers.

Thank you.

Thank you.

Good day, everyone, and welcome to the Thomson Reuters' fourth quarter earnings call. Today's conference is being recorded.

At this time, I'd like to turn the call over to Gary Bisbee, Head of Investor Relations. Please go ahead.

Thank you, Melinda. Good morning, and thank you, everyone, for joining us today for our fourth quarter 2025 earnings call. I'm joined today by our CEO, Steve Hasker; and our CFO, Mike Eastwood, each of whom will discuss our results and take your questions following their remarks. [Operator Instructions]

Throughout today's presentation, when we compare performance period-on-period, we discuss revenue growth before currency -- revenue growth rates before currency as well as on an organic basis. We believe this provides the best basis to measure the underlying performance of the business.

Today's presentation contains forward-looking statements and non-IFRS and other supplementary financial measures, which are discussed on this special note slide. Actual results may differ materially due to a number of risks and uncertainties discussed in reports and filings that we provide to regulatory agencies. You may access these documents on our website or by contacting our Investor Relations department.

Before I turn it over to Steve, let me provide two quick updates. First, we have tweaked the naming for 2 of our segments to better represent their current focus and operations. Tax & Accounting Professionals is now known as Tax, Audit & Accounting Professionals, and Reuters News is now Reuters. The changes are name only with no impact on the composition or measurement of their results.

Second, please note that starting with our first quarter 2026 results, we will be making minor changes to where certain product revenue sits within the Big 3, reflecting how certain customers are managed. There is no impact on our consolidated results. For your convenience, we have posted to the Investor Relations section of our website a schedule that reflects our revised full year '23, '24 and '25 results and 2025 quarterly results in the manner we will begin reporting next quarter.

Let me now turn it over to Steve Hasker.

Thank you, Gary, and thanks to all of you for joining us today. Let me begin by commenting on the AI competition concerns that have led to recent share price volatility. We have growing confidence in the value of our content and our expertise for delivering professional-grade AI solutions. Our second quarter call in August, we discussed why Thomson Reuters is well positioned to win with Agentic AI. We bring comprehensive proprietary content, deep domain expertise and leading workflow software, which we combined with advanced reasoning models to complete complex multistep tasks.

Our unique and high-quality content grounds the AI outputs and our deep subject matter expertise trains and fine tunes the AI. Professional-grade results cannot be delivered without this content and expertise. On our third quarter call in November, we discussed the durable differentiation we believe exists with Westlaw. Its unmatched breadth of proprietary, editorially enhanced legal content, together with sophisticated tools to verify the AI deliver the comprehensive, accurate and up-to-date output needed for high stakes litigation. General purpose models cannot meet this standard.

Since those discussions, our optimism around Agentic opportunity has strengthened. The launch of Westlaw Advantage has gone extremely well with early sales and customer feedback indicating we have created a new standard in legal research capabilities. And more importantly, we have proven that we can leverage Agentic deep research capabilities to unleash our content and our expertise to clearly differentiate our AI solutions. We are working to bring these advanced Agentic capabilities in the full power of Westlaw and Practical Law to CoCounsel legal by midyear and to our other legal tax and risk offerings in the future.

We see legal AI workflows as a significant white space opportunity for TR and one that is largely incremental to our traditional research and know-how stronghold. We remain the clear leader in research and content. And we believe that we are a leader in the AI workflow market today. Looking forward, our strategy is clear. We will continue to aggressively innovate with a focus on leveraging our proprietary content and deep domain expertise along with the latest AI capabilities to deliver highly specialized Agentic workflows that we believe will be difficult for those without the same content or expertise to replicate.

I'll now turn to the fourth quarter. 2025 was a year of continued progress at Thomson Reuters. So let me start by reviewing some of our key accomplishments. First, we delivered another year of good financial results meeting our key targets. Full year organic revenue grew 7%, driven by 9% growth for the Big 3. Our adjusted EBITDA margin expanded by 100 basis points to 39.2%, meeting our outlook, and we delivered $1.95 billion in free cash flow, slightly ahead of expectations.

2025 saw continued acceleration in our pace of innovation with several foundational product launches, including Westlaw Advantage, the CoCounsel Legal unified solution and CoCounsel for Tax & Audit to name a few. Initial customer feedback and sales activity across these offerings has been encouraging, and we're excited about our road maps for 2026 as we work to bring deep research and Agentic capabilities more deeply into our portfolio. Overall, commercial momentum across our AI-enabled offerings continues to build, highlighted by several large [ CoCounsel ] wins, including Microsoft, an important validation of our strategy and the market shift towards trusted domain-specific AI.

We're also excited about initiatives we are driving to leverage AI internally to reimagine how we work, fostering a "tech + talent" mindset to drive productivity and speed. As I will discuss in a moment, we have delivered several early successes, including in software engineering, customer service, content operations and our General Counsel's office. This progress provides confidence in the long-term opportunity to become a more productive and nimble organization. Our capital capacity and liquidity remain a key asset we are focused on deploying to create shareholder value.

In 2025, we invested $850 million into M&A including 4 strategic bolt-on acquisitions, bolstering key franchises and talent. We executed a $1 billion share repurchase program last fall. And this morning, we have announced another 10% increase in our annual common stock dividend. We remain committed to a balanced capital allocation approach, and we continue to assess a number of inorganic opportunities. Our estimated $11 billion of capital capacity through 2028, we are positioned to be both aggressive and opportunistic.

Looking forward, our conviction around the medium-term growth potential for Thomson Reuters remain strong. As Mike will discuss in more detail, we are reaffirming our 2026 outlook for organic revenue growth of 7.5% to 8% including approximately 9.5% for the Big 3. We expect healthy margin expansion and strong free cash flow even as we continue to invest in innovating, serving our customers.

Now to the results for the quarter. Fourth quarter organic revenues grew 7%. Organic recurring and transactional revenue grew 9% and 8%, respectively, while Print revenues declined 6% in line with expectations. Adjusted EBITDA increased 8% to $777 million reflecting a 110 basis point margin increase to 38.7% due to healthy operating leverage and good cost discipline.

Turning to the fourth quarter results by segment. The Big 3 segments delivered 9% revenue growth. Legal organic revenue again grew 9% despite softer government growth, continued momentum from Westlaw and CoCounsel were the key drivers. Corporates organic revenue grew 9%, driven by offerings in our legal, tax and risk portfolios and the segment's international businesses. Tax, Audit & Accounting organic revenues grew 11%, driven by UltraTax, our Latin American business and CoCounsel.

Reuters organic revenues rose 5%, driven by growth in the agency business and our contract with LSEG. Lastly, Global Print organic revenues declined 6% year-on-year. In summary, we're pleased with our Q4 results. Full year organic revenues grew 7%. Organic recurring and transactional revenue grew 9% and 4%, respectively, while Print revenues declined 5%. Adjusted EBITDA increased 6% to $2.9 billion, yielding a margin of 39.2%. Adjusted earnings per share for the year was $3.92 compared with $3.77 per share in the prior year.

Let me finish on the results for the full year by noting that we have met or exceeded all of our 2025 guidance metrics with the [ loan ] exception of interest expense. This was higher than our forecast due to the pace of our share repurchase program and declines in market interest rates, which led to lower interest income. As you know, we have talked a lot about AI from a product and an innovation perspective in recent years.

I'd like to close my comments today by briefly discussing another important AI-driven initiative here at Thomson Reuters, namely leveraging the technology internally to reimagine how we work. Since 2023, we have invested heavily in AI tools and training. We created Open Arena, internal AI platform providing all employees with access to leading AI models and capabilities, and we are leveraging multiple third-party AI applications. We have held several TR-wide AI-focused learning days, offered AI certification programs and taken steps to encourage and foster a culture of experimentation with a test-and-learn approach. This enabled our employees to not only build skills, but also test the impact created by the AI tools. Last year, having matured from experimentation to execution, we implemented a disciplined top-down approach to driving transformation at scale through AI-driven automation.

Our AI initiatives are now purpose-based with specific business targets, and we have created 3-year AI road maps for all segments and functions. We are leveraging key talent, process and learnings from our successful execution of the change program to reimagine how we use technology, simplify complexity, optimize our footprint and commercial systems and evolve our work with the "tech + talent" mindset. We are pleased with our progress to date as we are seeing broad engagement and a growing number of successes. For example, more than 85% of our employees are active users of Open Arena and our other AI tools. We have more than 300 AI use cases in development across all areas of the company.

Let me share 4 specific examples where AI is already driving measurable business impact at Thomson Reuters. Let's start with software development. Over 80% of our engineers actively use AI-powered tools, making AI a core part of our development life cycle. This goes beyond cogeneration. AI is accelerating security remediation, modernizing legacy systems, automating quality assurance and enabling predictive incident management. These capabilities have transformed how we build and deliver products, reducing lead times and improving quality at scale.

Moving to customer support by pairing third-party AI tools with internal development, we have automated knowledge search and content creation and added agent assist chatbots. These tools are accelerating routine work and improving outcomes for both our customer service agents and our customers. This includes having reduced call average handle time by 15% and boosted first call resolution by 10%.

In content operations, we're leveraging proprietary AI tools to extend our differentiation and content advantage. Our content creation process requires deep legal expertise and proprietary technology. Over the past 18 months, we've developed specialized AI tools specifically engineered for legal content processing. These tools now automate complex tasks like document ingestion, classification and citation conversion for judicial cases and legislative updates. These advancements improve our speed and quality of proprietary content we deliver. For example, we have accelerated U.S. content delivery to Westlaw by 25%, giving customers faster access to critical legal updates. And importantly, the increased automation also frees up resources that we are refocusing on driving further product enhancement and accelerated innovation.

And finally, our General Counsel's office continues to excel in leveraging Thomson Reuters AI-enabled legal tools. They were early adopters of CoCounsel and our other AI-enabled offerings, which they leverage for contract review and drafting legal research and more. I'll provide one concrete example with CoCounsel tabular analysis, a recently launched feature that automates the review of up to 10,000 documents at a time. Following the close of an acquisition last year, the team used this capability to review thousands of customer contents, completing this complex task in hours rather than weeks and saving significant time and resources. It also allowed for a much quicker assessment of the ongoing obligations and risk profile of the acquired business.

Mike will share some incremental commentary, but let me conclude by stating we have growing confidence that this reimagination of how we work will bring significant benefits to TR over the next few years, increasing our productivity, accelerating our decision-making and improving our customer experiences.

I'll now turn it over to Mike to review our financial performance.

Thanks, Steve. Thanks again for joining us today. As a reminder, I will talk to revenue growth before currency and on an organic basis. Let me start by discussing the fourth quarter revenue performance for our Big 3 segment. Organic revenue grew 9% in the fourth quarter, continuing the strong trend from recent periods. Legal Professionals organic revenue grew 9% again this quarter despite slower growth from government as we discussed last quarter. Key drivers from a product perspective remain Westlaw, CoCounsel and Practical Law.

Government grew 5% in the quarter, though we expect this to slow in Q1 based on the government cancellations we discussed last quarter. Our Corporate segment grew 9% organically, driven by 9% recurring and 7% transactional growth. Indirect Tax, Practical Law, Pagero and our international businesses were key contributors. Tax, Audit & Accounting organic revenue increased 11%. Recurring and transactional revenues grew 12% and 3%, respectively. Our Latin America business, UltraTax, CoCounsel for tax and audit and SafeSend were key drivers.

Moving to Reuters. Organic revenue rose 5% for the quarter driven primarily by growth from the news agreement with the Data & Analytics business of LSEG and $5 million of generative AI-related transactional content licensing revenue and our agency business. Finally, Global Print revenues decreased 6% on an organic basis. On a consolidated basis, fourth quarter organic revenues increased 7%. At the end of Q4, the percent of our annualized contract value or ACV from products that are GenAI-enabled was 28%, up from 24% last quarter.

Turning to our profitability. Adjusted EBITDA for the Big 3 segments was $709 million, up 9% from the prior year period with the margin rising 130 basis points to 43%. Reuters adjusted EBITDA was $48 million with a margin of 21%. Global Print's adjusted EBITDA was $54 million with a margin of 39.6%.

In aggregate, total company adjusted EBITDA was $777 million, an 8% increase versus Q4 2024, reflecting a 110 basis point margin increase to 38.7% despite $19 million of severance expense related to our initiatives to reimagine how we work.

Turning to earnings per share. Adjusted EPS was $1.07 for the quarter versus $1.01 in the prior year period. Currency had a $0.01 negative impact on adjusted EPS in the quarter.

Let me now turn to our free cash flow. For the full year 2025, our free cash flow was $1.95 billion, slightly ahead of our approximately $1.9 billion outlook. EBITDA growth was the primary driver of the year-over-year increase in free cash flow.

I will now provide an update on our capital structure and several capital allocation items. From a liquidity and capital structure standpoint, we remain in an enviable position with below target leverage and healthy cash flow. This strong financial position is illustrated by our December 31 capitalization. We had approximately $500 million of cash on hand at year-end. We have an undrawn $2 billion revolving credit facility. We also have $1.7 billion available for issuance under our Commercial Paper program.

Our December 31 leverage ratio was 0.6x, below our 2.5x internal target, as noted in our value creation model. Looking forward, we forecast $11 billion of capital capacity through 2028. We remain focused on value creation, and we expect to continue with our balanced capital allocation approach that includes annual dividend growth, strategic M&A and capital returns.

I will provide several updates. This morning, we announced a 10% increase in our annual dividend for 2026 to $2.62 per share, up $0.24 from $2.38 in 2025. This marks the 33rd consecutive year of annual dividend increases, and the fifth consecutive 10% increase. In 2025, we completed 4 acquisitions for approximately $850 million. SafeSend and Additive brought key capabilities to our Tax, Audit & Accounting segment with small bolt-ons of TimeBase and Imagn Images bolstering our Legal business in Australia and Reuters, respectively.

In October, we completed the $1 billion share repurchase program or NCIB, we announced in August retiring 6 million shares. For the year, we returned slightly more than 100% of our 2025 free cash flow through dividends and buybacks, ahead of our 75% return commitment.

Looking forward, we have ample capacity to continue to execute against all 3 of these capital allocation strategies in 2026 and beyond. We remain highly focused on strategic M&A, but expect to again deliver to the 75% free cash flow return commitment in 2026.

I will conclude with a few thoughts on our outlook. We are reiterating the 2026 financial framework we discussed last quarter, and providing additional detail with our 2026 guidance. We forecast total and organic revenue growth in a range of 7.5% to 8%, driven by approximately 9.5% growth for the Big 3.

Our outlook calls for modest organic revenue growth acceleration for both total TR and the Big 3. We are confident in delivering this improvement, which benefits from positive underlying momentum, the execution of our innovation road maps and to a lesser extent, easier comparisons in several areas including at Reuters and Corporates.

We continue to forecast our adjusted EBITDA margin in 2026, rising by 100 basis points from 39.2% in 2025. We expect our 2026 effective tax rate to be approximately 19% with our cash tax rate roughly 5% below this book tax rate.

Moving to capital intensity. We see 2026 accrued CapEx as a percent of revenue of approximately 8%, in line with the trend in recent years. This level of investment is supportive of our continued focus on investing in product innovation, as we strive to deliver stronger revenue growth. We expect 2026 free cash flow to be approximately $2.1 billion, up from $1.95 billion in 2025 as growing profitability and stable capital intensity more than offset higher cash taxes.

We are reiterating previously provided 2026 organic revenue growth targets for the Big 3 segments as follows: Legal Professionals growth of 8% to 9%; Corporates of 9% to 11%; and Tax, Audit & Accounting Professionals of 11% to 13%.

As it relates to Steve's discussion of leveraging AI to reimagine how we work, I will add a few comments. First, as I stated earlier, our Q4 results included approximately $19 million of severance as we take steps to drive automation and productivity throughout the company. We expect an additional $10 million in the first quarter. While it is early in our automation drive, we have growing confidence in the opportunity ahead.

Combining our underlying operating leverage with expected productivity gains, we now expect to deliver 100 basis points of annual EBITDA margin expansion, not only in 2026, but also in 2027 and 2028 even as we continue to invest in innovation and driving revenue growth.

Turning to the first quarter. We expect organic revenue growth of approximately 7% and our adjusted EBITDA margin to be approximately 42%. Looking beyond Q1, we expect revenue growth to strengthen, primarily driven by building momentum from a number of our AI-enabled products.

Let me now turn it back to Gary for questions.

Thanks, Mike. Melinda, we're happy to begin the Q&A.

[Operator Instructions] And we'll go right to Jason Haas with Wells Fargo.

To start, I'm curious if you could comment on the Legal recurring growth. It did slow from 3Q to 4Q, so curious what drove that. And then can you just outline what sort of government headwinds you're expecting in 2026?

Sure, Jason. Your first question, the answer is associated with our Government business. The second question, which is more broader, I will expand. Jason, if you look at Legal Professionals, excluding Government, we have clear momentum driven by the pace of AI-driven innovation including our Westlaw and CoCounsel products. With that said, when we incorporate the full impact of Government cancellations we discussed during Q3, we do see the Government growth slowing in Q1 from the 5% we reported in Q4 of 2025.

We are confident Legal Professionals will achieve 8% to 9% for full year 2026. However, there could vary -- could be variations within that range quarter-by-quarter in 2026 due to the Government. So hopefully, Jason, that helps with both questions. I'll just reemphasize, when we look at Legal Professionals, excluding Government, we have terrific momentum there. It will be offset somewhat with the Government cancellations, but we're very confident in delivering that full year '26 of 8% to 9%.

Mike, if I could just add one more comment, Jason, you might have seen the transactional growth at Legal was really strong. That was actually driven in large part by Government. And so there was a bit of a shift within the quarter from recurring to transactional within the Government segment as well.

Okay. Great. Yes, I was wondering about that, too. So that's very helpful. And then as a follow-up question, I was hoping to take a step back and curious if you could walk us through what is the moat around Westlaw and Practical Law? And why can't those be easily replicated by some competitor that's using an AI tool to try to do so?

Yes. I'll start that, Jason. Thanks for the question. If you go back to our prior earnings call, we went into some depth with regard to specifically Westlaw. So I want -- I'll try not to repeat too many of those comments, but let me make a few comments because I think this is obviously a hot topic broadly and particularly a hot topic this week.

So the first comment I'd make is we have not seen a change in competitive dynamics in our areas of core franchise. So that's legal research and know-how, Westlaw and Practical Law and the various tax calculation engines that we see and, for that matter, our risk, fraud and compliance data set. So as it pertains to legal, we have not seen new entrants into the legal research space of any measure or importance.

Where we have seen more competition is in a white space area for Thomson Reuters, which is this AI-driven workflow area, where the legal assistants have emerged since the rise of generative and now Agentic AI. Now the reason that we are confident and growing in confidence is a couple fold. Firstly, we believe and all the evidence in the marketplace today supports the fact that a general purpose model cannot do what professional-grade AI can do.

So our starting point here, which we believe is a very strong starting point, is that we have 2 highly differentiated assets. The first, we have decades and in some jurisdictions, centuries of unique content sets that have been created by highly skilled, highly trained and qualified lawyers based on case-law and based on best practices and know-how and improved and refined, curated and delivered over decades or centuries, so the first is our content sets, we think, very difficult to replicate.

And the second is our deep domain expertise. So thousands of attorney editors on staff who create this content, and we have retrained to use that expertise to train our agents. And so as I said in my opening remarks, we have growing confidence here. And that growth in confidence comes from the fact that in August of last year, we launched Westlaw Advantage, which is a deep research Agentic product. Based on early sales and customer feedback, it has reset the bar in the legal research space.

To this day, it is unmatched and very significantly more sophisticated, more accurate and more useful than the next best tool. And secondly, in putting this product successfully forward, we have cracked the code, we believe, on leveraging our content and our deep domain expertise to train agents. And so the opportunity for us going forward and this runs through our product road map in '26 and beyond is to take that leveraging of content and expertise to train agents to our other flagship products, starting with CoCounsel, to launch a fully agentic version in the coming months through to our other franchise products.

And so I'd finish by saying there is a marked difference between professional grade AI and general purpose model AI. Professionals -- the stakes for professionals are extraordinarily high. They must be correct. They're doing expert fiduciary work and they require data privacy and security. And ultimately, they are accountable for being correct. And so that's really a basis of our confidence, not only in our core Westlaw and Practical Law franchises, but also in our ability to extend leadership into AI-driven workflows, which, as I said, is a white space opportunity for us.

[Operator Instructions] We go next to Tim Casey with BMO Capital Markets.

Given the share price action certainly of this week, could you talk a little bit about how share buybacks, return of capital transactions things like that are -- I guess, how are they stacking up in your pecking order? I know you detailed your priority of strategic M&A, but given what's gone this week, how are you thinking about buybacks more specifically?

Yes. Tim, I'll start overall, as you referenced in my prepared remarks, I did mention we will continue with our balanced capital allocation, the 3 vectors of annual dividend growth, which we increased 10% today, strategic M&A and capital returns. Tim, we agree with your comment and assessment that share repurchases are definitely attractive at the current levels, and we look forward to continuing our ongoing discussions with the Board in that regard.

Lastly, I would mention, Tim, that we plan to deliver on our commitment to return 75% of our free cash flow to investors in 2026. In order to achieve that 75%, we would need about $500 million of share repurchases to achieve this commitment, which is in addition to the dividends previously mentioned. So just to reiterate, Tim, we agree share repurchases are attractive at the current levels, and we'll continue to discuss that option with the Board.

We go next to Manav Patnaik with Barclays.

This is Brendan on for Manav. Just wanted to see if you could help us at all with the kind of how the size of the CoCounsel, if that's even possible to split out and kind of the -- it's how much in legal versus tax? And then also, just any comment on the progress of adoption of Westlaw Advantage and kind of what kind of uplift -- adoption uplift you expect that's kind of baked into the guidance?

Yes, Brendan, I'll start. It's Steve. Thanks for the question. So we haven't and don't plan to sort of provide specific dollar ACV numbers for those products as it's relatively early days. What I would say though is that we are very encouraged by the reception of CoCounsel legal by both the general counsels that we serve and aspire to serve and their teams and also the law firms. And that is both the largest law firms in the world, medium firms and small firms. And I think Steve Assie and [ Lucy Mikh ] and Aaron Rademacher have done a great job as is Karan Tewari in terms of penetrating CoCounsel into legal community. So we are very pleased with the progress, and we think we are keeping pace or outpace the competition in what is a white space area for us.

And I'd echo those comments as it pertains to CoCounsel for Tax & Audit. On the back of the Materia acquisition and particularly the integration of Kevin Merlini and Lucas Adams from Materia into [indiscernible] fully Agentic products that they bought with them and have been able to develop with the help of our content and expertise have been very well received by tax and accounting professionals firms, small, medium, large, in-house tax departments and also the professional firms themselves.

So I think it's early days in terms of the development of these [indiscernible] change management within the customer set. But we're off to a great start, and we're looking forward to both further investing and innovating and having our fantastic sales team to bring those products and services to market.

Brendan, I think you had a second question in regards to the Westlaw Advantage. I would say the trajectory there is based on actually higher than prior releases of Westlaw. Steve and I had a chance to spend time last week with Mike Dahn. Mike Dahn leads the Westlaw Advantage and also spent time with Emily Colbert. Maybe I'll expand your question which is likely to come, Brendan, in regards to our confidence level in 2026. These GenAI offerings that we've recently launched is a key ingredient. Several items there, Westlaw Advantage, the CoCounsel Legal that Steve talked about, Steve also talked about Coke Council for Tax & Audit. I would add Ready to Advise, which is within Elizabeth Beastrom's Tax, Audit & Accounting Professionals. And then we just launched Ready to Review with Kevin Merlini there. So that's one of the key reasons, Brendan, why we're confident in our 2026 revenue guidance. Along with that, Elizabeth is scaling the recent acquisitions of SafeSend and Additive. The last component of that revenue growth acceleration in 2026, I mentioned in the prepared remarks, easier comparisons, specifically for Reuters, given the onetime GenAI content licensing revenue, it was lower in 2025. 2024 was $33 million. 2025, it was $13 million. So that lower Reuters onetime GenAI content licensing revenue, contributes about 30 basis points to total TR if we look at the walk of revenue between 2025 and 2026. Sorry to expand there, Brendan, but I thought that might be helpful just to give you a broader view on our revenue acceleration in 2026.

Our next question comes from Drew McReynolds with RBC.

Either for Steve or Mike, with respect to strategic M&A, I think you guys, as a company, clearly have been in AI for a long time and have been successful doing tuck-in M&A. Is it incorrect to assume the pace of all the AI innovation, including from the frontier models is accelerating. So does that make strategic M&A trickier to do? And then when you see a pullback like we've gotten this week across the broader software space, have multiples in the private market -- do you expect them to come in? And just your level of confidence of making sure you're doing the right strategic acquisitions, just given, again, the pace of AI evolution underneath the hood?

Yes, Drew, thanks. It's a great question. Look, in my view, M&A of any stripe and any size is tricky, and it always has been and it always will be. And that's one of the reasons that we've kept, as I think you know, the bar very high. I mean we look for acquisitions that are first and foremost, additive to our customer experience. Secondly, they've got modern tech. The financials need to work for us, not just the exiting shareholders. And last but not least, we look for executives and teams leading those companies that we think will be additive to sort of TR's culture and talent base.

And so we've done a series of these acquisitions, as you've seen. But I think have -- we've kept our powder dry 9 times out of 10 relative to the pipelines and that which we look at. And I would suggest that will continue because M&A is hard and integration is hard, and we take it very, very seriously. And we're proud of the sort of [ batting average ] that we've achieved in terms of integrating the acquisitions we've made over the last 5 or 6 years.

As to sort of what happens in the private markets with valuations, as we've shared before, we focus on the best targets and the best products and teams. And so we're not in the market sort of looking for sort of cheap deals and subpar products. The prices of those assets held in private hands have stayed high in my view. I don't think the private equity firms have sort of readjusted their expectations.

Here, we sit with $11 billion of capital to deploy between now and the end of 2028. And I think that's an advantageous position because it should the events, particularly this week, but over the last couple of months in terms of downgrading the valuations of software and AI-related businesses. I think we should be able to take advantage of that, should it occur. But I've been wrong before in terms of how fast the private markets would move. And so we won't overstate the point. What would you add, Mike?

Good summary. Thank you, Steve.

We'll go next to George Tong with Goldman Sachs.

This is Anna Wu on for George Tong. We are in an environment where many enterprises are keeping headcount flat or even down. How do you monetize your AI product innovations further to capture the increased AI-driven consumptions in pricing. As you look to 2026, how should we think about pricing trends compared to the approach you took in '25?

Yes. Anna, thanks for the question. I'll let Mike answer the pricing question. But in terms of the headcount, so let me make something really clear, which we often state, but I can't be clear enough and that is we do not price on a headcount basis. So we don't sell seat licenses. So to the extent that our tools and this broader sort of Agentic AI transformation drives greater efficiency and ultimately, headcount reduction within either in-house legal tax audit departments and so forth or the firms that serve corporations.

We will be a beneficiary of that, not a victim of that. And the reason we'll be a beneficiary of that, and I used the example in my prepared remarks, of how Norie Campbell's team saved weeks in terms of their due diligence activities and contract review on a potential acquisition is that we price -- we're increasingly looking to price to value. Now it's early days in this AI journey. And so there's still a sort of a level of experimentation in terms of pricing as customers become accustomed to these tools and start to learn the impact and play through. But we should be a beneficiary of that, not a victim of that. And we're always looking to be -- to base our pricing as much as we can on the ultimate end impact.

Anna, I'll address 2 additional points I think you raised. One is in regards to how we monitor our GenAI investments. Certainly, Steve just touched on pricing, which I'll go into more detail in a second. Pricing, which we monitor very closely with our segment presidents, Raghu Ramanathan, Laura Clayton McDonnell, Elizabeth Beastrom for the Big 3 segments. I think another indicator, Anna, is our continued EBITDA margin expansion.

As we mentioned and you saw today, EBITDA margin expanded 100 basis points in 2025,and we've made commitments to continue the 100 basis points of margin expansion in '26, '27 and '28. Hopefully, that gives you indicators that we're closely monitoring all of our GenAI and really all investments period. I think that's a strong signal of the return that we're getting.

On your second question on pricing, we estimate a slightly higher overall pricing yield in 2026 versus 2025. And when I say that, that is a composite of our full portfolio, not just the GenAI offerings, but all of our offerings. So slightly higher pricing yield in '26 versus '25, Anna.

Super helpful. Just as a follow-up, I'm wondering what are you hearing from your customers on the rollout of AI solutions in T&A? What's your take on the potential experimenting with other newer or smaller GenAI point solutions that's becoming more available in the market, specifically in areas like invoice extraction or accounts receivable automation versus staying with a scalable and more integrated platform like Thomson Reuters is offering?

Yes. So Anna, your question is, are we hearing customers sort of experiment with general purpose AI solutions in areas like e-invoicing and AP automation? If that's -- if I would answer it correctly, the answer is no. As you know, we acquired Pagero, which is, we believe, world's leading e-invoicing solution and as mandates roll out through Europe and increasingly in the Middle East and Southeast Asia and Latin America, we very much like the trajectory of that product and that offering given its inherent product advantages.

And our tax solutions, including our indirect tax solutions and our e-invoicing solutions are lightning fast, very accurate and priced efficiently. So the idea that sort of a general-purpose AI tool is going to come in and perform that core task more quickly and efficiently at a lower price is not factually true and not the concern. I think the opportunity for us is to use AI as we're doing in the Tax & Accounting space with Ready to Review and Ready to Advise is to use AI to build out the entire value chain of activities around the tax calculation engine. And so that's a playbook that we're rolling out first in Tax, Audit & Accounting Professionals, and we will extend into our ONESOURCE proposition, e-invoicing and indirect tax and ultimately direct tax. And so it's early days for that. But we've got a playbook, and we like the early feedback we've gotten from customers around Ready to Review and Ready to Advise.

Anna, just to supplement to your point, specifically on e-invoice and which Steve commented on. If you look at our indirect tax solution, Pagero solutions, which are included within our corporate segment, those offerings fully met our revenue expectations in 2025 and that trajectory will continue into 2026.

We'll go next to the line of Aravinda Galappatthige with Canaccord Genuity.

Just to go back to sort of, Steve, you comments about the moat. I was wondering if it's worthwhile differentiating the position with respect to your customers and larger law firms as opposed to the smaller law firms. Is there a material difference with respect to the threat from these new generalized services?

And then as my follow-up, perhaps, Mike, on clearly noticed the GenAI enabled products as a percentage of ACV jumped a little bit more than in prior quarters, 28%. How should we think of sort of the high watermark for that? Obviously, there's a bunch of products that will never be AI, Global Print and so forth. Maybe just help us imagine what -- how far that number could go?

Thanks, Aravinda. I'll take the first, Mike the second. So traditionally, when we put out a new version, for example, of Westlaw or an upgraded version of Practical Law, the largest law firms and the largest general counsel offices were the first to kick the tires on those and ultimately take them up. And then that would sort of work its way down through the customer set. And you've heard over time, Mike and Gary talk about percent of ACV that these products occupy and typically, it reached the limit in the sort of 70-odd percent range.

I think what we're seeing is a slightly different dynamic in this sort of AI-driven era insofar as we have just as much demand in our most advanced AI-driven tools from small firms as we do medium and large because they instantly see the impact in terms of accuracy, quality, and ultimately, the sort of impact to their bottom line. And the small folks see that as quickly. I mean I've been in sales meetings where we've had sole litigators in the Midwest, for example, the U.S., say, see a demo of the latest Westlaw and/or CoCounsel and say, where do I buy? And when I've asked them, why such a quick decision? They've said because, look, I've been thinking about hiring another paralegal or another associate. And this does the work in many cases. And it's easier and cheaper for me to do this than go down that hiring path. So that dynamic has been slightly different. But the demand is uniformly [ keen ] across all 3, which I think is slightly different than previous iterations. Mike?

Aravinda, in regards to your question on GenAI-enabled products, just for everyone's benefit, I'll say context. We've initially provided this metric in November of 2024 with the Q3 '24 call. Initially, it was up 15% of our annual contract value. As noted today, it's now 28%. To specifically address your question, if you can visualize a graph, I think we will see continued steady rise in the percent of ACV that's GenAI-enabled throughout 2026, 2027. I think the second thing I would do on that visual in regards to the trend line, there will be points in time over '26, '27, where we will add AI to more of our existing products. So at those points, you could see -- begin to see some uptick that's higher than the current trend that we have.

So 2 points there. We'll see -- we'll keep rising steadily. And then as we AI-enable more of our products, you'll see some spikes over the time horizon. But we're certainly pleased with that continued uptick, Aravinda, and there is a direct correlation to my comments earlier as to my confidence in achieving the 2026 targets with the progress and momentum that we have with the GenAI offerings. Is that helpful, Aravinda?

Absolutely.

We'll go next to Kevin McVeigh with UBS.

Great. Congratulations on the execution and a lot of uncertainty -- perceived uncertainty. I wonder if you could maybe just go into -- because I think one of the parts that maybe isn't fully appreciated by the market is the complexity of the data aggregation. And then ultimately, the overlay of your in-house counsel to draw kind of conclusions. And just trying to get a sense of how difficult it is to aggregate the data, not only from obviously digital but also linear perspective? So maybe talk to that a little bit, and then I think the importance of, I think, it's at 1,700, 1,800 in-house attorneys you have and how critical that curation process is to the ultimately delivery, Steve, to your point, kind of how important it is getting it right and having the most comprehensive view?

Yes. Thanks, Kevin. It's sort of obviously renewed interest in this question. I would say the vast majority of value in our data sets, particularly but not limited to our lead [indiscernible] comes from the IP and the added value from our attorney editors. And these are large teams of terrifically talented, highly dedicated folks spread throughout the world.

And just a couple of sort of anecdotal points. I mean the first is we have in some jurisdiction centuries worth of content and decades and decades of content that was never digitized. So it required someone to go to the court, step to the courthouse and record that first instance.

Secondly, to the extent that some of the case information is published by a particular circuit court or a particular courthouse. Oftentimes, it includes a sort of a summary of the judgment. It doesn't include, for example, dissenting opinions and all of the fact base sitting beneath that. And we've captured that over time. But most importantly is the way our editors interpret that information, quantify that information, categorize it and add the expertise that helps determine, for example, is this patent relevant to other situations and which is the relevant precedent and which isn't. That's where a lot of the real IP is added, and it is a very, very significant added value add over that sort of base level information that's more publicly available. And that is certainly the true in Legal and it's true in Tax & Accounting.

The second thing I would add, I've mentioned this a couple of times, but it's worth reiterating is that under Leann Blanchfield's leadership with help from David Wong and Joel Hron and Emre and many others, we have trained our attorney editors, Tax & Accounting editors to take their expertise not only to produce the content that I just described, but also to train our agents.

So if you think about a particular transaction, legal transaction, we've broken it down into the 25 or 30 or 100 different steps. And then the agents are trained by our experts to behave as a world-class best practice practitioner, and the agents can then behave in sequence and in parallel to work their way through that problem in a very, very advanced way. And so that, I think, is another example of how this human expertise that's been developed here at TR over many, many decades is highly relevant to this AI era and a differentiator.

Our next question comes from Doug Arthur with Huber Research.

Yes. Let me ask a numbers question. Mike, the $19 million in severance, a, was that expected? B, where does it show up in the segments? And given the AI productivity displacement, and you mentioned something about $11 million in the first quarter, are we likely to continue to see these kind of small hits as 2026 unfolds?

Yes. Doug, let me hit each of those points. The $19 million, if we go back to the November earnings call, I did foreshadow that we would have some onetime incremental investment. The $19 million is slightly higher than we anticipated at the time of the November earnings call.

As I mentioned today, we estimate $10 million of severance in Q1. If I look for the remainder of the year, I think another $10 million is a reasonable estimate for total Q2 through Q4. That $10 million would be kind of spread along. So directionally, an estimate of $20 million for the full year.

Let me bounce back to 2025. You asked about the $19 million and how it's spread. It is spread among segments and functions throughout total TR. The reason for that, as Steve mentioned during the prepared remarks, we have initiatives across every segment and every function to drive productivity for total TR.

Okay. So it's not in any specific segment per se?

It's not in any specific segment. Once again, Doug, that $19 million is spread among the segments.

We'll go next to Stephanie Price with CIBC.

I'll maybe ask on the EBITDA margin expansion. Mike, it was good to see the '26 preliminary guidance reiterated. Just curious how you're thinking about the pacing of internal AI investments and cost improvements? And what's driving the confidence to kind of extend that margin expansion through to '27 and '28?

Yes, Stephanie. Just to confirm, we did say 100 basis points of expansion in each year, '26, '27 and '28. I think Steve has touched on a few of these points, but I'll expand on it in regards to the confidence level. Stephanie, if you go back to '21 to 2023 when we had our Change Program, we have many members of that leadership team, including Andrew Pearce, Pradeep Lankapalli, Mike Goddard, Liz Bank, who were all heavily involved in the Change Program. So we have leaders who have proved in regards to their ability to galvanize the team, influence, encourage the team to deliver. So that is a really, really important point.

The second point, Stephanie, we have been working on these initiatives for a period of time. They're just not beginning right now. So we go into 2026 with momentum across total TR, as I referenced a second ago with Doug's question. Customer segment, every function in TR with a number of use cases. I think Steve referenced 300 use cases during the course of his prepared remarks. So once again, those 300 use cases we've been working on throughout 2025. So we're not in exploration mode. We're in execution and delivery mode across all of these 300-plus use cases, Stephanie.

In regards to the level of investment, that will happen throughout 2026. All of that is reflected within the guidance. There will not be surprises in regards to incremental investments to actually drive and execute against these initiatives. Did I touch on each of your questions, Stephanie?

You did.

We go next to Andrew Steinerman with JPMorgan.

We look at your most sophisticated legal clients in terms of using AI broadly, are these clients consuming more or less content and spending more or less time on Westlaw and why? And I'll just get my follow-up as well. And on my follow-up, I just wanted to get a little more color at a segment level about that first quarter organic revenue guide of 7%.

Yes, Andrew, it's Steve. What a great question. So I don't know that I can give you a sort of the timestamped answer, right, like-for-like as to the talented attorneys spend more time in Westlaw and more time in the AI tools. Certainly, the penetration of these products is growing nicely. And as they are adopted, yes, the time goes up. But like-for-like, I think it's a little too early to tell.

What I would say is a couple of things. The legal profession continues to by and large be in good health in terms of demand for its services. And my own view for what it's worth is that AI will create many, many complex legal issues. And therefore, the sort of headline demand for the profession will continue to grow. And so within that, these tools are going to play larger and larger roles, and there will be more and more attorneys using them more often each day. And so we think we'll go from a situation where Westlaw would be used by litigators in the context of a particular litigation to a situation where it plays larger and larger roles in the execution of that litigation.

And also lawyers are -- one of the first things they do during the day is open up CoCounsel and start using it. And one of the last things they do is sort of shut it down and go home. So as I've said to you before, we see AI as a means to take our highly differentiated assets and enable us to play a larger role in the success of our customers. And I think what we don't know and what nobody knows is what will the profession's headcount be in serving that. But my bet is the demand for their services will go up, the complexity of questions that general counsels need to cope with will go up, and the adoption of these tools will grow significantly, particularly as they execute over the next 18 to 20 months, the change management required internally, just as we are doing, to ensure that we get -- extract full value from the tools.

Andrew, in regards to your second question, we don't break down our Q1 guidance by segment, consistent with Q1 and prior quarters, I just provided the total. So we don't provide a breakdown by segment.

We have time for one more question.

We'll take Toni Kaplan with Morgan Stanley.

I want to put Westlaw aside for a second because I do think that it's easier to conceptualize what the moat is there versus the CoCounsel products. And so I guess with regard to CoCounsel, you're seeing a lot of growth there right now, but there is a lot of innovation in the space from competitors, and I know you're sort of considering them general AI competitors. But I guess if someone is thinking about summarization or drafting or are these like sort of other use cases outside of core legal research, I don't know that it's totally clear why you need the technical expertise for those types of functions.

And so I think that, that's leading to like will the AI product suite eventually either get commoditized or harder to monetize. And so like, I guess, I just wanted to hear your thoughts on how that plays out over time and sort of the risk to growth because of that potential for commoditization?

Yes. Toni, thanks for the question. I think we've touched upon a couple of these points, but let me take a shot at that. I think the first thing you've got to start with in legal is the stakes associated with being a practicing attorney, and the sort of rights and obligations that come with that, the fiduciary responsibilities and the expertise required. And all of those things, the data privacy, the security and ultimately, the accountability for the advice that you provide.

All of those things lead to the need to be correct, and not to allow proprietary information to bleed into an AI model or out into the [ ether or heaven ] forbid in the hands of the other side of the litigation or a transaction. And so the stakes are extraordinarily high, firstly.

Secondly, the single best way to ensure that the AI output is correct is by training it on a highly curated, trusted, accurate data source. And we have that and very few, if any, of the new entrants have access to such a data source. That's the second part.

I think the third is as we move into this agentic environment and the tools are able to perform more and more tasks and higher sophisticated tasks, whether that be summarization or drafting or production of briefs or rebuttals, motions to dismiss and so forth. In order to perform those tasks, the products need to be agentic. And in order for those agents to behave as a world-class expert would behave and meet the rights and obligations of a practicing attorney, those agents need to be trained by deep experts, and we have them and have invested very heavily over decades in those folks.

And as I said in my remarks, have, in a sense, retrained those folks in addition to producing the content also to train the agents. So that's why we are confident. And we think that our sort of leadership position and heritage in around research and know-how is a great launching pad for us to be a leading player in the workflow tools as well. And we think that more and more customers will look to integrate those particular areas, including research and know-how, and they will want a tool that does both to a very high standard.

Makes sense. And then when you think about the Tax & Accounting business, I think it'd just be helpful. You've done this in the past, but maybe just to hear from your words, how you're thinking about the sort of differentiation or moat there? Because I do think that, that is a little bit of a different animal than legal in terms of what you're providing and differentiating.

Yes. Yes. No, I agree, Toni. I think it is -- there are some similarities, but there are also some differences clearly. So the basis of differentiation is the tax calculation engines that we operate and we provide to customers. And those tend to be very sticky because tax season -- tax filing system seasons come up quickly, and they're incredibly stressful moments for our customers. And so the idea of sort of swapping out the tax calculation engine is not all that attractive for a tax and accounting professional or the head of tax within a corporation. So we operate a number of these products that are leading in their categories, including UltraTax and GoSystem Tax and ONESOURCE. And so those calculation engines are lightning fast. They are fed by constantly and in many cases, instantly updated content, and they are extremely accurate. And of course, they have the last number of years of tax information embedded in them and feeding through them to ensure that accuracy and relevance to a particular customer. But all of those things make them both difficult to replace and also unattractive to replace because they are very, very high performing.

The opportunity for us is to take that position in tax calculation and extend it into the sort of shoulder activities. So whether that's the collection and ingestion of all the source material that goes into a tax return and SurePrep obviously will do that whether that's the e-filing process that SafeSend performs well or whether it's the sort of integration of these activities that Materia has done so well. And so we think there's an opportunity to take that starting position with the tax calculation engines and to solve a critical problem for the industry, which is an acute talent shortage.

As we've talked about before, Toni, the tax and accounting firms, whether they're the Big 4 or whether they're a high street firm, just can't access the talent as they could 25, 30 years ago, when there were lots of kids coming out of programs wanting to be CPAs. There are far fewer now. So the technology has to fill a significant gap, particularly as the number of returns goes up, the sophistication of returns goes up, the number of audits goes up and the sophistication goes up and the stakes around those things go up. And so that's why we're bullish about both our Tax, Audit & Accounting Professionals business that Elizabeth runs and also the various indirect and direct tax componentry within our Corporates business that Laura runs.

Thanks, everybody. Good day.

Bye.

This concludes today's conference. We thank you for your participation. You may disconnect your lines at this time.

All right. I think that's a go time here. You're on the info services track of the Ultimate Services Investor Conference, our primer, the info services data book, which we've been updating quarterly since 2013 is up here. You can take it on your way out.

This is the Thomson Reuters discussion. With me today is Steve Hasker, CEO; CFO, Mike Eastwood; and IR, Gary Bisbee. I'm going to be asking a series of questions. We're together for about 30 minutes. I'm going to ask something like 20, 25 minutes of questions and then ask for your questions.

I would say the biggest remarkable thing in -- since you took over as CEO has been the product road map. The product road map is just incredibly picked up. It's not just generative AI, but currently, lots of the enablement is generative AI.

My question is, how do you know if you're doing enough product innovation? And talk specifically about your agentic products in Legal and Tax, and how client adoption has been?

Yes. Thanks, Andrew. Thanks for having us. Just quickly. We're joined today by our Chairman, David Thomson. We have a Board meeting here in New York this afternoon and tomorrow. So welcome to David and also the CFO of our Corporate Business, Erin Brown, here.

So how do we know if the product innovate -- the rate of innovation is enough? Well, I would give you a simple answer that my colleagues will, sort of, cause some eye rolling, which is, it's never enough. And the reason I say that is that we serve -- we're lucky enough to serve, I think, the most incredible professions, the Legal profession, the tax accounting audit profession. And, to a lesser extent, but an important extent the sort of risk, fraud and compliance and law enforcement professions.

And the opportunities that AI presents to those professions, and the opportunities that AI presents to Thomson Reuters to play a larger role in the success of our customers is the likes of which I haven't seen in my career. And so we cannot innovate fast enough. We cannot improve CoCounsel and Westlaw and Practical Law, ONESOURCE, CLEAR. You name one of our product franchises and we have very aggressive road maps in terms of injecting agentic AI capabilities into those products, firstly, integrating them amongst the suite for TR, and then integrating them within our customers' own capabilities and data.

And so yes, Andrew, the rate -- we're proud of the rate at which the product innovation has improved over the last number of years. What I'm particularly happy with is a couple of launches that we put in place that we made at ILTACON, which is the big Legal tech conference in August. So CoCounsel Legal, which is the integration of the products and a new version of CoCounsel, and then Westlaw Advantage, which is the latest agentic and deep research version of Westlaw.

In tax accounting, we have some very important launches coming up in the next couple of months. And so we're excited about those. The early testing looks really positive. But the short answer to your question is it's never enough, and I hope that Mike and Gary will agree.

Yes. Steve, just an additional point of Andrew's question was on client adoption. We're certainly pleased thus far. I think Andrew, we've discussed the investments that we've made the last 2 years in customer success, certainly driving the additional adoption and then the sustained usage.

We have the customer success in each of the Big 3 segments, which is helping us monitor the progress...

[ Favorite part ] is customer success.

Yes. Customer success is a group of individuals who help -- once we make a sell, they're working directly with our customers on any questions that they have. They help with the training, and then they monitor the adoption throughout the process.

And maybe, Andrew, I'll just add one thought, which is if you take a historical perspective, a lot of what Steve and Mike did in their first couple of years, running the company really set up, this accelerating innovation. And so there was a clear focus on prioritization, investing more, understanding our franchises, investing more behind the best franchises and the ones with the longest growth runway.

I think also through the Change Program, modernizing and streamlining our technology infrastructure really allowed us to move fast when generative AI came on the scene. And certainly, the legacy of talent we had in our labs and data science area also has been really helpful. And we've invested heavily, as you heard us talk about. So I think it's important to note this isn't sort of -- this isn't sort of luck or a one-off opportunity in our markets. But it's been a real focus on growing our investment, prioritizing the best opportunities and moving quickly relative to the history of TR.

Andrew, just a couple of points that were mentioned this morning and some of our breakout sessions. The common question has been the level of investment in GenAI. I stated at the beginning of this year, it would be north of $200 million, that holds. For full year 2025, it will be in excess of $200 million. That's split roughly 50% operating expense, 50% CapEx. That level of investment will continue into 2026 and is factored into our guidance for both years.

Okay. Great. I was not at ILTA, but I do annually go to a Legalweek, which is in New York in February, or March. And maybe you're going to say a lot of time has passed since last Legalweek, but I didn't find the kind of user interface on Westlaw to be fully integrated like this, different, and this is really for corporates. There's just different stations there, different logins.

How focused is Westlaw on kind of a smooth, kind of modern user interface experience? Because I know you're going to say like maybe going forward, you're not a module approach, but history is a module approach.

Yes. So that was really the big -- one of the big breakthroughs at ILTACON was the sort of seamless integration under the CoCounsel legal brand of Westlaw Advantage, of Practical Law AI and of the CoCounsel legal assistant. So we've addressed that one, Andrew. And what I would say is we're pushing in two places.

The first is to make sure that our user experience is as seamless as it possibly can be and appeals not only to the senior most practitioners, but also the entry-level lawyers. And then secondly, that our products are significantly more accurate than the next best alternative in terms of the output that they produce and therefore, the time that they save.

And do you see that already in your Net Promoter Scores?

Yes. So we've roughly doubled our NPS since we launched the Change Program back in 2021. And so it took a while to get there. I think some of us were a bit frustrated at the rate of improvement. But we started well below the sort of B2B averages, and we're now comfortably above, and we're just going to keep hammering that proposition because we think the extent to which we do that, it better differentiates the broad experience that customers have with Thomson Reuters. It allows us to get more price in order to see our cross-sell and our NRR improve in really healthy ways.

You guys, sort of, bravely have already talked about 2026 targets, specifically for the Big 3. You're targeting 9.5% revenue growth. Are you able to break that down at all for us, the '26 number, price, upsell, new customers?

Gary, you'd like to start?

Yes, I can take a cut at that. So Andrew, the last couple of years, and I think we would expect this to hold in 2026. We've been, for price, in the 3% to 3.5% range. We -- with some of our newer innovation, there are a few areas like specifically in Westlaw, with Westlaw Advantage, where we're pushing for a bit more price than we've had historically, but that will take time to flow through. So 3% to 3.5% price. I think the rest...

And that's enterprise, right? Or that's Big 3, right?

Yes. I think it's total company, but I think it's also a similar number, Big 3. I think the rest of it is split into volume, which would be adoption products where we're driving more adoption and then mix. And mix, in my mind is sort of an upgrade, selling them a higher priced, higher capability version of a product. And so we've got growth in all 3 buckets.

Pricing across the board. There's a lot of products that are driving that real volume growth. In Legal, that's CoCounsel, that's Drafting, HighQ, Practical Law are still volume growers. In Tax & Accounting, there's a number of products SafeSend, the acquisition earlier this year, the GenAI launches of CoCounsel for tax and Ready to Advise, et cetera, incorporates Indirect Tax. Pagero, e-invoicing and others. And so we've got a lot of volume.

There's also, obviously, the big upgrade cycle in Westlaw remains a real driver. And by launching Advantage this summer, I think it's safe to say we've extended the runway of time over which we can continue to drive upgrades at Westlaw, and there's a number of other products across the estate where it's more of a mix. But I think it's pretty evenly balanced if you look at the growth in aggregate between those 3. Price, volume and mix.

Gary, I'll just supplement, Gary mentioned Pagero and Indirect Tax. In aggregate, Pagero and Indirect Tax is growing in excess of 20% organically this year. Another point of emphasis is international. International, as a reminder, drives roughly 1/3 of our total organic growth. That's growing at 16% year-to-date. We would expect that to continue for the remainder of this year, and continue to accelerate as we go into 2026.

Most people in the room know that we did this chart. It's on Page 8 of the information services data book about the AI continuum. And I really think when we were talking about Legal, I think of really two pieces to Legal at Westlaw. The U.S. research library, which Steve, you did an amazing job of discussing the fortified moat there on the third quarter conference call.

I wanted to -- either one, you could truly maybe give a little recap there because I thought that was amazing, and fully agree with Steve. I wanted to talk about some of the competition that's in kind of Legal workflows, and really like spots that Westlaw is just not going to be in. Spots where, obviously within workflow, they're going to win. So maybe do you want to maybe start with a comment about why U.S. research library has such a high moat?

Yes. I think -- and I think people are only just starting to understand this. So we've -- in the context of agentic AI and a deep research environment, there are two things that we think are very significant advantages. And sort of people, I think, tend to generalize and say, well what's that? It's the content. The content that helps ground the output and correct the output of foundation models and the integration of those results. And that is true. We have the -- by some margin, the broadest and deepest repositories of content in both -- especially in Legal, but also in Tax & Accounting and other areas.

The second advantage, which I think is as big, if not bigger, in an agentic environment, is a couple of thousand highly trained practice expert attorneys who help train the agents. So if you think about the first version of an agentic research product, which is Westlaw Advantage, what Mike, Dan and the team have done is they've taken a series of advanced research tasks and they've broken them down into a dozen steps, or 20 or 30 steps. And then they've tapped into our thousands of experts to train the agent at each and every step to behave like a world-class expert.

And that is not something that anyone else can do because they don't have the same depth and breadth of expertise in-house. We think it's a very difficult capability to emulate. And therefore, we think that the emergence of agentic AI has actually significantly strengthened our capability, and moved us to the right of this chart on Page 8. So I think that's the first part of your question.

Mike and Gary, do you want to go to the others?

So you want me to repeat the others? Or do you want to?

I think we're good.

Okay. So yes, go ahead. So the other thing I wanted to jump in on is on workflows. Like where do you feel like, given your foundation of the Legal research library, where do you feel like CoCounsel has the best ability to win within these new white spaces? And then, of course, against these new white spaces, there are new start-up competitors?

So let's start with Legal and then we'll talk about -- Yes. We also made a comment about Tax & Accounting. I would say, look, where the stakes are really high and the results need to be very accurate, and/or the agent needs to behave like a world-class expert. I think we have, as I said, an advantage there, firstly.

Secondly, where that workflow involves a component of research, I think we have an advantage there because some of the more generic tools that aren't trained in our content, that don't benefit from access to the experts, just don't produce accurate enough research results and many customers have sort of said, look, you can use one of these tools to their associates, but you can't use it for research.

And then I think in terms of both litigation and transactions activity, whether it's drafting, whether it's development of an initial briefing, or rebuttal, a likely reaction of a judge, the sort of workflows around specific M&A activity. I think we're well placed to compete. And where we aren't, or we won't invest in those areas, that's where our -- our dry powder in terms of the financial capacity will be helpful because we can go out and potentially acquire some point solutions to fill in some of those gaps.

But Mike and Gary, what would you add before I talk about Tax & Accounting?

Yes. Just in regards to the corporate segment, Steve talked about the law firms. We're seeing very similar uses of CoCounsel Legal within the general counsel space. Steve will expand more, but also within the corporate segment, we're seeing CoCounsel for tax being used as a supplement or alternative to Checkpoint.

Just as a reminder, we have Westlaw, which is used for Legal research. We have Checkpoint, which is used for traditional tax research. Checkpoint for Tax helps customers in that traditional tax research that they've previously used Checkpoint. So we're seeing customers migrate at a pretty good pace from Checkpoint to CoCounsel for Tax.

Yes. The only thing I'd add, Andrew. I think you framed it the right way, which is the AI workflow space is white space, or an incremental opportunity for us. And certainly, there's some new competitors there. We're doing well. We're winning our fair share. And our focus, and Steve alluded to this, looking forward is leveraging our content and our expertise to deliver workflow automation solutions that are difficult for competitors that lack those two assets to replicate.

Gary, have you -- you said winning our fair share and things like intelligent draft. Like have you ever seen a market sizing on intelligent draft? Like how do you know you're winning your fair share? You're growing quickly, but how do you know it's "Thomson's fair share"?

I think we've got some sense based on how competitors have discussed it and certainly, discussions with our customers of how we're doing, and we think that CoCounsel is competing very well and is one of the market leaders. Our goal is to continue to drive that success.

Steve, I want to get back to tax research.

Yes. So if you think about sort of where to where -- to Mike and Gary's points, where the competitive dynamics haven't changed in this AI era, in the Tax & Accounting space is around the calculation engines. So we have one. CCH have one and it's clearly -- it's a very, very stable space. What we have not seen is new entrants into that space.

What we have seen is the emergence of agents to start to perform some of the tasks that are ancillary to the core tax calculation. So research around changing laws and regulations to Mike's example. And so where we're going here is to use agents to perform tasks end to end, such that the first draft of a tax return, can and will be performed without human interaction. And the reason this is important because of the acute talent shortage in the Tax & Accounting professions. And so if you think about collecting all of the source input information, and making sure that it's accurate, that it's curated, that it's input into that tax calculation engine. And that once the calculation engine is run, that any potential issues have flagged and highlighted for follow-up by the Tax & Accounting professional. And then the e-filing process and so on and so forth.

So we're basically using the tax calculation engine to do the math as it has for many, many years, and we're using agents to provide a seamless experience that doesn't require human intervention. So this is another example, similar to Legal, where the core franchise -- the dynamics around the core franchise remain very attractive, and we're using AI to expand the role we play in the daily lives of our customers. And we're excited about the growth prospects, both in our Tax & Accounting business, that serves the Tax & Accounting firms, but also within corporate, which, of course, serves the heads of tax within larger corporations.

So I think you're going to say you just answered this question, but let me give it a try. I started out as a tax accountant, as you might remember, I know you started accounting also. My question is, when you look at the tax engine, you look at the tax research library you have, do you feel like the mode is as fortified as in your Westlaw business?

Yes, I do because I think those tax calculation engines are very difficult to replicate. You have years of historic data. You have a profession that at least every 6 months needs to be running those engines and filing. And therefore the window to swap out, one of those tax calculation engine, and the cost benefit of doing so is, I think, favors the incumbent providers, provided those incumbents are providing a valuable service to customers, which we've certainly worked on over the last couple of years.

So I very much like the competitive positioning as a starting point of those tax calculation engines. And I think it's as strong as our starting point in Legal research.

And you're saying you haven't seen any competitors in Tax & Accounting?

Not in that core tax calculation engine. What we're starting to see is some AI agents. But again, they don't benefit from the same content and expertise that we have, nor do they -- nor can they hook into the tax calculation engine. So I'm not here to denigrate them. We're trying to learn from what they're doing as I'm sure they are from us. But we like our positioning as this space evolves and the AI agents become more prevalent in the day of a Tax & Accounting provisional.

Andrew, if I could just add. If you look at our strategy pre generative AI. We've always been in the center with this really embedded position with the tax calculation engine. What we had done over the prior 5, 6, 7, 8 years was acquired, and occasionally organically, add more capabilities to really be able to offer truly end-to-end workflow and tax.

What we're doing with AI is now, if this is your workflow, choose parts of it and automate those parts of it to help drive more efficient process for our customers. And I think nobody's got that end-to-end software workflow as a starting point. And as Steve said, we think the tax engine has a very strong moat. And to some extent, it gets larger when you've also got all these other solutions that you're selling into them. And there's a big opportunity to bring AI to automate parts of that workflow in tax and also an audit.

Great. Really liked the Legal growth in the third quarter. Is there anything that makes you feel like it would be hard to accelerate the Legal segment growth from the recent levels?

I think there's sort of a couple of considerations. One is the -- we're starting to see growth in the TAM. So we're starting to see law firms and general counsels spend more on technology. In the case of law firms, I think it's more on technology and less on real estate. That's the thesis we've had for a while, and I think we're now starting to see that materialize. So that's a factor as to how quickly that changes. And I think it will change.

The speed of that change will be dictated by how quickly they can address the revenue model, the billing -- per hour billing. How quickly they're going to -- they can change the pyramid structure and the apprenticeship model within the firm. But that's a pretty exciting, I think, tailwind for us.

I think the second is our rate of product -- to your first question, our rate of product innovation and execution. And so we're growing in confidence and optimism on the back of our significant releases in August and the future -- the road maps there.

And I think the third consideration here is our government business, which we report as part of Legal. And we talked about at the end of the -- at the end of September, so the year-end for the federal government. We had a couple of downgrades within that. Our government team, I think, has done a very good job of sort of maintaining its must-have status within the key agencies that we provide tools to, but we did suffer a few downgrades. We're addressing those.

Our product set is broadly aligned with driving efficiency, with preventing fraud, and with sort of law enforcement and broader security. And so there could, and should be, some growth opportunities for us. But I think as we all know, that's the unknown, and we flagged that on our November 4 earnings call for that reason.

Yes. Andrew, we delivered 9% organic growth in Q3. I stated on the earnings call. We forecast 9% for Q4, absent any additional downgrades within the U.S. federal government. As we sit here today, we are comfortable with the 9% for Q4. We stated on the earnings call, that the U.S. federal government had about a 20 basis point impact in calendar year '25. We would expect that to continue into calendar year 2026, just given the nature of those subscription-based contracts, meaning a portion of the revenue recognition happened in '25, the residual will happen into 2026.

As we go into the February earnings call, we'll provide additional segregation within Legal professionals of the government business. The state and local portion of government has performed well in 2025, and we expect that to continue.

I think you're saying steady, high growth in Legal, when I interpret what you were saying?

Yes.

Okay. Okay. That's great. Talk a little bit about law firms. Obviously, to embrace your products, you require a lot of change, really kind of cultural change in law firms. Are you seeing maybe small and medium-sized law firms address these types of changes, these efficiency changes, maybe fewer para legals, than large law firms? Or are large law firms as forward leaning on adopting AI tools that would require work flow changes?

Yes. I mean I think what's been interesting about this era of AI-driven transformation is, for us, has been, that for a product like Westlaw Advantage, in the previous versions that I've been around for, so Edge and Precision, we saw the very largest firms adopt first, and then that sort of move its way down into the mid-tier firms, and even some of the smaller firms.

What we're seeing with Westlaw Advantage and CoCounsel, is the largest firms for sure, because they have the sophistication of the budget and they want to be at the cutting edge, we're also seeing sole practitioners purchase these products. And that's a new dynamic for us. And it suggests that the sort of adoption curves ought to be good news for us as they -- as we roll forward.

I think broadly speaking, the profession has shown an open-mindedness to adopting AI tools that is greater than I would have expected. When, for example, we were at our Investor Day a couple of years ago. So I think that's actually been more than -- I mean, it's very hard to find the managing partner of a law firm who hasn't accepted and started to embrace the use of AI within their practices. Very, very hard to find.

I think though, the change management beneath that is yet to really take hold. And we're doing -- we have a program with a number of our largest and most innovative customers to really partner with them and drive that adoption and see the benefits flow through throughout the firm, including to equity partner profits.

But it's one thing to license the tools and to ask associates to use them. It's another then to rewrite the way in which the practice of law is conducted. And I think that will take some time, and that's the process that we started with these luminary customers.

Okay. Great. When I look at the 2026 targets, Mike, for Tax & Accounting of 11% to 13% organic revenue growth, that includes acceleration. So my question is what's driving that acceleration? Is it price? Is it product? What's driving it?

Just as a reminder, price within Tax & Accounting professional has averaged about 5% to 5.5% in the last few years. We expect that to continue as we move forward into 2026.

Second, we have the recent acquisitions of SafeSend, Materia and Additive within Tax & Accounting professionals that will continue to scale and accelerate into 2026.

Third, an item that has been a consistent contributor within Tax & Accounting, it's the Dominio business within Brazil. For the last 11 years, it's grown 20% CAGR. We expect that to continue. And then lastly, we expect the retention for Tax & Accounting professional to continue to increase. I think the convergence of those 4 items give us confidence with that 11% to 13% for 2026.

I'd just add one other, Mike, which is the organic GenAI launches that we've done of ready to advise in August and ready to review, which is targeted around year-end, along with the scaling of CoCounsel for Tax, which is powered by Materia. So that was incorporated to Mike's M&A comment, but I think those GenAI launches and products we're very excited about.

Yes. No. Ready to review is definitely one. Okay. Okay. Great. Talk a little bit more about the corporate side. I know you guys keep on telling us it's the bigger opportunity for penetration than law firms. And when I hear that, kind of bigger opportunity, I kind of think like, oh, maybe it is the bigger opportunity kind of theoretically, but like historically, the penetration has been lower then? And what's the catalyst for change?

Yes. So we have, as you say Andrew, for some time, said this is our biggest TAM. The opportunity to serve the Head of Tax, the General Counsel, the Head of Risk and compliance, internal audit within corporations, large, medium and small. And as you said, our starting point is the most modest in terms of our penetration. So we have conviction around that.

That conviction was strengthened last year in 2024 when we had double-digit growth. We decided this time last year to make a series of changes to go to market because we've seen 10% growth. So I think you've had a sense of optimism. We'd also seen NPS, as I said earlier, improved meaningfully within all of our segments, including corporates. What we hadn't seen was a real meaningful uptick in cross-selling. So we made some changes to try to improve that. In doing so, we probably created a little bit more disruption than we'd like, but we're starting to see the green shoots of those efforts. We're starting to see that book of business build in ways we like.

So look, I remain optimistic that it is our biggest opportunity, and it won't be one of those ones that will always be our biggest opportunity. I think we'll start to see that growth fulfilled. The other thing we...

What's the catalyst? Is it -- you have better products for them? Like what's the catalyst for change?

I think the catalyst for change is the adoption of technologies within corporation. So if you think about it, and we're doing this internally, Mike alluded to it on the last earnings call, we are looking across every single part of the company and ask yourselves the questions. Where can AI and agentic AI help automate the task that we perform on a day-to-day basis?

We are not the only corporation who is doing that. So that flows down to the General Counsel, which is CoCounsel. It flows down to the Head of Tax and internal audit, which is CoCounsel. It flows down to the Head of Risk and Compliance, which is CLEAR intelligence. And so we are selling and increasingly investing in tools that will be part of that automation journey within our corporate customers. And we think that's going to be a multiyear growth opportunity provided we execute, which we're very focused on doing.

Okay. Well, that's our time. Thank you so much Steve, Mike, Gary, thank you very much. I appreciate the dialogue.

Good day, everyone, and welcome to the Thomson Reuters Third Quarter Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the call over to Gary Bisbee, Head of Investor Relations. Please go ahead.

Thanks, Jenny. Good morning, and thank you for joining us today for our third quarter 2025 earnings call. I'm joined today by our CEO, Steve Hasker; and our CFO, Mike Eastwood, each of whom will discuss our results and take your questions following their remarks. [Operator Instructions].

Throughout today's presentation, when we compare performance period-on-period, we discuss revenue growth rates before currency as well as on an organic basis. We believe this provides the best basis to measure the underlying performance of the business. Today's presentation contains forward-looking statements and non-IFRS and other supplemental financial measures, which are discussed on this special note slide. Actual results may differ materially due to a number of risks and uncertainties discussed in reports and filings that we provide to regulatory agencies. You may access these documents on our website or by contacting our Investor Relations department.

Let me now turn it over to Steve Hasker.

Thank you, Gary, and thanks to all of you for joining us today. Momentum continued in the third quarter with revenue in line and margins modestly ahead of our expectations. Total company organic revenues rose 7% with the Big 3 segments growing by 9%. In addition, healthy revenue flow-through, beneficial revenue mix and good cost discipline boosted margins, driving profit ahead of expectations. We are reaffirming our full year 2025 revenue and profit outlook, including our expectation for approximately 9% organic revenue growth for the Big 3 segments.

For the full year, our total and organic revenue growth is trending closer to 3% and 7%, respectively, rather than the higher end of the ranges at 3.5% and 7.5% for 3 reasons that are unrelated to our AI innovation momentum. First, a slower ramp of commercial print volumes; secondly, several recent U.S. federal government cancellations and downgrades; and third, slightly softer bookings trends at corporates following internal sales organizational changes aimed at improving future cross-selling. We see these as temporary factors not related to our growing innovation and AI-driven momentum, which continues to build.

This is best illustrated by our Legal Professionals segment accelerating to 9% organic revenue growth in the quarter, up from 8% in the first half of 2025 and 7% last year. And this is driven by continued Westlaw momentum and strong double-digit growth from both CoCounsel and Cocounsel drafting. Outside of legal, we continue to see double-digit growth from a number of key franchises, including SafeSend, Confirmation, Pagero, Indirect Tax and our international businesses to name a few.

Looking to next year, we're updating our 2026 financial framework. We continue to expect organic revenue of 7.5% to 8%, including approximately 9.5% for the Big 3. And we now see larger year-over-year margin expansion and higher free cash flow than in our prior outlook. On the product front, customer feedback on the Agentic AI launches over the summer has been very positive and initial sales trends are encouraging, especially for the CoCounsel legal integrated offer, Westlaw advantage and CoCounsel for tax, audit and accounting. The competitive dynamics for our core content-enabled technology offerings for Westlaw, Practical Law and our tax engines remains stable. We see incremental competition in the AI assistant space, which is an exciting white space growth opportunity in which CoCounsel remains a clear market leader.

Our capital capacity and liquidity remain an asset that we are focused on deploying to create shareholder value. We recently completed the $1 billion share repurchase program announced in mid-August, and we remain extremely well capitalized with a net leverage of only 0.6x at quarter end. We remain committed to a balanced capital allocation approach, and we continue to assess additional inorganic opportunities. With our estimated $9 billion of capital capacity through 2027 after the completion of the buyback, we are positioned to be both aggressive and opportunistic.

Now to the results for the quarter. Third quarter organic revenues grew 7%, in line with our expectations. Organic recurring and transactional revenue grew at 9% and 4%, respectively, while print revenue declined 4%. Adjusted EBITDA increased 10% to $672 million, reflecting a 240 basis point margin increase to 37.7%, higher than anticipated due to healthy operating leverage and good cost discipline.

Turning to the third quarter results by segment. The Big 3 segments delivered 9% organic revenue growth. Legal organic revenue grew 9%, improving from 8% in the first half of 2025 and 7% for all of last year. Continued momentum from Westlaw and CoCounsel were key drivers. Organic revenues in corporates grew 7%, driven by offerings in our legal, tax and risk portfolios and the segment's international businesses. Tax & Accounting organic revenues grew 10%, driven by our Latin American and U.S. businesses. Reuters News organic revenues rose 3%, driven by growth in the agency business and our contract with LSEG. And lastly, Global Print organic revenues declined 4% year-on-year. In summary, we're pleased with our Q3 results.

I'll now comment briefly on questions that we've heard in recent months about the value of our content, specifically Westlaw in an AI environment and whether it could be replicated by large language models or newer AI competitors. We remain very confident in Westlaw's differentiation, which we believe has increased significantly with the development of Deep Research and Agentic AI and the recent launch of Westlaw Advantage. It is very important to understand that litigation is high stakes work with no room for error and significant consequences for being wrong. As a result, professional-grade legal research and workforce tools -- workflow tools need to deliver comprehensive, accurate and up-to-date outputs through trusted solutions with robust data privacy commitments. This is a very high bar, particularly given the scale, complexity and constant change of the legal ecosystem.

In the United States, there are hundreds of court systems and tens of millions of annual rulings. We collect content from more than 3,500 sources in multiple formats, and it is completely unstructured. On an annual basis, we process more than 300 million documents into Westlaw. In addition, we have valuable and proprietary second source content, including practical law. Collection of source content is just step 1. Our more than 1,500 attorney editors armed with cutting-edge technologies turn the massive volume of unstructured data into structured proprietary content and intelligence. This includes linking cases, codifying statutes and regulations, authoring head notes and increasingly creating new content for our AI offerings.

In total, our team delivers more than 1.6 million editorial enhancements per year. Primary law content, including case law, statutes and regulations is a significant majority of what users search in Westlaw and 85%, I repeat, 85% of this content has been editorially enhanced. So 85% is editorially enhanced. These enhancements are proprietary to Westlaw and make the source content far more valuable. Let me provide a few brief examples. First, the West Key Number System is our proprietary taxonomy or subject classification of the law. It covers more than 140,000 precise legal topic categories, capturing the law at an extremely granular level. The organization of case law, statutes and regulations against this taxonomy is key to the delivery of comprehensive and accurate results, allowing Westlaw users to zero in on very specific points of law.

Second, KeyCite, our proprietary citation network has more than 1.4 billion connections linking legal matter with the taxonomy. KeyCite verifies whether a case, statute or regulation is still good law and finds accurate citing references to support legal arguments. And lastly, Headnotes are summaries of the important issues of law within a case and are indexed against the key number system. This allows users to efficiently and accurately pinpoint the cases that best match their facts and desired outcome.

To illustrate how the Westlaw content and editorial capabilities deliver value in an AI world, this slide outlines the key steps in our Agentic approach for Westlaw Advantage. As you can see, our AI agents leverage Westlaw's breadth and depth of content. And critically, the extensive expertise of our editorial teams and the significant editorial enhancements that we create differentiates our agents, the output of which is delivered as professional-grade research that lawyers can trust.

This graphic highlights another important differentiator for Westlaw. When doing legal research, validating research results is a key final step in the process. This is doubly important with any AI outputs, which need to be checked for inaccuracies and hallucinations. In Westlaw, we have the leading tool set to deliver these validations, bringing confidence to our users that their citations are accurate and their legal arguments are correctly characterizing the law. The validation process leverages several tools I've already mentioned, including Key Number System, KeyCite and Headnotes. In addition, litigation document analyzer reviews legal briefs before they are submitted to the court, identifying inaccurate citations and misstatements of law.

Combined with the industry's most robust editorial curated content set, the Westlaw tools provide lawyers with assurance that their legal arguments are on point, and they have done all that they can to prepare for court. While general purpose models can find cases to potentially make a legal argument, delivering against the industry's need for comprehensive, accurate and current research is an extremely high bar. Our market-leading content, our editorial enhancement and our sophisticated tool set have been built over decades to consistently deliver this standard while meeting the industry's data privacy and security needs.

Looking forward, we see the evolution of AI from information retrieval and summarization to more complex Agentic workflows as an opportunity for Thomson Reuters that reinforces the value and critical importance of our content and editorial expertise. In complex multistep work, quality content to ground the outputs and subject matter expertise to train and fine-tune the AI are critical to delivering professional-grade results. Our innovation focus is squarely on leveraging these assets leading content and the deepest bench of domain experts in our end markets to deliver agentic solutions that are difficult, if not impossible, to replicate.

I'll now turn it over to Mike to review our financial performance.

Thanks, Steve. Thanks again for joining us today. As a reminder, I will talk through revenue growth before currency and on an organic basis. Let me start by discussing the third quarter revenue performance for our Big 3 segments. Organic revenue grew 9% in the third quarter, continuing the strong trend from recent periods. Legal Professionals organic revenue grew 9%, improving from 8% in the first half, driven primarily by Westlaw, CoCounsel, CoCounsel Drafting and our international businesses. Government grew 9% in the quarter. In our Corporate segment, organic revenues grew 9%. Recurring revenue grew 9%, while transactional rose 5%. Direct and Indirect Tax, Pagero, Practical Law and our international businesses were key contributors.

Looking forward, the Corporate segment growth rate is likely to moderate in the fourth quarter due to the softer-than-planned bookings growth Steve mentioned. Tax & Accounting delivered another strong quarter with organic growth of 10%. Recurring and transactional revenues grew 9% and 12%, respectively. Our Latin America business, SafeSend, UltraTax and the Cloud Audit family of products were key drivers.

Moving to Reuters News. Organic revenue rose 3% for the quarter, driven primarily by growth at the agency business and from the news agreement with the data and analytics business of LSEG. Reuters revenue included approximately $7 million of transactional generative AI content licensing revenue in the quarter compared to $8 million in the prior year quarter. Finally, Global Print revenues decreased 4% on an organic basis. On a consolidated basis, third quarter organic revenues increased 7%. At the end of Q3, the percent of our annualized contract value or ACV from products that are Gen AI-enabled was 24%, up from 22% last quarter.

Turning to our profitability. Adjusted EBITDA for the Big 3 segments was $606 million, up 9% from the prior year period, with the margin rising 220 basis points to 41.7%. Moving to Reuters News. Adjusted EBITDA was $42 million with a margin of 19.9%. Global Print's adjusted EBITDA was $46 million with a margin of 37.1%. In aggregate, total company adjusted EBITDA was $672 million, a 10% increase versus Q3 2024, reflecting a 240 basis point margin increase to 37.7%. Turning to earnings per share. Adjusted EPS was $0.85 for the quarter versus $0.80 in the prior year period. Currency had a $0.01 positive impact on adjusted EPS in the quarter.

Let me now turn to our free cash flow. For the first 9 months of 2025, our free cash flow was approximately $1.4 billion, down 3% from the prior year. Changes in working capital, which are largely timing related, were the largest driver of the decrease. I will also provide a quick update on our capital allocation. In late October, we completed the $1 billion NCIB or share repurchase program we announced in mid-August, acquiring approximately 6 million of our shares.

I will conclude with a discussion of our 2025 outlook and 2026 financial framework. As Steve outlined, we are reaffirming our 2025 outlook across all metrics. Our total and organic revenue growth is trending closer to 3% and 7%, respectively, rather than the higher end of the ranges at 3.5% and 7.5% for 3 reasons unrelated to our AI innovation momentum, as Steve mentioned.

I will provide a bit more color. First, our Global Print segment has seen a slower-than-expected ramp in commercial print volumes thus far in 2025, which we believe will impact total organic revenue growth by approximately 25 basis points for the year. As a reminder, 10% of our print revenues from commercial where we print books for third-party publishers.

Second, our government business, while holding up well overall, has faced a handful of recent downgrades and losses related to the federal efficiency programs that we believe will be an approximate 20 basis point drag to full year organic revenue growth.

Third, as I mentioned earlier, we have seen softer bookings trends at our Corporate segment, reflecting the impact of internal sales organizational changes aimed at supporting an increasingly integrated product proposition and driving improved future cross-selling. While these changes have contributed to a slower sales build in 2025 versus our initial expectations, we remain confident in our corporate product portfolio and the segment's growth potential. Note, these organizational changes were only made at our Corporate segment and do not impact our Legal Professionals or Tax & Accounting segments, which have separate sales organizations.

Despite these headwinds, we remain confident in achieving our 9% Big 3 organic revenue growth outlook for the year with strong innovation-led momentum continuing in our Legal Professionals and Tax & Accounting Professionals businesses and from our international markets.

Turning to the fourth quarter. We expect organic revenue growth of approximately 7%, including approximately 9% for the Big 3. Legal Professionals is likely to again deliver 9% organic revenue growth, assuming no incremental government headwinds materialize. We expect the Q4 adjusted EBITDA margin to be approximately 39%, which includes select onetime investments we are making to transform and increasingly automate how we work.

Looking beyond 2025, we are updating our 2026 financial framework to incorporate a more positive margin expansion and free cash flow outlook. We reiterate our outlook for 7.5% to 8% organic revenue growth, driven by approximately 9.5% growth at the Big 3 segments. We are confident in delivering the revenue acceleration this implies driven by positive underlying momentum, the execution of our innovation road maps and to a lesser extent, easier comparisons in several areas, including at Reuters News and Corporates. We now expect to deliver approximately 100 basis points of adjusted EBITDA margin expansion, up from our prior view of 50 or more basis points.

Healthy operating leverage, combined with early benefits from using AI and technology to reengineer how we work, provide confidence in this outlook. We are also raising our free cash flow outlook for 2026 to approximately $2.1 billion, which is the upper end of the prior range of $2 billion to $2.1 billion. Our expectations for capital intensity and tax rate remain unchanged. We are currently in our 2026 planning cycle, and we'll provide more detailed 2026 guidance on our Q4 conference call in February.

I will now turn it back to Gary for any questions.

Thanks. Jenny, we're ready to start the Q&A.

[Operator Instructions] And our first question is going to come from Drew McReynolds from RBC.

Appreciate all the detail as usual. Two questions for me. I guess, first on the government and corporate headwinds. I guess the question is ultimately, what's kind of recurring into next year? And for corporates, I believe the organic revenue growth target is 9% to 11%. Just wondering how comfortable you still are with that?

And then secondly, Steve, great kind of rundown essentially of the moat within Westlaw. I know it's early days on Agentic AI. Can you comment on the customer kind of reaction to what Agentic is doing from their perspective? And are they able in these first iterations to notice the difference between what you're offering and maybe some others that don't have the deep content access?

Yes. Drew, great questions. Let me start with Corporates, and then I'll ask Mike to supplement that. Then I'll go to government, then I'll go to Westlaw. So please be patient, but we'll work our way through these questions.

So look, the Corporates sales softness is a bit frustrating because it's temporary and it's self-inflicted. So 2 points. One, we remain even more confident in the end market opportunity. We've said for a while that the TAM is the biggest opportunity for us in Corporates relative to the other segments. And it's the area in which we have the lowest penetration of our legal, tax and risk products. So we think it's our biggest opportunity. And our product set is, we think, pristine and well received by customers. And so we started to see glimpses of this promise last year, as you'll remember, with 10% growth. And underpinning that, we've seen a really nice escalation in our NPS scores across the segments and including in Corporates.

But what we haven't seen is an uptick in cross-sell. So at the start of this year, we expanded our global account footprint, and we asked our salespeople to sell more than one product grouping. And I think in retrospect, we got a little ahead of our sort of commercial systems and our infrastructure in doing that. So we've left some of our salespeople, I think, a little disorganized relative to the opportunities and relative to where they were last year. So not up to our high standards. We're through this. We'll learn from it, and we'll be better for it. We've got no more changes in the pipeline and very confident in the 9% to 11% for next year. So that's on the Corporates side.

Mike, what would you add to that before we go to government?

Terrific summary, Steve.

Okay. All right. So government -- so I'd say a couple of things. Our solutions in government, whether they be related to the legal side or the sort of law enforcement and risk side are very well aligned with the administration's agenda around efficiency and law enforcement. And we've seen good growth in state and local. And on a federal level, I think the teams have done a very good job this year in asserting the must-have status of our solutions. And so I think up until the end of the third quarter was so far so good. We had a couple of downgrades and cancellations at the end of the third quarter, which I think has us watching this one vigilantly.

In the medium to long term, Drew, we are very confident in the value proposition, both the federal, state and local because tools like Westlaw Advantage and CoCounsel and our various tax solutions drive efficiencies for the government agencies. And of course, our law enforcement work through CLEAR and TRSS is very well aligned with the agenda of this administration, as I said. So medium to long term, we're confident about government, but it is a turbulent environment, and we just wanted to signal that. Unclear as to what it will look like for the next 12 months. But medium to longer term, we're very confident.

So let me turn to Westlaw. So as you know, we put in the marketplace Westlaw Advantage, which is the first Deep Research and Agentic research product. The reaction has been very, very strong from customers as it has been to CoCounsel legal and the integration of those products. I'll give you the example of one customer that I've spent some time with that I think is emblematic of the broader environment. He is the managing partner of a major firm in New York City. He spent his career as a litigator and is well known as such. And he was describing how his career has been spent in conference rooms going back and forth with his colleagues and his partners, refining his arguments. Since he's had access to Westlaw Advantage, he is doing much more of that back and forth with our tool than he is with his partners. And so in the early going, there is a change to his behavior in terms of getting to the best, most refined arguments, anticipating the opponent's rebuttals and arguments and anticipating the likely judge's reaction.

So we're very excited by the work that Mike Dane and Omar and others have done in developing this product, and we're going to keep investing behind it so that the verification and validation tools that I alluded to get better and better and the product itself gets richer and deeper.

Mike, would you add anything there?

Nothing to add, Steve.

All right. Thanks, Drew. I hope that addresses the questions. .

And our next question is going to come from Vince Valentini from TD Cowen.

Can I just go back to the government for a second? I just want to make sure I'm clear on what the driver is. Is the government shutdown having an impact or these cancellations happened before that? And can you clarify, do you do work for ICE?

Vince, in regards to the first question, the downgrades, cancellations occurred prior to the shutdown. The shutdown has very minimal impact on our monthly -- quarterly revenue based on what we know today. So this occurred prior to the government shutdown. Steve, do you want to address the ICE question?

Yes. I mean we -- Vince, I won't go into the specifics of the work we do with various government agencies because it's subject to confidentiality clauses. But we do work with a number of departments on a range of law enforcement matters, and we do that consistent with our trust principles at all time.

Can I maybe rephrase it? Maybe I shouldn't have been so specific. Is there any chance that the government spending is being temporarily redirected and that's impacting some of the contracts with you and that will ebb and flow over time, but should come back? .

It's a little -- I mean, I definitely think that this administration is putting much more emphasis on some things rather than others. And there is a sort of a process of adjustment to that, Vince. But as I said, in response to Drew's question, our tools achieve 2 things for government agencies. One is efficiency and the other is they are essential tools for law enforcement. So we're confident that our must-have status will be maintained and enhanced over time. But there is a level of turbulence as some programs get cut in this adjustment.

Yes, Vince, we're continuing -- we'll continue to work with our federal customers on kind of 3 big areas: Efficiency, national security and fraud prevention. We are confident our tools and offerings will be able to support them midterm, long term.

I'm going to count that as one, Gary, I apologize, but it was 1a and 1b. Just the second question, you got a nice call out on the Amazon call last week on being one of their key customers for their transform product, they call it, they say Thomson Reuters has been able to manipulate 1.5 million lines of code per month 4x faster than they could with previous systems. I'm wondering, is this part of an initial effort to automate more of your internal cost structure and processes? And is there more of this to come over the next couple of years? And what could that potentially mean for future margins?

Yes. Thanks, Vince. So we're determined to be on the forefront of this AI transformation in 2 ways. One, in terms of our product development, particularly in and around Agentic AI and Deep Research. And that's an example in the -- first example in the legal space with the launches back at ILTACON in August. Second example, ready to review and then in December, January, ready to advise in our Tax & Accounting, and we're excited about those. We were pleased to see the reference from Amazon. This relates to the internal application of AI and automation tools. So we are applying our own tools, so CoCounsel Legal and CoCounsel for Tax, Accounting and Audit to Norie Campbell's General Counsel team and also to Mike's finance, audit and accounting teams, and we're seeing really promising results from the application of our own tools.

We're also, as Amazon alluded to, working with the best tools available to drive automation. I'll defer to Mike as to the sort of financial implications of this, Vince. But rest assured, we're going to be at the forefront in terms of automating everything we do with a singular goal of being able to scale faster and more efficiently and deliver better products and services to our customers.

Yes, Vince, a few thoughts. As noted in my prepared remarks, we do anticipate some onetime investment in Q4 2025 to help us transform and increasingly automate how we work. To Steve's point, as we look into 2026, certainly, we view the example that you questioned and Steve addressed as opportunities to help us expand our EBITDA margin. It's one of the reasons why we were able today to expand our EBITDA margin expectations for 2026 by 100 basis points. We're not discussing guidance today beyond 2026, but I think these developments certainly are encouraging for the long term.

Vince, while we have the mic, it might be helpful for everyone if I just clarify, when we say for 2026, increasing margin by 100 basis points, that will be 100 basis points off the actual result for fiscal year 2025. Just wanted to clarify that point.

And our next question is going to come from Jason Haas from Wells Fargo.

In the prepared remarks, you made a comment about seeing some incremental competition in AI assistant space. So I was curious if you could just unpack that comment a little bit more. What was meant by that exactly?

Yes. Jason, thanks for the question. So the point that I'm trying to make is that we are not seeing any additional competition in our core franchises. So that's legal research and legal know-how and the tax calculation engines, whether that's UltraTax, GoSystem tax or ONESOURCE. So those core franchises have the same competitive dynamics today as they did 12 months ago or 3 years ago.

Where we have seen the entrance of new players is in the AI assistant space. Now that is a greenfield sort of white space opportunity for us. And it was the reason that we went out and acquired Casetext and then added Materia and the fantastic team from Materia on the top of that. So that's a white space opportunity for us around CoCounsel, and that's where we see the entry of new players. We're happy with where we sit in that marketplace. We've got some very aggressive product development plans. And I think most importantly, customers are responding well to CoCounsel and its various offerings. So I hope that clarifies.

That's very helpful. And then I wanted to follow up on the Tax & Accounting business. It looks like the organic constant currency growth decels from 11% to 10%. I know these are rounded numbers. But I was curious if you could comment on that. And then can you just talk about your confidence in that accelerating to the 11% to 13% organic growth that you expect in 2026.

Yes, Jason, we do have some fluctuations quarter-by-quarter within the Tax & Accounting professional business. We remain confident in delivering 11% for calendar year 2025. And then for 2026, as a reminder, our guidance is 11% to 13%. We work very closely with Elizabeth Beastrom and her team there. We have very strong confidence in delivering 11% to 13% for 2026. We referenced SafeSend in our prepared remarks, which was the acquisition in January of this year, which is performing incredibly well. We expect that to continue into 2026. Steve mentioned Materia, they're additive, which is the recent acquisitions that we did. So we remain quite confident, Jason, with Tax & Accounting professionals.

Yes. I would just supplement that the end market is a very healthy one. We start our synergy customer conferences down in Florida tomorrow. We're very much looking forward to that and getting excited about getting together with thousands of our customers in person. The Tax & Accounting and Audit spaces remain a very robust end market with a critical need, and that's shortages of talent. And so Jason, as we develop Ready to Review and Ready to Advise and continue to refine those propositions, we think that, that is going to meet or even exceed the needs of our customers, and that gives us confidence around the 11% to 13% going forward.

And our next question is going to come from Manav Patnaik from Barclays.

Steve, I appreciate the slide with the data and the moats there because I think we've heard that as well. But to your earlier answer on the competition is more on the workflow side, and that's why you acquired Casetext, et cetera. Can you help us with any sense of sizing of workflow for you guys and the growth rates there? Because obviously, a lot of these legal tech companies are raising a lot of money at high valuations, citing higher growth rates. So just trying to get a sense of your business there.

Yes. Manav, I mean, it's all a bit squishy at the moment, right? We sort of probably monitor the same source as you in terms of how competitors are performing and what sort of growth rates they're seeing, what their ARR levels are at the moment. And what I would tell you is that CoCounsel is at least on par or outpacing everybody else in terms of its size and its growth rate. So it is a competitive landscape insofar as there are lots of promises being made by lots of different new entrants. Where we differentiate ourselves is in the integration of our content and our expertise.

So it's not only the content Westlaw, Practical Law and so forth, Checkpoint on the Tax & Accounting side. It's the expertise that 1,500 reference attorneys bring that are able to train the behaviors of an agent to produce a more accurate, more reliable outcome that is supported by pristine data privacy and protection. So a long way of saying, in the early going, we're at or outpacing the newer competitors. And we're very confident -- I hope not arrogant, but we're very confident about the sort of medium- to longer-term prospects given the assets that we bring to this competition.

Mike, what would you add?

That's a good summary.

Okay. All right. I hope that helps.

Yes, that was helpful. And I guess just on -- I just had one question on M&A. So I think we all get a sense of all the tuck-in type of deals that you guys are doing and probably that continues. But in the past, Steve, you've talked about potentially larger ones. So just trying to get an update on where the market is at. Is it valuation, timing, like just some more thoughts there.

Yes. We're sort of happy -- we're very happy with the tuck-ins that we've done over the last couple of years. Each and every one of them in different ways has performed and been additive to the experience that we're providing in the Big 3. So we'll continue to look for those opportunities centered around our Big 3 segments. If we were to do something larger, it would be in the areas where we really see great promise. So areas like risk, fraud and compliance, building on CLEAR, the CLEAR data set and areas like IDT, Indirect Tax, and e-invoicing where Pagero is showing really good growth and growth that looks to be pretty considerably above some of the market comparables. And so those are the areas where we'd be prepared to go a bit bigger.

I think at the moment, the assets that are of interest are still fully valued in the sort of portfolios in which they sit. So the question is, do we see a bit of an adjustment and some price that would allow us to create value for our shareholders, not just the exiting shareholders. And that's what we'll just continue to monitor and stay rigorous and disciplined around.

Steve, in addition to indirect tax, risk, fraud and compliance, I would just add international. Certainly, we'll be very selective there as we've discussed in the past. But Adrian Fognini, who leads our international business, we are looking at a few potential assets internationally.

Our next question is going to come from George Tong from Goldman Sachs.

You're continuing to target 9% to 11% organic growth in Corporates next year. Can you elaborate on how achievable that growth is without any additional changes to the sales organization or the pace of cross-selling?

Sure, George. Happy to start there. I think we've discussed with you and others in the past that Q4 is our largest quota period for a given year. That applies to Q4 2025 for Corporates. October net sales and bookings were quite encouraging, George. And if we look at our sales pipeline, coverage ratio for both the remainder of Q4 and also Q1 2026, once again, encouraging.

Given that those changes have now been solidified and the focus is on execution, the way I think about it, George, a very simple formula. If you have great products and you have strong customer demand and you have a growing TAM, the likelihood of success is pretty damn good if you execute and have the right talent. I think you can check the boxes on each of those variables in the formula that I just mentioned there. So that gives me quite confidence.

But if you look very tangibly, the October net sales and bookings, secondly, again, the November, December pipeline coverage and then also the Q1 pipeline coverage gives us confidence in achieving that 9% to 11% as we go into 2026, George.

Got it. Very helpful. And then can you talk a bit about your pricing strategy in light of the increasing value that you're providing with your AI products? So do you have plans for accelerated pricing increases, for example, in your multiyear contracts? And how overall do you expect pricing to evolve going forward?

Yes, George, look, it's a great question, and it's one that we are very focused on, and we have some fairly vigorous debates amongst ourselves, particularly between the product folks and the commercial excellence folks and our salespeople. Our principle is price to value. So the extent to which we're driving significant efficiencies in the practice of law or in the practice of audit, tax & accounting, we want to make sure that our products and services are aligned to that.

Just a reminder, we do not price on a per seat basis. So to the extent to which work is able to be done by fewer people, we will be a beneficiary of that, not a victim of that, if you like. And so it's a work in progress. I think in the early going, our pricing has proven to be competitive and is driving growth for us. It is profitable growth. I would say so far, so good. But this is one of those ones where we're just constantly looking for signals from the market and refining our approaches.

Yes, George, I would just supplement. As we go into '26, I'm somewhat optimistic that we could have some additional opportunity over the spectrum.

Our next question is going to come from Aravinda Galappatthige from Canaccord Genuity.

I wanted to discuss sort of the -- where we are in terms of the rate of innovation and product intensity. Obviously, we've seen a lot of activity from Thomson and even the industry in general. Is it fair to sort of characterize the present sort of position as sort of getting close to peak in terms of new product launches and so forth and sort of the next phase will be more about penetration. I mean, I'm trying to sort of connect that with sort of the underlying tone of margin expansion you're talking about. I know that you've been -- I think last disclosed number was about $200 million in incremental investments to sort of drive these growth opportunities. I'm trying to sort of assess whether we may be at sort of the crest of that. Any thoughts that you care to share on that front?

Yes, Aravinda. I'll start, and Mike may want to add. I obviously stay very close to David Wong and Joel Hron's product innovation plans and also our TR Ventures fund, who are looking across the landscape at different start-ups and also the sort of everything that our partners are doing. I would say -- you're going to see our rate of innovation accelerate and improve over the next few quarters and well into '26 and '27 based on that which we've previously invested in and that which is coming through the pipeline. What I think, though, will happen in the broader landscape, and it's hard to tell.

So this is looking at a crystal ball, is that the rate of innovation for the highly specialized tools like ours that are trained on reservoirs of content and thousands of expertise will continue to improve. I think where things might flatten out is in the sort of general purpose horizontal tools. And certainly, our customers are starting to understand the difference. And so that, I think, will be one change in the sort of landscape. But again, I think anyone who will tell you they know exactly what's going to happen in this environment is probably slightly deluded.

Yes. Aravinda, a couple of points there. Please, please do not correlate our confidence in expanding our margin in 2026 with us investing less. We will invest over $200 million this calendar year '25 in AI, Gen AI. That will continue into 2026. We're able to expand our margins in 2026. One, you're aware of our operating leverage, but we have opportunity back to the prior questions to automate how we work. I think it was Vince who asked the question illustratively about the AWS reference. So we will continue to invest. And to Steve's point, the rate of innovation and intensity will continue. That $200 million plus will continue into 2026.

And maybe my follow-up for Mike. I mean, on the last call, Mike, I think you talked about sort of your framework for capital allocation and how that potentially leaves $400 million to $500 million for buybacks. Obviously, given the movement in the stock, you've sort of shown the flexibility to step up beyond that. Should we sort of take that forward even in the -- going into '26 that notwithstanding that framework, you have the ability and the willingness to sort of step up in terms of your repurchase program?

Yes. I think, Aravinda, I would maintain the framework when you think about mid- to long term. But I think the key there is when we see the opportunity to step up, we will, which I think -- that was very tangible with our decision in mid-August to announce the $1 billion NCIB share buyback, which we completed at the end of October. We constantly discuss capital strategy, capital allocation with our Board.

In our next Board meeting, we'll have the next discussion in regards to capital strategy, capital allocation. Could we step up? Again, possibly, no decision has been made there. So I would maintain the framework of the $400 million to $500 million. But also, I would kind of supplement that framework with our ability and willingness to step up when we deem appropriate. On the topic of capital allocation, I would just remind you, Aravinda, and others that as we go into the January board meeting, we will propose another 10% increase in our common dividend, which would be the fifth year consecutively on that.

And our next question is going to come from Maher Yaghi from Scotiabank.

Great. Steve, you have very well articulated why Westlaw has a strong standing to benefit from AI. But can you tackle maybe how you see AI advances affecting your tax business? Do you believe that business has similar defensive capabilities to continue to gain market share as well as you're doing in legal? And the second question is the revenue acceleration you're expecting in 2026 versus 2025. I know it's maybe too early, but can you maybe just let us know which segment of the Big 3 you're expecting to see most of the acceleration coming from?

I'll defer the second question to Mike. On the first one, yes, we're sort of equally excited about the application of AI, Agentic AI, Deep Research to our tax business as we are legal for a couple of reasons. So in terms of the end market, the tax & accounting profession does not need to undertake the same sort of magnitude of change management. So for example, many tax & accounting and audit engagements are not priced on a per hour basis and not on a billable hour. They are value-based. And so there's not that same business model hurdle to overcome that the legal profession is currently working its way through, firstly.

Secondly, there is, as I said before, a pretty acute talent shortage that technology needs to address. So we actually think our tax & accounting customers are even more receptive to AI and technology in terms of improving their outputs and work and enabling, for example, tax professionals to automate the tax return process and move to more value-added advisory services for their clients and the technology enables that. So that's the first part.

As we think about applying AI, particularly Agentic AI to our product set, the sort of narrative up until now is that generative AI doesn't do math. Well, our tax calculation engines do the math. And what the agents enable us to do is automate all of the shoulder activities. So the document ingestion, all of the preparation and then they work with the tax calculation engine, whether it's UltraTax, GoSystem Tax on ONESOURCE. And then they're able to do the follow-up, all of the calculation checks and the e-filing. And so that's really what Ready to Advise is. It's the addition of agents to our pre-existing tax calculation engine. And then Ready to Advise is the use of agents to find all of the opportunities for a tax & accounting professional to provide advisory services on more efficient tax strategies for their clients. And so we think that the AI will enable us to expand the role that we play in the success of the tax & accounting profession, enable them to get into more advisory services and achieve growth on that basis, while at the same time, overcoming this talent shortage. Mike, the question on revenue.

Sure. In regards to 2026, just to remind everyone, we do have ranges for 2026 for each of our Big 3 segments. Legal for 2026 is 8% to 9%. Corporates is 9% to 11%. Tax & Accounting, 11% to 13%. Part of your question, Maher, is in regards to which segment would have the largest absolute growth. Tax & Accounting Professional, I believe, will have the largest absolute increase in organic growth rate for 2026 versus 2025. Just to reiterate those reasons; number one, the recent acquisitions of SafeSend, Additive and Materia will continue to scale for us.

Next, Steve has mentioned Ready to Advise and Ready to Review, which are new launches for us. We consistently talk about our Latin America business, Domínio, which we remain quite optimistic about. Over the last 11 years, it's grown 20% CAGR over that time horizon. We expect that to continue. And then lastly, kind of underpinning UltraTax continues to perform well.

Our next question is going to come from Kevin McVeigh from UBS.

Great. I think in the slide deck, you talked about AI-driven innovation, the momentum continuing. On the legal side, I guess, just the timing, like the Agentic launches you did over the summer of '25, are they already starting to kind of permeate the base? Or is that something that continues to scale over the back half of '25 and into '26. I guess I'm just trying to understand the sequencing of maybe things that have already been launched as opposed to things that were launched over the summer.

Yes, Kevin, really good question. Great timing there. For everyone's benefit, we launched those in mid-late August as part of ILTACON. We're already seeing the benefit, and we'll just see more penetration, Kevin, in Q4 and throughout 2026. I would call out each of our general managers within legal professionals that are really driving hard, which is indicative of the 9%. Aaron Rademacher, who is driving the small law firm; Liz Zimick in Mid-Law, Steve [indiscernible] with our largest firms. And then we have John Shatwell in Europe, which I think each of these segments, we're seeing progression already with the launches. And with the momentum we have with the launches of CoCounsel Legal, Westlaw Advantage, that will continue. October, we had another great month of sales. With these new product launches, we expect that to continue for the remainder of Q4 and then throughout 2026. So we're already reaping the benefits, Kevin.

That's super helpful. And then just the comments on the Tax & Accounting. Is there any way to think about the experiences of maybe the Big 4 as opposed to maybe the top 10 and maybe mid-market as you think about the go-to-market motion with the enhanced product from a Gen AI perspective?

Yes. Kevin, just to remind everyone, the Big 4 and the next 3 largest firms, we call it the Global 7, they are included within our Corporates segment, not Tax & Accounting Professionals. But Steve, you may want to comment in regards to the different motion as you think about those G7 versus the remainder of Elizabeth's Tax & Accounting.

Yes. I mean what I would say is there's increasing similarity across the G7, as we call them, relative to the big 4. In other words, firms 5, 6 and 7 are very sophisticated, increasingly global and investing heavily in technology, and we think we'll be a beneficiary of that going forward. I think though the mix does change a little bit as you get to the sort of top of the ladder there in that they're more likely to take an API from us and build on the top of it versus take the sort of full end-to-end product. So the kinds of work we do in the go-to-market motion is slightly different, Kevin. But the opportunity, I think, is equally weighted across that customer base.

And if you go all the way into the smaller firms, which Brian Wilson serves from a go-to-market perspective, he and his teams. They're ready for turnkey solutions that work, that are reliable and that build upon their existing tax calculation engine. And so there's a lot of receptivity at that end as well.

And our next question is going to come from Andrew Steinerman from JPMorgan.

This is [indiscernible] on for Andrew. Most of my questions have been answered. So maybe I'll circle back on the government headwinds just to clarify. Am I correct in saying your updated guidance only contemplates cancellations that you saw at the end of the third quarter? And I guess maybe just to give us a little bit more comfort on the go forward. Could you maybe talk a little bit more about if those cancellations were driven by reductions in spending at certain departments you serve? Or was it layoffs? Just any color there would be great.

Certainly, in regards to our forecast, we always contemplate what has occurred, plus we always look at the upcoming pipeline. So we have contemplated within our forecast any other activity that might transpire in Q4. So we believe that has been reflected already. And then in regards to the reasons for it, there's been a reduction in the actual spending levels in these agencies, which was the main driver.

And our next question is going to come from Stephanie Price from CIBC.

Just a few quick clarifications for me. Mike, I think you've kind of alluded to it for a few times in the call, but can you talk about the drivers that are causing the increase to the fiscal '26 EBITDA guide to 100 basis points versus 50 basis points prior. I think you mentioned some efficiencies, but anything else you wanted to add on there?

I would say 2 -- Stephanie, 2 primary drivers. One is the operating leverage at roughly 7%, 7.5%. We generate about 110 basis points of natural operating leverage, which is sustained in our business. The second key factor is our focus on transforming and automate how we work. So if you take those 2, that would be more than 100 basis points, but leads to a third key factor, which relates to a question earlier, is we're continuing to make investments, and we'll continue to make investments wherever we see the returns are sufficient there. But the 2 key drivers of margin expansion, operating leverage and then our internal initiative to transform and automate how we work.

Perfect. And then for the Legal segment, organic growth accelerating quarter-over-quarter to 9%. I think in the prior question, you mentioned some new product launches. Just curious if there was anything else you wanted to call out there in terms of shifts in demand or adoption rates within Legal.

I think the new product launches certainly help us significantly there. Retention rates continue to be very good within that business. Pricing is relatively stable there. Certainly, Stephanie, we always add talent as part of our operating mechanism. So I think those are the key drivers for us. Steve, you may want to add...

The only thing I'd add is way back at our Investor Day a couple of years ago, where we started to talk about this AI journey, we did, at that time, speculate that the TAM in Legal would grow, and it would grow on a sustained basis. I think we're starting to see that. What we're starting to see is law firms wrestle with the idea of spending more on technology and potentially less on real estate and still trying to sort of work their way through the headcount implications. I think it's too early to sort of call that one way or another. But we're starting to see that TAM expand. And we think that, that's going to be a multiyear phenomenon and one that we plan to have the products and the propositions to fully benefit from.

Our next question is going to come from Doug Arthur from Huber Research.

Yes. I think most things have been covered. Steve, you mentioned the acute talent shortage issues in some of the big accounting firms. Is there a similar narrative in legal or not so much?

Not so much, Doug. It's -- as someone who started my career at PW as it was called then, Mike did the same. Kids are just not as enamored of the profession as they were in our day. And so whether it's the big accounting firms or the midsize or even the smaller shops, they're just having a really hard time getting talent in the door at the entry level and then going through the apprenticeship that's required. And it's an acute problem, and it's been growing for a number of years.

If you look at the number of people who are getting qualified as CPAs, it has fallen dramatically in recent years. And all the while, the number of audits goes up, the complexity of audits goes up, the number of tax returns goes up, the complexity of those returns go up. And the advice that, that small, medium and large businesses need from their tax & accounting professionals intensifies. So the demand characteristics are really healthy. It's the supply of talent that's the problem. And that's where the technology has a really, I think, exciting and important role to play. And that's why we're investing heavily to meet or exceed those demands.

And our next question is going to come from Toni Kaplan from Morgan Stanley.

Your large competitor in legal has talked about one of the benefits of its partnership with Harvey is increasing distribution. I was hoping you could talk about, Steve, how you're thinking about partnerships right now. You have the content, you have the AI capabilities. So it doesn't seem like you need to partner with others. But is there an advantage to doing that because of increasing distribution? Or is there a disadvantage of going that route?

Toni, I won't comment on their approach. But what I will say is that we're very confident in our position of having CoCounsel for Legal, which is now fully integrated with our content and editorial expertise. So we don't see the need for partnerships, the likes of which one of our competitors has entered into or 2 of our competitors have entered into together.

Where we are partnering is where there are point solutions, AI-driven point solutions, for example, in sort of the debt capital markets and its application to legal profession or in very, very specific area of the law, where we think an innovative team has developed a solution that can work in with CoCounsel. So we're keen to explore that ecosystem. But in terms of distribution, we obviously have the leading distribution in the industry at the moment. So we don't see a need there. But thanks for the question, Toni.

All right. I think that brings us to the end of our time. So thanks, everybody. Have a good day.

Thank you.

Thank you.

And this concludes today's call. We appreciate your participation. You may now disconnect.