Aug 5, 2026 earnings call — AI product momentum and Global Print JV
Company raised full-year revenue outlook; total company organic revenues rose 8%.
Revenue $1.9B (est $1.9B) · EPS $0.99 (est $0.96)
Key quotes
"So 1 quarter or so ago, we reported that CoCounsel had reached the 1 million user mark."
"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."
"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."
"We are on track to power Tabular Analysis, a bulk document review tool in CoCounsel Legal with Thomson later this month."
Analyst Q&A 12
CoCounsel growth and link to Thomson
Q (Manav Patnaik · Barclays): How big and fast is CoCounsel growing? And will the Thomson model help CoCounsel—how connected are they?
A: Management said CoCounsel passed 1 million users and usage (daily interactions) is growing strongly across legal, tax and audit. They launched a rebuilt agentic CoCounsel Legal in beta with very strong feedback and plan to port Tabular Analysis to the Thomson model this month to gain speed, scale and cost benefits.
"And specifically, the accuracy and the breadth of agentic capabilities, and maybe most significantly, the transparency." — Stephen Hasker (CEO)
Margins and guidance consistency
Q (Vince Valentini · TD Cowen): Why did adjusted EBITDA margin fall year-over-year in Q3 and can you achieve the high margin implied by the full-year guide?
A: Management said Q3 margin reflects severance plus continued investments, higher marketing for CoCounsel, and modest M&A dilution. For the full year, they expect margins to progress as planned, see low 40s EBITDA margin in Q4 as achievable, and expect $40 million of savings from automation with significantly lower year-on-year severance.
"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." — Gary Bischoping (CFO)
Drivers of Big 3 growth and Thomson content use
Q (Drew McReynolds · RBC): What drove the Big 3 organic growth—transaction segment, products—and why was Thomson trained on less than 10% of legal content?
A: Management said Corporates had a standout transactional quarter, helped by Pagero and global expansion, and Legal growth is driven by Westlaw and CoCounsel. On Thomson, they said using less than 10% was a choice to build a rock-solid foundation; they will add more legal content over time and expect legal-specific results to improve.
"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." — Stephen Hasker (CEO)
LLM costs and pricing model
Q (Rohan Samir Kalra · JPMorgan): How do you think about LLM compute costs and will you move to consumption pricing for AI?
A: Management said they built the agentic solutions to be token-efficient versus competitors and that the Thomson model could deliver a meaningful cost advantage if they use GPU capacity. They are considering a consumption-based pricing component and making infrastructure investments to support that next year, while current pricing covers LLM cost growth.
"So the first thing is we've built our agentic solutions to be optimally efficient." — Stephen Hasker (CEO)
CoCounsel vs competitors and capital allocation
Q (Aravinda Galappatthige · Canaccord Genuity): How does CoCounsel compare head-to-head with startups, and how will you allocate capital now that buybacks are done?
A: Management said the rebuilt CoCounsel uses Westlaw content and expert editors, early customer comparisons show it is highly differentiated and usage is growing. On capital allocation, they favor a balanced approach: invest in innovation and M&A, grow the dividend, and consider repurchases but have no active buyback plan now.
"As customers compare it to other offerings in the marketplace, is that it is highly differentiated because of its access, its native access to our content and our expertise." — Stephen Hasker (CEO)
How Thomson LLM will be offered
Q (Tim Casey · BMO): Will Thomson LLM be sold as a standalone product or will it power existing platforms, and when could it be monetized separately?
A: Management said they are evaluating options: one path is to let law firms run a sovereign AI instance and layer CoCounsel on top; another is to run CoCounsel capabilities on Thomson starting with Tabular Analysis. They are exploring monetization and expect more details and possible announcements in upcoming calls.
"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 created and built." — Stephen Hasker (CEO)
Upside to organic growth
Q (Kevin McVeigh · UBS): Is 10% organic growth a ceiling and what could drive it higher?
A: Management said they do not see a ceiling and aim to incrementally increase growth by raising their rate of innovation. They believe serving fiduciary professions retooling for AI and automation gives ongoing opportunity to grow organic revenue over time.
"Our focus is to sort of up our rate of innovation." — Stephen Hasker (CEO)
AI pricing and revenue uplift
Q (Stephanie Price · CIBC): What revenue uplift are you seeing from GenAI and how is AI priced today and over time?
A: Management said agentic offerings are sold as a premium tier and contracts should capture the accelerating innovation so price progression matches value delivered. They did not give a specific uplift number but said current pricing covers the cost of consumption and supports growth and profitability.
"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." — Gary Bischoping (CFO)
Is AI driving new budget or reallocated spend?
Q (Keen Fai Tong · Goldman Sachs): Is AI spend in legal new budget creation or reallocating existing tech spend? And which metrics show CoCounsel engagement will convert to revenue growth?
A: Management said most law firms are spending more on technology now and plan to spend more, reflecting optimism and competitive pressure; AI is driving new tech spend. They watch Legal Professional growth rates (ex-government) and pricing mechanisms; acceleration in Legal Professional ex-government growth and continued adoption of agentic offerings indicate market wins.
"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." — Stephen Hasker (CEO)
Tax & accounting execution issues
Q (Yehuda Silverman · Morgan Stanley): What caused the tax and accounting execution challenges and why will you get past them?
A: Management said their product vision (Ready to Review/Ready to Advise) is clear but messaging during transition caused some customer and sales confusion about what to buy now versus later, which hurt momentum in products like SurePrep. They have made sales team changes and expect to get back on track quickly.
"However, I'd say the messaging, 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." — Gary Bischoping (CFO)
Where severance-led efficiencies are found
Q (Jason Haas · Wells Fargo): Where are the organizational efficiencies coming from after severance? And was the strong transactional revenue repeatable?
A: Management said efficiency efforts focus on adopting agentic tech across the company, with gains in software engineering quality and customer support; they are systematically driving productivity. On transactional revenue, they warned government transaction strength may not repeat as strongly in Q3, while Pagero outperformance is notable and continues.
"So Joel Hron has, I think, made great strides within our software engineering space and adoption of the latest cutting-edge tools." — Stephen Hasker (CEO)
Westlaw Advantage adoption runway
Q (Curtis Nagle · BofA): How far through the contract cycle is Westlaw Advantage adoption and how long can it support legal growth?
A: Management said they have not quantified penetration but see a good runway for Westlaw Advantage. They believe the bundled CoCounsel Legal offer (Westlaw Advantage, Practical Law Dynamic, CoCounsel) is still early in adoption among legal and general counsel customers and can keep bolstering momentum.
"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." — Gary Bischoping (CFO)