Thomson Reuters has announced a share repurchase programme of up to $500 million, seeking to return capital to shareholders as concerns over rising artificial intelligence spending weigh on technology stocks.
The company said it could repurchase up to 7 million common shares, representing approximately 1.6% of its outstanding equity. The buyback will run from November 13, 2026, through November 12, 2027.
Woodbridge, Thomson Reuters' controlling shareholder with an approximately 70% stake, also plans to participate proportionally. This will allow it to maintain its ownership percentage following the repurchases.
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The announcement comes amid growing investor concerns about the cost of integrating AI into technology and information businesses.
Thomson Reuters reported higher quarterly revenue earlier this month, but its shares came under pressure as investors questioned whether increased AI investment would erode future profitability.
Its Canadian-listed shares have fallen around 15% so far this year, reflecting the broader weakness in technology stocks.
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The pressure extends beyond Thomson Reuters. Investors have increasingly scrutinised spending plans at software companies and major technology groups, including Alphabet and Amazon. Strong AI investment commitments have raised questions about how quickly companies can generate returns from their expanding infrastructure and development budgets.
For Thomson Reuters, the buyback offers a way to deploy capital while signalling confidence in its business and valuation. The company provides information and technology services across legal, tax, accounting and news markets. It is also the parent company of Reuters News.
The repurchase programme gives the company flexibility to buy shares over the coming year rather than committing to a single transaction. However, investor sentiment will also depend on whether its AI investments translate into stronger revenue growth and sustainable margins.
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