Anna Wu

Anna Wu questioned how Thomson Reuters monetizes its AI product innovations to capture increased AI-driven consumption, especially in an environment of flat or declining headcounts, and what pricing trends are expected for 2026. She also asked about customer feedback on AI solutions in Tax & Accounting, specifically regarding experimentation with smaller GenAI point solutions versus integrated platforms.

Answer

CEO Steve Hasker clarified that Thomson Reuters does not price on a headcount basis but rather to value, making the company a beneficiary of AI-driven efficiency and potential headcount reductions. CFO Mike Eastwood projected a slightly higher overall pricing yield in 2026 compared to 2025 and highlighted continued EBITDA margin expansion as a key indicator of GenAI investment returns. Steve Hasker added that customers in Tax & Accounting are not experimenting with general-purpose AI for core tasks like e-invoicing, emphasizing the strength of TR's specialized, accurate, and efficient solutions like Pagero, Ready to Review, and Ready to Advise.

Anna Wu asked how Thomson Reuters monetizes AI product innovations to capture increased consumption, especially in an environment of flat or declining headcounts, and about pricing trends for 2026 compared to 2025. She also inquired about customer feedback on T&A AI solutions and potential experimentation with smaller GenAI point solutions versus integrated platforms.

Answer

CEO Steve Hasker clarified that Thomson Reuters does not price on a headcount basis, positioning them to benefit from AI-driven efficiency by pricing to value. CFO Mike Eastwood highlighted continued EBITDA margin expansion as an indicator of successful GenAI investment monitoring and projected a slightly higher overall pricing yield in 2026. Steve Hasker stated customers are not experimenting with general-purpose AI for e-invoicing, emphasizing TR's accurate, efficient tax solutions and the strategy to build out the entire value chain around tax calculation engines to address talent shortages.

Anna Wu inquired about regional growth dynamics for industrial businesses across the US, Europe, and Asia, and how these trends compare to the consumer segment. She also asked about the utilization rates and growth momentum of UL Solutions' battery testing labs in Germany and Michigan, and any implications from the federal EV tax credit expiration.

Answer

CEO Jennifer Scanlon reported industrial growth across all regions, with particular strength in the US, Greater China, ASEAN, and Korea, driven by data center-related needs. CFO Ryan Robinson noted moderately more US contribution. Jennifer Scanlon explained that battery testing labs are seeing a faster-than-expected shift towards industrial energy storage systems due to EV changes and data center power demands, without disclosing specific lab utilization rates.

Anna Wu inquired about the growth dynamics across regions (US, Europe, Asia) for the Industrial business, identifying any geographies growing meaningfully faster, and comparing these trends to the Consumer segment. She also asked about the utilization rates of the new battery testing labs in Germany and Michigan, the growth momentum in battery testing services, and implications from federal EV tax credit expirations.

Answer

CEO Jennifer Scanlon reported growth in every region for Industrial, with particular strength in the United States, Greater China, ASEAN, and Korea, especially in areas supporting data center growth like energy storage and high-voltage wire and cable. CFO Ryan Robinson added that the U.S. contributed moderately more in the last quarter. Ms. Scanlon noted that the energy storage system battery market is evolving, with a faster-than-expected shift towards industrial energy storage due to data center needs and changes in EV approaches. She expressed satisfaction with the investments in battery labs without disclosing specific utilization rates.

Anna Wu, on for George Tong, asked for an assessment of the uniform rental industry's health and competitive landscape, as well as the sales environment in Vestis's end markets. She followed up on the status of previously mentioned strategic advisors and potential transactions.

Answer

President, CEO & Director Jim Barber described the industry's health as 'just fine,' highlighting that 45% of recent growth came from 'non-programmers,' indicating an expanding addressable market. On the follow-up, Barber clarified that the company is now using advisors to help improve the core business—focusing on cost models, pricing tools, and technology—and is currently focused on optimizing the existing business rather than pursuing external transactions.