This Century-Old Financial Giant's Reverse Stock Split Leaves Investors Puzzled

Thomson Reuters (TRI) announced a 0.98456-for-1 reverse stock split paired with a $1.44-per-share special dividend, both set for May 2026. The unusual structure stems from the company monetizing its London Stock Exchange Group holdings, using the reverse split as a cash return mechanism rather than a distress signal.

The company reported 10% revenue growth and 7% earnings growth in Q1 2026, alongside a 10% dividend increase. Management is deploying the LSEG sale proceeds directly to shareholders through this dual-action structure, which effectively returns capital while avoiding typical reverse split stigma.

The 0.98456 ratio is precisely calibrated to the cash distribution amount, making this a mechanical capital return rather than a share consolidation aimed at propping up stock price. This marks an uncommon use of reverse split mechanics in a scenario where fundamentals remain strong.