Overview
- Fourth-quarter revenue rose 5% to $2.0 billion with adjusted EPS at $1.07, roughly in line with analyst expectations.
- Management guided 2026 revenue growth to 7.5%–8% as the legal, tax and corporate units grew 9% organically in Q4, while operating profit fell 25% to $540 million due to a prior-year gain from the FindLaw sale.
- Contracts tied to AI-backed products rose to 28% of revenue from 24% three months earlier as the company scales agentic capabilities after more than $200 million of AI spending in 2025.
- The shares fell nearly 18% over three days during a broader selloff after Anthropic launched a legal plugin that automates tasks such as document review and briefings for lawyers.
- The annual dividend was raised 10% to $2.62 and the company highlighted $11 billion of available capital for buybacks or acquisitions, with a Scotia Capital analyst noting continued momentum.