Willis Towers Watson Public Ltd Company
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.25%.
Did WTW Beat Earnings? Q3 2025 Results
Willis Towers Watson posted a clean beat in Q3 2025, with adjusted diluted EPS of $3.07 edging past the $3.05 consensus by 0.69% and revenue of $2.29 billion finishing just ahead of the $2.28 billion estimate, even as reported top-line growth was essentially flat year-over-year. The real story behind the numbers was organic momentum, with 5% organic revenue growth across both segments masking the drag from the late-2024 TRANZACT divestiture. Adjusted operating margin expanded 230 basis points to 20.4%, reflecting efficiency gains and the wind-down of Transformation program costs, while adjusted EBITDA grew 8% to $515 million. The Risk & Broking segment delivered 6% organic growth, and Health, Wealth & Career posted 4% organic gains despite the TRANZACT headwind. WTW remained aggressive on capital returns, repurchasing $600 million in shares during the quarter as part of a planned $1.50 billion full-year buyback program. Management expressed confidence in sustaining mid-single-digit organic revenue growth, continued annual margin expansion, and improving free cash flow, with a roughly $0.15 per-share currency tailwind expected in Q4.
- 5% organic revenue growth driven by both segments
- Adjusted operating margin expansion of 230 basis points to 20.4%
- Health delivered 7% organic revenue growth across all regions
- Risk & Broking CRB organic growth of 6% driven by new business and global specialty placements
- Wealth generated 5% organic growth from strong Retirement work in Great Britain and North America
- Operating leverage from Transformation program savings
- Abatement of remaining Transformation program cash outflows boosted free cash flow
- TRANZACT divestiture removed drag, improved HWC operating margins by 390 bps
“WTW's market-leading solutions and focused execution on our strategy drove another quarter of strong results. In the third quarter, we delivered a solid revenue performance, alongside strong operating margin expansion and earnings per share growth. As we enter the fourth quarter, our sustained momentum and continued traction in the market give us confidence in our ability to reach our full year financial goals, despite macro uncertainty. I'd like to thank our colleagues for their hard work, commitment to our clients and support of one another.”
Willis Towers Watson CEO, on the earnings call
Forward Guidance & Outlook
WTW expects mid-single-digit organic revenue growth plus opportunistic inorganic growth. The company targets continued annual adjusted operating margin expansion, with ~100 basis points of average annual margin expansion over the next 3 years in R&B and incremental annual margin expansion at HWC and enterprise levels. Share repurchases of approximately $1.5 billion are expected in 2025, subject to market conditions. A foreign currency tailwind on adjusted diluted EPS of approximately $0.15 is expected in Q4 2025 and approximately $0.10 for full year 2025. The reinsurance joint venture with Bain Capital is expected to be a net headwind of approximately $0.10 per share on adjusted diluted EPS. The company expects cash outflows in 2025 from the payment of accrued costs related to the concluded Transformation program. Management targets improving free cash flow margin through evolving business mix, operating margin expansion, and working capital management. Long-term leverage target is 2.0x to 2.5x debt to adjusted EBITDA.
WTW YoY Financials
WTW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.