Willis Towers Watson Public Ltd Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.49%.
Did WTW Beat Earnings? Q4 2025 Results
Willis Towers Watson delivered a clean beat to close out fiscal 2025, with Q4 adjusted diluted EPS of $8.12 edging past the $7.97 consensus estimate by 1.88% and revenue of $2.94 billion topping expectations by 2.34%, even as reported sales fell 3.3% year over year. The headline revenue decline, however, tells only part of the story: the divestiture of TRANZACT stripped out roughly $785 million in annual revenue, masking 6% organic growth in the quarter that reflected genuine underlying demand across both operating segments. Health, Wealth & Career and Risk & Broking each contributed, with the latter posting 7% organic growth and expanding its operating margin 120 basis points to 34.7%. Adjusted operating margin widened 80 basis points to 36.9% in Q4, as AI-driven efficiency initiatives and the company's WE DO platform continued to bear fruit. Looking ahead, WTW targets mid-single-digit organic revenue growth and at least $1 billion in share repurchases for 2026, though the pending Newfront acquisition is expected to be approximately $0.10 dilutive to adjusted EPS while contributing roughly $250 million in post-close revenue.
- 6% organic revenue growth in Q4 driven by strong performance across both segments
- Health segment led by double-digit increases in International from strong client retention, new client wins and healthcare inflation
- Wealth segment growth from strong Retirement work across all regions and Investments business new products and client wins
- Career organic growth driven by robust demand for broad-based advisory services and compensation benchmarking survey work
- CRB organic revenue growth of 8% driven by higher levels of new business activity and strong client retention globally
- Operating leverage from strong organic revenue growth driving margin expansion
- Abatement of remaining Transformation program cash outflows boosting free cash flow
“WTW had strong performance across our businesses driven by our team's relentless focus and consistent execution of our strategy. We delivered on our financial targets and strengthened our business through strategic investments in talent and innovation to accelerate performance, enhance efficiency and optimize our portfolio. Our strong momentum and continued progress on our strategic objectives give us confidence as we enter 2026.”
Willis Towers Watson CEO, on the earnings call
Forward Guidance & Outlook
WTW targets mid-single digit organic revenue growth plus opportunistic inorganic growth, with continued annual adjusted operating margin expansion at the enterprise level. R&B is expected to deliver ~100 basis points of average annual margin expansion over the next 2 years, with incremental annual margin expansion in HWC. The company expects share repurchases of $1.0 billion or greater in 2026. The Willis Re joint venture is expected to be a ~$0.30 headwind on adjusted diluted EPS, while foreign currency is expected to be a ~$0.30 tailwind at current rates. The Newfront acquisition is expected to be ~$0.10 dilutive to adjusted EPS in 2026 with expected post-close revenue of ~$250 million and an adjusted EBITDA margin of ~26%. Free cash flow margin is expected to continue improving primarily from operating margin expansion and evolving business mix.
WTW YoY Financials
WTW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.