Willis Towers Watson Public Ltd Company
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.69%.
Did WTW Beat Earnings? Q1 2026 Results
Willis Towers Watson posted a mixed but broadly encouraging first quarter for 2026, with adjusted earnings ahead of expectations even as revenue fell just short. The professional services and risk advisory firm reported adjusted diluted EPS of $3.72, clearing the $3.65 consensus estimate by 1.80%, while total revenue of $2.41 billion rose 8.50% year over year but came in fractionally below the $2.42 billion forecast. The headline revenue figure masked some underlying softness, with organic growth decelerating to 3% from 5% a year ago, most visibly in the Career line where clients deferred discretionary advisory work amid geopolitical uncertainty and moderating North American demand. Adjusted operating margin expanded 70 basis points to 22.30%, reflecting disciplined expense management, and net income climbed 27% to $303.00 million. Looking ahead, management expects share repurchases of at least $1.00 billion for the full year and targets continued annual adjusted operating margin expansion, though the Newfront acquisition and Willis Re joint venture are expected to weigh on adjusted EPS by roughly $0.10 and $0.30, respectively, partially offset by an anticipated $0.35 foreign exchange tailwind.
- Health organic revenue growth of 6% driven by strong international market performance, new business wins, and renewals
- Wealth organic revenue growth of 4% from higher retirement work across all regions and Investments business growth
- Corporate Risk & Broking organic growth of 2% from new business activity and strong client retention globally
- Insurance Consulting & Technology organic growth of 5% driven by strong software sales in the Technology practice
- Improved operating leverage and expense discipline driving margin expansion
- Foreign exchange providing a tailwind to Risk & Broking operating margin
- Completion of Transformation program in December 2024 reducing cash outflows
“WTW delivered first quarter results that demonstrate our strong operating discipline and continued progress of our strategy. Our ongoing focus on enhancing efficiency drove margin expansion and significant EPS growth, despite a more challenging global market that created near-term headwinds to organic growth. Our investments in talent, AI and innovation to accelerate performance continue driving client value, and we remain confident in delivering our full-year commitments.”
Willis Towers Watson CEO, on the earnings call
Forward Guidance & Outlook
WTW targets mid-single-digit organic revenue growth plus opportunistic inorganic growth over the long term. The company expects continued annual adjusted operating margin expansion at the enterprise level, driven by approximately 100 basis points of average annual margin expansion over the next two years in Risk & Broking and incremental annual expansion in Health, Wealth & Career. Adjusted EPS growth is expected to be driven by margin expansion and disciplined capital management. Free cash flow margin is expected to continually improve through evolving business mix, operating margin expansion, and working capital management. For 2026 specifically, share repurchases are expected to be $1.0 billion or greater; the Willis Re joint venture is expected to be a headwind on adjusted diluted EPS of approximately $0.30; the Newfront acquisition is expected to be approximately $0.10 dilutive to adjusted EPS with approximately $250 million in post-close revenue and an adjusted EBITDA margin of approximately 26%; and foreign exchange is expected to provide a full-year tailwind of approximately $0.35 to adjusted diluted EPS at current rates.
WTW YoY Financials
WTW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.