WTW Reports Third Quarter 2026 Earnings
WILLIS TOWERS WATSON PLC (WTW) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 WTW Reports Third Quarter 2026 Earnings Revenue 1 increased 8% from prior year to $2.5 billion for the quarter Organic Revenue growth of 4% for the quarter Diluted Earnings per Share was $3.24 for the quarter, up 4% over prior year Adjusted Diluted Earnings per Share
How this was made
The 30-second read
Why it matters
The earnings beat and guidance on AI initiatives provide fresh data for traders to adjust positions.
Market read
The earnings release offers a timely catalyst for WTW and may influence related advisory stocks.
What to watch
AI acceleration plan expenses may weigh on future profitability.
WTW Reports Third Quarter 2026 Earnings
Third-quarter revenue increased 8% as reported and 4% organically, both operating segments delivered organic growth and segment margin expansion, and adjusted diluted EPS increased 18%. U.S. GAAP operating margin declined 90 basis points as restructuring and transaction and program expenses increased.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3-26 RevenueGAAP | $2.46B | – | Reported 8% | CC 8% | Organic 4% |
| Q3-26 Income from operationsGAAP | $429M | – | 3% |
| Q3-26 Operating marginGAAP | 17.4% | – | (90) bps |
| Q3-26 Adjusted operating incomenon-GAAP | $539M | – | 15% |
| Q3-26 Adjusted operating marginnon-GAAP | 21.9% | – | 150 bps |
| Q3-26 Net incomeGAAP | $309M | – | 1% |
| Q3-26 Net income attributable to WTWGAAP | $303M | – | – |
| Q3-26 Diluted earnings per shareGAAP | $3.24 | – | 4% |
| Q3-26 Adjusted net incomenon-GAAP | $339M | – | 13% |
| Q3-26 Adjusted diluted earnings per sharenon-GAAP | $3.63 | – | 18% |
| Q3-26 Adjusted EBITDAnon-GAAP | $577M | – | 12% |
| Q3-26 Adjusted EBITDA marginnon-GAAP | 23.5% | – | – |
| Q3-26 U.S. GAAP tax rateGAAP | 19.5% | – | – |
| Q3-26 Adjusted income tax ratenon-GAAP | 21.9% | – | – |
| Nine Months 2026 RevenueGAAP | $7.34B | – | 8 % |
| Nine Months 2026 Income from operationsGAAP | $1.24B | – | – |
| Nine Months 2026 Operating marginGAAP | 16.9% | – | – |
| Nine Months 2026 Adjusted operating incomenon-GAAP | $1.56B | – | – |
| Nine Months 2026 Adjusted operating marginnon-GAAP | 21.2% | – | – |
| Nine Months 2026 Net incomeGAAP | $843M | – | – |
| Nine Months 2026 Net income attributable to WTWGAAP | $829M | – | – |
| Nine Months 2026 Diluted earnings per shareGAAP | $8.76 | – | – |
| Nine Months 2026 Adjusted net incomenon-GAAP | $1.01B | – | – |
| Nine Months 2026 Adjusted diluted earnings per sharenon-GAAP | $10.70 | – | – |
| Nine Months 2026 Adjusted EBITDAnon-GAAP | $1.70B | – | – |
| Nine Months 2026 Adjusted EBITDA marginnon-GAAP | 23.1% | – | – |
| Nine Months 2026 U.S. GAAP tax rateGAAP | 19.3 % | – | – |
| Nine Months 2026 Adjusted income tax ratenon-GAAP | 20.6 % | – | – |
| Nine Months 2026 Cash flows from operating activitiesGAAP | $1.21B | – | – |
| Nine Months 2026 Free Cash Flownon-GAAP | $1.06B | – | an increase of $226 million |
| Health, Wealth & Career Q3-26 operating incomeother | $398M | – | 10% |
| Health, Wealth & Career Q3-26 operating marginother | 29.5% | – | 90 bps |
| Risk & Broking Q3-26 operating incomeother | $216M | – | 14% |
| Risk & Broking Q3-26 operating marginother | 19.8% | – | 100 bps |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Health, Wealth & CareerHealth had positive contributions from all regions, driven by new business and strong renewals. Wealth growth reflected Retirement work outside North America and new client wins. Career growth reflected compensation survey sales, typical survey-delivery timing and communications project work. BD&O organic revenue declined as lower Individual Marketplace commissions more than offset Outsourcing growth. | $1.35B | – | Reported 7% | CC 7% | Organic 4% |
| Risk & BrokingCRB organic growth reflected strong new business in North America and International and higher book-of-business settlement activity, partly offset by a strong prior-year global specialty comparison. ICT growth was driven by Technology software sales and partly offset by lower Consulting revenue. | $1.09B | – | Reported 8% | CC 8% | Organic 5% |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
2026 / fourth quarter of 2026 / 2028 outlook
- NoteContinued annual margin expansion at the enterprise level
- Note~100 basis points of annual margin expansion in R&B
- NoteIncremental annual margin expansion in HWC
- NoteEnterprise organic revenue: Mid-single digits (MSD)
- NoteHealth, Wealth & Career organic revenue: Low-single digits (LSD) to MSD
- NoteHealth organic revenue: High-single digits (HSD)
- NoteWealth organic revenue: LSD
- NoteCareer organic revenue: LSD
- NoteBD&O organic revenue: Flat
- NoteRisk & Broking organic revenue: MSD
- NoteCRB organic revenue: MSD
- NoteICT organic revenue: LSD
- NoteWillis Re joint venture: Expected to be a headwind on Adjusted Diluted EPS of ~$0.30
- NoteNewfront acquisition: Expected to be ~$0.10 dilutive to Adjusted EPS in 2026
- NoteExpected 2026 post-close revenue of ~$250M and an adjusted EBITDA margin of ~26%
- NoteExpect share repurchases in excess of $1.0B, subject to market conditions and potential capital allocation to organic and inorganic investment opportunities
- NoteExpect an incremental foreign currency tailwind on Adjusted Diluted EPS of ~$0.02 for the fourth quarter of 2026, resulting in a ~$0.35 tailwind for the full year 2026 at today's rates
- NotePropel: invest approximately $625 million of cash and incur approximately $25 million in non-cash charges to generate approximately $400 million in run-rate savings
- NoteAfter reinvesting approximately $50 million to support growth, Propel is expected to deliver approximately $350 million in net run-rate savings and approximately 30% adjusted operating margin in 2028
Capital returns
- During the quarter ended September 30, 2026, the Company repurchased 687,386 of its outstanding shares for $220 million.
- Nine Months 2026 repurchase of shares: $(970); 2025: $(1,300).
- Nine Months 2026 dividends paid: $(267); 2025: $(269).
- Expect share repurchases in excess of $1.0B, subject to market conditions and potential capital allocation to organic and inorganic investment opportunities.
What drove it
- Enterprise revenue increased 8% on a reported and constant-currency basis and 4% on an organic basis in Q3-26.
- HWC and R&B each delivered segment operating-margin expansion of 90 basis points and 100 basis points, respectively.
- Higher book-of-business settlement activity supported R&B. Total book-of-business settlements were $20 for the quarter, compared with $6 in 2025.
- Adjusted operating income included $14 of restructuring costs and $42 of transaction and program expenses in Q3-26.
- Propel annualized run-rate savings achieved from commencement to September 30, 2026 were $18 million.
Concerns
- U.S. GAAP operating margin was 17.4%, down 90 basis points from 18.3%.
- BD&O organic revenue declined as lower commissions in Individual Marketplace more than offset Outsourcing growth.
- ICT growth was partially offset by lower Consulting revenue.
- The Company incurred $14 million in restructuring costs and $7 million in transaction and program expenses under Propel from commencement to September 30, 2026.
- The Willis Re joint venture is expected to be a headwind on Adjusted Diluted EPS of ~$0.30, and the Newfront acquisition is expected to be ~$0.10 dilutive to Adjusted EPS in 2026.
What to watch
- Progress toward enterprise organic revenue of Mid-single digits (MSD) and R&B organic revenue of MSD.
- Whether HWC delivers incremental annual margin expansion and R&B delivers ~100 basis points of annual margin expansion.
- BD&O performance following lower Individual Marketplace commissions.
- Propel investment, savings realization and the target of approximately 30% adjusted operating margin in 2028.
- Newfront post-close revenue of ~$250M and adjusted EBITDA margin of ~26%, as well as the expected 2026 Adjusted EPS dilution.
- Execution of share repurchases in excess of $1.0B and free-cash-flow margin improvement.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $1,946; December 31, 2025: $3,132.
- Current debt at September 30, 2026: $749; December 31, 2025: $550.
- Long-term debt at September 30, 2026: $5,783; December 31, 2025: $5,756.
- Nine Months 2026 net cash from operating activities: $1,213; 2025: $1,004.
- Nine Months 2026 Free Cash Flow: $1,064; 2025: $838.
- Nine Months 2026 acquisitions of operations, net of cash acquired: $(1,103); 2025: $(14).
- Nine Months 2026 net cash used in financing activities: $(1,041); 2025: $(1,311).
- Cash, cash equivalents and restricted cash at September 30, 2026: $5,356; 2025: $5,423.
Analysis
WTW reported Q3-26 revenue of $2,460, compared with $2,288 in Q3-25. The company reported 8% revenue growth, 8% constant-currency growth and 4% organic growth. HWC produced 4% organic growth and R&B produced 5% organic growth. HWC benefited from new business, renewals, Retirement activity outside North America, client wins and compensation survey and communications work. R&B was supported by new business, Technology software sales and higher book-of-business settlement activity.
Profitability showed a clear distinction between reported and adjusted results. Income from operations increased to $429 from $418, while the U.S. GAAP operating margin declined to 17.4% from 18.3%. Adjusted operating income increased to $539 from $467 and adjusted operating margin increased to 21.9% from 20.4%. The reconciliation included $59 of amortization, $14 of restructuring costs, $42 of transaction and program expenses and $(5) of acquisition-related adjustments. Adjusted EBITDA increased to $577 from $515, and its margin increased to 23.5% from 22.5%.
Segment profitability improved in both businesses. HWC operating income was $398 and operating margin was 29.5%, compared with $361 and 28.6%. R&B operating income was $216 and operating margin was 19.8%, compared with $189 and 18.8%. Management attributed HWC margin expansion to operating leverage and expense discipline, while R&B benefited from book-of-business settlement activity and disciplined expense management. Areas of pressure included a decline in BD&O organic revenue from lower Individual Marketplace commissions and lower Consulting revenue within ICT.
Cash generation remained substantial through the first nine months. Cash flows from operating activities were $1,213, compared with $1,004, and free cash flow was $1,064, compared with $838. The company repurchased 687,386 shares for $220 million during the quarter, while nine-month repurchases were $(970) and dividends paid were $(267). Cash and cash equivalents were $1,946 at September 30, 2026, current debt was $749 and long-term debt was $5,783.
WTW retained its 2026 financial considerations, including enterprise organic growth of Mid-single digits (MSD), continued annual enterprise margin expansion and share repurchases in excess of $1.0B. The company also outlined Propel, which is expected to involve approximately $625 million of cash investment and approximately $25 million in non-cash charges, generate approximately $400 million in run-rate savings and deliver approximately $350 million in net run-rate savings after approximately $50 million of reinvestment. The stated target is approximately 30% adjusted operating margin in 2028. Management also identified expected 2026 Adjusted EPS headwinds from the Willis Re joint venture and Newfront acquisition, partly alongside an expected foreign-currency tailwind.
Management, verbatim
WTW delivered another quarter of solid results in the face of a volatile market environment, reflecting the strength and resilience of our business.
Carl Hess, Chief Executive Officer
Our strategy is working. Investments in talent, technology and innovation are differentiating WTW in the market and sustaining our momentum across the company.
Carl Hess, Chief Executive Officer
While Propel, our AI Acceleration Plan, is in its early days, I’m excited by the initial impact we’re seeing as we scale AI to enhance client service, unlock growth opportunities, strengthen our colleague experience and drive greater efficiency.
Carl Hess, Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Gross profit and gross margin were not reported.
- Quarterly cash flows from operating activities and quarterly free cash flow were not reported.
- A quarterly balance-sheet comparison to a prior quarter was not reported.
- No conventional quantitative full-year total revenue, operating-expense or tax-rate guidance was reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
WTW released its Q3 2026 results via a Form 8‑K, highlighting revenue growth, EPS improvement, and an AI investment plan.
Ticker impact
WTW disclosed Q3 2026 earnings with 8% revenue growth and EPS up 4% YoY in its 8‑K filing.
likely modest upside as investors price in stronger top‑line and EPS growth.
The earnings release provides fresh, material numbers that improve the outlook, prompting short‑term buying pressure.
Market effects
Positive earnings may lift the broader insurance brokerage and advisory sector.
U.S. investors may react favorably, supporting market breadth.
Limited to firms with similar business models; no major macro impact.
Counterpoint
Margin compression could signal cost pressures, tempering upside.
Key entities
- companyWillis Towers Watson
Global advisory, broking and solutions firm reporting Q3 earnings.
