third quarter 2026
Filed Oct 15, 2026Revenue Growth of 8%; Underlying Revenue Growth of 5%; Third Quarter GAAP EPS of $1.69; Adjusted EPS Increases 10% to $2.03
Third-quarter revenue grew 8% and underlying revenue grew 5%, with adjusted operating income up 6% and adjusted EPS up 10%. Consulting posted broad growth, while Risk and Insurance Services adjusted operating income rose despite a decline in GAAP operating income and Reinsurance revenue decreased.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30GAAP | $6.86B | – | 8% |
| Underlying revenue growth, three months ended September 30non-GAAP | 5% | – | 5% |
| Non-GAAP revenue, three months ended September 30non-GAAP | $6.66B | – | – |
| Operating expenses, three months ended September 30GAAP | $5.65B | – | – |
| Compensation and benefits, three months ended September 30GAAP | $4.08B | – | – |
| Other operating expenses, three months ended September 30GAAP | $1.57B | – | – |
| Operating income, three months ended September 30GAAP | $1.22B | – | 4% |
| Operating margin, three months ended September 30GAAP | 17.7% | – | – |
| Adjusted operating income, three months ended September 30non-GAAP | $1.53B | – | 6% |
| Adjusted operating margin, three months ended September 30non-GAAP | 22.7% | – | – |
| Income before income taxes, three months ended September 30GAAP | $1.03B | – | – |
| Income tax expense, three months ended September 30GAAP | $221M | – | – |
| Net income attributable to the Company, three months ended September 30GAAP | $808M | – | – |
| Diluted EPS, three months ended September 30GAAP | $1.69 | – | – |
| Adjusted income, net of tax, three months ended September 30non-GAAP | $972M | – | – |
| Adjusted EPS, three months ended September 30non-GAAP | $2.03 | – | 10% |
| Revenue, nine months ended September 30GAAP | $21.86B | – | 7% |
| Underlying revenue growth, nine months ended September 30non-GAAP | 5% | – | 5% |
| Operating expenses, nine months ended September 30GAAP | $17.00B | – | – |
| Operating income, nine months ended September 30GAAP | $4.87B | – | (3%) |
| Operating margin, nine months ended September 30GAAP | 22.3% | – | – |
| Adjusted operating income, nine months ended September 30non-GAAP | $6.11B | – | 7% |
| Adjusted operating margin, nine months ended September 30non-GAAP | 28.1% | – | – |
| Net income attributable to the Company, nine months ended September 30GAAP | $3.22B | – | – |
| Diluted EPS, nine months ended September 30GAAP | $6.68 | – | – |
| Adjusted income, net of tax, nine months ended September 30non-GAAP | $4.00B | – | – |
| Adjusted EPS, nine months ended September 30non-GAAP | $8.29 | – | 9% |
| Net cash provided by operations, nine months ended September 30GAAP | $2.31B | – | – |
| Capital expenditures, nine months ended September 30GAAP | $215M | – | – |
| Cash and cash equivalents, September 30GAAP | $1.84B | – | – |
| Cash and cash equivalents held in a fiduciary capacity, September 30GAAP | $12.27B | – | – |
| Short-term debt, September 30GAAP | $1.64B | – | – |
| Long-term debt, September 30GAAP | $18.89B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Risk and Insurance Services, three months ended September 30Underlying revenue growth was 3%; Risk grew 5% on an underlying basis, while Reinsurance decreased 6% on both a GAAP and underlying basis. | $4.2B | – | 7% |
| Risk, three months ended September 30Underlying revenue growth was 5%, including 4% in U.S./Canada and 6% in International. | $3.73B | – | 10% |
| Reinsurance, three months ended September 30Revenue decreased 6% on both a GAAP and underlying basis. | $374M | – | (6%) |
| People and Investments, three months ended September 30Underlying revenue grew 5%; Investments and Retirement grew 8%, Health and Benefits increased 5%, and Workforce and Rewards decreased 1%. | $1.67B | – | 6% |
| Management Consulting, three months ended September 30Revenue increased 14% on both a GAAP and underlying basis. | $1.01B | – | 14% |
| Consulting, three months ended September 30Underlying revenue grew 8%; operating income increased 12% to $563 million and adjusted operating income increased 9% to $593 million. | $2.69B | – | 9% |
| Risk and Insurance Services, nine months ended September 30Underlying revenue growth was 3%; operating income decreased 7% to $3.5 billion and adjusted operating income increased 5% to $4.6 billion. | $14.07B | – | 6% |
| Risk, nine months ended September 30Underlying revenue growth was 4%. | $11.52B | – | 8% |
| Reinsurance, nine months ended September 30Underlying revenue decreased 1%. | $2.28B | – | — |
| People and Investments, nine months ended September 30Underlying revenue growth was 5%. | $4.93B | – | 8% |
| Management Consulting, nine months ended September 30Underlying revenue growth was 11%. | $2.91B | – | 13% |
| Consulting, nine months ended September 30Underlying revenue grew 7%; operating income rose 13% to $1.6 billion and adjusted operating income increased 11% to $1.7 billion. | $7.84B | – | 10% |
Capital returns
- The Company repurchased approximately 2.7 million shares of stock for $500 million in the third quarter of 2026.
- Through nine months ended September 30, 2026, the Company repurchased 11.4 million shares of stock for $2.0 billion.
- Purchase of treasury shares was $2,016 million for the nine months ended September 30, 2026.
- Dividends paid were $1,354 million for the nine months ended September 30, 2026.
What drove it
- Third-quarter consolidated revenue increased 8% on a GAAP basis and 5% on an underlying basis.
- Risk generated 5% underlying revenue growth, with U.S./Canada up 4% and International up 6%.
- Management Consulting revenue increased 14% on both a GAAP and underlying basis.
- People and Investments produced 5% underlying revenue growth, led by Investments and Retirement growth of 8% and Health and Benefits growth of 5%.
- Adjusted operating income excluded noteworthy items and identified intangible amortization expense.
- The Thrive program focuses on brand strategy, delivering greater value to clients, accelerating growth and improving efficiency.
Concerns
- Reinsurance revenue decreased 6% in the third quarter on both a GAAP and underlying basis.
- Workforce and Rewards revenue decreased 1% on an underlying basis in the third quarter.
- Third-quarter Risk and Insurance Services operating income decreased 1% to $745 million despite adjusted operating income increasing 4% to $1.0 billion.
- Nine-month GAAP operating income decreased 3% to $4.9 billion and GAAP diluted EPS decreased to $6.68 from $6.75.
- Nine-month operating cash flow was $2,313 million, compared with $3,131 million in 2025.
- Third-quarter GAAP operating margin was 17.7%, compared with 18.4% in 2025; nine-month GAAP operating margin was 22.3%, compared with 24.5% in 2025.
What to watch
- The pace of underlying revenue growth in Risk, Reinsurance, People and Investments, and Management Consulting.
- Whether Reinsurance revenue, which declined 6% in the third quarter, stabilizes.
- Execution of the Thrive program and its stated savings from process and automation efficiencies and optimization of the global operating model.
- The effect of restructuring, McGriff integration and retention costs, Greensill litigation, and legal matters on GAAP profitability.
- Operating cash flow, capital expenditures, debt repayments, dividends, and share repurchases.
Balance sheet and cash flow
- Cash and cash equivalents were $1,842 million at September 30, 2026, compared with $2,687 million at December 31, 2025.
- Cash and cash equivalents held in a fiduciary capacity were $12,273 million at September 30, 2026, compared with $11,473 million at December 31, 2025.
- Short-term debt was $1,644 million and long-term debt was $18,889 million at September 30, 2026.
- The Company repaid 550 million of Euro-denominated senior notes that matured in September.
- Net cash provided by operations was $2,313 million for the nine months ended September 30, 2026, compared with $3,131 million in 2025.
- Capital expenditures were $215 million for the nine months ended September 30, 2026, compared with $186 million in 2025.
- Net cash used for financing activities was $1,764 million and net cash used for investing activities was $493 million for the nine months ended September 30, 2026.
Analysis
Marsh reported third-quarter GAAP revenue of $6,863 million, up 8%, while non-GAAP underlying revenue grew 5%. The company produced growth across its two major operating areas: Risk and Insurance Services revenue increased 7% and Consulting revenue increased 9%. Management Consulting was the strongest reported business, with revenue up 14% on both a GAAP and underlying basis. Risk grew 10% on a GAAP basis and 5% on an underlying basis, supported by 4% underlying growth in U.S./Canada and 6% in International.
Profitability was stronger on an adjusted basis than under GAAP. GAAP operating income increased 4% to $1,215 million, but GAAP operating margin declined to 17.7% from 18.4%. Adjusted operating income increased 6% to $1,527 million, while adjusted operating margin was 22.7%, unchanged from the prior-year quarter. The reconciliation included restructuring, McGriff integration and retention related costs, Greensill litigation, a legal matter, and a gain on consolidation of an entity. Adjusted EPS rose 10% to $2.03, compared with GAAP diluted EPS of $1.69.
Segment mix was constructive but not uniform. People and Investments revenue rose 6%, or 5% on an underlying basis, with Investments and Retirement up 8% and Health and Benefits up 5% on an underlying basis. Workforce and Rewards declined 1% on an underlying basis. Reinsurance was the principal weak spot, as revenue decreased 6% on both a GAAP and underlying basis. Within Risk and Insurance Services, GAAP operating income decreased 1% to $745 million, while adjusted operating income increased 4% to $1,002 million.
For the nine months ended September 30, GAAP revenue increased 7% to $21,864 million and underlying revenue grew 5%. However, GAAP operating income decreased 3% to $4,868 million, GAAP operating margin declined to 22.3% from 24.5%, and diluted EPS declined to $6.68 from $6.75. Adjusted operating income increased 7% to $6,106 million and adjusted EPS increased 9% to $8.29. The difference between GAAP and adjusted outcomes reflects the larger year-to-date operating income adjustments, including $569 million related to Greensill litigation and $182 million of restructuring.
Capital allocation remained active. The company repurchased approximately 2.7 million shares for $500 million during the quarter and 11.4 million shares for $2.0 billion through the first nine months. It also repaid 550 million of Euro-denominated senior notes that matured in September. Net cash provided by operations was $2,313 million for the nine-month period, below $3,131 million in 2025, while capital expenditures were $215 million. The release provided no forward financial guidance.
Management, verbatim
Marsh delivered a strong third quarter, generating 5% underlying revenue growth and double-digit EPS growth. We also made significant progress in executing our Thrive program and successfully completed our brand transition.
John Doyle, President and CEO
These results reflect the strength of our market position, the value we deliver to clients, and the commitment of our colleagues around the world.
John Doyle, President and CEO
Not in the filing
stated, not guessed- Forward revenue, margin, operating expense, tax rate, EPS, or other financial guidance
- Prior-period outlook for comparison
- Gross margin
- Free cash flow
- Dividend per share
- Prior-quarter metrics
- Third-quarter operating cash flow
- Third-quarter capital expenditures
- Explicit percentage changes for several GAAP income-statement line items despite prior-year amounts being reported
- Current-quarter effective tax rate
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.