Willis Towers Watson Reports Q3 2026 Financial Results

Willis Towers Watson Reports Third Quarter 2026 Financial Results

Key Financial Highlights

• Total Revenue: $2.46 billion, representing an 8% increase compared to $2.29 billion in Q3 2025 (8% increase in constant currency, 4% organic growth).
• Net Income & EPS:
  • GAAP Net Income was $309 million, up 1% from $306 million in the prior-year period.
  • Diluted EPS was $3.24, up 4% compared to $3.11 in Q3 2025.
  • Adjusted Diluted EPS grew 18% to $3.63 compared to $3.07 in Q3 2025.
• Operating Income & Margins:
  • Income from Operations was $429 million (+3% YoY), with an Operating Margin of 17.4% (down 90 bps).
  • Adjusted Operating Income was $539 million (+15% YoY), yielding an Adjusted Operating Margin of 21.9% (up 150 bps).
  • Adjusted EBITDA reached $577 million (23.5% margin), rising 12% YoY.

Segment Performance

• Health, Wealth & Career (HWC):
  • Revenue rose 7% (4% organic) to $1.35 billion.
  • Operating Income grew 10% to $398 million, with operating margin expanding 90 basis points to 29.5%.
• Risk & Broking (R&B):
  • Revenue rose 8% (5% organic) to $1.09 billion.
  • Operating Income increased 14% to $216 million, with operating margin up 100 basis points to 19.8%.

Capital Allocation & Strategic Initiatives

• Share Repurchases: Repurchased 687,386 shares for $220 million during Q3 2026; targeting over $1.0 billion in repurchases for full-year 2026.
• Cash Flow: Free cash flow for the nine months ended September 30, 2026 was $1.1 billion, up $226 million from $838 million in the comparable prior-year period.
• Propel AI Acceleration Plan: The multi-year plan through 2028 targets approximately $400 million in gross run-rate savings ($350 million net after reinvestment) with a total expected cash investment of $625 million, supporting a target ~30% adjusted operating margin by 2028.