0001171843-26-002866
SEC filingWillis Towers Watson reported Q1 2026 revenue of $2.4 billion, up 8% reported and 3% organic, with adjusted diluted EPS of $3.72, up 19% year-over-year.
WTW delivered solid Q1 2026 results with revenue growth of 8% as reported to $2.41 billion, driven by 4% constant currency and 3% organic growth amid a challenging global market. Health, Wealth & Career (HWC) segment led with $1.265 billion revenue, up 9% reported and 3% organic, fueled by strong international health performance, retirement work, and investments, though Career saw declines from deferred discretionary projects due to geopolitical uncertainty. Risk & Broking (R&B) grew to $1.116 billion, up 9% reported and 2% organic, supported by new business in Corporate Risk & Broking and software sales in Insurance Consulting and Technology. Margin expansion was a highlight: adjusted operating margin rose 70 basis points to 22.3%, with both segments gaining 60 basis points to 27.3% and 22.6% respectively, reflecting operating leverage, expense discipline, and foreign exchange benefits. CEO Carl Hess emphasized strong operating discipline, efficiency enhancements, and investments in talent, AI, and innovation driving client value despite headwinds. Adjusted diluted EPS surged 19% to $3.72, bolstered by margin gains offsetting higher transaction costs from the Newfront acquisition. Capital allocation remained shareholder-friendly with $300 million in share repurchases and $88 million dividends. Cash flow improved, with operating cash use at $10 million versus $35 million prior year, and free cash flow at $(65) million, up $21 million, aided by margin expansion and completion of the Transformation program. Balance sheet shows cash at $1.855 billion, down from year-end due to $792 million Newfront acquisition spend, with total debt at $6.304 billion. Investors should note ongoing Newfront integration ($0.10 EPS dilutive in 2026) and Willis Re joint venture headwind ($0.30 EPS), partially offset by FX tailwinds.