Overview
Advisory firm's Q4 revenue fell 3% yr/yr but beat analyst expectations
Adjusted EPS for Q4 was $8.12, beating analyst expectations
Company repurchased $350 mln in shares during the quarter
Outlook
WTW expects 2026 adjusted operating margin expansion in R&B and HWC segments
Company plans share repurchases of $1.0 bln or greater in 2026
WTW anticipates foreign currency tailwind on EPS of ~$0.30 in 2026
Result Drivers
TRANZACT SALE - Revenue decreased 3% due to the sale of TRANZACT, impacting overall results
ORGANIC GROWTH - Organic revenue grew 6% in Q4, driven by strong client retention and new client wins
RISK & BROKING GROWTH - Revenue in Risk & Broking segment increased 10% due to higher new business activity and client retention
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $2.94 bln | $2.87 bln (13 Analysts) |
Q4 Adjusted EPS | Beat | $8.12 | $7.94 (19 Analysts) |
Q4 EPS | $7.62 | ||
Q4 Adjusted Operating Margin | 36.90% | ||
Q4 Operating Margin | 34.60% | ||
Q4 Organic Growth | 6.00% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the multiline insurance & brokers peer group is "hold."
Wall Street's median 12-month price target for Willis Towers Watson PLC is $371.00, about 17.2% above its February 2 closing price of $316.61
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nGNX2NxfT3
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)