Willis Towers Watson (WTW) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 9% year-over-year to $2.47 billion, with 5% organic growth.

• Adjusted diluted EPS increased 17% to $3.35, while reported diluted EPS fell 27% to $2.43.

• Propel AI acceleration plan launched, targeting $400 million in run-rate savings and a 30% adjusted operating margin by 2028, with a $625 million investment.

• Returned $450 million to shareholders via share repurchases and paid $90 million in dividends in Q2 2026.

• Major acquisitions included Newfront Insurance Holdings and Cushon, expanding technology and benefits offerings.

Financial highlights

• Q2 2026 revenue: $2.47B (Q2 2025: $2.26B); six-month revenue: $4.88B (2025: $4.48B).

• Adjusted operating margin reached 19.5%, up 100 basis points year-over-year.

• Adjusted EBITDA margin for Q2 2026: 21.5% (Q2 2025: 20.8%).

• Free cash flow for H1 2026 was $360 million, up from $217 million in the prior year.

• Net income declined 30% year-over-year to $229 million, mainly due to higher expenses and tax rates.

Outlook and guidance

• Propel AI plan expected to deliver $350 million in net run-rate savings and 30% adjusted operating margin by 2028.

• Full-year 2026 guidance remains unchanged, with mid-single-digit organic growth and annual margin expansion.

• Share repurchases of $1.0B or greater expected for 2026, subject to market conditions.

• Foreign currency expected to provide a $0.35 tailwind to adjusted diluted EPS for 2026.

• Newfront acquisition expected to be $0.10 dilutive to adjusted EPS in 2026, with $250 million post-close revenue.