Marsh (MRSH) investor relations material

Executive summary

• Q1 2026 revenue grew 8% to $7.6B, with underlying growth of 4%, and net income attributable to the company was $1.1B.

• Adjusted operating income rose 8% to $2.4B, while GAAP operating income declined 12% due to a $425M Greensill litigation charge.

• Adjusted EPS increased 8% to $3.29; GAAP EPS was $2.36, down 15% year-over-year.

• Leadership changes and continued investment in talent, technology, and AI-driven solutions to enhance client value and operational efficiency.

• The THRIVE program continues to focus on growth, efficiency, and talent investment, with $45M in restructuring costs in Q1.

Financial highlights

• Consolidated revenue: $7.6B, up 8% year-over-year; underlying growth 4%.

• Adjusted operating income: $2.4B, up 8%; GAAP operating income: $1.8B, down 12%.

• Adjusted operating margin: 31.8%; Risk & Insurance Services margin: 38.3%; Consulting margin: 21.6%.

• Adjusted EPS: $3.29, up 8%; GAAP EPS: $2.36.

• Repurchased $750M of stock in Q1; 4.2M shares repurchased.

Outlook and guidance

• Expect underlying revenue growth in 2026 similar to 2025, with continued margin expansion and solid adjusted EPS growth anticipated.

• More margin expansion expected in the second half of 2026.

• Adjusted effective tax rate projected between 24.5% and 25.5% for 2026.

• Thrive program expected to deliver ~$400M in annualized savings over three years, with $500M in costs.

• Management highlighted strong execution in a dynamic environment and confidence in continued growth.