Willis Towers Watson (WTW) investor relations material

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 $625 million investment.

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

• Increased share repurchase authority by $1.5 billion, with $450 million repurchased in Q2.

Financial highlights

• Q2 2026 revenue: $2.47B (Q2 2025: $2.26B); organic revenue growth 5%.

• Adjusted operating margin reached 19.5%, up 100 bps year-over-year; adjusted operating income grew 15% to $480 million.

• Adjusted EBITDA margin for Q2 2026: 21.5% (up from 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; adjusted net income rose 11% to $316 million.

Outlook and guidance

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

• Targeting mid-single-digit organic growth and annual adjusted operating margin expansion for 2026.

• Share repurchases of at least $1 billion expected for the full year, with $1.5 billion increase in authorization.

• 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.