Marsh (MRSH) Q4 2025 earnings summary

Executive summary

• Achieved $27.0 billion in revenue for 2025, representing 10% total growth and 4% underlying growth, with operations in 130 countries and over 95,000 employees.

• Adjusted operating income grew 11% year-over-year; adjusted EPS increased 9% to $9.75.

• Maintained strong recurring revenue, high client retention, and a capital-light business model generating substantial free cash flow.

• Completed integration of McGriff, launched new Marsh brand and Thrive program, and executed $2B in share repurchases.

• Thrive program focuses on growth, efficiency, and investment in AI, digital infrastructure, and talent.

Financial highlights

• Q4 consolidated revenue increased 9% to $6.6B, with 4% underlying growth.

• Adjusted operating income for the year was $7.3B, up 11% year-over-year; adjusted EPS $9.75.

• Free cash flow totaled $5B for the year, with a 19% margin and 25% year-over-year growth.

• Q4 adjusted operating income was $1.6B (+12%); Q4 adjusted EPS was $2.12, up 10% year-over-year.

• Full-year net income attributable to the company was $4.2B, or $8.43 per diluted share.

Outlook and guidance

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

• Thrive program expected to deliver ~$400M in savings over three years, supporting additional margin expansion.

• Anticipate adjusted effective tax rate of 24.5%-25.5% in 2026.

• Plan to deploy ~$5B in capital across dividends, acquisitions, and share repurchases in 2026.

• Positioned for sustained momentum in 2026, with management citing strong team performance in a complex environment.