Willis Towers Watson (WLTW) Q1 2026 earnings summary

Executive summary

• Achieved 3% organic revenue growth, 8% total revenue growth to $2.41B, 70bps adjusted operating margin expansion, and 19% adjusted diluted EPS growth year-over-year in Q1 2026.

• Diluted EPS increased 33% to $3.10; adjusted diluted EPS up 19% to $3.72.

• Enhanced efficiency and productivity through AI, driving operating leverage and free cash flow margin improvement.

• Returned $300M to shareholders via share repurchases and paid $88M in dividends in Q1 2026.

• Supported clients through macroeconomic volatility while executing strategic priorities.

Financial highlights

• Revenue rose 8% year-over-year to $2.41B in Q1 2026.

• Net income increased 27% to $303M; adjusted net income up 13% to $357M.

• Adjusted diluted EPS grew 19% to $3.72; adjusted operating margin expanded to 22.3%.

• Free cash flow improved to -$65M from -$86M year-over-year.

• Net cash from operating activities was -$10M, up from -$35M in Q1 2025.

Outlook and guidance

• Targeting mid-single digit organic revenue growth and continued annual adjusted operating margin expansion.

• Expecting ~100bps average annual margin expansion in Risk & Broking over next two years; incremental margin expansion in Health, Wealth & Career.

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

• Newfront acquisition expected to be ~$0.10 dilutive to adjusted EPS in 2026, with $250M post-close revenue and ~26% adjusted EBITDA margin.

• Foreign exchange expected to provide a ~$0.35 tailwind to adjusted diluted EPS for full year 2026.