- WTW Risk & Broking revenue grows 8% to $1.09 bn
- Health, Wealth & Career revenue increases 7% to $1.35 bn
- WTW’s Propel AI programme targets $350 mn in net savings by 2028
- Newfront acquisition expected to contribute $250 mn in 2026 revenue
- Free cash flow rises as WTW maintains $1 bn buyback target
- WTW maintains 2026 organic growth and margin outlook
WTW (NASDAQ: WTW) reported third-quarter 2026 revenue of $2.46 bn, up 8% from $2.29 bn a year earlier, as growth in insurance broking, health and retirement consulting supported higher adjusted earnings and operating margins.
Revenue increased 8% at constant currency and 4% organically. Adjusted operating income rose 15% to $539 mn from $467 mn, lifting the adjusted operating margin by 150 basis points to 21.9%.
- WTW’s third-quarter revenue increased 8% to $2.46 bn, with organic growth of 4%. Adjusted operating income rose 15% to $539 mn, while adjusted EPS increased 18% to $3.63.
- Risk & Broking revenue grew 8% to $1.09 bn, supported by corporate insurance broking and technology sales. The segment’s operating margin improved 100 basis points to 19.8%.
- WTW’s Propel AI programme targets $350 mn in net annual run-rate savings and an adjusted operating margin of approximately 30% by 2028, supported by $625 mn in planned cash investment.
Reported operating income increased 3% to $429 mn, although the GAAP operating margin declined 90 basis points to 17.4%.
Net income was $309 mn, compared with $306 mn in the third quarter of 2025. Adjusted net income increased 13% to $339 mn from $301 mn.
Diluted earnings per share rose 4% to $3.24, while adjusted diluted EPS increased 18% to $3.63 from $3.07.
Adjusted EBITDA reached $577 mn, up 12% from $515 mn, with the adjusted EBITDA margin expanding to 23.5% from 22.5%. The GAAP effective tax rate was 19.5%, compared with the 21.9% adjusted rate used to calculate adjusted EPS.
WTW delivered another quarter of solid results in the face of a volatile market environment, reflecting the strength and resilience of our business.
Carl Hess, WTW’s Chief Executive Officer
Hess said investments in talent, technology and AI were supporting client service, revenue opportunities and operational efficiency.
WTW Risk & Broking revenue grows 8% to $1.09 bn
WTW’s Risk & Broking (R&B) segment generated third-quarter revenue of $1.09 bn, an 8% increase from $1.01 bn in the prior-year period. Organic revenue growth was 5%.
Segment operating income increased 14% to $216 mn from $189 mn, while the operating margin improved by 100 basis points to 19.8%.
Corporate Risk & Broking (CRB) recorded organic revenue growth supported by strong new business activity in North America and international markets, alongside higher book-of-business settlement revenue.
The comparison was partly affected by the prior-year quarter, which included revenue from multi-year project-based placements in WTW’s global specialty businesses.
Insurance Consulting and Technology (ICT) also delivered organic growth, primarily through strong software sales in its Technology practice. Lower consulting revenue partly offset that performance.
Higher book-of-business settlement activity and expense discipline contributed to the improvement in R&B profitability.
For 2026, WTW continues to expect mid-single-digit organic revenue growth across Risk & Broking, including CRB, with low-single-digit growth in ICT. The company also expects approximately 100 basis points of annual operating margin expansion in the segment.
Health, Wealth & Career revenue increases 7% to $1.35 bn
WTW’s Health, Wealth & Career (HWC) segment reported revenue of $1.35 bn, up 7% from $1.26 bn a year earlier. Organic growth reached 4%, with positive contributions from Health, Wealth and Career.
Health benefited from new client business and strong renewals across all regions. Wealth growth was supported by retirement consulting activity outside North America and new client wins.
Career revenue increased organically, driven by higher compensation survey sales, a return to normal survey delivery timing and additional communications project work.
Benefits Delivery & Outsourcing (BD&O) reported an organic revenue decline. Growth from new client wins, project activity and regulatory-driven outsourcing demand was more than offset by lower commissions in Individual Marketplace.
HWC operating income increased 10% to $398 mn from $361 mn. Its operating margin rose 90 basis points to 29.5%, supported by operating leverage and expense management.
WTW expects HWC organic revenue growth in the low- to mid-single digits for 2026. Within the segment, Health is expected to grow in the high-single digits, Wealth and Career in the low-single digits, while BD&O revenue is expected to remain flat.
WTW’s Propel AI programme targets $350 mn in net savings by 2028
WTW is advancing Propel, its AI Acceleration Plan, approved by the board on July 28, 2026.
The programme runs through December 31, 2028, and is intended to integrate artificial intelligence and automation across the company’s operations, including client services and internal processes.
Propel builds on WTW’s existing investment in AI, data and technology, including the acquisition of Newfront.
The company expects to invest approximately $625 mn in cash and incur $25 mn in non-cash charges to generate $400 mn in annual run-rate savings.
The projected cash cost-to-achieve ratio is approximately 1.6 times. After reinvesting $50 mn to support business growth, WTW expects net annual run-rate savings of approximately $350 mn. The programme is expected to contribute to an adjusted operating margin of approximately 30% by 2028.
From the programme’s launch through September 30, 2026, WTW recorded $14 mn in restructuring costs and $7 mn in transaction and programme expenses.
Annualised run-rate savings achieved during that period totalled $18 mn. Hess said the programme remains in its early stages but is already producing initial benefits.
“While Propel, our AI Acceleration Plan, is in its early days, I’m excited by the initial impact we’re seeing as we scale AI to enhance client service, unlock growth opportunities, strengthen our colleague experience and drive greater efficiency,” he said.
Newfront acquisition expected to contribute $250 mn in 2026 revenue
WTW expects its acquisition of Newfront to contribute approximately $250 mn in post-closing revenue during 2026, with an adjusted EBITDA margin of around 26%. The transaction is expected to reduce WTW’s adjusted EPS by approximately $0.10 for the year.
Newfront’s operations will be divided between WTW’s two reporting segments. Its Total Rewards business, representing approximately 42% of Newfront, will be included in Health, Wealth & Career.
The remaining 58%, comprising Newfront’s Business Insurance operations, will be integrated into Risk & Broking.
Separately, WTW expects the Willis Re joint venture to reduce adjusted diluted EPS by approximately $0.30 in 2026.
The company does not anticipate a material earnings contribution from its remaining equity investments reported through the interest in earnings of associates line.
Free cash flow rises as WTW maintains $1 bn buyback target
WTW generated $1.2 bn in operating cash flow during the first nine months of 2026, compared with $1.0 bn in the corresponding period of 2025.
Free cash flow increased by $226 mn to $1.1 bn from $838 mn, primarily reflecting operating margin expansion. The nine-month period also included $29 mn in cash proceeds from the disposal of buildings and related improvements.
During the third quarter, WTW repurchased 687,386 shares for approximately $220 mn.
The company expects total share repurchases to exceed $1 bn in 2026, subject to market conditions and potential capital allocation toward organic investments and acquisitions.
WTW also expects continued improvement in its free cash flow margin, supported by operating profitability and changes in its business mix.
WTW maintains 2026 organic growth and margin outlook
WTW expects mid-single-digit organic revenue growth at the enterprise level for 2026, alongside continued annual improvement in adjusted operating margins.
Risk & Broking is expected to deliver approximately 100 basis points of annual margin expansion, with further improvement anticipated in Health, Wealth & Career.
Foreign exchange is expected to provide an incremental $0.02 benefit to adjusted diluted EPS in the fourth quarter, bringing the estimated full-year currency benefit to approximately $0.35 per share at current exchange rates.
The outlook incorporates the expected earnings dilution from Newfront and the Willis Re joint venture, while maintaining WTW’s focus on organic growth, margin improvement and cash generation.
The company’s longer-term profitability target remains tied to the execution of Propel, with approximately $350 mn in net annual run-rate savings and a 30% adjusted operating margin targeted for 2028.
