WTW

The market expects Willis Towers Watson (WTW) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This advisory, broking and solutions company is expected to post quarterly earnings of $3.60 per share in its upcoming report, which represents a year-over-year change of +17.3%. Revenues are expected to be $2.48 billion, up 8.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.14% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Willis Towers Watson, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.52%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Willis Towers Watson will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Willis Towers Watson would post earnings of $3.13 per share when it actually produced earnings of $3.35, delivering a surprise of +7.03%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Willis Towers Watson doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Technology-driven insurance provider Neptune Insurance Holdings Inc. NP is set to report third-quarter 2026 results on Oct. 20, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter's earnings is currently pegged at 16 cents per shareon revenues of $54.97 million. The third-quarter earnings estimate has remained stable over the past 60 days. The bottom-line projection indicates a year-over-year jump of 45.5%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 23.9%. Image Source: Zacks Investment Research For full-year 2026, the Zacks Consensus Estimate for Neptune's revenues is pegged at $201.15 million, implying an increase of 26.1% year over year. Also, the consensus mark for the current year EPS is pegged at 54 cents, signaling a rise of around 31.7% on a year-over-year basis. NP's earnings beat the consensus estimate in two of the past four quarters, met once and missed on the other occasion, with the average surprise being 2.2%. Neptune Insurance Holdings Inc. price-eps-surprise | Neptune Insurance Holdings Inc. Quote Our proven model predicts a likely earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here. Neptune has an Earnings ESP of +1.82% and carries a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Neptune is expected to post solid third-quarter growth, supported by an increase in policies in force, higher revenue per employee and a larger workforce. The Zacks Consensus Estimate projects commission income to rise 23.6% year over year to $41.93 million, while fee income is expected to grow 22.4% to $12.79 million. Growth in policies in force is another positive. The period-end figure is expected to reach 323,300, up 2.3% from the previous quarter. This is likely to lift premium in force to $432.7 million, a 3.3% sequential increase. Neptune is also expected to see better workforce productivity, with revenue per employee projected to increase 15.1% year over year. The average number of employees is expected to grow 13.8% from the year-ago quarter, further supporting business expansion. Together, these trends could help Neptune deliver year-over-year growth and beat earnings expectations. However, higher operating expenses, driven by increased commissions and general and administrative costs, could partly offset some of the gains. Here are some other companies worth considering from the broader insurance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around: MetLife, Inc. MET has an Earnings ESP of +1.90% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for MetLife's bottom line for the to-be-reported quarter is pegged at $2.65 per share, up 13.3% from a year ago. The consensus estimate for MET's revenues is pegged at $20.07 billion, indicating 12.1% year-over-year growth. Prudential Financial, Inc. PRU has an Earnings ESP of +0.39% and a Zacks Rank of 3. The Zacks Consensus Estimate for Prudential Financial's bottom line for the to-be-reported quarter is pegged at $3.47 per share, which witnessed six upward estimate revisions over the past 60 days against one downward movement. The consensus estimate for PRU's revenues is pegged at $14.60 billion. Willis Towers Watson Public Limited Company WTW has an Earnings ESP of +0.52% and a Zacks Rank #3. The Zacks Consensus Estimate for Willis Towers' bottom line for the to-be-reported quarter is pegged at $3.60 per share, which indicates 17.3% year-over-year growth. The consensus estimate for WTW's revenues is pegged at $2.48 billion, an 8.3% increase from a year ago. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Neptune Insurance Holdings Inc. (NP) : Free Stock Analysis Report MetLife, Inc. (MET) : Free Stock Analysis Report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

London, the United Kingdom-based Willis Towers Watson Public Limited Company (WTW) operates as an advisory, broking, and solutions company worldwide. Valued at $27.7 billion by market cap, the company provides a range of insurance brokerage, reinsurance, and risk management consulting services. The leading global advisory, broking, and solutions company is expected to announce its fiscal third-quarter earnings for 2026 before the market opens on Thursday, Oct. 29. Ahead of the event, analysts expect Willis Towers Watson to report a profit of $3.60 per share on a diluted basis, up 17.3% from $3.07 per share in the year-ago quarter. The company has consistently surpassed Wall Street's EPS estimates in its last four quarterly reports. - Elon Musk Sets the Record Straight on Terafab. What It Means for Intel, TSMC, and SpaceX Stocks. - Why Super Micro Stock Is Heading to $60 - A $1.3 Billion Reason Why IONQ Stock Is Down Today - Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For the full year, analysts expect Willis Towers Watson to report EPS of $19.80, up 15.9% from $17.08 in fiscal 2025. Its EPS is expected to rise 14.4% year over year to $22.66 in fiscal 2027. WTW stock has notably underperformed the S&P 500 Index's ($SPX) 19.2% gains over the past 52 weeks, with shares down 10.6% during this period. Similarly, it underperformed the State Street Financial Select Sector SPDR ETF's (XLF) 5.1% returns over the same time frame. WTW has underperformed over the past year primarily due to disappointing organic revenue growth and softer-than-expected momentum in its core Risk & Broking and Health, Wealth & Career segments. Investors have penalized the stock for top-line deceleration and margin pressures that fell short of expectations relative to its larger brokerage peers, compounded by project delays, a softer commercial pricing environment, and initial cost headwinds from strategic investments and restructuring efforts. Analysts' consensus opinion on WTW stock is reasonably bullish, with a "Moderate Buy" rating overall. Out of 24 analysts covering the stock, 14 advise a "Strong Buy" rating, one suggests a "Moderate Buy," and nine give a "Hold." WTW's average analyst price target is $370.19, indicating a potential upside of 24% from the current levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Marsh & McLennan Companies, Inc. MRSH is set to report third-quarter 2026 results on Oct. 15, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter's earnings is currently pegged at $1.96 per shareon revenues of $6.63 billion. The third-quarter earnings estimate has witnessed two upward revisions and four downward movements over the past 60 days. The bottom-line projection still indicates a year-over-year increase of 6%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 4.5%. Image Source: Zacks Investment Research For the full year 2026, the Zacks Consensus Estimate for Marsh's revenues is pegged at $28.52 billion, implying growth of 5.7% year over year. The consensus mark for the current year EPS is pegged at $10.44, signaling an increase of around 7.1% on a year-over-year basis. Marsh's earnings beat the consensus estimate in each of the last four quarters, with the average surprise being 4.1%. Marsh price-eps-surprise | Marsh Quote Our proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That's precisely the case here. Marsh has an Earnings ESP of +0.42% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Both the Zacks Consensus Estimate and our model estimate for total Risk and Insurance Services revenues indicate 4.1% year-over-year growth. Revenues from the United States and Canada are expected to grow 4.5% from a year ago. Adjusted operating income from the Risk and Insurance Services segment is pegged at $1.02 billion, indicating 5.6% growth. The consensus mark for total Mercer revenues suggests a 3.7% year-over-year jump, while our model suggests 3% growth. The consensus estimate for total Consulting revenues indicates 4.9% year-over-year growth, whereas our model signals a 4.1% increase. The Zacks Consensus Estimate for adjusted operating income from the segment of $565.7 million signals a 3.8% rise from a year ago. The consensus estimate for consolidated organic revenue growth is pegged at 3.9% for the to-be-reported quarter. The above-mentioned factors are likely to have positioned MRSH for year-over-year growth and an earnings beat in the third quarter. However, rising costs will likely partly offset the positives. Our model estimate for total operating expenses is pegged at $5.32 billion, which suggests a nearly 3% year-over-year increase due to higher compensation, benefits and other operating expenses. Also, the consensus mark for interest income signals a 27% decline from a year ago. Here are some other companies worth considering from the broader insurance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around: MetLife, Inc. MET has an Earnings ESP of +2.04% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for MetLife's bottom line for the to-be-reported quarter is pegged at $2.64 per share, a 12.8% jump from a year ago. The consensus estimate for MET's revenues is pegged at $20.10 billion, indicating 12.3% year-over-year growth. Prudential Financial, Inc. PRU has an Earnings ESP of +0.69% and a Zacks Rank of 2. The Zacks Consensus Estimate for Prudential Financial's bottom line for the to-be-reported quarter is pegged at $3.44 per share, which witnessed five upward estimate revisions over the past 60 days against one downward movement. The consensus estimate for PRU's revenues is pegged at $14.60 billion. Willis Towers Watson Public Limited Company WTW has an Earnings ESP of +0.52% and a Zacks Rank #3. The Zacks Consensus Estimate for Willis Towers' bottom line for the to-be-reported quarter is pegged at $3.60 per share, which indicates 17.3% year-over-year growth. The consensus estimate for WTW's revenues is pegged at $2.48 billion, an 8.3% increase from a year ago. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marsh (MRSH) : Free Stock Analysis Report MetLife, Inc. (MET) : Free Stock Analysis Report Prudential Financial, Inc. (PRU) : Free Stock Analysis Report Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

York Water holds the longest dividend streak in US public markets at 27 consecutive years, while WTW's $1.775B operating cash flow dwarfs its $358M dividend obligation. Amdocs and Ituran both run near-recession-proof revenue models, with DOX posting near-100% managed services renewal rates and ITRN carrying zero debt alongside $103.7M in net cash. All five stocks fund dividends from contracted or recurring revenue streams such as regulated rates, fee income, or subscriptions, insulating payouts from economic cycles. Read More: Learn 7 secret wealth tips high net worth investors use that most investors miss (sponsor) Income investors heading into the fourth quarter want payouts that don't wobble with the business cycle. The five names below share one thing: dividends funded by recurring, contracted, or fee-based revenue streams that keep flowing whether or not the macro cooperates. Each has raised its payout recently, and each trades on Nasdaq. As a grounding data point, Willis Towers Watson (NASDAQ:WTW) alone generated $360 million of first-half free cash flow, roughly double the prior-year period, giving the broker ample room to keep funding both dividends and buybacks. York Water (NASDAQ:YORW) is the small Pennsylvania regulated water utility whose payout streak is the longest in US public markets. The dividend yield sits at 2.73%, with a quarterly rate of $0.228 and the next payment due October 15, 2026. Trailing EPS of $1.60 against an annualized payout implied by that quarterly rate leaves solid earnings coverage, and management flagged its 27th consecutive year of dividend increases in the Q1 summary. The bull case is straightforward regulated rate-base growth. A rate increase that took effect March 1, 2026 drove Q3 revenue up 22.5% year over year to $23.52 million, with EPS of $0.49 beating the $0.40 estimate. Small tuck-ins including CMV Sewage and Pine Run extend the footprint. The caveat: annual capex has run above operating cash flow every year from 2020 through 2025, so growth is debt- and equity-financed, and the absolute yield is modest for the sector. How do you continue to grow a seven-figure portfolio in retirement? The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life. Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) WTW is a global insurance broker and HR advisor whose revenue is heavily fee-based and highly recurring. The current yield is 0.6%, with the quarterly dividend raised to $0.96 in 2026 from $0.92 in 2025, extending a multi-year hike cadence that shows quarterly amounts stepping up from $0.48 in 2016 to today. Trailing EPS of $16.16 dwarfs the annualized payout, and 2025 operating cash flow of $1.775 billion against $358 million in dividends leaves the payout well covered. The bull case is capital return on top of margin expansion. Q2 adjusted EPS rose 17% to $3.35, adjusted operating margin expanded 100 basis points to 19.5%, and management reiterated at least $1 billion of buybacks for the year. The Propel program targets an enterprise adjusted operating margin near 30% by 2028. Risk: the Willis Re JV creates a roughly $0.30 EPS headwind and the Newfront transaction is about $0.10 dilutive near term. Mondelez International (NASDAQ:MDLZ) owns Oreo, Ritz, Cadbury, Milka, and Toblerone. The current yield is 3.2%, backed by a quarterly dividend that stepped up to $0.50 beginning with the September 30, 2025 ex-date, extending a run of annual hikes visible in the record from $0.13 in 2013 to today. Full-year 2025 operating cash flow of $4.51 billion against $2.49 billion in dividend payments leaves clear coverage even after $1.28 billion of capex, and management guided FY2026 free cash flow to roughly $3 billion. The bull case is scale in snacking with emerging-market horsepower. Q2 adjusted EPS of $0.73 beat the $0.68 estimate, with Latin America up 15.1% and AMEA up 8.2%. CEO Dirk Van de Put said on the Q2 call that "emerging markets, strong volume-led growth, we expect that to continue," and CFO Luca Zaramella framed the profit trajectory bluntly: "You're going to see an acceleration of the gross profit dollar number, particularly in Q3, but also in Q4." Risk: cocoa cost volatility pressured Q2 adjusted operating margin by 120 basis points, and Europe organic revenue was down 1.0%. Amdocs (NASDAQ:DOX) sells the software and managed services that run telecom operators' billing and customer systems. The dividend yield is 3.6%, with the quarterly rate lifted to $0.569 in fiscal 2026 from $0.527 in fiscal 2025, continuing a hike cadence visible from $0.155 in 2014. Trailing EPS of $4.21 and fiscal 2025 operating cash flow of $749 million against $224 million in dividends and $104 million in capex give the payout wide coverage. The bull case is the annuity-like managed services base. Q3 non-GAAP EPS of $1.84 beat the $1.65 estimate, managed services made up 67% of revenue at $790.5 million with near-100% renewal rates, and 12-month backlog reached $4.26 billion. A new 10-year partnership with Liberty Latin America for the aOS agentic operating system anchors the AI pillar, and roughly $600 million of buyback capacity remains. Risk: shares are down 21% year to date on telco spending caution and a $106 million restructuring charge that pressured GAAP net income. Ituran Location and Control (NASDAQ:ITRN) runs vehicle telematics and stolen-vehicle recovery subscriptions in Israel and Latin America. The regular quarterly dividend is $0.50, alongside a $1.50 special payment tied to the March 30, 2026 ex-date. The regular rate stepped up from $0.39 across 2024 to $0.50 across 2025 and 2026. Trailing EPS of $3.23, a $103.7 million net cash balance sheet with no debt, and Q2 operating cash flow of $32.22 million underwrite the payout. The bull case is a growing recurring subscription book with expanding margins. Q2 revenue rose 20.7% to $104.79 million, subscription revenue was up 25% at $79.82 million, and Ituran added 41,000 net subscribers to reach a base of 2,711,000. Gross margin expanded to 50.9%. Risk: geographic concentration in Israel and Latin America and shekel currency exposure can whipsaw reported results. These five names are stitched together by one idea: dividends paid out of contracted rates, fee income, subscription revenue, or globally diversified snack cash flows rather than cyclical earnings. YORW and WTW anchor the list on multi-decade hike track records (if you want the tier above that, the 50-year club, we ranked ten of them by valuation in a free Dividend Kings report); MDLZ and DOX add mid-single-digit yields with covered cash flows; ITRN brings a debt-free balance sheet and a special payment on top of a rising regular dividend. Heading into year end, that mix of durability and rising payouts is what income investors should be prioritizing. How do you continue to grow a seven-figure portfolio in retirement? The last thing you want is to run out of money, you want your money to generate lasting income while you enjoy your life. Learn seven strategies high net worth investors use with new report: The Seven Secrets of High Net Worth Investors from Fisher Investments. Get your guide here (sponsor) Contact [email protected] for any questions or corrections.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered 5% organic revenue growth and 100 basis points of adjusted operating margin expansion, driven by strong marketplace success and cost discipline despite global volatility. Risk & Broking (R&B) led performance with 7% organic growth, benefiting from a global specialty model and the recovery of delayed activity from the first quarter. Health, Wealth & Career (HWC) achieved 4% organic growth, supported by robust demand in Health due to high medical inflation, though partially offset by project deferrals in the Middle East. Management launched 'Propel,' an AI acceleration plan designed to capture the next wave of productivity by embedding automation across the enterprise to enhance client solutions. The strategy emphasizes specialization and data-driven advice, utilizing tools like 'Rewards AI' and the 'Violet Suite' to automate routine actuarial and administrative tasks. Operational efficiencies are being realized through the integration of Newfront's Navigator technology into the Neuron platform, streamlining legacy systems into a single intelligence layer. Strategic talent acquisition remains a primary growth engine, with recent hires performing at or above expectations and contributing to new business wins in high-growth sectors like renewable energy. Targeting an adjusted operating margin of approximately 30% by 2028, with specific segment targets of 35% for HWC and 30% for R&B. Expects to generate $400 million in gross run rate savings through a $625 million investment, resulting in $350 million in net savings after reinvesting $50 million into growth initiatives. Anticipates a meaningful step-up in free cash flow margin starting in 2029 once the cash costs associated with the Propel plan subside. Maintains 2026 guidance for mid-single-digit organic growth and continued margin expansion, with Propel benefits expected to contribute meaningfully starting in 2027. Assumes a competitive pricing environment will persist, with insurance rates declining across most lines except for U.S. casualty, where rates continue to rise. Career segment revenue was flat due to a nearly 50% decline in discretionary project work in the Middle East linked to ongoing regional conflict. The Propel plan involves approximately $25 million in non-cash charges alongside the $625 million cash-cost-to-achieve. Management flagged that while AI will drive headcount reductions in high-volume administrative roles, the strategy focuses on reskilling staff for high-value advisory work. Completed the acquisition of SMB Scala & Mansutti to strengthen the specialist broking footprint in the under-penetrated Italian insurance market. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth was driven by strong new business in North America construction, natural resources, and M&A, alongside high client retention globally. Management clarified that while some Q1 delayed activity moved into Q2, the pipeline remains strong despite softening pricing in most markets. Confirmed that 'one-off' project revenue is a standard part of the business and not indicative of unusual volatility in the new specialty model. The plan is an acceleration of existing technology successes, aimed at freeing up consultant capacity for high-value client work rather than just cutting costs. Savings will stem from process automation, lower third-party spend, and the retirement of duplicative legacy technology systems. Costs will be adjusted out of non-GAAP measures to provide transparency on the program's progress versus underlying operational performance. The Gemini facility is nearly fully digital and handles up to 16% of qualifying risk for middle-market and larger clients. A new digital panel solution for SME business, branded as 'Aquarius,' is currently being developed to provide dependable global capacity. These digital tools are intended to ensure capacity availability for clients even if broader market conditions shift.

For the quarter ended June 2026, Willis Towers Watson (WTW) reported revenue of $2.47 billion, up 9.1% over the same period last year. EPS came in at $3.35, compared to $2.86 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.43 billion, representing a surprise of +1.56%. The company delivered an EPS surprise of +7.03%, with the consensus EPS estimate being $3.13. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Willis Towers Watson performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Health, Wealth and Career: $1.27 billion versus $1.26 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7.6% change. Revenue- Reimbursable expenses and other: $30 million compared to the $29.99 million average estimate based on five analysts. The reported number represents a change of +25% year over year. Revenue- Segment Revenue: $2.43 billion versus $2.4 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +9.3% change. Revenue- Risk and Broking: $1.16 billion versus $1.13 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +11.2% change. Segment Operating Income- Risk and Broking: $258 million versus $242.99 million estimated by five analysts on average. Segment Operating Income- Health, Wealth and Career: $306 million versus the five-analyst average estimate of $308.66 million. View all Key Company Metrics for Willis Towers Watson here>>> Shares of Willis Towers Watson have returned +14.9% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Willis Towers Watson Public Limited Company? Here are five stocks we like better. WTW delivered a strong second quarter: Organic revenue increased 5%, adjusted operating margin expanded 100 basis points to 19.5%, and adjusted diluted EPS rose 17% to $3.35. Risk & Broking led growth with 7% organic revenue growth, while Health, Wealth & Career grew 4%. The new Propel AI initiative targets major efficiency gains: WTW plans to invest approximately $625 million to generate $400 million in run-rate savings, or $350 million net after reinvestment, by 2028. The company now targets an enterprise adjusted operating margin of about 30% in 2028. Management reaffirmed its 2026 outlook and capital-return plans: WTW expects mid-single-digit organic growth, continued margin expansion and improving free cash flow, while planning at least $1 billion in share repurchases for the year. The company repurchased $450 million of shares and paid $90 million in dividends during the quarter. Willis Towers Watson Public (NASDAQ:WTW) reported second-quarter 2026 organic revenue growth of 5%, adjusted operating margin expansion of 100 basis points and adjusted diluted earnings per share of $3.35, up 17% from the prior-year period. Chief Executive Officer Carl Hess said the quarter reflected marketplace performance and cost discipline despite continued global market volatility. Risk & Broking led the company with 7% organic growth, while Health, Wealth & Career posted 4% growth. WTW’s adjusted operating margin was 19.5% in the quarter. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Chief Financial Officer Andrew Krasner said recent acquisitions contributed about three percentage points to reported revenue growth at both the enterprise and segment levels. The company also generated $360 million in free cash flow during the first six months of 2026, up from $217 million in the prior-year period. WTW announced Propel, an AI acceleration plan expected to be completed by the end of 2028. The company expects the initiative to generate approximately $400 million in run-rate savings through an investment of about $625 million, plus roughly $25 million in non-cash charges. WTW plans to reinvest about $50 million of the savings into growth opportunities, resulting in projected net run-rate savings of $350 million. → 3 Value ETFs to Consider as Growth Stocks Lag Behind “Propel is an acceleration of what’s already working for WTW,” Hess said during the call, describing the program as a way to reduce routine manual work and create more capacity for brokers, advisers and consultants to focus on client relationships, advice and new business. Krasner said most of the program’s costs are expected in 2027 and 2028, though some spending will occur in 2026. Costs will flow through GAAP results but be excluded from the company’s adjusted non-GAAP measures. WTW said it will provide quarterly updates on the program’s costs and benefits. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? The company expects Propel’s benefits to begin contributing meaningfully in 2027 and to build through 2028. WTW now targets an adjusted operating margin of approximately 30% at the enterprise level in 2028, including margins of about 35% for Health, Wealth & Career and 30% for Risk & Broking. WTW said it expects a meaningful improvement in free cash flow margin after the plan concludes and related cash costs subside in 2029. The company said Propel does not change its 2026 guidance or near-term capital return plans. Health, Wealth & Career generated 4% organic revenue growth, with Health rising 8% on growth across regions, new business wins and project work. Wealth increased 2%, reflecting higher retirement-related activity. Career revenue was flat, as stronger communications, change and broad-based pay work was offset by weaker revenue in the Middle East amid ongoing conflict. Hess said WTW absorbed a nearly 50% decline in Career project work in the Middle East. Outside the region, Career grew 3%, including high-single-digit growth outside North America. Benefits Delivery & Outsourcing grew 1%, as expanded outsourcing and administration work was partly offset by lower individual marketplace commissions outside the annual enrollment period. Health, Wealth & Career’s adjusted operating margin increased 30 basis points to 24.1%. WTW maintained its outlook for mid-single-digit organic growth and continued margin expansion for the segment in 2026. Risk & Broking grew 7% organically, with Corporate Risk & Broking also growing 7%. Krasner attributed the result to new business, double-digit growth in nearly all specialty businesses and strong client retention. North America led geographic growth, with strength in construction, natural resources, surety and mergers and acquisitions. Insurance Consulting and Technology grew 6%, driven primarily by software sales and new business wins, including multiyear technology-practice deals. Risk & Broking’s operating margin rose 100 basis points to 22.2% on operating leverage and expense discipline. The company reiterated its expectations for mid-single-digit full-year growth and 100 basis points of margin expansion in the segment. WTW highlighted existing AI and automation deployments that it expects to expand through Propel. In Health, Wealth & Career, the company said its Rewards AI compensation intelligence tool now serves more than 5,000 client users. Its Violet suite of AI capabilities has served more than 12 million plan participants, while benefit decision-support use increased 52% and participant follow-ups declined 60%, according to Hess. In Risk & Broking, WTW has incorporated Newfront’s Navigator system into its Neuron operating platform under the name Willis Navigator. Hess said schedules of insurance that previously took four hours can now be generated in about five minutes, while certain real estate premium allocations that historically took two to four weeks can be completed in minutes after receiving binders and final premiums. The company said Newfront integration remains on track, with cost synergies modestly ahead of plan. Hess emphasized that Newfront synergies are separate from and additive to Propel savings. WTW also completed the acquisition of Italian regional insurance broker SMB Scala & Mansutti during the period. WTW said it continues to see demand supported by healthcare inflation, regulatory change, technological advances, geopolitical tension and market volatility. However, management said softer labor conditions and the Middle East conflict have prompted some clients to defer discretionary projects, particularly in Career. WTW repurchased $450 million of shares during the second quarter and paid $90 million in quarterly cash dividends, or $0.96 per share. The company continues to expect at least $1 billion in full-year share repurchases, subject to market conditions and potential investment opportunities. Krasner said foreign exchange provided a $0.06 tailwind to adjusted diluted earnings per share in the second quarter. Based on current outlook and spot rates, WTW expects an additional approximately $0.05 foreign-exchange tailwind in the second half, for an estimated full-year benefit of about $0.35. Management reaffirmed its 2026 outlook for mid-single-digit enterprise organic growth, annual adjusted operating margin expansion and improving free cash flow. Willis Towers Watson Public (NASDAQ: WTW) is a global advisory, broking and solutions company that helps organizations manage risk, optimize benefits and cultivate talent. The firm combines insurance brokerage and risk management capabilities with human capital and benefits consulting, actuarial and analytics services, and technology-enabled solutions. Willis Towers Watson serves a broad client base that includes multinational and mid-sized corporations, public sector organizations, insurers and investment managers. The company's core activities encompass commercial and reinsurance brokerage, risk transfer and risk-financing advice, and claims advocacy, alongside employee benefits and retirement consulting. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Willis Towers Watson Public Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Organic Revenue Growth: 5% for the second quarter. Adjusted Operating Margin: 19.5%, expanding 100 basis points year-over-year. Adjusted Diluted EPS: $3.35, up 17% year-over-year. Health, Wealth and Career (HWC) Organic Revenue Growth: 4% for the quarter. Health Organic Revenue Growth: 8% for the quarter. Wealth Organic Revenue Growth: 2% for the quarter. Career Revenue: Flat for the quarter. Benefits Delivery and Outsourcing (BD&O) Organic Revenue Growth: 1% for the quarter. HWC Operating Margin: 24.1%, an increase of 30 basis points year-over-year. Risk and Broking (R&B) Organic Revenue Growth: 7% for the quarter. Corporate Risk and Broking (CRB) Organic Revenue Growth: 7% for the quarter. Insurance Consulting and Technology (ICT) Organic Revenue Growth: 6% for the quarter. R&B Operating Margin: 22.2%, an increase of 100 basis points year-over-year. Free Cash Flow: $360 million for the six months ended June 30, up from $217 million in the prior year first half. Share Repurchases: $450 million in the quarter. Dividends: $90 million or $0.96 per share paid in the quarter. Warning! GuruFocus has detected 2 Warning Sign with WTW. Is WTW fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Willis Towers Watson PLC (NASDAQ:WTW) delivered strong Q2 results with 5% organic growth, 100 bps of adjusted operating margin expansion, and 17% adjusted EPS growth. The company announced 'Propel,' an AI acceleration plan expected to generate $400 million in run-rate savings and deliver $350 million in net savings by 2028. Propel provides a clear path to an adjusted operating margin of approximately 30% in 2028, with targets of 35% in HWC and 30% in R&B. Risk and Broking (R&B) saw 7% organic growth, driven by broad-based strength across geographies and specialty lines, including double-digit growth in almost all specialty businesses. The company is seeing tangible AI-driven efficiencies, such as reducing schedule generation from four hours to five minutes and cutting real estate premium allocation time from weeks to minutes. Persistent headwinds in the Middle East and a softer labor market are causing clients to defer discretionary projects, notably a nearly 50% decline in project work in Korea and the Middle East. The insurance pricing environment remains competitive, with rates declining across most lines, though US casualty is a notable exception. The Career business within HWC was flat, as growth in communications and pay work was offset by constrained revenue due to the Middle East conflict. The Propel plan requires a significant cash investment of approximately $625 million, which will create headwinds to free cash flow until the program concludes in 2029. Benefits Delivery and Outsourcing (BD&O) grew only 1% organically, as expanded engagements were partially offset by lower individual marketplace commissions outside the annual enrollment period. Here are the key highlights from the Willis Towers Watson PLC (NASDAQ:WTW) Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Q: Can you provide more color on the Propel AI acceleration plan, specifically what drove the decision to launch it now and how it differs from past programs? Can you also break down the $400 million in savings by source (e.g., people vs. systems)? A: (Carl Hess, CEO) Propel is an acceleration of what's already working. It's about creating capacity to invest in growth by putting proven AI capabilities directly in the hands of client-facing teams. The time is right because AI has advanced quickly and is additive to the value we bring. (Andrew Krasner, CFO) The financial case is about both growth and margin. The $400 million in run-rate savings will come from automating routine work, a simplified operating model, lower third-party spend, and retiring legacy technology. We are reinvesting $50 million of that for growth, resulting in $350 million in net run-rate savings by end of 2028. Q: How should we think about the expense flow for Propel through the income statement over the next few years, and will you report adjusted earnings excluding these restructuring investments? A: (Andrew Krasner, CFO) The majority of the ~$625 million cash cost will be incurred in 2027 and 2028, with some in 2026. The costs will run through the GAAP income statement but will be adjusted out in our non-GAAP measures. We will report progress on both costs incurred and benefits realized on a quarterly basis. Q: Regarding the R&B segment's strong 7% organic growth, can you provide more texture on what drove the acceleration from Q1? Should we view the new business model as more volatile? A: (Lucy Clarke, President of Risk & Broking) The growth was high-quality and reflected the sequential acceleration we signaled last quarter, including a small amount of delayed activity from Q1. Growth was broad-based with double-digit growth in almost every specialty business, led by North America in construction, natural resources, surety, and M&A. We do not view the model as more volatile; one-off project revenue is a normal part of the business. We remain confident in our full-year outlook of mid-single-digit growth and 100 bps of margin expansion. Q: How is Propel differentiated from what competitors are doing, and will it lead to material staffing reductions? A: (Carl Hess, CEO) Propel is a deliberate choice to scale what we are already doing. While we will see some headcount reductions from automating less complex work, a central element is reskilling and redeploying capacity toward client-facing, judgment-based work that drives growth. (Julie Gebauer, President of HWC) In HWC, we already see results, such as a 60% reduction in system configuration time from automated document reviews. (Lucy Clarke, President of R&B) In CRB, tasks like compiling a schedule of insurance that took four hours are now done in five minutes, giving capacity back to our people for higher-value advice and new business. Q: When do you expect the revenue and market share gains from Propel to start showing up in results? A: (Andrew Krasner, CFO) Propel makes us more confident in our mid-single-digit organic growth guidance. The revenue benefits will build over time as we reinvest the $50 million and as client retention gains follow from improved service. We are not tying a specific growth number to a specific dollar of investment today but will update guidance as the benefits become more meaningful. Q: Can you talk about recent talent investments and how they impacted growth in the quarter? A: (Carl Hess, CEO) Talent is our most important growth engine. The returns on our investment hires have been strongly consistent, showing up as top and bottom-line growth. (Lucy Clarke, President of R&B) The investment hiring strategy has been a key driver of organic growth. We had a strong class start in the first half of 2026, and they are already contributing. Propel makes our proposition for talent even stronger by providing AI-enabled tools. Q: What is the proportion of business coming from WTW's broker facilities like Gemini, and is there room to grow that? A: (Lucy Clarke, President of Risk & Broking) Gemini is a full follow facility for our middle market and upwards business, taking up to 16% of a risk. It is almost completely digital and ensures we have dependable capacity for clients. We are happy with its current size but see room to grow, including developing a new facility called Aquarius for our SME business. Q: Regarding the free cash flow impact of Propel, should we assume headwinds in 2027 and 2028 before a step-change in 2029? A: (Andrew Krasner, CFO) Yes, you are thinking about that correctly. The margin will step up once the cash expenses related to Propel subside after the program ends in 2028. We expect free cash flow margin to improve significantly in 2029, commensurate with the margin expansion we will have achieved. For the complete transcript of the earnings call, please refer to the full earnings call transcript.