Willis Towers Watson Q1 Revenue Up 8% to $2.41B, EPS Jumps 33%
WTW•Willis Towers Watson reported first-quarter revenue of $2.41 billion, up 8% year-over-year (4% cc, 3% organic), with diluted EPS of $3.10, a 33% increase. Adjusted EPS reached $3.72 (+19%) as adjusted operating margin expanded 70 basis points to 22.3%, and the company repurchased $300 million in shares.
1. Q1 Financial Results
Willis Towers Watson delivered first-quarter revenue of $2.41 billion, an 8% increase year-over-year (4% constant currency, 3% organic). Net income rose to $303 million (+27%), diluted EPS reached $3.10 (+33%), operating margin was 18.6% (down 80 bps) and adjusted operating margin expanded 70 bps to 22.3%.
2. Segment Performance
Health, Wealth & Career segment revenue grew 9% to $1.27 billion (5% cc, 3% organic) with operating margin up 60 basis points to 27.3%, driven by international health wins and retirement services. Risk & Broking segment revenue rose 9% to $1.12 billion (3% cc, 2% organic) with margin expanding 60 basis points to 22.6% on strong broking activity and technology sales.
3. Cash Flow and Capital Allocation
Operating cash flows used $10 million in the quarter versus $35 million last year, while free cash flow improved by $21 million to negative $65 million. The company repurchased $300 million of shares in Q1 and plans at least $1.0 billion in buybacks, balancing capital allocation with organic and inorganic investments.
4. Outlook and Considerations
The firm targets approximately 100 basis points of annual margin expansion in Risk & Broking and additional gains in Health, Wealth & Career, supported by AI and talent investments. It anticipates a $0.30 EPS headwind from the Willis Re joint venture and a $0.10 dilution from the Newfront acquisition in 2026.
