Willis Towers Watson Q4 Revenue Hits $2.94B with 6% Organic Growth and 34.6% Margin
WTW reported Q4 revenue of $2.94B, a 3% decline and 6% organic increase, with operating margin at 34.6% (+490 bps) and adjusted EPS of $8.12. Full-year revenue was $9.71B, down 2% reported and up 5% organically; adjusted EPS rose 5% to $17.08 and was backed by $1.65B in share repurchases.
1. Q4 2025 Financial Results Exceed Expectations
Willis Towers Watson reported non-GAAP adjusted diluted earnings per share of $8.12 for the quarter ended December 31, 2025, outperforming the consensus estimate of $7.92. Revenue on a U.S. GAAP basis declined 3% year-over-year to $2.94 billion, driven by the divestiture of TRANZACT, while organic revenue grew 6%. Operating margin expanded 490 basis points to 34.6%, reflecting disciplined cost management and efficiency initiatives.
2. Segment Performance Fuels Margin Expansion
In Health, Wealth & Career, organic revenue rose 6% to $1.65 billion despite the TRANZACT sale, with double-digit growth in international benefits and strong retirement plan advisory fees. That segment’s operating margin improved by 240 basis points to 44.3%. Risk & Broking delivered organic revenue growth of 7% to $1.25 billion, led by higher corporate risk placement volumes and robust client retention, lifting its operating margin by 120 basis points to 34.7%.
3. Robust Cash Flow and Share Repurchases
Operating cash flow for full-year 2025 reached $1.78 billion, up 18% from prior year, and free cash flow totaled $1.55 billion. During the quarter, WTW repurchased $350 million of its shares, bringing year-to-date buybacks to $1.65 billion. The company maintains a strong investment-grade balance sheet, enabling continued returns to shareholders while funding strategic investments in talent and technology.
4. 2026 Financial Considerations and Guidance
WTW expects to deliver annual adjusted operating margin expansion of approximately 100 basis points per year in Risk & Broking and incremental margin gains in Health, Wealth & Career. The company anticipates at least $1.0 billion in share repurchases, subject to market conditions, and foresees a foreign exchange tailwind of roughly $0.30 per share on adjusted EPS at current rates. Pro forma for the Newfront acquisition, WTW projects 2026 revenue contribution of $250 million with an adjusted EBITDA margin near 26%, and an EPS dilution of about $0.10.