WTW Q4 revenue falls 3% but beats estimates

Overview

• Advisory firm's Q4 revenue fell 3% yr/yr but beat analyst expectations

• Adjusted EPS for Q4 was $8.12, beating analyst expectations

• Company repurchased $350 mln in shares during the quarter

Outlook

• WTW expects 2026 adjusted operating margin expansion in R&B and HWC segments

• Company plans share repurchases of $1.0 bln or greater in 2026

• WTW anticipates foreign currency tailwind on EPS of ~$0.30 in 2026

Result Drivers

• TRANZACT SALE - Revenue decreased 3% due to the sale of TRANZACT, impacting overall results

• ORGANIC GROWTH - Organic revenue grew 6% in Q4, driven by strong client retention and new client wins

• RISK & BROKING GROWTH - Revenue in Risk & Broking segment increased 10% due to higher new business activity and client retention

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance & brokers peer group is "hold."

• Wall Street's median 12-month price target for Willis Towers Watson PLC is $371.00, about 17.2% above its February 2 closing price of $316.61

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX2NxfT3

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