Willis Towers Watson Public : WTW Q1 2026 Supplemental Slides

Published: 2026-04-30 06:48:22 ET WTW

Published on 04/30/2026 at 06:48 am EDT

WTW

Earnings Release Supplemental Materials

2026 First Quarter Financial Results

April 30, 2026

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WTW Non-GAAP Measures

In order to assist readers of our consolidated financial statements in understanding the core operating results that WTW's management uses to evaluate the business and for financial planning, we present the following non-GAAP measures: (1) Constant Currency Change, (2) Organic Change, (3) Adjusted Operating Income/Margin, (4) Adjusted EBITDA/Margin, (5) Adjusted Net Income, (6) Adjusted Diluted Earnings Per Share,

(7) Adjusted Income Before Taxes, (8) Adjusted Income Taxes/Tax Rate, (9) Free Cash Flow and (10) Free Cash Flow Margin.

The Company believes that those measures are relevant and provide pertinent information widely used by analysts, investors and other interested parties in our industry to provide a baseline for evaluating and comparing our operating performance, and in the case of free cash flow, our liquidity results.

Reconciliations of these measures are included in the accompanying appendix of these earning release supplemental materials.

The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.

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© 2026 WTW. All rights reserved. See "WTW Forward-Looking Statements" above for information about forward-looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation.

Key Takeaways

Generated Organic revenue growth1 of 3%, Adjusted Operating Margin1 expansion of +70bps and

Adjusted Diluted EPS1 growth of 19% in Q1 2026

Continued to see solid traction in the market for our innovative solutions, with our strategic focus on specialization, data and analytics, and smart connections contributing to growth

Focused on enhancing efficiency and productivity with AI, improving our ability to create operating leverage, drive margin expansion and increase free cash flow margin

Maintained commitment to return capital to shareholders, with share repurchases of $300 million and dividends of $88 million in Q1 2026

Helped clients navigate macroeconomic volatility and uncertainty while executing on our strategy and delivering on our commitments

1 Signifies Non-GAAP financial measures. See Appendix I for Non-GAAP reconciliations.

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Q1 2026 GAAP Financial Results1

Key figures

$USD million, except EPS and %

Three months ended March 31,

2026

2025

Change

Revenue

$2,412

$2,223

Income from operations

$448

$432

Operating margin %

18.6%

19.4%

(80) bps

Net income

$303

$239

27%

Diluted earnings per share

$3.10

$2.33

33%

Net cash from operating activities

$(10)

$(35)

71%

Q1 2026 Key Figures, Including Non-GAAP Financial Results

Total Revenue

$2.4B

Q1 2026

Organic1

Q1 2025

Organic1

Adjusted Diluted EPS1

$3.72

Q1 2026

Q1 2025

Adjusted Operating Margin1

22.3%

Q1 2026

Q1 2025

Free Cash Flow1

-$65M

Q1 2026

Q1-26 vs. Q1-25

Q1 2025

1 Signifies Non-GAAP financial measures. See Appendix I for Non-GAAP reconciliations.

Financial Review

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Quarterly Segment Performance: Health, Wealth & Career

Revenue ($M)

$1,265 $1,165

Q1-26 Q1-25

Segment Operating Margin1

27.3% 26.7%

Q1-26 Q1-25

For the quarter, HWC had organic revenue growth2 of 3%

Health had 6% organic revenue growth driven by strong performance across international markets driven by new business wins and renewals

Wealth generated 4% organic revenue growth from higher levels of retirement work across all regions, alongside growth in the Investments business

Organic Revenue Growth2

Q1-26

Q1-25

Health 6% 6%

Career organic revenue decreased by 3% as clients deferred discretionary work amid geopolitical uncertainty in the Middle East. Career also saw clients delaying projects with a moderation in advisory-related demand in North America, partially offset by growth outside North America

BD&O organic revenue decreased by 1% as expanded projects and administration engagements in Outsourcing were offset by lower commissions in Individual Marketplace

Wealth

Career

(3)%

Operating income was $346 million in the quarter, an increase of 11% from the prior year

Operating margin increased 60 bps from the prior year primarily due to improved operating leverage and expense discipline

Health, Wealth & Career

Includes Segment financial measures. See accompanying Earnings Release for Supplemental Segment Information.

Signifies Non-GAAP financial measure. See Appendix I for Non-GAAP reconciliations.

Benefits Delivery & Outsourcing (BD&O)

(1)% 1%

Quarterly Segment Performance: Risk & Broking

Revenue ($M)

$1,116 $1,027

Q1-26 Q1-25

Segment Operating Margin1

22.6% 22.0%

Q1-26 Q1-25

For the quarter, R&B had organic revenue growth2 of 2%

CRB generated organic revenue growth of 2% driven by new business activity and strong client retention globally

ICT organic revenue increased 5% for the quarter driven by strong software sales in the Technology practice

Operating income was $252 million in the quarter, an increase of 12%

from the prior year

Operating margin increased 60 bps driven primarily by a tailwind from foreign exchange

Organic Revenue Growth2

Q1-26

Q1-25

Corporate Risk & Broking (CRB) 2% 8%

Insurance Consulting & Technology (ICT)

5% 3%

Risk & Broking 2% 7%

Includes Segment financial measures. See accompanying Earnings Release for Supplemental Segment Information.

Signifies Non-GAAP financial measure. See Appendix I for Non-GAAP reconciliations.

Maintaining a Flexible Balance Sheet

Reinforcing our business fundamentals; safeguarding WTW's financial strengths

Total Debt1 6,304 6,306

Disciplined capital management strategy Provides WTW with the financial flexibility to reinvest in our businesses, capitalize on market

($ millions)

Mar 31, 2026

Dec 31, 2025

Cash and Cash Equivalents

1,855

3,132

growth opportunities and support significant

value creation for shareholders

Our capital structure provides a solid foundation of business strength and reinforces our ability to capture long-term growth and create value for shareholders

Total Equity 8,059 8,052

History of effectively managing our leverage with a commitment to maintaining our investment grade credit rating

Debt to Adj. EBITDA2

Trailing 12-month

2.3x

2.4x

Committed to a disciplined approach to managing outstanding debt and our leverage profile

Total Debt equals sum of current debt and long-term debt as shown on the Consolidated Balance Sheets.

Signifies Non-GAAP financial measure. See Appendix I for Non-GAAP reconciliations.

Executing Against a Balanced Capital Allocation Strategy

Allocating capital to opportunities with the potential for highest return

$199

2016

$277

2017

$306 $329

$346

$388

$300

$374

$369

$352

$354

$358

2018 2019 2020 2021 2022 2023 2024 2025

$88

2026

$479

$150

$908

$986

$709

$595

$1,255

$1,352

$2,008

$2,001

$3,899

$14.2B

FY2016 to Q1 2026

Share repurchases

Dividends

CASH RETURNED TO SHAREHOLDERS

$396

$602

$901

$1,000

$1,650

$1,627

$3,530

Capital Allocation Priorities

Reinvest in capabilities, businesses, and processes

Invest in innovation, technology, and new business

Return excess cash to shareholders through share repurchases and dividends to create long-term shareholder value

Strengthen balance sheet and liquidity

Business portfolio management

Pursue opportunistic M&A to strengthen capabilities

MEANINGFUL DIVIDEND GROWTH

+7%

$0.80 $0.82

$0.84 $0.88 $0.92 $0.96

Cash dividend growth

10 years CAGR

Quarterly cash $0.48

dividend per share

$0.53 $0.6

$0.65 $0.71

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Q1 2026 Highlights

Repurchased $300 million of shares during the quarter

Paid quarterly cash dividends of $88 million, $0.96 per

common share

Business Overview

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WTW at a Glance

Delivering superior advice, broking and solutions in the areas of people, risk and capital

Segments1

Risk & Broking 45%

55%

90% of the Fortune Global 500

89% of the U.S. Fortune 1000

96% of the FTSE 100

Significant middle market presence

140+ countries & markets served by

47,000 colleagues

Rich heritage

Servicing clients

since 1828

Health, Wealth & Career

Geographies1

39%

North America 49%

12%

Europe

1 Presented as % of full year 2025 revenue

International

Wealth provides advice and management for retirement and investment asset owners using a sophisticated framework for managing risk

Segment Overview: Health, Wealth & Career1,2

Health, Wealth & Career: World-class portfolio of leading businesses providing advisory and consulting services within

human capital, employee benefits and retirement verticals

HWC Segment

Excluding TRANZACT USD millions / %

Total Revenue

Operating Margin

$4,992 $5,254

$4,607

$4,545

$4,777

31.4%

32.0%

29.6%

26.5%

27.2%

2021

2022

2023

2024

2025

+6% Organic

+4%

Organic

HWC

+4% Organic

+4%

Organic

+3% Organic

FY25 Revenue and Organic Growth3

Health provides advice, broking, solutions and software for employee benefit plans, HR organizations and management teams of our clients

Benefits Delivery & Outsourcing provides medical exchange and outsourcing services to active employees and retirees across the group and individual markets as well as pension outsourcing

Career provides compensation advisory services, employee experience software and platforms, and other career-related consulting services to our clients

1 Includes Segment financial measures. See accompanying Earnings Release for Supplemental Segment Information. Segment results prior to 2022 were recast to reflect the realignment effective January 1, 2022.

2 All figures are shown excluding TRANZACT.

3 Signifies Non-GAAP financial measure. See Appendix I for Non-GAAP reconciliations.

Corporate Risk & Broking provides a broad range of risk advice insurance brokerage and consulting services to clients worldwide ranging from small businesses to multinational corporations

Segment Overview: Risk & Broking1

Risk & Broking: Risk advisory and solutions business delivering innovative, integrated solutions tailored to client needs

and underpinned by cutting edge data and analytics, technology and experienced risk thinkers

Insurance Consulting and Technology provides advice and technology solutions to the insurance industry to help clients measure and manage risk and capital and improve performance

+7% Organic

R&B

+6% Organic

+1% Organic

FY25 Revenue and Organic Growth2

R&B Segment

USD millions / %

Total Revenue

Operating Margin

$4,038

$4,334

$3,564

$3,460

$3,735

24.7%

23.4%

23.7%

21.2%

21.8%

2021

2022

2023

2024

2025

2 Signifies Non-GAAP financial measure. See Appendix I for Non-GAAP reconciliations.

Strategy & Outlook

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Focused on Creating Long-Term Value for Shareholders

Our successful rebuild and transformation has strengthened WTW's position and results

Accelerating performance through innovation and expansion in attractive

markets

Enhancing efficiency to deliver continued adjusted operating margin

expansion and FCF improvement

3 Optimizing portfolio to elevate financial performance and strategic position

Generating attractive shareholder returns through balanced capital allocation strategy

WTW Strategic & Financial Framework

Strategic Priorities Financial Outlook

Accelerate Performance

We will build on recent momentum to drive performance in our businesses

Enhance Efficiency

We will focus on enhancing operational efficiency to sustain margin and FCF improvement

Optimize Portfolio

We will invest strategically to optimize our portfolio and pursue scaled and high-growth broking businesses

Mid-single digit organic growth1 plus opportunistic inorganic growth

Continued annual margin expansion, driven

by improved efficiency and business mix

Annual growth driven by margin expansion and disciplined capital management

Improve FCF margin and grow FCF by evolving business mix, expanding operating margin and managing working capital

1 Signifies forward-looking Non-GAAP financial measures. See WTW Non-GAAP measures on page 3 for more.

Long-term Organic Revenue Growth Outlook

CRB:

ICT:

MSD-to-HSD

Health: HSD

Wealth: LSD Career: MSD BD&O: MSD

Health, Wealth & Career: MSD

Risk & Broking: MSD to HSD

WTW Organic Growth Profile

$9.7B2

2025

Revenue Outlook3

MSD

Sustainable long-term, mid-single digit organic growth2

1 "HSD" High-Single Digits; "MSD" Mid-Single Digits; "LSD" Low-Single Digits

2 Signifies Non-GAAP financial measure. See WTW Non-GAAP measures on page 3 for more and Appendix I for Non-GAAP reconciliations.

3 Outlook is intended to reflect improved performance over time and is not intended to be a precise graph

Adjusted Operating Margin Outlook

Enhancing efficiency is a priority across the company

WTW Adjusted Operating Margin %

+25.2%1

2025

Margin Outlook2

Annual expansion

Committed to driving continued annual margin expansion through efficiency and operating leverage

Continue to drive efficiencies and operating leverage, coupled with WE DO efforts to further streamline processes

Offshoring and right shoring initiatives will expand margins

Investing in automation and AI to support productivity

~100 bps of average annual operating margin1 expansion over the next 2 years in R&B

Continue to build on HWC's strong margin

expansion track record

Signifies non-GAAP financial measure. See Appendix I for Non-GAAP reconciliations.

Outlook is intended to reflect improved performance over time and is not intended to be a precise graph.

Free Cash Flow Outlook

Delivering improvement through three pillars

Evolving business mix

Operating margin expansion

Working capital management

WTW Free Cash Flow Margin

+15.9%

2025 FCF Margin1

FCF Margin

Outlook2

Continual Improvement

1 Signifies Non-GAAP financial measures. See Appendix I for Non-GAAP reconciliations.

2 Outlook and expected forward looking result is intended to reflect improved performance over time and is not intended to be a precise graph

Capital Allocation Strategy - Driving Growth, Margin and Returns

Quarterly dividends

Reflects strong free cash flow generation

Organic & inorganic investment

Talent, Innovation,

M&A

Share repurchases

Create value by returning capital to shareholders

Debt / leverage management

Long-term leverage target of 2.0x to 2.5x

Ongoing organic investments in talent, technology, and new products to drive sustainable growth and capture margin expansion opportunities

Disciplined approach to M&A aligned with strategic priorities: strengthening core businesses and accelerating financial performance

Share repurchases remain a central component of the capital allocation strategy

Maintain appropriate financial flexibility

Select 2026 Financial Considerations

Incremental annual margin expansion in HWC

~100 basis points of average annual margin

expansion over the next 2 years in R&B

Adjusted Operating Margin

Continued annual margin expansion at the enterprise level driven by:

Capital Allocation

Expect share repurchases of $1.0B or greater, subject to market conditions and potential capital allocation to organic and inorganic investment opportunities

Willis Re Joint Venture

Expected to be a headwind on Adjusted Diluted EPS of ~$0.30

The remaining equity investments in the interest in earnings of associates line are not expected to be material in 2026

Newfront Acquisition

Expected to be ~$0.10 dilutive to Adjusted EPS in 2026

Expected 2026 post-close revenue of ~$250M

and an adjusted EBITDA margin of ~26%

Newfront's Total Rewards business segment (~42%) will be included in HWC and Newfront's Business Insurance business segment (~58%) will be included in R&B

Free Cash Flow

Continual improvement in FCF margin primarily from operating margin expansion along with evolving our business mix

Foreign Exchange

Expect an incremental foreign currency tailwind on Adjusted Diluted EPS of ~$0.10 for the remainder of 2026, resulting in a ~$0.35 tailwind for the full year 2026 at today's rates

1 See Appendix II for recast of historical Non-GAAP financial measures

Appendix I:

Reconciliation of Non-GAAP Measures

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Constant Currency and Organic Revenue Change

As reported, USD millions except %

Three Months Ended March 31,

Components of Revenue Change(i)

Less: Less:

As Reported Currency Constant Currency Acquisitions/ Organic

2026 2025 % Change Impact Change Divestitures Change

Health, Wealth & Career

Revenue excluding interest income

$ 1,257

$ 1,158

Interest income

Total

1,265

1,165

Risk & Broking

Revenue excluding interest income

$ 1,091

$ 1,005

Interest income

Total

1,116

1,027

Segment Revenue

$ 2,381

$ 2,192

Corporate, reimbursable expenses and other

Interest income

Revenue

$ 2,412

$ 2,223

1% 3%(ii)

Components of revenue change may not add due to rounding.

Interest income did not contribute to organic change for the three months ended March 31, 2026.

Adjusted Op Income and Margin, Adj. EBITDA and Margin

As reported, USD millions except %

Three Months Ended March 31,

2026

2025

Income from operations and Operating margin

448

18.6%

432

19.4%

Adjusted for certain items:

Amortization

Transaction and integration expenses

Adjusted operating income and Adjusted operating income margin

537

22.3%

480

21.6%

Three Months Ended March 31,

2026

2025

Net income

$ 303

12.6%

$ 239

10.8%

Provision for income taxes

Interest expense

Depreciation

Amortization

Transaction and integration expenses

Net periodic pension and postretirement benefits

(6)

Gain on disposal of operations

(14)

Adjusted EBITDA and Adjusted EBITDA Margin

$ 589

24.4%

$ 532

23.9%

Adjusted Net Income and Adjusted Diluted EPS

As reported, USD millions except %

Three Months Ended March 31,

2026

2025

Net income attributable to WTW

$ 297

$ 235

Adjusted for certain items:

Amortization

Transaction and integration expenses

Net periodic pension and postretirement benefits

(6)

Gain on disposal of operations

(14)

Tax effect on certain items listed above(i)

(23)

(28)

Adjusted Net Income

$ 357

$ 316

Weighted-average ordinary shares, diluted

101

Diluted Earnings Per Share

$ 3.10

$ 2.33

Adjusted for certain items:(ii)

Amortization

0.50

0.48

Transaction and integration expenses

0.43

Net periodic pension and postretirement benefits

(0.06)

0.74

Gain on disposal of operations

(0.14)

Tax effect on certain items listed above(i)

(0.24)

(0.28)

Adjusted Diluted Earnings Per Share(ii)

$ 3.72

$ 3.13

The tax effect was calculated using an effective tax rate for each item.

Per share values and totals may differ due to rounding.

Adjusted Income Before Taxes, Adjusted Income Tax Rate and Free Cash Flow

As reported, USD millions except %

Three Months Ended March 31,

2026

2025

Income from operations before income taxes and interest in earnings of associates

$ 376

$ 303

Adjusted for certain items:

Amortization

Transaction and integration expenses

Net periodic pension and postretirement benefits

(6)

Gain on disposal of operations

(14)

Adjusted income before taxes

$ 459

$ 412

Provision for income taxes

$ 70

$ 65

Tax effect on certain items listed above(i)

$ 23

$ 28

Adjusted income taxes

$ 93

U.S. GAAP tax rate

18.6%

21.5%

Adjusted income tax rate

20.3%

22.7%

Three Months Ended March 31,

2026

2025

Cash flows from operating activities

(10)

(35)

Less: Additions to fixed assets and software

(55)

(51)

Free Cash Flow

(65)

(86)

(i) The tax effect was calculated using an effective tax rate for each item.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success-and provide perspective that moves you. Learn more at https://www.wtwco.com.

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Disclaimer

Willis Towers Watson plc published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 10:47 UTC.