WTW 2025-26: Adj EPS $17.08 (+15%), Margin 25.2%, $1B+ Buyback
FY25 revenue $9.71B (-2% reported, +5% organic); op income $2.23B (+256%); NI $1.61B; EPS $16.26 (vs -$0.96 FY24). Adj EPS $17.08; adj op margin 25.2% (+130bp). Q4 organic +6%. R&B +7% Q4 / 6% FY. HWC +6% Q4 / 4% FY (Health +4%, Wealth +5%, Career +10% Q4). Acquisitions: Newfront + Cushion + Flowstone. FY26: mid-single organic, $1B+ buyback.
Key takeaways
- FY25 was the recovery year — adj op margin +130bp to 25.2%. Q4 standalone +80bp; FY adj EPS $17.08 (+15% YoY adj basis). The transformation playbook is paying off — specialization + technology + portfolio optimization.
- R&B (Risk & Broking) +7% Q4 organic — 11 consecutive quarters of high-single-digit growth. Specialization strategy + tech investment delivering. CRB +8% Q4 / 7% FY excluding book of business + interest income.
- HWC (Health, Wealth, Career) Q4 +6% / 240bp margin expansion to 44.3%. Career +10% Q4 (advisory demand). Health +4% Q4 / +7% FY ex one-offs. Wealth +5% Q4. The composition of growth across HWC is broad-based.
- Three FY25 acquisitions: Newfront + Cushion + Flowstone Partners. Portfolio optimization continues. Inorganic growth strategy enhancing broking + wealth presence + insurance value chain.
- FY26 guide: mid-single organic + adj op margin expansion + $1B+ buyback. Reinsurance JV $0.30 EPS headwind; otherwise margin compounding continues. Free cash flow margin expansion.
Business
WTW is a global advisory + broking + technology firm with two reportable segments:
- Risk & Broking (R&B) (~50% of revenue, 50% of margin). Corporate Risk & Broking (commercial insurance) + Insurance Consulting & Technology (ICT). Q4 +7% organic; CRB +8% (11 consecutive quarters HSD); ICT -1% Q4. R&B op margin 34.7% Q4 (+120bp).
- Health, Wealth & Career (HWC) (~50% of revenue, 50% of margin). Health insurance broking + retirement consulting + executive compensation + benefits delivery & outsourcing (BD&O). Q4 +6% organic. Op margin 44.3% Q4 (+240bp). 4 sub-businesses each at different growth rates.
Strategic moves FY25:
- Newfront acquired (digital broker)
- Cushion acquired
- Flowstone Partners acquired (wealth)
- WeDo digital platform driving efficiency
- Tariff Guard endorsement for natural resources (Q1)
- Liberty Specialty Markets / Neuron digital trading platform partnership
- $1.65B FY25 buyback executed
- Bain JV $0.30 EPS headwind FY26
FY25 financial performance
| Metric (FY) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue ($B) | 8.87 | 9.48 | 9.93 | 9.71 |
| Revenue YoY | n/a | +7% | +5% | -2% (reported) |
| Op income ($B) | 1.18 | 1.37 | 0.63 | 2.23 |
| Op margin | 13.3% | 14.4% | 6.3% | 23.0% |
| Net income ($M) | 1,009 | 1,055 | -98 | 1,605 |
| Diluted EPS ($) | 8.98 | 9.95 | -0.96 | 16.26 |
| Adj op margin | n/a | n/a | ~24.0% | 25.2% |
| Adj EPS ($) | n/a | n/a | ~14.85 | 17.08 |
| FCF ($B) | 0.61 | 1.10 | 1.27 | 1.55 |
| Capex ($M) | -204 | -242 | -245 | -229 |
| Total debt ($B) | 5.48 | 5.94 | 5.93 | 6.90 |
| Dividends ($M) | -369 | -352 | -354 | -358 |
| Buyback ($M) | -3,530 | -1,000 | -901 | -1,650 |
The FY24 reported numbers reflect divestiture / impairment charges; FY25 is the cleaner operating reset. Adj EPS $17.08 vs adj $14.85 FY24 = +15% YoY.
Op margin 23% (GAAP) reflects the cleaning cycle complete. Adj op margin 25.2% (+130bp).
Capital allocation
- Capex: $-229M FY25 (2.4% of revenue, -7% YoY).
- Dividends: $-358M FY25 (+1% YoY); $3.32/share annual.
- Buybacks: $-1.65B FY25 (vs $-901M FY24, +83%). FY26 plan: $1B+.
- M&A: Newfront + Cushion + Flowstone Partners FY25.
- Debt: $6.90B (+16% YoY) reflects M&A funding.
- FCF: $1.55B (+22%).
FY26 outlook (per Q4 2025 call, 2026-02-03)
| FY26 framework | Detail |
|---|---|
| Organic growth | Mid-single-digit |
| Adjusted op margin expansion | Continued |
| Adjusted EPS growth | Continued |
| Free cash flow margin | Expansion |
| Buyback | At least $1B |
| Reinsurance JV (Bain) | $0.30 EPS headwind |
| Portfolio optimization | M&A continued |
The mid-single-digit organic + margin expansion + buyback combo continues the FY25 algorithm. Reinsurance JV losses are a known $0.30 drag.
Key risks
- Macroeconomic / commercial insurance pricing. Q3 noted declining commercial insurance rates across geographies. Pricing pressure in CRB.
- Interest rate environment. Lower interest income headwind. Pension consulting demand affected.
- FX volatility. Multi-currency global business.
- Reinsurance JV (Bain). $0.30 FY26 headwind; success of JV unclear.
- ICT consulting cycle. -1% Q4; consulting demand short-term uncertainty.
- M&A integration. Newfront + Cushion + Flowstone integration depends on retention + synergy capture.
- Medicare changes / BD&O. BD&O affected by Medicare changes.
Bottom line
WTW FY25 is the operating-model recovery payoff: revenue +5% organic, adj op margin +130bp to 25.2%, adj EPS $17.08 (+15%), R&B 11 consecutive HSD quarters, HWC margin +240bp Q4. FY24 was the trough; FY25 cleaned up the consolidation. FY26 guide of mid-single organic + margin + $1B buyback continues the algorithm. Risks are insurance pricing + interest rates + Bain JV + ICT cycle. Quality global advisory + broking compounder mid-recovery cycle.
Citations
- Willis Towers Watson PLC FY25 Form 10-K (filed February 2026, SEC EDGAR).
- WTW Q4 2025 earnings call, 2026-02-03 — FY adj op margin 25.2% (+130bp); adj EPS $17.08 (+15%); Q4 +6% organic; R&B +7% / HWC +6%; Newfront + Cushion + Flowstone acquired; FY26 guide (mid-single organic, $1B+ buyback, $0.30 Bain JV headwind).
- WTW Q3 2025 earnings call, 2025-10-30 — Q3 +5% organic / +230bp margin / $3.07 adj EPS; CRB 11 consecutive HSD quarters; FCF $838M 9M.
- WTW Q2 2025 earnings call, 2025-07-31 — Q2 +5% organic / +150bp margin / $2.86 adj EPS.
- WTW Q1 2025 earnings call, 2025-04-24 — Q1 +5% organic / +100bp margin / $3.13 adj EPS; $1.5B buyback FY25 plan; Tariff Guard.
- Internal financial_statements view (consolidated annual + cash flow + capital structure).