01—Abstract
Summary
Summary of the 10-Q filed April 16, 2026. Cited figures are marked; the original filing is the authoritative source.
Marsh & McLennan Companies, Inc. (MRSH) reported solid revenue growth for the first quarter of 2026, with consolidated revenue increasing by 8% to $7.6 billiona.
This growth was driven by increases in both the Risk and Insurance Services (6% revenue growth) and Consulting (11% revenue growth) segments. However, operating income saw a significant decrease of 12% to $1.8 billionb, primarily due to a $425 million charge related to the Greensill litigation. Diluted Earnings Per Share (EPS) declined by 15% to $2.36.
The company continued its strategic acquisitions, completing two in the first quarter. Shareholder returns were supported by $750 millionc in share repurchases and a declared quarterly dividend of $0.900 per share.
While revenue performance was strong, the substantial charge for litigation and increased operating expenses impacted profitability. Investors should monitor the resolution of the Greensill litigation and its potential impact on future earnings.
02—Key points
Key Highlights
- Consolidated revenue increased by 8% to $7.6 billion, driven by strong performance in both Risk & Insurance Services and Consulting segments.
- Operating income decreased by 12% to $1.8 billion due to a significant $425 million charge related to the Greensill litigation.
- Diluted EPS fell by 15% to $2.36, reflecting the impact of increased expenses and litigation charges.
- The company repurchased $750 million of its common stock in the quarter, underscoring a commitment to shareholder returns.
- Two strategic acquisitions were completed, contributing to the company's growth strategy.
- The Risk and Insurance Services segment saw revenue growth of 6%, while the Consulting segment experienced an 11% increase.
- The effective tax rate for the quarter was 25.0%, up from 22.7% in the prior year period.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 16, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $7.60B$7.06B | +7.6% |
| Operating Expenses | $5.84B$5.06B | +15.6% |
| Operating Income | $1.75B$2.00B | −12.5% |
| Net Income | $1.15B$1.38B | −17.0% |
| EPS (Basic) | $2.37$2.81 | −15.7% |
| EPS (Diluted) | $2.36$2.79 | −15.4% |
| Shares Outstanding (Basic) | 484.00M492.00M | −1.6% |
| Shares Outstanding (Diluted) | 486.00M495.00M | −1.8% |
05—Questions
Frequently Asked Questions
What is the primary driver behind the decrease in operating income despite revenue growth?
The primary driver for the decrease in operating income was a substantial charge of $425 million recorded in the first quarter of 2026, related to an estimated liability and legal expenses for the Greensill litigation. This charge, coupled with increased operating expenses, significantly impacted profitability.
How did the company's different business segments perform in terms of revenue?
The Risk and Insurance Services segment reported a 6% revenue increase, reaching $5.1 billion. The Consulting segment showed stronger growth, with revenue up 11% to $2.6 billion. Both segments benefited from underlying growth and the impact of foreign currency translation.
What is the company's approach to capital allocation and shareholder returns?
Marsh & McLennan Companies demonstrated a commitment to shareholder returns through significant share repurchases, amounting to $750 million in the first quarter of 2026. Additionally, the company declared a quarterly dividend of $0.900 per share, indicating a consistent return of capital to investors.
Are there any significant ongoing legal proceedings that investors should be aware of?
Yes, the most significant ongoing legal matter is the Greensill litigation, for which the company has recorded a $425 million liability and associated legal expenses in this quarter. The resolution of this matter remains uncertain and could have a material impact on future financial results.
06—Continue