Why did GAAP earnings decline when revenue and adjusted earnings grew?

The main driver was a $425 million charge related to Greensill litigation, which was recorded within operating income in Risk and Insurance Services. Higher McGriff-related and restructuring costs also contributed to noteworthy items of $521 million, versus $91 million a year earlier. Adjusted results exclude these items and identified intangible amortization, so the adjusted figures show underlying trends more clearly.

How strong is the organic growth outlook for the core insurance broking business?

Organic momentum in Risk and Insurance Services was modest, with underlying revenue up 3% overall. Marsh Risk grew 4% underlying, with U.S./Canada at 3% and International at 5%, led by EMEA at 6%. Guy Carpenter grew 2% underlying. The filing does not provide forward guidance, so investors will need to consider these growth rates alongside management commentary on the Thrive program and pricing conditions in insurance markets.

Is Consulting driving the company's growth?

Yes. Consulting revenue rose 11% (5% underlying) to $2.56 billion, and operating income rose 15% to $525 million. Mercer's underlying growth was 5%, with Health up 6% and Wealth up 5%, while Career declined 2%. Marsh Management Consulting grew 6% underlying. Consulting accounted for a large share of the company's adjusted operating income growth in the quarter.

How is the company returning capital to shareholders and managing its balance sheet?

In Q1 2026, the company repurchased about 4.2 million shares for $750 million and paid $440 million in dividends. It issued $600 million of senior notes and repaid $600 million of maturing notes. Total debt was about $20.6 billion at March 31, 2026, including $1.7 billion of short-term debt. Shares outstanding fell to 482 million from 493 million a year earlier. Total equity declined to $14.8 billion from $15.3 billion.

What does the filing say about cash generation in the quarter?

Operating cash flow was negative $688 million, compared with negative $622 million a year earlier. This reflects the seasonal payout of annual incentive compensation, which reduced accrued compensation by about $2.0 billion. Cash and cash equivalents fell to $1.61 billion from $2.69 billion at year-end. Investors typically assess full-year cash conversion rather than first-quarter figures.

MRSH/MMC 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 16, 2026. Cited figures are marked; the original filing is the authoritative source.

Marsh & McLennan Companies (NYSE: MRSH) reported first-quarter 2026 results that combined solid top-line and underlying performance with a large GAAP earnings decline.

Revenue rose 8% to $7.6 billion^a, or 4% on an underlying basis after a roughly 3-point currency tailwind. Adjusted operating income grew 8% to $2.41 billion, and adjusted EPS rose 8% to $3.29. Consulting was the standout, with revenue up 11% (5% underlying) and adjusted operating income up 13%, led by Mercer and Marsh Management Consulting.

Risk and Insurance Services grew more modestly, with underlying revenue up 3%. GAAP results were materially weaker. Operating income fell 12% to $1.75 billion and GAAP diluted EPS fell to $2.36^b from $2.79, mainly because of a $425 million charge tied to Greensill litigation.

Excluding that charge and other noteworthy items, the quarter looks healthy. Investors will need to judge whether the litigation charge is a one-time item or a sign of continuing legal exposure. Underlying growth of 4%^c is also modest for a company of this scale, and Marsh Risk's U.S./Canada underlying growth of 3% and Guy Carpenter's 2% suggest the insurance broking and reinsurance businesses are growing more slowly than consulting.

Capital allocation remained active. The company repurchased about 4.2 million shares for $750 million^d, and shares outstanding fell to 482 million from 493 million a year earlier. Net debt-related activity was roughly neutral, with $600 million of senior notes issued and $600 million repaid.

A $436 million dividend payable appeared on the balance sheet at quarter-end. Operating cash flow was negative, as is typical for Q1 given annual incentive payouts, with accrued compensation falling from $3.96 billion to $1.95 billion. Total equity declined to $14.8 billion from $15.3 billion, partly reflecting buybacks and dividends.

02—Key points

Key Highlights

Revenue grew 8% to $7.6 billion; underlying revenue growth was 4%, with currency contributing about 3 points and acquisitions/other about 1 point.
GAAP operating income fell 12% to $1.75 billion, including a $425 million Greensill litigation charge; GAAP diluted EPS was $2.36 versus $2.79 a year earlier.
Adjusted operating income rose 8% to $2.41 billion, with adjusted operating margin of 31.8%, flat year over year.
Adjusted EPS increased 8% to $3.29 from $3.06, excluding noteworthy items and identified intangible amortization.
Consulting was the strongest segment: revenue up 11% (5% underlying), adjusted operating income up 13% to $552 million, with Mercer underlying growth of 5% and Marsh Management Consulting underlying growth of 6%.
Risk and Insurance Services revenue rose 6% (3% underlying), while adjusted operating income grew 7% to $1.94 billion; International Marsh Risk grew 5% underlying, and U.S./Canada grew 3%.
Capital returns continued: about $750 million of share repurchases (roughly 4.2 million shares), a $436 million dividend payable at quarter-end, and shares outstanding down about 2% year over year.

03—Questions

Frequently Asked Questions

Why did GAAP earnings decline when revenue and adjusted earnings grew?
The main driver was a $425 million charge related to Greensill litigation, which was recorded within operating income in Risk and Insurance Services. Higher McGriff-related and restructuring costs also contributed to noteworthy items of $521 million, versus $91 million a year earlier. Adjusted results exclude these items and identified intangible amortization, so the adjusted figures show underlying trends more clearly.
How strong is the organic growth outlook for the core insurance broking business?
Organic momentum in Risk and Insurance Services was modest, with underlying revenue up 3% overall. Marsh Risk grew 4% underlying, with U.S./Canada at 3% and International at 5%, led by EMEA at 6%. Guy Carpenter grew 2% underlying. The filing does not provide forward guidance, so investors will need to consider these growth rates alongside management commentary on the Thrive program and pricing conditions in insurance markets.
Is Consulting driving the company's growth?
Yes. Consulting revenue rose 11% (5% underlying) to $2.56 billion, and operating income rose 15% to $525 million. Mercer's underlying growth was 5%, with Health up 6% and Wealth up 5%, while Career declined 2%. Marsh Management Consulting grew 6% underlying. Consulting accounted for a large share of the company's adjusted operating income growth in the quarter.
How is the company returning capital to shareholders and managing its balance sheet?
In Q1 2026, the company repurchased about 4.2 million shares for $750 million and paid $440 million in dividends. It issued $600 million of senior notes and repaid $600 million of maturing notes. Total debt was about $20.6 billion at March 31, 2026, including $1.7 billion of short-term debt. Shares outstanding fell to 482 million from 493 million a year earlier. Total equity declined to $14.8 billion from $15.3 billion.
What does the filing say about cash generation in the quarter?
Operating cash flow was negative $688 million, compared with negative $622 million a year earlier. This reflects the seasonal payout of annual incentive compensation, which reduced accrued compensation by about $2.0 billion. Cash and cash equivalents fell to $1.61 billion from $2.69 billion at year-end. Investors typically assess full-year cash conversion rather than first-quarter figures.

04—Continue

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