01—Abstract
Summary
Summary of the 10-Q filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Willis Towers Watson Public Limited Company reported second-quarter 2026 revenue of $2.47 billiona, up from $2.26 billion a year earlier, with net income attributable to WTW of $229 million versus $331 million in the prior-year quarter.
Diluted EPS was $2.43b compared with $3.32. For the six months, revenue was $4.88 billion and net income attributable to WTW was $526 million, against $566 million a year earlier. The filing attributes the quarterly decline in net income mainly to higher salary and incentive costs, higher income tax expense, and higher transaction and integration expenses, partly offset by higher revenue.
Organic revenue growth was 5% for the quarter and 4% for the six months. Adjusted EBITDA rose to $529 millionc from $470 million in the quarter, and adjusted diluted EPS was $3.35 versus $2.86. During the period the company completed the Newfront Insurance Holdings acquisition (up-front consideration of $1.05 billion) and the Cushon acquisition (cash consideration of £150 million).
It repurchased $750 milliond of shares and paid $178 million in dividends. Cash and cash equivalents fell to $1.6 billion from $3.1 billion at year-end 2025, and total debt rose to $6.53 billion from $6.31 billion. Operating cash flow was $474 million and free cash flow was $360 million for the six months.
After the quarter end, on July 28, 2026, the board approved a two-year artificial intelligence acceleration plan called Propel, expected to generate approximately $400 million in annual cost savings and $350 million in net annual cost savings by the end of 2028, against approximately $625 million of cash costs and $25 million of non-cash charges. The board also approved a $1.5 billion increase to the share repurchase program, and the Principal Accounting Officer and Controller, Joseph S. Kurpis, notified the company of his intent to retire in the first half of 2027.
02—Key points
Key Highlights
- Revenue rose to $2.47 billion in Q2 2026 from $2.26 billion, a 9% increase as reported and 5% organic growth.
- Net income attributable to WTW fell to $229 million from $331 million; diluted EPS was $2.43 versus $3.32, driven by higher salary and incentive costs, higher income tax expense and higher transaction and integration expenses.
- Adjusted EBITDA was $529 million for Q2 2026 versus $470 million, and adjusted diluted EPS was $3.35 versus $2.86.
- Completed the Newfront acquisition (up-front consideration of $1.05 billion) in January 2026 and the Cushon acquisition in April 2026; the pending Al-Futtaim Willis acquisition is expected to close in the second half of 2026.
- Repurchased $750 million of shares in the first half of 2026; the board approved a $1.5 billion increase to the repurchase program on July 28, 2026, and about $542 million remained on the prior authority at June 30, 2026.
- Cash fell to $1.6 billion from $3.1 billion at December 31, 2025, while total debt rose to $6.53 billion from $6.31 billion; free cash flow was $360 million for the six months.
- Board approved the Propel AI acceleration plan on July 28, 2026, targeting $350 million in net annual cost savings by the end of 2028 against about $625 million of cash costs.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 30, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.47B$2.26B | +9.1% |
| Operating Expenses | $2.10B$1.89B | +11.0% |
| Operating Income | $364.00M$368.00M | −1.1% |
| Interest Expense | $78.00M$64.00M | +21.9% |
| Net Income | $229.00M$331.00M | −30.8% |
| EPS (Basic) | $2.43$3.34 | −27.2% |
| EPS (Diluted) | $2.43$3.32 | −26.8% |
| Shares Outstanding (Basic) | 94.00M99.00M | −5.1% |
| Shares Outstanding (Diluted) | 94.00M100.00M | −6.0% |
05—Questions
Frequently Asked Questions
Why did net income decline even though revenue grew?
The filing states that net income attributable to WTW decreased for the quarter primarily because of increased salary expense and incentive and benefits costs, higher income tax expense, higher transaction and integration expenses, and higher non-income-related tax expense and professional services costs. These effects were partly offset by higher revenue.
What is the Propel AI acceleration plan and what does it cost?
Propel is a two-year program, approved by the board on July 28, 2026, to embed AI and automation across the enterprise. The company expects approximately $400 million in annual cost savings and, after reinvesting about $50 million, $350 million in net annual cost savings by the end of 2028. It expects approximately $625 million of cash costs and approximately $25 million of non-cash charges through the end of 2028.
How did the company's cash position and debt change in the first half of 2026?
Cash and cash equivalents decreased to $1.6 billion from $3.1 billion at December 31, 2025, mainly due to about $1.0 billion of acquisition outflows and $750 million of share repurchases. Total debt increased to $6.53 billion from $6.31 billion, with a $775 million delayed draw term loan used to repay $550 million of 4.400% senior notes due 2026 and to fund the Cushon acquisition.
Is the company's organic growth still positive, and what drove it?
Yes. Organic revenue growth was 5% for the quarter and 4% for the six months ended June 30, 2026. Health, Wealth & Career and Risk & Broking both reported organic growth, with the filing citing strong retirement work, new business and client retention, and software sales in the Technology practice, while Career was constrained by the conflict in the Middle East.
What changes in leadership or capital return were disclosed?
Joseph S. Kurpis, Principal Accounting Officer and Controller, notified the company on July 28, 2026 of his intent to retire in the first half of 2027, after the 2026 Form 10-K is filed, and the company is searching for a successor. The board also approved a $1.5 billion increase to the share repurchase program on July 28, 2026, and declared a quarterly dividend of $0.96 per share, paid July 15, 2026.
06—Continue