01—Abstract
Summary
Summary of the 10-Q filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Willis Towers Watson Public Limited Company reported revenue of $2,460 milliona for the three months ended September 30, 2026, up from $2,288 million a year earlier, an increase of $172 million, or 8%, as reported and 4% organically.
Net income attributable to WTW was $303 millionb for the quarter, compared with $304 million in the prior-year quarter, and $829 million for the nine months, down from $870 million. Diluted earnings per share were $3.24 for the quarter versus $3.11, and adjusted diluted earnings per share were $3.63 versus $3.07. Adjusted EBITDA margin was 23.5% for the quarter, compared with 22.5% a year earlier.
The filing attributes the higher adjusted results primarily to higher revenue and lower non-income-related tax expense, partially offset by higher salary and incentive costs. The company's balance sheet and capital allocation shifted during the nine months. Cash and cash equivalents fell to $1,946 millionc from $3,132 million at December 31, 2025, reflecting acquisitions of Newfront ($1.05 billion up-front) and Cushon, $970 million of share repurchases and $267 million of dividends.
Total debt rose to $6,532 milliond, including a $775 million delayed draw term loan, and the capitalization ratio was 45.7%. Net cash from operating activities was $1,213 million for the nine months, and free cash flow was $1,064 million. The company is authorized to repurchase about $1.8 billion more of shares.
The filing also details the Propel AI acceleration plan, approved July 28, 2026, which the company expects to generate approximately $400 million in annual cost savings and approximately $350 million in net annual savings by the end of 2028, against approximately $625 million of expected cash costs. Willis Re, the reinsurance joint venture with Bain Capital, has a pending acquisition of the U.S. reinsurance business of BMS Group, expected to close in the fourth quarter of 2026, for which the company is obligated to fund up to approximately $102 million.
02—Key points
Key Highlights
- Revenue rose to $2,460 million in Q3 2026 from $2,288 million, an 8% as-reported increase and 4% organic growth; nine-month revenue was $7,338 million versus $6,772 million.
- Net income attributable to WTW was $303 million for Q3 2026 (flat versus $304 million) and $829 million for the nine months (down from $870 million); diluted EPS was $3.24 for the quarter and $8.76 for the nine months.
- Adjusted diluted EPS was $3.63 for Q3 2026 versus $3.07, and adjusted EBITDA was $577 million versus $515 million, with adjusted EBITDA margin of 23.5%.
- Acquisitions were significant in 2026: Newfront Insurance Holdings ($1.05 billion up-front, completed January 27, 2026), Cushon (£150 million cash, April 30, 2026), and the remaining 51% of Al-Futtaim Willis ($58 million, September 30, 2026).
- Cash fell to $1,946 million from $3,132 million at year-end 2025, while total debt rose to $6,532 million from $6,306 million after a $775 million delayed draw term loan and repayment of $550 million of 2026 senior notes.
- The company repurchased $970 million of shares in the nine months and has about $1.8 billion of remaining repurchase authority; the quarterly dividend is $0.96 per share.
- The Propel AI acceleration plan targets about $350 million in net annual cost savings by the end of 2028, with approximately $625 million of expected cash costs; $14 million of restructuring costs were recognized to date.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $2.46B$2.29B | +7.5% |
| Operating Expenses | $2.03B$1.87B | +8.6% |
| Operating Income | $429.00M$418.00M | +2.6% |
| Interest Expense | $80.00M$65.00M | +23.1% |
| Net Income | $303.00M$304.00M | −0.3% |
| EPS (Basic) | $3.25$3.12 | +4.2% |
| EPS (Diluted) | $3.24$3.11 | +4.2% |
| Shares Outstanding (Basic) | 93.00M98.00M | −5.1% |
| Shares Outstanding (Diluted) | 94.00M98.00M | −4.1% |
05—Questions
Frequently Asked Questions
How did Willis Towers Watson perform in the third quarter of 2026?
Revenue was $2,460 million, up $172 million, or 8%, from $2,288 million, with 4% organic growth. Income from operations rose to $429 million from $418 million, but net income attributable to WTW was essentially flat at $303 million versus $304 million, reflecting higher interest expense and other items. Adjusted diluted EPS increased to $3.63 from $3.07.
Why did nine-month net income decline even though revenue grew?
The filing attributes the $41 million decline in net income attributable to WTW, to $829 million from $870 million, primarily to higher salary and incentive costs, income tax, interest expense, transaction and program expenses, restructuring costs, local office expenses and professional services costs. Higher revenue and pension income, along with lower non-income-related tax expense, partially offset these increases.
What are the main acquisitions and how are they funded?
Newfront Insurance Holdings was acquired on January 27, 2026 for a $1.05 billion up-front purchase price, funded mainly by proceeds from the December 2025 issuance of $1.0 billion of senior notes. Cushon was acquired on April 30, 2026 for £150 million in cash plus up to £100 million of contingent consideration, funded from the delayed draw term loan. The remaining 51% of Al-Futtaim Willis was acquired for $58 million on September 30, 2026.
What is the Propel AI plan and what does it cost?
Propel is an AI acceleration plan approved by the board on July 28, 2026 and running through December 31, 2028. The company expects approximately $400 million in annual cost savings and about $350 million in net annual savings after reinvesting approximately $50 million, with approximately $625 million of cash costs and approximately $25 million of non-cash charges expected through 2028. Restructuring costs under the plan totaled $14 million through September 30, 2026.
What financial commitments relate to Willis Re and the BMS Re U.S. acquisition?
On August 18, 2026, Willis Re agreed to acquire the U.S. reinsurance business of BMS Group through a newly created subsidiary. The company and Bain Capital, as Willis Re shareholders, provided an equity commitment letter, and the company is obligated to fund a maximum of approximately $102 million to Willis Re. The acquisition is expected to close in the fourth quarter of 2026, subject to remaining regulatory approvals and other closing conditions.
06—Continue