Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
MMC reported Q1 2026 revenue growth of 7.6% to $7.60B, but operating income fell 12.5% and net income dropped 17.0% to $1.15B, reflecting significant margin compression and negative operating cash flow.
Revenue
$7.6B
+7.59% YoY
EPS (Diluted)
$2.36
-15.41% YoY
Operating Income
$1.75B
-12.52% YoY
Filed · Source: SEC EDGAR 10-Q filing
Source: SEC XBRL
Marsh & Mclennan (MMC) reported Q1 FY2026 revenue of $7.6B, up 7.6% year over year. Operating margin was 23.1%, down 5.3 points from 28.4% a year earlier. Operating cash flow was negative $688M. MMC's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Compiled by AI from this SEC filing
MMC grew total revenue 7.6% year-over-year from $7.06B to $7.60B in Q1 2026, indicating continued demand for its risk, strategy, and people consulting services despite a challenging macro environment.
Source: 10-Q Income Statement (XBRL Financial Data)
Operating margin declined sharply from 28.4% in Q1 2025 to 23.1% in Q1 2026, a contraction of approximately 530 basis points, suggesting that cost growth materially outpaced revenue growth during the quarter.
Source: 10-Q Income Statement & Key Ratios (XBRL Financial Data)
Net income fell 17.0% year-over-year to $1.15B, and diluted EPS dropped 15.4% from $2.79 to $2.36, reflecting both the margin compression and higher costs relative to the prior-year period.
Source: 10-Q Income Statement (XBRL Financial Data)
Operating cash flow was -$688M in Q1 2026, worsening from -$622M in Q1 2025, a 10.6% deterioration. This is a seasonal pattern common in Q1 for MMC due to compensation-related cash outflows, but the year-over-year decline warrants monitoring.
Source: 10-Q Cash Flow Statement (XBRL Financial Data)
MMC significantly increased share repurchases to $755M in Q1 2026, up 151.7% from $300M in Q1 2025, signaling management confidence in the long-term value of the business despite near-term earnings pressure.
Source: 10-Q Cash Flow Statement (XBRL Financial Data)
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Operating margin contracted by approximately 530 basis points year-over-year to 23.1%, while net margin stands at 15.1%. If cost pressures — such as compensation, integration costs, or restructuring charges — persist, profitability could continue to erode even as revenues grow.
Source: 10-Q Income Statement & Key Ratios (XBRL Financial Data)
MMC generated -$688M in operating cash flow in Q1 2026, worse than the -$622M in Q1 2025. While Q1 seasonality is a known factor, a sustained inability to generate positive operating cash flow could pressure liquidity and limit financial flexibility.
Source: 10-Q Cash Flow Statement (XBRL Financial Data)
Long-term debt stands at $19.55B against total assets of $58.55B, representing a substantial leverage position. With a current ratio of only 1.11, the company has limited near-term liquidity cushion relative to its current obligations of $20.91B.
Source: 10-Q Balance Sheet (XBRL Financial Data)
MMC repurchased $755M in shares in Q1 2026 — more than double the prior year — while simultaneously generating negative operating cash flow. This combination of returning capital to shareholders while burning cash operationally could strain the balance sheet if conditions deteriorate.
Source: 10-Q Cash Flow Statement (XBRL Financial Data)
Return on assets declined to approximately 1.96%, reflecting that the company's growing asset base ($58.55B, up 2.7% YoY) is generating proportionally lower earnings. This signals reduced capital efficiency and may indicate integration or investment costs weighing on returns.
Source: 10-Q Balance Sheet & Key Ratios (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 7.60 $B | 7.06 $B | +7.59% |
Operating Income $B | 1.75 $B | 2.01 $B | -12.52% |
Net Income $B | 1.15 $B | 1.38 $B | -17.02% |
EPS (Basic) $ | 2.37 $ | 2.81 $ | -15.66% |
EPS (Diluted) $ | 2.36 $ | 2.79 $ | -15.41% |
Answers draw on this SEC filing and the data on this page
MMC's Q2 FY2026 revenue grew 6% to $7.4 billion and diluted EPS rose 7% to $2.63, driven by strong Consulting segment growth (10%), while operating cash flow declined 20.4% YTD partly due to a $425 million Greensill litigation charge recorded in Q1 2026.
MMC delivered strong FY2025 revenue growth of 10.3% to $26.98B, with operating cash flow surging 23.0% to $5.29B, though net income grew more modestly at 2.5% to $4.16B amid a slight operating margin compression.
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