AI Takeaway
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.
Revenue
$7.4B
++6.17% YoY
EPS (Basic)
$2.64
++7.32% YoY
Operating Income
$1.9B
++3.83% YoY
Filed · Source: SEC EDGAR 10-Q filing
Marsh & Mclennan (MMC) reported Q2 FY2026 revenue of $7.4B, up 6.2% year over year. The company posted net income of $1.27B, up 4.5% from a year earlier, with diluted EPS of $2.63.
Consolidated revenue increased $430 million, or 6%, to $7.4 billion for Q2 FY2026, with 5% underlying growth, 1% from FX translation, and 1% from acquisitions. Consulting segment revenue grew 10% (8% underlying) to $2.6 billion, outpacing Risk and Insurance Services' 4% growth (3% underlying) to $4.8 billion, driven by Marsh Management Consulting's 15% revenue increase.
Source: 10-Q Item 2 MD&A
In Q1 2026, the Company recorded an estimated liability and legal expenses of $425 million related to the Greensill litigation, which drove the 11% increase in six-month consolidated operating expenses and contributed to the 5% decline in six-month operating income to $3.7 billion.
Source: 10-Q Item 2 MD&A
The Company incurred $58 million and $103 million in restructuring costs for the three and six months ended June 30, 2026, respectively, primarily related to severance under its three-year 'Thrive' program launched in Q3 2025, which is expected to generate approximately $500 million in total costs and $400 million in annualized savings.
Source: 10-Q Item 2 MD&A
The Company repurchased approximately 4.5 million shares for $750 million in Q2 2026 alone, and 8.7 million shares for $1.5 billion over six months (up from $600 million YTD in 2025). It also issued $600 million of 4.950% senior notes due 2036 and repaid $600 million of 3.750% notes at maturity in March 2026.
Source: 10-Q Item 2 MD&A
Effective January 14, 2026, the Company updated its brand name from Marsh McLennan to Marsh, with Marsh Risk and Marsh Management Consulting replacing prior Marsh and Oliver Wyman brand names; this had no impact on operating or reporting segments.
Source: 10-Q Item 2 MD&A
The Company recorded a $425 million estimated liability and legal expenses related to the Greensill litigation in Q1 2026, representing a material one-off charge that significantly reduced six-month operating income by $181 million year-over-year.
Source: 10-Q Item 2 MD&A
Marsh Risk's underlying revenue growth was driven by higher new business and renewal revenue but was partially offset by declining insurance premium rates; Guy Carpenter's revenue declined 2% in Q2 2026 due to declining reinsurance premium rates.
Source: 10-Q Item 2 MD&A
The Company advises clients in 130 countries, exposing it to foreign exchange rate movements (which added 1-2% to revenue and expenses in 2026) as well as macroeconomic risks from the Middle East conflict, tariffs, trade policy changes, and capital markets volatility.
Source: 10-Q Item 2 MD&A
Current liabilities grew 10.1% year-over-year to $21.4 billion, outpacing the 4.3% growth in current assets, pushing the current ratio to a modest 1.14, indicating tightening short-term liquidity relative to obligations.
Source: 10-Q Balance Sheet (XBRL)
Operating cash flow fell 20.4% year-over-year on a six-month cumulative basis to $835 million from $1,049 million, which combined with heavy share buybacks ($1.5 billion YTD) and increased investing outflows could pressure liquidity if the trend continues.
Source: 10-Q Cash Flow Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $7.4B | $6.97B | +6.17% |
Operating Income | $1.9B | $1.83B | +3.83% |
Net Income | $1.27B | $1.21B | +4.54% |
EPS (Basic) | $2.64 | $2.46 | +7.32% |
EPS (Diluted) | $2.63 | $2.45 | +7.35% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $59.68B | $58.55B | +1.92% |
Current Assets | $24.33B | $23.33B | +4.28% |
Current Liabilities | $21.36B | $19.4B | +10.10% |
Cash & Equivalents | $1.7B | $1.68B | +1.37% |
Long-Term Debt | $19.54B | $19.58B | -0.21% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $835M | $1.05B | -20.40% |
Investing Cash FlowYTD | $-265M | $-95M | -178.95% |
Financing Cash FlowYTD | $-686M | $-1.83B | +62.58% |
Share BuybacksYTD | $1.51B | $600M | +152.00% |
D&A | $90M | $91M | -1.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 25.6% | 26.2% | -0.58% |
Net Margin | 17.1% | — | — |
ROA | 2.1% | — | — |
Current Ratio | $1.139 | — | — |
Expected release date, analyst estimates & what to watch
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.
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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The filing does not provide analyst consensus estimates, so a beat/miss cannot be confirmed from this data. However, MMC reported revenue of $7.404 billion (up 6.2% YoY) and diluted EPS of $2.63 (up 7.3% YoY), both showing solid growth compared to the prior-year quarter.
MMC grew revenue 6% to $7.4 billion driven by 10% growth in its Consulting segment, and diluted EPS rose 7% to $2.63. However, six-month operating income fell 5% due to a $425 million Greensill litigation charge recorded in Q1 2026, and the company continued aggressive share buybacks totaling $1.5 billion year-to-date.
Consolidated revenue increased 6% (5% on an underlying basis) to $7.404 billion, with the Consulting segment growing 10% to $2.6 billion (led by Marsh Management Consulting's 15% increase) and Risk and Insurance Services growing 4% to $4.8 billion.
MMC's MD&A highlighted the $425 million Greensill litigation liability recorded in Q1 2026, declining insurance and reinsurance premium rates affecting Marsh Risk and Guy Carpenter, and macroeconomic/geopolitical risks including the Middle East conflict and tariff policy changes.
MMC maintains solid profitability with a 17.1% net margin and 25.6% operating margin, though its current ratio of 1.14 and 20.4% YoY decline in six-month operating cash flow to $835 million suggest some tightening in short-term liquidity. Long-term debt remained stable at $19.537 billion year-over-year.