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
WTW delivered a dramatic FY2025 turnaround with net income surging to $1.61B (from a $98M loss) and operating margin expanding to 23.0%, driven by disciplined cost management and significant share buybacks, even as revenue declined 2.2% to $9.71B.
Revenue
$9.71B
-2.24% YoY
EPS (Diluted)
$16.26
+1793.75% YoY
Operating Income
$2.23B
+256.30% YoY
Source: SEC XBRL
Willis Towers Watson (WTW) reported FY2025 revenue of $9.71B, down 2.2% year over year. Operating margin was 23.0%, up 16.7 points from 6.3% a year earlier. Operating cash flow was $1.77B, up 17.4% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.35 | 3.15 | Beat +6.5% |
| Mar 2026 | 3.72 | 3.70 | Beat +0.4% |
| Dec 2025This filing | 8.12 | 8.02 | Beat +1.2% |
| Sep 2025 | 3.07 | 3.08 | Miss -0.4% |
Reported EPS of $8.12 versus the $8.02 analyst consensus — a +1.2% beat for Dec 2025.
Compiled by AI from this SEC filing
Total revenue fell 2.2% year-over-year to $9.71B in FY2025 (from $9.93B in the prior year), suggesting ongoing portfolio optimization or divestitures rather than organic growth headwinds, as profitability metrics improved dramatically during the same period.
Source: 10-K Income Statement
Operating income surged 256.3% to $2.23B from $627M in the prior year, reflecting substantial improvement in cost structure and/or the absence of prior-year charges, driving the operating margin from 6.3% to 23.0%.
Source: 10-K Income Statement
Net income recovered to $1.61B in FY2025 from a net loss of $98M in the prior year — a swing of approximately $1.70B — with diluted EPS rising to $16.26 from -$0.96, signaling a fundamental improvement in the company's earnings power.
Source: 10-K Income Statement
WTW repurchased $1.65B in shares during FY2025, up 83.1% from $901M in the prior year, while cash and equivalents grew 65.7% to $3.13B, reflecting strong cash generation and confidence in the balance sheet.
Source: 10-K Cash Flow Statement
Operating cash flow increased 17.4% to $1.78B from $1.51B, and investing activities generated $447M (vs. $250M prior year), supporting the company's ability to fund buybacks and debt service while maintaining liquidity.
Source: 10-K Cash Flow Statement
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Long-term debt increased 12.5% to $9.69B in FY2025, pushing the debt-to-equity ratio to 2.69x. With interest rate environments remaining uncertain, the cost of servicing this debt could pressure future earnings and limit financial flexibility.
Source: 10-K Balance Sheet
Revenue declined 2.2% to $9.71B in FY2025, which may reflect client attrition, competitive pricing pressure, or deliberate portfolio divestitures. Sustained top-line weakness could undermine the profitability gains achieved through cost reduction.
Source: 10-K Income Statement
The dramatic improvement in operating margin (from 6.3% to 23.0%) may partly reflect one-time items or the reversal of prior-year charges rather than structural cost improvements. If these tailwinds do not recur, margins could normalize downward in future periods.
Source: 10-K Income Statement & Operating Margin Data
Current liabilities grew 11.2% to $14.0B while the current ratio stands at only 1.20x, indicating limited short-term liquidity buffer. Any unexpected cash demands or credit market disruptions could strain near-term liquidity.
Source: 10-K Balance Sheet
WTW deployed $1.65B in share repurchases in FY2025, representing a substantial portion of operating cash flow ($1.78B). Aggressive buybacks while carrying $9.69B in long-term debt may limit the company's ability to invest in growth or weather economic downturns.
Source: 10-K Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 9.71 $B | 9.93 $B | -2.24% |
Operating Income $B | 2.23 $B | 0.63 $B | +256.30% |
Net Income $B | 1.605 $B | -0.098 $B | +1737.76% |
EPS (Basic) $ | 16.34 $ | -0.96 $ | +1802.08% |
EPS (Diluted) $ | 16.26 $ | -0.96 $ | +1793.75% |
Answers draw on this SEC filing and the data on this page
WTW delivered 9.1% YoY revenue growth to $2.47B with 5% organic growth in Q2 FY2026, though net income declined 30.8% YoY to $229M due to elevated transaction and integration expenses.
WTW delivered strong Q1 2026 results with revenue up 8.5% to $2.41B and net income surging 26.4% to $297M, though operating margin contracted slightly and long-term debt jumped 32.4% to $6.30B.
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