A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
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.
Revenue
$2.47B
+9.07% YoY
EPS (Diluted)
$2.43
-26.81% YoY
Operating Income
$364M
-1.09% YoY
Filed · Source: SEC EDGAR 10-Q filing
Willis Towers Watson (WTW) reported Q2 FY2026 revenue of $2.47B, up 9.1% year over year. The company posted net income of $229M, down 30.8% from a year earlier, with diluted EPS of $2.43. Operating income was $364M, down 1.1% year over year. WTW's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
WTW recorded Q2 FY2026 revenue of $2.47B (+9.1% YoY) with 5% organic growth, while net income fell 30.8% YoY to $229M due to $61M in transaction/integration costs and expanding operating expenses.
Last 4 quarters: 3 beats, 1 miss
Adjusted (non-GAAP) EPS of $3.35 versus the $3.15 analyst consensus — a +6.5% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.43.
Consolidated revenue grew 9.1% YoY (or 9% as reported) to $2.47B in Q2 FY2026. Organic revenue growth reached 5% for the quarter, supported by 4% organic growth in Health, Wealth & Career ($1.27B revenue) and 7% organic growth in Risk & Broking ($1.16B revenue). Source: 10-Q Item 2 MD&A, p.34-36
Source: 10-Q Item 2 MD&A, p.34-36
Total costs of providing services expanded 11.0% YoY to $2.10B in Q2 FY2026. Transaction and integration expenses rose sharply to $61M (compared to $2M in Q2 FY2025), while salaries and benefits rose 7% YoY to $1.55B, partially driven by acquisitions including Newfront and Cushon. Source: 10-Q Item 2 MD&A, p.33, 37
Source: 10-Q Item 2 MD&A, p.33, 37
Management noted that insurance market conditions continue to soften across most sectors except U.S. Casualty and select specialty product lines, creating downward pressure on commission revenue and operating margins across the broking industry. Source: 10-Q Item 2 MD&A, p.32
Source: 10-Q Item 2 MD&A, p.32
Foreign currency translation provided a $21M tailwind to consolidated revenue in Q2 FY2026, primarily driven by the Euro, and a $121M positive impact for the six-month period driven by the Euro and Pound Sterling. Source: 10-Q Item 2 MD&A, p.34
Source: 10-Q Item 2 MD&A, p.34
WTW's artificial intelligence acceleration plan and related workforce transformations carry execution risks including key talent attrition, potential errors or omissions liabilities, cybersecurity vulnerabilities, and regulatory compliance exposures. Failure to execute effectively or delays in realization may diminish anticipated cost savings and harm business operating results. Source: 10-Q Item 1A, p.38
Source: 10-Q Item 1A, p.38
Continued soft or softening rate environments across global insurance markets exert persistent downward pressure on commission revenue and overall operating margins, with firming rates limited to U.S. Casualty and isolated specialty lines. Source: 10-Q Item 2 MD&A, p.32
Source: 10-Q Item 2 MD&A, p.32
Global economic volatility, inflationary pressures, interest rate fluctuations, and geopolitical conflicts—such as ongoing tension in the Middle East which constrained Career organic growth—pose risks to client spending on discretionary advisory services and transaction volumes. Source: 10-Q Item 2 MD&A, p.32-33, 35
Source: 10-Q Item 2 MD&A, p.32-33, 35
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the WTW earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.47B | $2.26B | +9.07% |
Operating Income | $364M | $368M | -1.09% |
Net Income | $229M | $331M | -30.82% |
EPS (Basic) | $2.43 | $3.34 | -27.25% |
EPS (Diluted) | $2.43 | $3.32 | -26.81% |
WTW achieved total revenue of $2.47B in Q2 FY2026, marking a 9.1% YoY rise and 5% organic revenue growth. However, net income fell 30.8% YoY to $229M and diluted EPS fell 26.8% to $2.43, primarily hit by $61M in transaction and integration expenses alongside higher operating costs.
WTW's Q2 FY2026 revenue increased 9.1% YoY on an as-reported basis to $2.47B. Both major divisions contributed, with Health, Wealth & Career growing 8% (4% organic) to $1.27B and Risk & Broking growing 11% (7% organic) to $1.16B.
WTW added a specific new risk factor regarding its Artificial Intelligence (AI) acceleration plan, citing execution risks, potential operational liability, cybersecurity exposures, and workforce disruption. Additionally, management highlighted headwinds from softening commercial insurance broker rates and Middle East geopolitical conflicts.
WTW maintains a liquidity position with $1.63B in cash and cash equivalents and a current ratio of 1.10. Year-to-date operating cash flow grew 45.4% YoY to $474M, while long-term debt rose 21.4% to $5.78B, leaving the debt-to-equity ratio at 2.96.
Expected release date, analyst estimates & what to watch
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.
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.
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