Solid Revenue and Organic Growth Across Segments
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
Cost Increases Driven by Mergers and Service Expenses
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
Softening Commercial Insurance Rates
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