Marsh & McLennan Companies, Inc.

Consolidated revenue increased 6% year over year to $7.4 billion, or 5% on an underlying basis. Adjusted operating income grew 5% to $2.2 billion, with an adjusted operating margin of 29.3%; GAAP EPS was $2.63 and adjusted EPS was $2.96, up 9% year over year. For the first six months of 2026, adjusted operating income increased 7% to $4.6 billion, adjusted operating margin was 30.5%, and adjusted EPS rose 8% to $6.25. Segment results included Marsh Risk revenue of $4.1 billion, up 6% reported and 4% underlying; Guy Carpenter revenue of $664 million, down 2%; Mercer revenue of $1.6 billion, up 7% reported and 5% underlying; and Marsh Management Consulting revenue of $1.0 billion, up 15% reported and 13% underlying. Looking ahead, management expects 2026 underlying revenue growth similar to 2025, another year of margin expansion, and solid adjusted EPS growth; for Q3 they expect fiduciary interest income of about $95 million, adjusted corporate expense of about $75 million, similar interest expense to Q2, and Marsh Management Consulting underlying growth in the mid- to high single digits. The 2026 adjusted effective tax rate is expected to be 24.5% to 25.5%, and capital deployment is now expected to be about $5.5 billion, up from $5 billion previously.

John Doyle said Marsh had a solid quarter with demand for its advice and capabilities remaining strong, and he emphasized that underlying growth accelerated and the company is executing well despite pricing headwinds. Strategically, he focused on Thrive, unified branding across Marsh/Guy Carpenter/Mercer, expanding sales capacity, and using AI to drive growth, productivity, and efficiency. His tone was confident and upbeat, but he repeatedly acknowledged a softer pricing environment and broader economic/geopolitical uncertainty.

Mark McGivney highlighted continued execution and diversification, with consolidated revenue up 6% to $7.4 billion and adjusted operating margin at 29.3%; first-half adjusted operating income rose 7% to $4.6 billion and adjusted EPS rose 8% to $6.25. He detailed segment margins, including RIS at 35.3% and Consulting at 20.5%, and said Thrive remains on track to deliver $400 million of total savings, with about $500 million of charges expected to generate those savings. On capital allocation, he noted $1.7 billion of cash, $20.6 billion of total debt, $1.4 billion of cash uses in Q2, and a revised expectation to deploy about $5.5 billion in 2026 across dividends, acquisitions, and buybacks; he also cited the 10% dividend increase and said the next debt maturity is $550 million of euro notes due in Q3 and expected to be refinanced.

Analysts focused on whether Marsh Risk growth can offset pricing pressure, especially in Guy Carpenter, and management answered that strong new business, improved U.S. production hiring, and broad international momentum are helping cushion rate declines. They also pressed on AI investment costs and producer headcount; management said it is using lower-cost internal tools like LenWork while supplementing with frontier models where needed, and that producer hiring has been a good first-half growth driver but is not the only lever. Other questions centered on M&A, consulting momentum, and health growth, with management saying M&A remains disciplined amid bid-ask gaps, consulting growth was broad-based rather than one-time-driven, and Mercer health slowed to 3% in the quarter mainly due to ordinary retention and tougher employer conditions rather than a structural issue.