Willis Towers Watson Public Limited Company

WTW reported Q2 organic revenue growth of 5%, adjusted operating margin of 19.5% (+100 bps year over year), and adjusted diluted EPS of $3.35 (+17% year over year). Segment organic growth was 4% in Health, Wealth & Career and 7% in Risk & Broking; HWC margin was 24.1% (+30 bps) and R&B margin was 22.2% (+100 bps). Free cash flow for the six months ended June 30 was $360 million, up from $217 million a year ago. Foreign currency was a $0.06 tailwind to adjusted EPS in the quarter, and management expects an additional roughly $0.05 tailwind in the second half, or about $0.35 for the full year. Guidance was reiterated for 2026: mid-single-digit organic growth at the enterprise level, continued annual adjusted operating margin expansion, improving free cash flow, HWC full-year mid-single-digit growth with continued margin expansion, Health high-single-digit growth, Wealth growth at the high end of the low-single-digit range, Career low- to mid-single-digit growth, BD&O low-single-digit growth, CRB mid-single-digit growth with 100 bps margin expansion, and ICT low- to mid-single-digit growth.

Carl Hess framed the quarter as evidence that WTW’s existing strategy is working, citing broad-based growth, cost discipline, and client wins across both segments. He positioned Propel as an acceleration of technology adoption already underway, not a change in strategy, and said AI and automation will free capacity for more client-facing work, faster innovation, and better service. His tone was upbeat and confident, while still tying the plan to concrete operational changes already visible in the business.

Andrew Krasner emphasized the quarter’s financial strength: 5% organic growth, 19.5% adjusted operating margin, $3.35 adjusted EPS, and $360 million of free cash flow in the first half. He said acquisitions added about 3 points to reported revenue growth and that foreign exchange was a $0.06 EPS tailwind in Q2. On Propel, he outlined about $400 million of run-rate savings, a $625 million cash cost to achieve, about $25 million of noncash charges, and $350 million of net run-rate savings by end-2028, with most costs landing in 2027 and 2028 and adjusted earnings excluding the restructuring investments. He also reiterated at least $1 billion of share repurchases for the full year and said free cash flow margin should improve in line with operating margin, with a more significant step-up after the program concludes.

Analysts focused heavily on whether the strong 7% Risk & Broking growth was partly timing-driven and whether it implies a lumpier revenue profile. Management said there was only a small amount of delayed Q1 activity, that the business had strong new business and retention across specialties and geographies, and that the full-year mid-single-digit outlook and 100 bps margin expansion remain intact. Questions on Propel centered on why now, how the savings break down, expense timing, and whether it will affect cash flow or staffing; management said the plan is intended to create capacity for growth, that costs will mostly hit in 2027-2028, that adjusted results will exclude the restructuring charges, and that headcount reductions may occur in some routine work but the bigger emphasis is reskilling and redeployment. They also addressed broker facilities, saying Gemini can take up to 16% of risk and that there is room to grow with Aquarius being built for SME.