$WTW · WILLIS TOWERS WATSON PLC
Willis Towers Watson filed its Q3 2026 10-Q, reporting revenue of $2.46B (+7.5% YoY), GAAP diluted EPS of $3.24, and adjusted EPS of $3.63. Adjusted operating income rose to $539M with adjusted margin expanding to 21.9%, while GAAP operating margin contracted to 17.4% from 18.3% due to $42M in transaction/program expenses and $14M in AI-related restructuring costs. Nine-month net income attributable to WTW declined to $829M from $870M.
- Revenue of $2.46B (+7.5% YoY), with organic growth of 4% and 3% from acquisitions, partially offset by 2% currency headwinds.
- GAAP diluted EPS of $3.24 vs. $3.11 in Q3 2025; adjusted EPS of $3.63 per SEC XBRL data.
- Adjusted operating income rose to $539M from $467M; adjusted operating margin expanded to 21.9% from 20.4%.
- GAAP operating margin declined to 17.4% from 18.3%, pressured by $42M in transaction/program expenses and $14M in restructuring costs.
- Nine-month net income attributable to WTW fell to $829M from $870M, with diluted EPS of $8.76 vs. $8.74 on lower share count.
Shares down 2.73% to $312.85 in the regular session. The GAAP margin compression (17.4% vs. 18.3%) and elevated transaction/restructuring costs likely outweighing the adjusted-profit beat for a $29B market-cap name.
The gap between adjusted and GAAP results is widening — adjusted operating margin hit 21.9% while GAAP fell to 17.4%, raising questions about the durability of acquisition-driven growth.
WTW's 4% organic growth trails peers like Aon and Marsh McLennan, which have posted mid-single-digit organic gains. The heavy acquisition spend (Newfront, Cushon) and AI restructuring program signal a transformation phase that may pressure near-term GAAP margins.
Transaction and program expenses surged to $42M in Q3 (vs. $2M prior year) and $144M for nine months (vs. $4M), tied to Newfront and Cushon acquisitions. The AI Acceleration Plan added $14M in restructuring costs with no comparable prior-year charge.