WTW Reports Third Quarter 2025 Earnings

Core Insights - WTW reported strong financial results for Q3 2025, with solid revenue performance, operating margin expansion, and earnings per share growth, despite macroeconomic uncertainties [2][3][6] Consolidated Results - Revenue for Q3 2025 was $2.288 billion, flat compared to $2.289 billion in Q3 2024, with organic revenue growth of 5% [3][6] - Net income for Q3 2025 was $306 million, a significant recovery from a net loss of $1.672 billion in the prior year [3][7] - Adjusted diluted EPS increased by 11% to $3.07 from $2.77 in the previous year [3][8] - Operating margin improved to 18.3% from a negative 33.5% in Q3 2024, with adjusted operating margin at 20.4%, up 230 basis points [3][8] Segment Performance Health, Wealth & Career (HWC) - HWC segment revenue was $1.261 billion, down 5% year-over-year, but showed organic growth of 4% [10][11] - Operating income in the HWC segment increased by 10% to $361 million, with operating margin rising to 28.6% [10][11] Risk & Broking (R&B) - R&B segment revenue reached $1.007 billion, up 7% year-over-year, with organic growth of 6% [12][13] - Operating income for the R&B segment increased by 11% to $189 million, maintaining an operating margin of 18.8% [12][13] Cash Flow and Capital Allocation - Cash flows from operating activities for the nine months ended September 30, 2025, were $1.0 billion, up from $913 million in the prior year [8][9] - Free cash flow for the same period increased to $838 million from $724 million [8][9] - The company repurchased 1,848,098 shares for $600 million during the quarter [9] Financial Considerations - The company expects share repurchases of approximately $1.5 billion, subject to market conditions [17] - Anticipated foreign currency tailwinds on adjusted diluted EPS of about $0.15 in Q4 2025 [17]