WTW Reports Fourth Quarter and Full Year 2025 Earnings

Core Insights - WTW reported strong performance in Q4 2025, driven by strategic investments and a focus on operational efficiency, despite a decline in revenue due to the sale of TRANZACT [2][5][10] Consolidated Results - Q4 2025 revenue was $2.94 billion, a decrease of 3% year-over-year, with organic revenue growth of 6% [3][5][7] - Net income for Q4 2025 was $736 million, down 41% from $1.25 billion in Q4 2024, while adjusted net income decreased by 3% to $784 million [6][11] - The operating margin improved to 34.6%, up 490 basis points from the previous year, indicating enhanced operational efficiency [3][7] Full Year 2025 Results - Total revenue for FY 2025 was $9.71 billion, a 2% decline from $9.93 billion in FY 2024, with organic growth of 5% [8][10] - Net income for FY 2025 was $1.61 billion, a significant recovery from a net loss of $88 million in FY 2024 [11][8] - Adjusted diluted EPS for FY 2025 was $17.08, up 5% from the previous year [8][11] Cash Flow and Capital Allocation - Cash flows from operating activities increased to $1.78 billion in FY 2025, compared to $1.51 billion in FY 2024, with free cash flow rising to $1.55 billion [12] - The company repurchased $350 million of shares in Q4 2025 and $1.65 billion for the full year [12] Segment Highlights - The Health, Wealth & Career (HWC) segment reported Q4 revenue of $1.65 billion, down 11% year-over-year, but achieved organic growth of 6% [13][14] - The Risk & Broking (R&B) segment saw revenue increase by 10% to $1.25 billion in Q4 2025, with organic growth of 7% [16][17] 2026 Financial Considerations - The company expects continued annual margin expansion, targeting approximately 100 basis points of average annual margin growth in R&B over the next two years [18] - Anticipated share repurchases of $1.0 billion or more, subject to market conditions [18]