Willis Towers Watson Public NASDAQ: WTW reported second-quarter 2026 organic revenue growth of 5%, adjusted operating margin expansion of 100 basis points and adjusted diluted earnings per share of $3.35, up 17% from the prior-year period.
Chief Executive Officer Carl Hess said the quarter reflected marketplace performance and cost discipline despite continued global market volatility. Risk & Broking led the company with 7% organic growth, while Health, Wealth & Career posted 4% growth. WTW’s adjusted operating margin was 19.5% in the quarter.
Chief Financial Officer Andrew Krasner said recent acquisitions contributed about three percentage points to reported revenue growth at both the enterprise and segment levels. The company also generated $360 million in free cash flow during the first six months of 2026, up from $217 million in the prior-year period.
Propel plan targets AI-driven savings and margin gains
WTW announced Propel, an AI acceleration plan expected to be completed by the end of 2028. The company expects the initiative to generate approximately $400 million in run-rate savings through an investment of about $625 million, plus roughly $25 million in non-cash charges. WTW plans to reinvest about $50 million of the savings into growth opportunities, resulting in projected net run-rate savings of $350 million.
“Propel is an acceleration of what’s already working for WTW,” Hess said during the call, describing the program as a way to reduce routine manual work and create more capacity for brokers, advisers and consultants to focus on client relationships, advice and new business.
Krasner said most of the program’s costs are expected in 2027 and 2028, though some spending will occur in 2026. Costs will flow through GAAP results but be excluded from the company’s adjusted non-GAAP measures. WTW said it will provide quarterly updates on the program’s costs and benefits.
The company expects Propel’s benefits to begin contributing meaningfully in 2027 and to build through 2028. WTW now targets an adjusted operating margin of approximately 30% at the enterprise level in 2028, including margins of about 35% for Health, Wealth & Career and 30% for Risk & Broking.
WTW said it expects a meaningful improvement in free cash flow margin after the plan concludes and related cash costs subside in 2029. The company said Propel does not change its 2026 guidance or near-term capital return plans.
Segment performance
Health, Wealth & Career generated 4% organic revenue growth, with Health rising 8% on growth across regions, new business wins and project work. Wealth increased 2%, reflecting higher retirement-related activity. Career revenue was flat, as stronger communications, change and broad-based pay work was offset by weaker revenue in the Middle East amid ongoing conflict.
Hess said WTW absorbed a nearly 50% decline in Career project work in the Middle East. Outside the region, Career grew 3%, including high-single-digit growth outside North America. Benefits Delivery & Outsourcing grew 1%, as expanded outsourcing and administration work was partly offset by lower individual marketplace commissions outside the annual enrollment period.
Health, Wealth & Career’s adjusted operating margin increased 30 basis points to 24.1%. WTW maintained its outlook for mid-single-digit organic growth and continued margin expansion for the segment in 2026.
Risk & Broking grew 7% organically, with Corporate Risk & Broking also growing 7%. Krasner attributed the result to new business, double-digit growth in nearly all specialty businesses and strong client retention. North America led geographic growth, with strength in construction, natural resources, surety and mergers and acquisitions.
Insurance Consulting and Technology grew 6%, driven primarily by software sales and new business wins, including multiyear technology-practice deals. Risk & Broking’s operating margin rose 100 basis points to 22.2% on operating leverage and expense discipline. The company reiterated its expectations for mid-single-digit full-year growth and 100 basis points of margin expansion in the segment.
Technology deployment and market conditions
WTW highlighted existing AI and automation deployments that it expects to expand through Propel. In Health, Wealth & Career, the company said its Rewards AI compensation intelligence tool now serves more than 5,000 client users. Its Violet suite of AI capabilities has served more than 12 million plan participants, while benefit decision-support use increased 52% and participant follow-ups declined 60%, according to Hess.
In Risk & Broking, WTW has incorporated Newfront’s Navigator system into its Neuron operating platform under the name Willis Navigator. Hess said schedules of insurance that previously took four hours can now be generated in about five minutes, while certain real estate premium allocations that historically took two to four weeks can be completed in minutes after receiving binders and final premiums.
The company said Newfront integration remains on track, with cost synergies modestly ahead of plan. Hess emphasized that Newfront synergies are separate from and additive to Propel savings. WTW also completed the acquisition of Italian regional insurance broker SMB Scala & Mansutti during the period.
WTW said it continues to see demand supported by healthcare inflation, regulatory change, technological advances, geopolitical tension and market volatility. However, management said softer labor conditions and the Middle East conflict have prompted some clients to defer discretionary projects, particularly in Career.
Capital returns and outlook
WTW repurchased $450 million of shares during the second quarter and paid $90 million in quarterly cash dividends, or $0.96 per share. The company continues to expect at least $1 billion in full-year share repurchases, subject to market conditions and potential investment opportunities.
Krasner said foreign exchange provided a $0.06 tailwind to adjusted diluted earnings per share in the second quarter. Based on current outlook and spot rates, WTW expects an additional approximately $0.05 foreign-exchange tailwind in the second half, for an estimated full-year benefit of about $0.35.
Management reaffirmed its 2026 outlook for mid-single-digit enterprise organic growth, annual adjusted operating margin expansion and improving free cash flow.
About Willis Towers Watson Public (NASDAQ:WTW)
Willis Towers Watson Public NASDAQ: WTW is a global advisory, broking and solutions company that helps organizations manage risk, optimize benefits and cultivate talent. The firm combines insurance brokerage and risk management capabilities with human capital and benefits consulting, actuarial and analytics services, and technology-enabled solutions. Willis Towers Watson serves a broad client base that includes multinational and mid-sized corporations, public sector organizations, insurers and investment managers.
The company's core activities encompass commercial and reinsurance brokerage, risk transfer and risk-financing advice, and claims advocacy, alongside employee benefits and retirement consulting.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Willis Towers Watson Public, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Willis Towers Watson Public wasn't on the list.
While Willis Towers Watson Public currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI boom extends far beyond the biggest tech names. Discover 10 companies supplying the memory, storage, networking, semiconductor manufacturing, and power infrastructure that make AI possible. Learn where the next wave of AI investment opportunities may emerge—and the key risks investors should watch as the global AI buildout accelerates.
Get This Free Report
