Willis Towers Watson Public (NASDAQ:WTW – Get Free Report) posted its earnings results on Thursday. The company reported $3.63 earnings per share for the quarter, beating the consensus estimate of $3.59 by $0.04, FiscalAI reports. Willis Towers Watson Public had a net margin of 15.49% and a return on equity of 22.19%. The firm had revenue of $2.46 billion during the quarter, compared to the consensus estimate of $2.45 billion. During the same period last year, the firm posted $3.07 EPS. The firm’s revenue for the quarter was up 7.5% on a year-over-year basis.
Here are the key takeaways from Willis Towers Watson Public’s conference call:
- Strong third-quarter results: WTW reported 4% organic revenue growth, 150 basis points of adjusted operating-margin expansion to 21.9%, and 18% adjusted EPS growth to $3.63, supported by operating leverage and expense discipline.
- AI and technology initiatives are gaining traction. WTW cited new AI-enabled client wins and expects Propel to generate approximately $350 million in net annualized savings and support an adjusted operating margin of about 30% by 2028, though most benefits are expected to ramp from 2027 onward.
- WTW lowered its Health, Wealth & Career outlook to low- to mid-single-digit growth, primarily because large Benefits Delivery & Outsourcing implementations were delayed into 2027 and Career faces Middle East-related pressure. ICT’s full-year growth outlook was also reduced to low single digits as clients defer discretionary consulting projects.
- Risk & Broking grew 5% organically despite continued commercial insurance rate softening, with strength in North America and specialty lines; management expects fourth-quarter acceleration and maintained its full-year mid-single-digit growth and approximately 100-basis-point margin-expansion targets.
- Free cash flow reached $1.064 billion through nine months, up $226 million year over year, while share repurchases totaled $970 million year to date; WTW now expects full-year buybacks to exceed $1 billion, subject to investment opportunities and market conditions.
Willis Towers Watson Public Price Performance
NASDAQ:WTW opened at $325.56 on Friday. Willis Towers Watson Public has a one year low of $240.61 and a one year high of $351.51. The stock has a market cap of $30.23 billion, a P/E ratio of 20.05, a PEG ratio of 0.93 and a beta of 0.46. The company has a fifty day moving average price of $315.33 and a 200 day moving average price of $297.38. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.68 and a quick ratio of 1.68.
Willis Towers Watson Public Dividend Announcement
The firm also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th were issued a $0.96 dividend. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $3.84 dividend on an annualized basis and a yield of 1.2%. Willis Towers Watson Public’s dividend payout ratio (DPR) is 23.62%.
More Willis Towers Watson Public News
Here are the key news stories impacting Willis Towers Watson Public this week:
- Positive Sentiment: WTW reported third-quarter earnings of $3.63 per share, above the roughly $3.59-$3.60 analyst consensus and up from $3.07 a year earlier. Revenue increased 7.5% year over year to approximately $2.46 billion, broadly in line with expectations. WTW Q3 Earnings Surpass Estimates
- Positive Sentiment: Management highlighted organic growth, margin expansion and strong cash flow, while continuing an AI-driven savings program. WTW is targeting an approximately 30% adjusted operating margin by 2028, which supports the longer-term earnings and efficiency case. WTW Margin and Outlook Update
- Positive Sentiment: Evercore ISI raised its price target on WTW to $390 from $374, signaling increased confidence in the company’s valuation and operating trajectory. Evercore Raises WTW Price Target
- Positive Sentiment: WTW launched Via Retirement, a wealth-management offering designed to address demand for retirement-income solutions and expand potential advisory and annuity-related revenue. WTW Launches Via Retirement
- Neutral Sentiment: WTW’s healthcare survey found U.S. employers expect healthcare costs to rise at the fastest pace in more than two decades. The trend could increase demand for WTW’s benefits consulting, although it may also pressure clients’ budgets. WTW Healthcare Costs Survey
- Negative Sentiment: Management indicated that 2026 bookings, data and outsourcing (“BD&O”) growth could be roughly flat. That softer near-term outlook contrasts with the strong margin ambitions and may explain why the stock has decreased modestly despite the quarterly earnings beat.
Analyst Upgrades and Downgrades
A number of equities research analysts have issued reports on WTW shares. UBS Group lowered their price target on Willis Towers Watson Public from $405.00 to $398.00 and set a “buy” rating for the company in a research report on Tuesday, October 6th. Keefe, Bruyette & Woods boosted their price objective on shares of Willis Towers Watson Public from $381.00 to $394.00 and gave the company an “outperform” rating in a research report on Tuesday, August 4th. Piper Sandler boosted their price objective on Willis Towers Watson Public from $283.00 to $317.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 15th. Citigroup downgraded shares of Willis Towers Watson Public from a “buy” rating to a “neutral” rating and boosted their price target for the stock from $300.00 to $345.00 in a research report on Monday, August 3rd. Finally, The Goldman Sachs Group increased their price target on Willis Towers Watson Public from $316.00 to $385.00 and gave the company a “buy” rating in a research note on Monday, August 3rd. Eleven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $364.40.
Read Our Latest Analysis on WTW
About Willis Towers Watson Public
Willis Towers Watson Public Limited Company (NASDAQ: WTW) is a global advisory, broking and solutions company that helps organizations manage risk, optimize benefits and improve performance. Its clients include corporations, governments, institutions and individuals across a range of industries and markets.
The company’s services include insurance brokerage and risk management, reinsurance, employee benefits consulting, retirement and investment advisory, and human capital and organizational consulting.
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