Willis Towers Watson Public (NASDAQ:WTW) Posts Earnings Results, Beats Estimates By $0.04 EPS

Willis Towers Watson Public (NASDAQ:WTW) released its quarterly earnings results on Thursday. The company reported $3.63 EPS for the quarter, topping analysts’ consensus estimates of $3.59 by $0.04, FiscalAI reports. The firm had revenue of $2.46 billion during the quarter, compared to analysts’ expectations of $2.45 billion. Willis Towers Watson Public had a net margin of 15.22% and a return on equity of 22.65%. The firm’s revenue for the quarter was up 7.5% compared to the same quarter last year. During the same period in the previous year, the company earned $3.07 EPS.

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 Stock Up 1.2%

Shares of NASDAQ WTW opened at $324.42 on Friday. Willis Towers Watson Public has a 52-week low of $240.61 and a 52-week high of $351.51. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.68 and a current ratio of 1.62. The stock has a 50 day moving average price of $315.00 and a 200 day moving average price of $297.35. The firm has a market capitalization of $30.13 billion, a price-to-earnings ratio of 19.79, a PEG ratio of 0.93 and a beta of 0.46.

Willis Towers Watson Public Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were paid a dividend of $0.96 per share. This represents a $3.84 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Wednesday, September 30th. Willis Towers Watson Public’s payout ratio is currently 23.43%.

Analyst Ratings Changes

WTW has been the subject of several analyst reports. Mizuho decreased their price objective on shares of Willis Towers Watson Public from $380.00 to $349.00 and set an “outperform” rating for the company in a research note on Wednesday, October 7th. Piper Sandler increased their price target on Willis Towers Watson Public from $283.00 to $317.00 and gave the stock an “overweight” rating in a report on Wednesday, July 15th. Wells Fargo & Company dropped their price objective on Willis Towers Watson Public from $378.00 to $364.00 and set an “overweight” rating for the company in a report on Monday, October 12th. Truist Financial upped their price objective on Willis Towers Watson Public from $320.00 to $400.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Finally, TD Cowen increased their target price on Willis Towers Watson Public from $391.00 to $455.00 and gave the stock a “buy” rating in a research note on Thursday, August 20th. Eleven analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $364.40.

Key Willis Towers Watson Public News

Here are the key news stories impacting Willis Towers Watson Public this week:

• Positive Sentiment: Third-quarter earnings exceeded expectations. WTW reported adjusted earnings of $3.63 per share, ahead of the approximately $3.59–$3.60 analyst consensus and well above $3.07 a year earlier. Revenue rose 7.5% year over year to $2.46 billion, slightly exceeding estimates. WTW Q3 Earnings Surpass Estimates
• Positive Sentiment: Profitability and cash generation supported the outlook. Management highlighted organic growth, margin expansion and strong cash flow, while an AI-driven savings program is expected to contribute to operating efficiency. These factors reinforce the company’s 2026 plans. WTW Q3 Earnings Beat Estimates on Margin Gains
• Positive Sentiment: WTW set an ambitious longer-term margin target. The company is targeting an adjusted operating margin of roughly 30% by 2028, offering investors a potential earnings-growth catalyst if restructuring, productivity initiatives and AI savings deliver as planned. WTW Targets Approximately 30 Percent Adjusted Operating Margin in 2028
• Neutral Sentiment: Business trends were mixed. While overall results and the 2026 outlook remain supported by margin gains and organic growth, management now expects 2026 BD&O growth to be roughly flat. That slower outlook may temper the positive impact of the earnings beat.

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.