Willis Towers Watson (NASDAQ:WTW) delivered a stronger-than-expected fourth-quarter performance, with adjusted earnings and revenue both topping market forecasts.
The advisory and broking group reported adjusted earnings of $8.12 per share, ahead of analysts’ expectations of $7.96, while revenue totaled $2.94 billion versus a consensus estimate of $2.85 billion. Shares in Willis Towers Watson rose about 1.4% in pre-market trading following the results.
Organic revenue increased 6% during the quarter, even though reported revenue declined 3% year on year from $3.04 billion to $2.94 billion. The drop in reported revenue reflected the disposal of TRANZACT, while underlying growth was supported by solid contributions across the company’s operating segments.
Adjusted operating margin improved by 80 basis points to 36.9%, up from 36.1% a year earlier, driven by better operating efficiency. The Risk & Broking division stood out, with revenue rising 10% to $1.25 billion, or 7% on an organic basis, and operating margin expanding by 120 basis points to 34.7%.
“WTW had strong performance across our businesses driven by our team’s relentless focus and consistent execution of our strategy,” said Carl Hess, WTW’s Chief Executive Officer. “We delivered on our financial targets and strengthened our business through strategic investments in talent and innovation to accelerate performance, enhance efficiency and optimize our portfolio.”
For the full year 2025, the company posted adjusted earnings per share of $17.08, up 5% from $16.29 in 2024. Reported annual revenue slipped 2% to $9.71 billion, although organic revenue grew by 5%.
Free cash flow for the year reached $1.55 billion, an increase of $279 million compared with the prior year, largely reflecting margin expansion. In the fourth quarter alone, WTW repurchased $350 million of its own shares, bringing total buybacks for the year to $1.65 billion.