Willis Towers Watson Public (NASDAQ:WTW) executives said the company ended 2025 with “another strong quarter,” pointing to organic growth, margin expansion and rising free cash flow as evidence that recent investments in talent, technology and efficiency programs are translating into results.
Fourth-quarter and full-year performance
Chief Executive Officer Carl Hess said WTW generated 6% organic growth in the fourth quarter, along with 80 basis points of adjusted operating margin expansion and adjusted EPS of $8.12. Management noted that TRANZACT contributed $0.80 to adjusted EPS in the prior-year quarter; excluding that contribution, adjusted EPS increased 13% year over year.
WTW also reported $1.5 billion in free cash flow for the twelve months ended Dec. 31, 2025, up $279 million from the prior year, lifting free cash flow margin to 15.9% from 12.8%. Krasner attributed the improvement primarily to reduced transformation program cash costs and operating margin expansion.
Segment highlights: HWC accelerates; Risk & Broking remains strong
In Health, Wealth and Career (HWC), organic growth accelerated to 6% in the fourth quarter. Hess said the segment delivered 30 basis points of operating margin expansion in the quarter excluding TRANZACT.
Krasner said Health grew 4% in the quarter, with growth of 6% when excluding book-of-business settlement activity and interest income headwinds. He cited double-digit increases in international and strong performance in Europe. Management said healthcare inflation and employers’ focus on managing benefit costs are supporting demand, and the company expects Health to deliver high single-digit growth in 2026. HWC President Julie Gebauer added that WTW is projecting a global average healthcare inflation rate of “over 10% for 2026,” and highlighted new offerings such as an Rx direct access solution intended to reduce prescription drug costs for employers.
In Wealth, WTW reported 5% growth in the fourth quarter, driven by increased retirement work globally, including defined benefit activity and regulatory and data projects. Gebauer said pension risk transfer activity increased and noted that, based on published information, WTW placed about 35% of U.S. transactions. She also said LifeSight Solutions is live in 12 countries and that assets under management across master trust arrangements rose from GBP 36 billion at the start of 2025 to over GBP 46 billion at year-end, with another GBP 3 billion expected to be added in coming quarters from contracted clients.
Career grew 10% in the fourth quarter, driven by demand for broad-based advisory services and compensation survey work, plus a shift in survey delivery patterns that moved some revenue into the quarter. Krasner said the company expects mid-single-digit growth for Career in 2026, supported by product and technology offerings and demand tied to topics such as the EU Pay Transparency Directive.
In Benefits Delivery and Outsourcing (BD&O), revenue grew 5% in the quarter, driven by increased commission revenue in the individual marketplace business and growth in global outsourcing from administration and project work. However, WTW forecast low single-digit growth for BD&O in 2026 as it absorbs changes in the Medicare market, with growth expected to be concentrated in the fourth quarter due to commission timing. Gebauer said the Medicare headwinds are expected to carry over “just for the short term,” and the company expects momentum to pick up beyond 2026.
In Risk & Broking (R&B), WTW posted 7% organic growth in the fourth quarter and expanded adjusted operating margin by 120 basis points. Corporate Risk and Broking (CRB) grew 8% in the quarter, which Hess said marked the 12th consecutive quarter of high single-digit growth excluding book-of-business activity and interest income. Lucy Clarke, President of Risk & Broking, said significant new business activity spanned global markets, with notable contributions from construction and surety, credit, marine, and natural resources. She described CRB North America as delivering high single-digit growth, citing M&A activity and specialty lines.
Management acknowledged a softer pricing environment in parts of insurance but said specialization, retention and new business were offsetting that pressure. Clarke also highlighted “electrification” as a growth area, citing a large insurance placement involving collaboration across Australia, Spain and London.
In Insurance Consulting and Technology (ICT), revenue declined 1% in the quarter and grew 1% for the year. Krasner said weakness in the consulting environment persisted, and clients remained cautious about large, multi-year technology implementation decisions. The company said it is shifting the balance from consulting toward technology over time and expects low- to mid-single-digit growth in 2026.
Efficiency and AI: WEDO remains central
Executives repeatedly pointed to WEDO, WTW’s enterprise delivery organization, as a driver of modernization and cost efficiency. Hess said WEDO-enabled AI and automation are already embedded in the company’s operating model and global delivery centers, and WTW is exploring “high-impact use cases” through partnerships with agentic AI innovators. Krasner said margin expansion was supported by segment performance and “prudent expense management,” with WEDO and technology investments helping drive operating leverage.
Portfolio moves: Newfront closed; more deals pending
WTW emphasized recent portfolio actions, including the divestiture of TRANZACT and acquisitions intended to improve growth and profitability. Hess said WTW closed the Newfront acquisition on Jan. 27 and described the business as a technology-enabled middle-market broker with a proprietary digital and AI-driven platform. Management said 2026 priorities include integrating Newfront’s team and technology, retaining talent, and combining capabilities into an end-to-end technology platform. WTW also said it sees “meaningful opportunities” to generate synergies over the next three years and has established an integration management office to oversee a phased approach.
WTW also announced it expects to complete the acquisition of Cushon, a UK fintech pensions and savings provider, in the first half of 2026, and expects to complete FlowStone Partners, a private equity secondary specialist, later in the quarter. In response to an analyst question, Krasner said the annual revenue contribution for Cushon and FlowStone will depend on closing dates, but said that in aggregate the two businesses are “somewhere around $300.”
2026 outlook: growth, buybacks, and key puts-and-takes
Management said its 2026 outlook aligns with long-term guidance of mid-single-digit organic growth, adjusted operating margin expansion and free cash flow margin expansion. Krasner said WTW expects foreign exchange to be a tailwind of approximately $0.30 to adjusted EPS in 2026, primarily in the first quarter due to euro-denominated revenue seasonality. He also said interest expense is expected to increase due to financing related to Newfront, with annual interest expense projected at roughly $320 million in 2026. WTW expects its adjusted tax rate to be relatively consistent with 2025 (about 21.1%).
Krasner also said the company expects to continue making investments in its reinsurance joint venture as it scales its commercial operations, projecting a headwind of about $0.30 to adjusted EPS in 2026.
On capital returns, WTW reported returning $439 million to shareholders in the quarter through $350 million of share repurchases and $89 million of dividends, and returning $2 billion for the full year. Looking ahead, the company expects to allocate at least $1 billion to share repurchases in 2026, subject to market conditions and potential capital needs for investment or M&A.
- Organic growth expectations: mid-single-digit at the enterprise level; mid- to high-single-digit in R&B; HWC mid-single-digit, with Health expected at high single digits.
- Free cash flow margin: expected to expand in 2026, with operating margin expansion and the absence of transformation program cash costs partly offset by transaction and integration expenses.
- Reinsurance JV: expected adjusted EPS headwind of about $0.30 in 2026.
In closing remarks, Hess said WTW is “confident in our position and our positive outlook for 2026,” citing momentum in the market, continued execution of strategy, and a dynamic political and regulatory environment that is driving clients to seek advice and solutions.
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.
