Willis Towers Watson Reports Mixed Revenue Performance for Q4 2025
Willis Towers Watson (WTW) announced a 3% decrease in revenue, totaling $2.9 billion, for the fourth quarter of 2025. Despite this, the global advisory and broking firm achieved a 6% growth in organic revenue for the same period. The company reported a 2% revenue decline for the full year, down to $9.7 billion, primarily due to the divestiture of TRANZACT. However, they marked a 5% organic revenue increase for the fiscal year ending December 31, 2025.
According to CEO Carl Hess, "WTW had strong performance across our businesses driven by our team’s relentless focus and consistent execution of our strategy." During the quarter, adjusted diluted earnings per share rose by 2% to $8.12, while for the full year, these earnings increased by 5% to $17.08. Operating margins expanded substantially to 34.6% for the quarter, increasing by 490 basis points from the previous year, and reaching 23.0% for the full year, which was an increase of 1,670 basis points. The adjusted operating margin was reported at 36.9% for the quarter and 25.2% for the year.
Segment Performance Insights
The performance across WTW’s segments showed varied results. The Health, Wealth & Career division experienced an 11% decline in fourth-quarter revenue, amounting to $1.65 billion, attributed to the TRANZACT sale. Excluding this sale, the segment reported a 6% organic growth, driven by strong international health operations, robust retirement project performance, and heightened demand for advisory services. Meanwhile, the Risk & Broking segment saw a 10% revenue increase in Q4 to $1.25 billion, aided by a 7% organic growth spurred by heightened new business activities and strong client retention globally.
Financial Health and Strategic Moves
The company reported a significant increase in cash flow from operations, reaching $1.78 billion in 2025 compared to $1.51 billion the previous year. Free cash flow rose to $1.55 billion from $1.27 billion, primarily due to improved operating margins. WTW repurchased $1.65 billion in shares over 2025 and anticipates share buybacks of $1.0 billion or more in 2026, contingent on market conditions. The company also projected continued margin growth, estimating an average annual expansion of roughly 100 basis points in Risk & Broking over the next two years.
Industry Comparisons and Market Dynamics
The recent performance report aligns with broader financial updates from WTW’s industry peers, which include adjustments to economic challenges and evolving client needs. Aon’s financial results for 2025 highlighted ongoing demand and steady pricing strength in commercial lines. The broker reported high single-digit organic revenue growth, driven by strong retention and new businesses across various segments.
Similarly, Marsh & McLennan Companies (MMC) reported a 2025 revenue of $26.2 billion, with around 7% organic growth attributed to stable market conditions and significant client engagement. MMC’s brokerage operations benefited from disciplined markets and favorable rate environments, especially in property/casualty and specialty sectors.
Arthur J. Gallagher & Co. concluded 2025 with $9.5 billion in revenue, experiencing mid-single-digit organic growth. Despite some margin pressures due to increased claims and investments, the firm emphasized its strategy on acquisition integration and global expansion as key growth drivers.
While WTW’s 5-6% organic growth places it among a competitive peer group with varied performances, its strengths in core broking and advisory activities, alongside strategic financial management, underline the company’s resilience. In a landscape characterized by fluctuating commercial line rates, economic uncertainties, and changing client demands, industry players are focusing on organic growth and margin stability to maintain competitive market positions as 2026 approaches.