WTW US S&P 500Russell 1000 Earnings call
Willis Towers Watson (WTW) · Q2 2026 results and valuation
Share price: $334.18 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026
Net income down 22.9% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−22.9%
Net income vs Q1 2026
Outlook given
Net income 229.0M vs 297.0M
Revenue +2.2%
Against the same quarter last year (Q2 2025) it is −30.8%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 82% of company calls
Answers to analysts: very upbeat, in line with the script.
Last call it was different: the answers were more upbeat than the script.
3 · What stood out
Guidance
WTW expects share repurchases of at least $1 billion for the full year, subject to market conditions and potential factors.
Valuation
Is Willis Towers Watson undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.1% growth a year (3-year revenue growth), the model's fair value is $171.68 a share — the stock trades 95% above it. Today's price assumes 10.2% growth a year.
Current price
$334.18
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+10.2% for 10 yrs
Fair value / share
$171.68
Buy below
$128.76
Price vs fair value
Overvalued 95%
Price vs buy-below price
Overvalued 160%
Read between the lines
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Key theme
Sharper insights and better client experience aim to strengthen client retention while reinvesting in talent and high-opportunity businesses.
Source quote
“Some of it is about delivering sharper insights and better client experience, which strengthens client retention via the tools that we're... Some of that is about adding talent. Together with reinvesting in talent and our highest opportunity businesses and geographies, that's what compounds into durable growth over time.”
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Guidance
New cost plan aims for roughly $400 million in yearly savings after investing about $625 million, with a cost-to-savings ratio near 1.6x.
Source quote
“We expect to capture efficiencies and generate approximately $400 million in run rate savings through an investment of approximately $625 million, reflecting a disciplined cash-cost-to-achieve ratio of about 1.6x.”
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Guidance
WTW expects growth, productivity gains, and margin expansion to generate long-term returns while strengthening its position with clients.
Source quote
“The combination of growth, productivity gains and margin expansion we expect to generate offers attractive long-term returns while further strengthening our position with clients.”
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Fading
Prior quarter's 22.3% margin and $3.72 EPS are fading from focus as revenue hits the low end amid volatile global markets.
Source quote
“In the first quarter, we delivered 3% organic growth with adjusted operating margin of 22.3% and $3.72 of adjusted diluted... Now I'll turn to our results. Revenue came in at the low end of our plan as we saw the effects of a more challenging and volatile global market environment during the quarter, particularly considering our meaningful presence in the Middle East...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“We expect momentum in Career to improve in the second half of 2026, supported by our expanding pipeline of opportunities, including regulatory-driven activity, a positive outlook for our compensation benchmarking...”
“We're also seeing strong momentum in 2 high-growth sectors, digital infrastructure and power and renewable energy, where our recent investments in specialized talent and placement capacity are converting directly into...”
“In the second quarter, Insurance Consulting and Technology grew 6% organically, following 5% growth in Q1, primarily reflecting strong software sales and new business wins, including multiyear deals in our...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.47B | 2.41B | +2.2% | 2.26B | +9.1% |
| Operating income | 364.0M | 448.0M | −18.8% | 368.0M | −1.1% |
| Net income | 229.0M | 297.0M | −22.9% | 331.0M | −30.8% |
| EPS | 2.43 | 3.10 | −21.6% | 3.32 | −26.8% |
| P/E today 17.8 | 16.2 | 17.1 | −0.9 | 207.1 | −190.9 |
Topics
Most discussed now
- It was a quarter defined by both marketplace success and cost discipline with strong enterprise adjusted operating margin expansion…
- In the second quarter, Willis Towers Watson delivered strong results with 5% organic growth, 100 basis points of adjusted operating margin…
- Notably, this builds on the 8% organic growth achieved in the prior year second quarter.
- Willis Towers Watson's growth figures throughout are on an organic basis, but I'll note that its recent acquisitions are performing well…
- Organic revenue increased 4% in the second quarter, with growth driven primarily by continued strength in Health and a steady...
Faded since Q1 2026
- Fading Willis Towers Watson saw high health care inflation, regulatory changes and a higher volume of corporate transactions, along with elevated…
- Fading Despite the short-term headwinds that impacted the first quarter, Willis Towers Watson remains confident in its ability to deliver on its…
- Fading To a lesser extent, Willis Towers Watson also saw a more competitive pricing environment.
- Fading WTW's integrated operating model is a real advantage here.
Latest announcements
Official filings, newest first.
- Results of operations; Regulation FD disclosure · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Material agreement; Other events · SEC 8-K
- Other events · SEC 8-K