Willis Towers Watson (WTW) AI Stock Analysis

• Market Cap: $27.89B
• Dividend Yield: 1.14%
• Average Volume (3M): 956.00K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.40
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 49,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 8.12
• Shares Outstanding: 95,748,610
• 10 Day Avg. Volume: 1,266,434
• 30 Day Avg. Volume: 956,003
• PEG Ratio: -0.01
• Price to Book (P/B): 4.04
• Price to Sales (P/S): 3.32
• P/FCF Ratio: 20.83
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 3.32
• Enterprise Value/Gross Profit: 7.88
• Enterprise Value/Ebitda: 12.13
• 1Y Price Target: $363.79
• Price Target Upside: 22.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 19.54
• Revenue Forecast (FY): $10.49B

• Rating: 68 Neutral
• Price Target: $317.00 ▲(6.79% Upside)
• Action: Downgraded Date: 02/05/26
• Date: Action: Downgraded 02/05/26

The score is driven primarily by improving fundamentals and strong cash generation, reinforced by upbeat 2026 guidance for organic growth, margin expansion, and shareholder returns. The main constraints are earnings volatility and higher leverage, while technicals are supportive but mixed due to a slightly negative MACD and valuation is reasonable rather than compelling.

Positive Factors

Strong free cash flow generation

WTW converted earnings to cash more effectively by 2025, generating $1.5bn FCF and improving cash conversion. Durable cash generation supports reinvestment, M&A funding, and repeatable shareholder returns (share buybacks), reducing reliance on capital markets over the medium term.

Sustained margin expansion and operating discipline

Material operating margin expansion reflects productivity initiatives (WeDo automation) and portfolio mix shifts toward higher‑margin HWC and R&B businesses. Higher structural margins increase earnings resilience and make future organic growth or acquisitions more value accretive over a multi-quarter horizon.

Tech-enabled broking and strategic M&A

Acquiring Newfront and targeting Cushion/Flowstone accelerates WTW's push into tech-enabled, middle‑market broking. These deals add distribution, analytics and automation capabilities that can deepen client stickiness and drive cross‑sell, supporting durable growth in higher-growth sectors like tech and fintech.

Negative Factors

Elevated leverage reduces balance-sheet flexibility

Debt nearly doubled as leverage increased materially, leaving less cushion for cyclical shocks or large opportunistic investments. Higher leverage raises interest burden sensitivity, constrains covenant headroom, and limits optionality for sizeable strategic moves without incremental refinancing risk over the next several quarters.

Revenue and earnings volatility

Inconsistent revenue growth and one‑year swings in profitability indicate exposure to cyclical client spending, insurance market cycles, and comparability adjustments (TRANZACT). This variability reduces predictability of earnings and complicates planning for sustained margin and cash flow trends across multiple reporting periods.

Acquisition financing and JV EPS headwinds

Incremental interest from recent financing and a modest EPS drag from the Willis Re JV create persistent near‑term earnings pressure. These structural headwinds will constrain free earnings growth and make EPS generation more sensitive to integration timing and cost‑synergy realization over the next 2–3 years.

Willis Towers Watson Business Overview & Revenue Model

Company Description

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. It operates through two segments, Health, Wealth and Career; and Risk and Broking. The company offers actuarial support, plan design, and administrative services for traditional pension and retirement savings plans; plan management consulting, broking, and administration services for health and group benefit programs; and benefits outsourcing services. It also provides advice, data, software, and products to address clients' total rewards and talent issues. In addition, the company offers risk advice, insurance brokerage, and consulting services in the areas of property and casualty, aerospace, construction, and marine. Further, it offers investment consulting and discretionary management services to insurance and reinsurance companies; insurance consulting and technology, risk and capital management, pricing and predictive modeling, financial and regulatory reporting, financial and capital modeling, merger and acquisition, outsourcing, and business management services; wholesale insurance broking services to retail and wholesale brokers; and underwriting and capital management, capital market, and advisory and brokerage services. Additionally, the company provides primary medical and ancillary benefit exchange, and outsourcing services to active employees and retirees in the group and individual markets, as well as delivers healthcare and reimbursement accounts, including health savings accounts, health reimbursement arrangements, flexible spending accounts, and other consumer-directed accounts. The company was formerly known as Willis Group Holdings Public Limited Company and changed its name to Willis Towers Watson Public Limited Company in January 2016. Willis Towers Watson Public Limited Company was founded in 1828 and is based in London, the United Kingdom.

How the Company Makes Money

WTW generates revenue primarily through three key segments: Risk and Insurance Services, Human Capital and Benefits, and Investment, Risk and Reinsurance. The Risk and Insurance Services segment earns revenue by providing insurance brokerage services, risk management consulting, and insurance program design, often charging clients a percentage of the premiums they place. In the Human Capital and Benefits segment, WTW earns fees for consulting services related to talent management, employee benefits, and health and wellness programs. The Investment, Risk and Reinsurance segment derives income from advisory services related to investment strategy and risk management, as well as reinsurance brokerage services. Additionally, WTW benefits from strategic partnerships with various financial institutions and technology providers, which enhance its service offerings and expand its market reach, further contributing to its revenue growth.

Willis Towers Watson Financial Statement Overview

Summary

Solid cash generation (free cash flow improved meaningfully and cash conversion was strong in 2025) and a sharp profitability rebound in 2025 support the score. Offsetting this, revenue growth turned slightly negative in 2025 and earnings were volatile (2024 net loss followed by 2025 rebound), while leverage has risen with debt-to-equity increasing to ~0.92, raising financial risk.

Income Statement

Revenue has been fairly stable over the period, but growth has been inconsistent and turned negative in 2025 (down ~1% year over year). Profitability is volatile: 2024 swung to a small net loss, followed by a strong rebound in 2025 (net margin ~16.5%). Operating profitability also improved sharply in 2025 versus 2024 (EBIT and EBITDA margins recovered meaningfully), but the large year-to-year swings reduce confidence in earnings durability.

Balance Sheet

Leverage has trended higher recently, with debt-to-equity rising from ~0.41 (2021) to ~0.92 (2025), which increases financial risk and reduces balance-sheet flexibility. Equity remains sizable and return on equity recovered to ~20% in 2025 after turning negative in 2024, but the combination of rising debt load and earnings volatility is a key watch item.

Cash Flow

Cash generation is a relative strength: operating cash flow and free cash flow improved from 2022 through 2025, and 2025 free cash flow matched net income (strong cash conversion). Free cash flow growth was very strong in 2025 versus 2024. The main weakness is choppier multi-year growth (notably a sharp drop in 2022), indicating some variability in cash generation year to year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.71B	9.93B	9.48B	8.87B	9.00B
Gross Profit	4.08B	4.43B	4.14B	3.80B	3.75B
EBITDA	2.67B	823.00M	2.02B	2.03B	3.55B
Net Income	1.60B	-98.00M	1.05B	1.01B	4.22B
Balance Sheet
Total Assets	29.53B	27.68B	29.09B	31.77B	34.97B
Cash, Cash Equivalents and Short-Term Investments	3.13B	1.89B	1.42B	1.26B	4.69B
Total Debt	6.90B	5.93B	5.94B	5.48B	5.49B
Total Liabilities	21.48B	19.66B	19.50B	21.68B	21.66B
Stockholders Equity	7.98B	7.94B	9.52B	10.02B	13.26B
Cash Flow
Free Cash Flow	1.55B	1.27B	1.10B	608.00M	1.86B
Operating Cash Flow	1.77B	1.51B	1.34B	812.00M	2.06B
Investing Cash Flow	447.00M	250.00M	-1.08B	-173.00M	2.77B
Financing Cash Flow	-936.00M	-459.00M	-1.20B	-3.44B	-3.11B

Willis Towers Watson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 296.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTW, the sentiment is Negative. The current price of 296.84 is below the 20-day moving average (MA) of 305.37, below the 50-day MA of 319.48, and below the 200-day MA of 319.71, indicating a bearish trend. The MACD of -7.72 indicates Positive momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 57.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WTW.

Willis Towers Watson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERIE	74 Outperform	$11.97B	24.21	26.19%	1.90%	9.64%	15.87%
AON	71 Outperform	$68.42B	18.76	47.76%	0.82%	14.06%	5.52%
AJG	69 Neutral	$55.53B	37.60	6.87%	1.01%	17.17%	19.12%
WTW	68 Neutral	$27.89B	17.91	20.07%	1.14%	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BRO	66 Neutral	$23.77B	22.10	10.98%	0.77%	17.87%	-9.35%

Willis Towers Watson Corporate Events

Willis Towers Watson Completes Acquisition of Newfront Insurance

On January 27, 2026, WTW completed its previously announced acquisition of Newfront Insurance Holdings, a San Francisco-based, top-40 U.S. insurance broker known for combining specialty sector expertise with advanced AI- and automation-enabled technology. The deal brings Newfront’s Business Insurance and Total Rewards units into WTW’s Risk & Broking and Health, Wealth & Career segments, respectively, immediately expanding WTW’s U.S. middle-market footprint and strengthening its presence in high-growth sectors such as technology, fintech and life sciences; with Newfront’s leadership, including co-founder and CEO Spike Lipkin, joining WTW to drive integration, client development and technology, the transaction is set to enhance WTW’s tech-enabled broking capabilities, competitive differentiation and ability to deliver integrated, data-driven solutions to clients of all sizes.

The most recent analyst rating on (WTW) stock is a Hold with a $347.00 price target. To see the full list of analyst forecasts on Willis Towers Watson stock, see the WTW Stock Forecast page.

Willis Towers Watson Secures New Term Loan Facility

On January 7, 2026, Willis Towers Watson and its subsidiaries Trinity Acquisition plc and Willis North America Inc. entered into a $775 million unsecured delayed draw term loan facility arranged by JPMorgan Chase Bank to support WTW’s pending acquisition of Newfront Insurance Holdings, Inc., refinance existing debt and fund general corporate purposes including working capital, capital expenditures and permitted acquisitions. The three-year facility, which can be drawn in up to four tranches following completion of the Newfront deal and is subject to customary conditions, carries interest tied to Term SOFR or a base rate with margins and commitment fees dependent on WTW’s senior unsecured credit rating, and imposes standard covenants, reporting obligations and default provisions, with WTW and certain subsidiaries providing guarantees, underscoring the company’s commitment to disciplined balance-sheet management as it advances its expansion strategy in North America.

The most recent analyst rating on (WTW) stock is a Sell with a $318.00 price target. To see the full list of analyst forecasts on Willis Towers Watson stock, see the WTW Stock Forecast page.

Willis Towers Watson completes $1 billion senior notes offering

On December 22, 2025, Willis North America Inc., a subsidiary of Willis Towers Watson, completed a $1.0 billion public offering of senior unsecured notes, consisting of $700 million of 4.550% notes due 2031 and $300 million of 5.150% notes due 2036, fully and unconditionally guaranteed by several key Willis Towers Watson group entities in Ireland and the UK. The notes, which rank pari passu with the group’s existing senior unsecured debt and are effectively subordinated to any secured obligations, generated approximately $990 million in net proceeds that the company plans to use primarily to fund the proposed Newfront acquisition and repay $550 million of 4.400% senior notes due 2026, or, if the acquisition does not close, to fully repay the 2026 notes and redeem the 2036 notes, with any residual funds allocated to general corporate purposes.

The most recent analyst rating on (WTW) stock is a Buy with a $386.00 price target. To see the full list of analyst forecasts on Willis Towers Watson stock, see the WTW Stock Forecast page.

Willis Towers Watson Prices $1 Billion Notes Offering

On December 15, 2025, Willis North America Inc., a subsidiary of Willis Towers Watson, announced the pricing of a $1 billion offering of senior unsecured notes, with $700 million due in 2031 and $300 million due in 2036. The proceeds are intended to fund the Newfront acquisition and repay existing debt, with the offering not contingent on the acquisition’s closure.

The most recent analyst rating on (WTW) stock is a Buy with a $386.00 price target. To see the full list of analyst forecasts on Willis Towers Watson stock, see the WTW Stock Forecast page.

Willis Towers Watson to Acquire Newfront Insurance

On December 10, 2025, Willis Towers Watson (WTW) announced a definitive agreement to acquire Newfront Insurance Holdings, Inc., a San Francisco-based broker, for $1.3 billion. This acquisition, expected to close in the first quarter of 2026, will enhance WTW’s presence in the U.S. middle market and high-growth specialties such as technology, fintech, and life sciences. The integration of Newfront’s innovative technology and AI capabilities will complement WTW’s existing investments, accelerating its technology strategy and improving operational efficiency. The transaction is anticipated to be slightly dilutive to WTW’s adjusted EPS in 2026 but accretive in 2027, with expected cost synergies of $35 million by 2028.

The most recent analyst rating on (WTW) stock is a Buy with a $362.00 price target. To see the full list of analyst forecasts on Willis Towers Watson stock, see the WTW Stock Forecast page.