Willis Towers Watson (WTW)
NASDAQ:WTW
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Willis Towers Watson
(NASDAQ:WTW)
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Rating:68Neutral
Price Target:
$305.00
▲(8.87% Upside)
Action:DowngradedDate: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 and cash conversion
WTW delivered materially stronger free cash flow in 2025 with FCF roughly matching net income and improved cash conversion. Durable FCF supports debt servicing, recurring technology investments, and the firm's aggressive buyback/return program, improving financial optionality over 2-6 months.
Negative Factors
Rising leverage reduces financial flexibility
Debt has roughly doubled relative to equity since 2021, constraining balance-sheet flexibility. Higher leverage increases refinancing and interest risk, limits capacity for opportunistic M&A or buybacks if cash flow weakens, and raises vulnerability to macro shocks over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow and cash conversion
WTW delivered materially stronger free cash flow in 2025 with FCF roughly matching net income and improved cash conversion. Durable FCF supports debt servicing, recurring technology investments, and the firm's aggressive buyback/return program, improving financial optionality over 2-6 months.
Read all positive factors
Willis Towers Watson (WTW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.49B
Dividend Yield1.14%
Average Volume (3M)544.89K
Price to Earnings (P/E)20.1
Beta (1Y)0.40
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees49,000
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)8.12
Shares Outstanding94,545,906
10 Day Avg. Volume499,294
30 Day Avg. Volume544,888
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)4.04
Price to Sales (P/S)3.32
P/FCF Ratio20.83
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit7.41
Enterprise Value/Ebitda11.40
Forecast
1Y Price Target
$358.08Price Target Upside27.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)19.63
Revenue Forecast (FY)$10.50B
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, an...
How the Company Makes Money
WTW primarily generates revenue from fees and commissions tied to insurance brokerage and advisory services, plus consulting fees and recurring revenue from technology and related solutions.
1) Insurance brokerage and distribution revenue (commer...
Willis Towers Watson Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyWillis Towers Watson Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
Earnings call highlights robust organic growth, meaningful margin expansion, strong free cash flow and active portfolio optimization (notably Newfront, Cushion, Flowstone), and continued returns to shareholders. Strengths include R&B specialization wins, HWC momentum (particularly health and career), significant AUM growth for LifeSite, and productivity gains from WeDo automation. Primary challenges are a softer ICT/consulting environment, Medicare-related near-term headwinds for BD&O, incremental interest expense from acquisition financing, and a modest EPS drag from the Willis Re JV and integration costs. Overall the positives — recurring organic growth, margin expansion, cash generation, strategic acquisitions, and clear guidance — materially outweigh the manageable near-term headwinds.Positive Updates
Strong Organic Revenue Growth
Company delivered 6% organic growth in Q4 and 5% organic growth for full year 2025, in line with mid-single-digit targets.
Negative Updates
Insurance Consulting & Technology (ICT) Weakness
ICT revenue declined 1% in Q4 (11% growth in prior-year quarter) and full-year growth slowed to 1% from 4% last year, with client caution on large multiyear tech implementations.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Organic Revenue Growth
Company delivered 6% organic growth in Q4 and 5% organic growth for full year 2025, in line with mid-single-digit targets.
Read all positive updates
Company Guidance
The company guided to mid‑single‑digit organic revenue growth at the enterprise level for 2026 with continued adjusted operating margin expansion and free cash flow margin expansion (after delivering full‑year 2025 adjusted operating margin of 25.2% and Q4 margin of 36.9%), and provided segment detail: R&B (including CRB) targeted mid‑to‑high‑single‑digit organic growth (CRB mid–high single digits), HWC expects mid‑single‑digit growth overall with Health seen at high single digits, Wealth at the high end of low single digits, Career at mid‑single digits, BD&O at low single digits, and ICT at low‑to‑mid single digits; management reiterated an R&B objective of ~100 bps of operating margin expansion annually over the next two years, expects to continue expanding free cash flow above 2025’s $1.5 billion (15.9% FCF margin vs. 12.8% prior year), plans at least $1 billion of share repurchases in 2026, and disclosed key modeled items: ~ $320 million of annual interest expense (post‑Newfront financing), a ~ $0.30 EPS headwind from the Willis Re JV, an approximate $0.30 EPS foreign‑exchange tailwind (largely in Q1), and that recently announced deals (Newfront closed; Cushion and Flowstone expected in 2026) add incremental revenue (Cushion + Flowstone ~ $300 million aggregate) and will incur transaction/integration costs as synergies are captured over the next three years.Willis Towers Watson Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
60
Neutral
Cash Flow
74
Positive
| 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
Negative
280.14
Price Trends
296.28
Negative
309.79
Negative
316.18
Negative
Market Momentum
-2.96
Negative
39.57
Neutral
52.84
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 280.14 is below the 20-day moving average (MA) of 288.11, below the 50-day MA of 296.28, and below the 200-day MA of 316.18, indicating a bearish trend. The MACD of -2.96 indicates Negative momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 52.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WTW.
Willis Towers Watson Risk Analysis
Willis Towers Watson disclosed 37 risk factors in its most recent earnings report. Willis Towers Watson reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Willis Towers Watson Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.82B | 23.87 | 25.30% | 1.90% | 9.64% | 15.87% | |
70 Outperform | $22.10B | 23.44 | 9.72% | 0.77% | 17.87% | -9.35% | |
69 Neutral | $54.90B | 45.10 | 6.50% | 1.01% | 17.17% | 19.12% | |
68 Neutral | $26.49B | 20.06 | 20.10% | 1.14% | ― | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $66.97B | 20.54 | 45.99% | 0.82% | 14.06% | 5.52% |
* Financial Sector Average
WTW
Willis Towers Watson
280.14
-44.03
-13.58%
AON
Aon
312.57
-68.51
-17.98%
AJG
Arthur J Gallagher & Co
213.55
-126.01
-37.11%
BRO
Brown & Brown
65.08
-54.94
-45.77%
ERIE
Erie Indemnity Company
253.76
-162.08
-38.98%
Willis Towers Watson Corporate Events
Business Operations and StrategyM&A Transactions
Willis Towers Watson Completes Acquisition of Newfront Insurance
Positive
Jan 27, 2026
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 tec...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.