Willis Towers Watson (WTW) AI Stock Analysis

• Market Cap: $30.40B
• Dividend Yield: 1.14%
• Average Volume (3M): 419.42K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.36
• 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: 469,409
• 30 Day Avg. Volume: 419,421
• PEG Ratio: 2.98
• Price to Book (P/B): 4.02
• Price to Sales (P/S): 3.22
• P/FCF Ratio: 25.22
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 3.57
• Enterprise Value/Gross Profit: 8.22
• Enterprise Value/Ebitda: 10.38
• 1Y Price Target: $369.50
• Price Target Upside: 16.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $353.00 ▲(11.49% Upside)

The score is driven primarily by strong profitability and cash-flow generation, reinforced by upbeat 2026 guidance and planned capital returns. These positives are tempered by weak near-term technical momentum and some execution/headwind risks tied to consulting softness and acquisition-related financing/integration impacts.

Positive Factors

High Profitability & Margins

Sustained high net and EBIT margins reflect durable pricing power and operational efficiency across advisory, broking and HWC businesses. A strong margin base buffers against revenue cyclicality, funds reinvestment and returns, and supports lasting operating leverage improvements.

Strong Free Cash Flow & Returns

Consistent and growing free cash flow (FCF margin expansion and >$1.5bn FCF) underpins durable financial flexibility. Robust cash conversion supports sizable buybacks, debt management and strategic investment without needing equity financing, strengthening long-term capital allocation.

Strategic M&A and Tech Integration

Acquisitions and product integrations expand U.S. middle-market footprint and embed AI/automation into broking and wealth capabilities. These structural moves accelerate tech-enabled differentiation, improve cross-sell potential and raise longer-term revenue resilience and competitive positioning.

Negative Factors

Balance Sheet / Leverage Trend

A declining equity ratio, even with a manageable debt-to-equity, signals rising leverage risk if M&A continues. Increased leverage can constrain financial flexibility, raise refinancing risk in stress scenarios, and amplify earnings volatility if revenue/margin momentum weakens.

Higher Interest Expense from Financing

Material incremental interest (~$320m) from acquisition financing raises the company's fixed cost base, reducing net income and free cash flow available for investment or returns. This structural burden increases sensitivity to margin or revenue swings over the medium term.

Demand Headwinds in Consulting & BD&O

Persistent softness in Insurance Consulting & Technology and Medicare-driven BD&O pressures limit higher-margin consulting growth and cross-sell potential. If sustained, these structural demand headwinds could cap segment margin expansion and delay realization of acquisition synergies.

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 profitability (net margin 21.58%, EBIT margin 25.54%) and strong cash generation (TTM free cash flow up 14.61%, FCF-to-net-income > 1) support a strong overall profile, though recent revenue growth softness and some gross margin pressure temper the score. Balance sheet leverage looks manageable (debt-to-equity 0.68) but declining equity ratio warrants monitoring.

Income Statement

Willis Towers Watson's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth, but the company maintains strong profitability with a net profit margin of 21.58% and an EBIT margin of 25.54%. The gross profit margin has decreased compared to previous years, suggesting some pressure on cost management. Overall, the company demonstrates solid profitability despite recent revenue challenges.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio stands at 0.68, indicating a manageable level of leverage. Return on equity is strong at 26.53%, showcasing effective use of equity to generate profits. However, the equity ratio has been declining, suggesting a potential risk if leverage increases further. Overall, the balance sheet is stable but warrants monitoring of leverage levels.

Cash Flow

Cash flow analysis reveals a positive trajectory, with a 14.61% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is healthy, and the free cash flow to net income ratio exceeds 1, indicating strong cash generation relative to profits. This robust cash flow performance supports the company's financial flexibility and ability to invest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.81B	9.93B	9.48B	8.87B	9.00B	8.62B
Gross Profit	4.25B	4.43B	4.14B	3.80B	3.75B	3.46B
EBITDA	3.37B	823.00M	2.02B	2.03B	3.55B	2.02B
Net Income	2.12B	-98.00M	1.05B	1.01B	4.22B	996.00M
Balance Sheet
Total Assets	27.44B	27.68B	29.09B	31.77B	34.97B	38.53B
Cash, Cash Equivalents and Short-Term Investments	1.93B	1.89B	1.42B	1.26B	4.69B	2.04B
Total Debt	5.91B	5.93B	5.94B	5.48B	5.49B	6.72B
Total Liabilities	19.63B	19.66B	19.50B	21.68B	21.66B	27.60B
Stockholders Equity	7.74B	7.94B	9.52B	10.02B	13.26B	10.82B
Cash Flow
Free Cash Flow	1.63B	1.27B	1.10B	608.00M	1.86B	1.49B
Operating Cash Flow	1.60B	1.51B	1.34B	812.00M	2.06B	1.77B
Investing Cash Flow	1.01B	250.00M	-1.08B	-173.00M	2.77B	-160.00M
Financing Cash Flow	-1.98B	-459.00M	-1.20B	-3.44B	-3.11B	378.00M

Willis Towers Watson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 316.61
• 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 316.61 is below the 20-day moving average (MA) of 324.78, below the 50-day MA of 324.72, and below the 200-day MA of 320.28, indicating a bearish trend. The MACD of -3.25 indicates Positive momentum. The RSI at 38.32 is Neutral, neither overbought nor oversold. The STOCH value of 27.69 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
WTW	73 Outperform	$30.40B	15.15	27.79%	1.14%	―	―
ERIE	73 Outperform	$13.18B	23.01	30.44%	1.90%	9.64%	15.87%
AON	71 Outperform	$75.15B	20.54	47.76%	0.82%	14.06%	5.52%
AJG	71 Outperform	$64.04B	43.42	6.87%	1.01%	17.17%	19.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BRO	66 Neutral	$24.62B	22.82	10.99%	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.