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Willis Towers Watson
(NASDAQ:WTW)
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Rating:77Outperform
Price Target:
$359.00
â–²(21.65% Upside)
Action:Reiterated
Date:07/31/26
WTW scores well primarily on strong profitability and cash generation, reinforced by positive earnings-call execution (organic growth, margin expansion, EPS growth) and a clearly positive price trend above all major moving averages. The score is tempered by increased leverage and historical earnings volatility, plus near-term execution and cash investment risk tied to the Propel initiative; valuation appears fair with only a modest dividend yield.
Positive Factors
Free cash flow generation
WTW's sustained free cash flow (~$1.75B TTM) and strong FCF-to-net-income conversion (~87%) provide durable financial flexibility for organic investment, technology rollout, M&A integration and capital returns, supporting resilience through cycles and funding multi-year strategic initiatives.
Negative Factors
Elevated leverage
Leverage materially rose versus prior years to ~0.87x equity, reducing balance-sheet flexibility. Elevated debt increases downside risk if growth or cash conversion weakens, constraining the firm's ability to fund opportunistic M&A or absorb cyclical revenue shortfalls without raising financing costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
WTW's sustained free cash flow (~$1.75B TTM) and strong FCF-to-net-income conversion (~87%) provide durable financial flexibility for organic investment, technology rollout, M&A integration and capital returns, supporting resilience through cycles and funding multi-year strategic initiatives.
Read all positive factors
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.
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The Fly
The FlyWillis Towers Watson (WTW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.20B
Dividend Yield1.12%
Average Volume (3M)569.72K
Price to Earnings (P/E)20.6
Beta (1Y)0.44
Revenue Growth3.00%
EPS Growth914.66%
CountryUS
Employees47,000
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)16.31
Shares Outstanding92,871,940
10 Day Avg. Volume489,574
30 Day Avg. Volume569,720
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$361.93Price Target Upside22.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)19.77
Revenue Forecast (FY)$10.44B
Willis Towers Watson Business Overview & Revenue Model
Company Description
Willis Towers Watson Public Limited Company (WTW) functions as a global provider of comprehensive consulting, brokerage, and solutions services. Its operations are structured across two primary divisions: Health, Wealth and Career, and Risk and Br...
How the Company Makes Money
WTW generates revenue primarily from fees and commissions tied to advisory, brokerage, and consulting services, with additional technology and outsourcing-related revenues. Key revenue streams include: (1) Insurance brokerage and risk advisory: WT...
Willis Towers Watson Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call highlighted solid top-line growth (5% organic), meaningful margin expansion (+100 bps), a 17% increase in adjusted EPS and strong free cash flow improvement in H1, supported by clear early wins from AI/automation and disciplined capital returns. Management announced a material, targeted AI acceleration program (Propel) with quantified savings and ambitious 2028 margin targets; while Propel should drive substantial long-term benefits, it brings near-term investment and execution risk. There are some sector-specific weaknesses (Career project declines in the Middle East, modest Wealth and BD&O growth) and a generally softer pricing environment across many insurance lines. On balance, positive operational momentum, quantified AI economics and margin guidance outweigh the localized and near-term headwinds.Positive Updates
Enterprise Organic Growth
WTW delivered 5% organic revenue growth in Q2 2026, with recent acquisitions contributing ~3 percentage points to reported growth.
Negative Updates
Career Revenue Pressure — Middle East
Career revenue was flat overall; project work in the Middle East was constrained with nearly a 50% decline in project work, creating near-term headwinds for Career.
Read all updates
Q2-2026 Updates
Positive
Negative
Enterprise Organic Growth
WTW delivered 5% organic revenue growth in Q2 2026, with recent acquisitions contributing ~3 percentage points to reported growth.
Read all positive updates
Company Guidance
WTW reiterated unchanged fiscal‑2026 guidance for mid‑single‑digit organic growth and continued annual adjusted operating‑margin expansion while detailing Propel: a roughly $625M cash investment (≈$25M noncash charges) to capture approximately $400M of run‑rate savings (cash‑cost‑to‑achieve ≈1.6x), reinvesting ~$50M to deliver ~$350M net run‑rate savings by end‑2028 with benefits beginning in 2027 and an expected enterprise adjusted operating margin of ~30% in 2028 (HWC ~35%, R&B ~30%); Q2 metrics included 5% organic growth, adjusted operating margin 19.5% (+100 bps YoY), adjusted diluted EPS $3.35 (+17%), HWC organic +4% (Health +8%, Wealth +2%, Career flat) with HWC margin 24.1% (+30 bps), R&B organic +7% with R&B margin 22.2% (+100 bps), ICT +6%, six‑month free cash flow $360M (up $143M YoY), an expected full‑year FX tailwind of ~$0.35 to EPS, Q2 buybacks of $450M and dividends of $90M ($0.96/share), and management expects improving free cash flow margin and at least $1B of share repurchases for the year.Willis Towers Watson Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.10B | 9.71B | 9.93B | 9.48B | 8.87B | 9.00B |
| Gross Profit | 5.43B | 4.08B | 4.43B | 4.14B | 3.80B | 3.75B |
| EBITDA | 2.69B | 2.67B | 823.00M | 2.02B | 2.03B | 3.55B |
| Net Income | 1.56B | 1.60B | -98.00M | 1.05B | 1.01B | 4.22B |
Balance Sheet | ||||||
| Total Assets | 30.56B | 29.53B | 27.68B | 29.09B | 31.77B | 34.97B |
| Cash, Cash Equivalents and Short-Term Investments | 1.63B | 3.13B | 1.89B | 1.42B | 1.26B | 4.69B |
| Total Debt | 7.10B | 6.91B | 5.93B | 5.94B | 5.48B | 5.49B |
| Total Liabilities | 22.79B | 21.48B | 19.66B | 19.50B | 21.68B | 21.66B |
| Stockholders Equity | 7.69B | 7.98B | 7.94B | 9.52B | 10.02B | 13.26B |
Cash Flow | ||||||
| Free Cash Flow | 1.70B | 1.55B | 1.27B | 1.10B | 608.00M | 1.86B |
| Operating Cash Flow | 1.92B | 1.77B | 1.51B | 1.34B | 812.00M | 2.06B |
| Investing Cash Flow | -1.34B | 447.00M | 250.00M | -1.08B | -173.00M | 2.77B |
| Financing Cash Flow | -747.00M | -936.00M | -459.00M | -1.20B | -3.44B | -3.11B |
Willis Towers Watson Technical Analysis
Positive
295.11
Price Trends
278.09
Positive
277.60
Positive
296.69
Positive
Market Momentum
16.43
Negative
79.34
Negative
91.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTW, the sentiment is Positive. The current price of 295.11 is below the 20-day moving average (MA) of 303.43, above the 50-day MA of 278.09, and below the 200-day MA of 296.69, indicating a bullish trend. The MACD of 16.43 indicates Negative momentum. The RSI at 79.34 is Negative, neither overbought nor oversold. The STOCH value of 91.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $76.48B | 19.77 | 42.56% | 0.83% | 4.36% | 51.69% | |
79 Outperform | $23.56B | 19.45 | 9.62% | 0.95% | 34.22% | 3.21% | |
78 Outperform | $64.08B | 40.89 | 6.91% | 1.07% | 26.74% | -9.59% | |
78 Outperform | $11.27B | 20.85 | 24.52% | 2.57% | 3.65% | -7.67% | |
77 Outperform | $31.20B | 20.60 | 19.95% | 1.27% | 3.00% | 914.66% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
WTW
Willis Towers Watson
339.63
18.10
5.63%
AON
Aon
356.65
-3.69
-1.02%
AJG
Arthur J Gallagher & Co
248.06
-35.01
-12.37%
BRO
Brown & Brown
71.17
-19.82
-21.78%
ERIE
Erie Indemnity Company
244.53
-106.91
-30.42%
Willis Towers Watson Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Willis Towers Watson Shareholders Back Governance and Capital Measures
Positive
May 21, 2026
At its annual general meeting on May 20, 2026, Willis Towers Watson shareholders elected all nominated directors, with strong majorities in favor of each candidate, and ratified Deloitte Touche LLP and Deloitte Ireland LLP as the Company’s ...
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.