Willis Towers Watson (WTW)
NASDAQ:WTW
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Willis Towers Watson
(NASDAQ:WTW)
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Rating:66Neutral
Price Target:
$277.00
▼(-6.93% Downside)
Action:ReiteratedDate:05/01/26
WTW scores well on underlying financial quality (strong profitability and free cash flow) and a generally constructive earnings-call outlook with ongoing margin expansion goals and capital returns. These positives are tempered by clearly weak technicals (below major moving averages with negative momentum) and some near-term growth uncertainty in Risk & Broking despite reiterated guidance.
Positive Factors
Strong profitability and margins
Sustained high operating and net margins indicate durable core profitability across advisory, broking and tech lines. These margins support reinvestment in products, steady capital returns and provide cushion vs cyclical revenue swings, enabling multi‑year strategic initiatives to proceed.
Negative Factors
Rising leverage
The step‑up in leverage reduces financial flexibility and heightens sensitivity to margin shocks or lower cash flow. With debt elevated versus historical levels, the company has less capacity for opportunistic M&A, sustained buybacks or to absorb cyclical earnings volatility without raising funding costs or cutting returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and margins
Sustained high operating and net margins indicate durable core profitability across advisory, broking and tech lines. These margins support reinvestment in products, steady capital returns and provide cushion vs cyclical revenue swings, enabling multi‑year strategic initiatives to proceed.
Read all positive factors
Willis Towers Watson (WTW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.13B
Dividend Yield1.14%
Average Volume (3M)545.17K
Price to Earnings (P/E)23.3
Beta (1Y)0.46
Revenue Growth0.92%
EPS GrowthN/A
CountryUS
Employees49,000
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)3.72
Shares Outstanding94,203,100
10 Day Avg. Volume624,907
30 Day Avg. Volume545,173
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 Cap1.29
Enterprise Value/Revenue3.15
Enterprise Value/Gross Profit8.26
Enterprise Value/Ebitda11.60
Forecast
1Y Price Target
$332.50Price Target Upside11.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)19.58
Revenue Forecast (FY)$10.46B
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a mix of encouraging operational and strategic progress alongside near-term revenue and regional headwinds. Financially, management reported solid earnings growth (adjusted EPS +19%) and margin expansion (+70 bps) while emphasizing AI and technology-driven productivity gains, meaningful client wins, and active capital returns. Offsetting these positives were a revenue result that landed at the low end of plan, a softer start in Risk & Broking (missed new business and narrowed guidance), and specific regional disruptions (Middle East) that depressed some advisory activity and timing of bookings. Management remains confident in mid-single-digit full-year growth, continued margin expansion and the long-term benefits of AI and the Newfront integration, but near-term pacing and competitive pricing in parts of R&B introduce uncertainty.Positive Updates
Overall Financial Performance
Delivered 3% organic revenue growth for Q1 FY2026; adjusted operating margin of 22.3% (up ~70 basis points year-over-year); adjusted diluted EPS of $3.72, a 19% increase vs Q1 2025. Management reiterated near-term goals of mid-single-digit growth, continued margin expansion and free cash flow margin improvement.
Negative Updates
Revenue Came in at Low End of Plan
Company acknowledged revenue landed toward the low end of its plan for the quarter, citing a more challenging and volatile global market environment and specific regional disruptions as primary drivers.
Read all updates
Q1-2026 Updates
Positive
Negative
Overall Financial Performance
Delivered 3% organic revenue growth for Q1 FY2026; adjusted operating margin of 22.3% (up ~70 basis points year-over-year); adjusted diluted EPS of $3.72, a 19% increase vs Q1 2025. Management reiterated near-term goals of mid-single-digit growth, continued margin expansion and free cash flow margin improvement.
Read all positive updates
Company Guidance
WTW reiterated its near‑term goals for mid‑single‑digit organic revenue growth, continued margin expansion and improved free cash flow margin, with segment guidance of mid‑single‑digit growth for Risk & Broking (narrowed to mid‑single digits), HWC at mid‑single‑digits overall, ICT low‑to‑mid‑single‑digits, and HWC subguidance of high‑single‑digit Health, high‑end low‑single‑digit Wealth, Career low‑to‑mid‑single‑digit and BD&O low‑single‑digit; management also reiterated a target of roughly 100 basis points of average annual adjusted operating margin expansion over the next two years. As a baseline, Q1 2026 delivered 3% organic growth, adjusted operating margin of 22.3% (up ~70 bps YoY), adjusted diluted EPS of $3.72 (+19% YoY), R&B organic growth of 2% (1% ex certain items) with R&B margin 22.6% (+60 bps), HWC growth of 3% with HWC margin 27.3% (+60 bps), ICT +5%, free cash flow of negative $65M (improved $21M YoY), $388M returned to shareholders in the quarter (repurchases $300M, dividends $88M), an expected $0.35 full‑year FX tailwind, and a commitment to at least $1B of share repurchases for the year.Willis Towers Watson Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.90B | 9.71B | 9.93B | 9.48B | 8.87B | 9.00B |
| Gross Profit | 3.78B | 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 | 1.67B | 1.60B | -98.00M | 1.05B | 1.01B | 4.22B |
Balance Sheet | ||||||
| Total Assets | 29.64B | 29.53B | 27.68B | 29.09B | 31.77B | 34.97B |
| Cash, Cash Equivalents and Short-Term Investments | 1.85B | 3.13B | 1.89B | 1.42B | 1.26B | 4.69B |
| Total Debt | 6.79B | 6.90B | 5.93B | 5.94B | 5.48B | 5.49B |
| Total Liabilities | 21.58B | 21.48B | 19.66B | 19.50B | 21.68B | 21.66B |
| Stockholders Equity | 7.98B | 7.98B | 7.94B | 9.52B | 10.02B | 13.26B |
Cash Flow | ||||||
| Free Cash Flow | 1.57B | 1.55B | 1.27B | 1.10B | 608.00M | 1.86B |
| Operating Cash Flow | 1.80B | 1.77B | 1.51B | 1.34B | 812.00M | 2.06B |
| Investing Cash Flow | -309.00M | 447.00M | 250.00M | -1.08B | -173.00M | 2.77B |
| Financing Cash Flow | -1.16B | -936.00M | -459.00M | -1.20B | -3.44B | -3.11B |
Willis Towers Watson Technical Analysis
Neutral
297.64
Price Trends
293.13
Positive
308.58
Negative
315.98
Negative
Market Momentum
-0.41
Negative
56.58
Neutral
92.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTW, the sentiment is Neutral. The current price of 297.64 is above the 20-day moving average (MA) of 289.18, above the 50-day MA of 293.13, and below the 200-day MA of 315.98, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 92.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $66.77B | 14.27 | 45.99% | 0.82% | 7.51% | 55.21% | |
71 Outperform | $10.20B | 19.44 | 25.03% | 1.90% | 4.80% | -6.97% | |
69 Neutral | $53.07B | ― | 6.50% | 1.01% | 25.34% | -5.29% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $20.39B | 12.74 | 9.35% | 0.77% | 29.22% | -2.51% | |
66 Neutral | $24.13B | 23.29 | 20.10% | 1.14% | 0.92% | ― |
* Financial Sector Average
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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.