Advisory firm WTW's Q3 profit beats estimates, expects share buyback of $1.5 bln

Willis Towers Watson

30/10/2025 10:17

Overview

WTW Q3 revenue flat yr/yr at $2.3 bln, beating analyst expectations

Adjusted EPS for Q3 rises 11% yr/yr, beating analyst expectations

Company repurchased 1.85 mln shares for $600 mln during the quarter

Outlook

WTW expects a foreign currency tailwind on adjusted EPS of ~$0.15 in Q4 2025

Company anticipates share repurchases of ~$1.5 bln, subject to market conditions

WTW projects ~100 bps annual margin expansion over next 3 yrs in R&B

Result Drivers

ORGANIC REVENUE GROWTH - WTW achieved 5% organic revenue growth in Q3, driven by strong performance across segments

MARGIN EXPANSION - Adjusted operating margin increased by 230 basis points to 20.4%, attributed to operating efficiencies and strategic execution

SEGMENT PERFORMANCE - Health, Wealth & Career segment saw organic growth from Retirement work and new product wins, while Risk & Broking benefited from new business and project-based placements

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Meet
$2.28 bln
$2.28 bln (12 Analysts)
Q3 Adjusted EPS
Beat
$3.07
$3.05 (18 Analysts)
Q3 EPS
$3.11
Q3 Adjusted Operating Margin
20.40%
Q3 Operating Margin
18.30%
Q3 Organic Growth
5%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the multiline insurance & brokers peer group is "buy"

Wall Street's median 12-month price target for Willis Towers Watson PLC is $380.00, about 16.4% above its October 29 closing price of $317.54

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX9RZK2q

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)