- Company name
- Willis Towers Watson
- Sector
- Insurance brokerage and advisory
- About
- Willis Towers Watson Public Limited Company (WTW) is an advisory, broking and solutions company. It is incorporated in Ireland and has its office in London. It has two segments. Health, Wealth & Career (HWC) sells advice on benefits, retirement, pay and talent. Risk & Broking (R&B) places insurance for corporate clients and sells insurance consulting and software. HWC earned $1,350 million and R&B earned $1,087 million of the $2,460 million of revenue in Q3 2026. Revenue was $7,338 million for nine months of 2026. WTW serves clients in more than 140 countries and markets. Carl Hess is Chief Executive Officer. On January 27, 2026, WTW bought Newfront, a US broker. The shares trade on Nasdaq in US dollars. WTW files 10-K and 10-Q reports.
- Thesis
- The price of WTW depends on whether its AI plan can lift margin while organic growth stays in the middle single digits. In Q3 2026, organic revenue rose 4%, the adjusted operating margin rose 150 basis points to 21.9%, and adjusted diluted earnings per share rose 18% to $3.63. For nine months, adjusted diluted earnings per share was $10.70, against $9.07 a year earlier. On July 28, 2026, the board approved Propel, an AI acceleration plan to the end of 2028. WTW expects to spend about $625 million of cash to reach about $400 million of annual savings, and about $350 million after it reinvests $50 million. It then expects an adjusted operating margin of about 30% in 2028. By September 30, 2026, the annual savings achieved were only $18 million. For the price to hold or rise, four things must be true. Organic growth must stay in the middle single digits. Savings must arrive on schedule. Newfront must add to profit after its 2026 dilution of about $0.10 per share. Share repurchases of more than $1.0 billion in 2026 must continue. The Q4 2026 report in February 2027 is the next test. If savings and growth are on plan, the gap can close over the next two years. If AI tools cut the fees that advice and broking earn, or if the savings come later, the gap can last longer.
- Valuation
- The intrinsic value for Willis Towers Watson is an AI estimate from November 12, 2026. It is not an analyst's value. An AI research agent calculated it from the filings of WTW with the SEC. The method is a multiple of adjusted diluted earnings per share for 2027. Adjusted earnings are after interest and tax, so the estimate makes no debt adjustment. The Q3 2026 release (8-K, October 29, 2026) gives adjusted diluted earnings per share of $3.63 for Q3 and $10.70 for nine months of 2026, against $9.07 a year earlier. It says that Propel is expected to give about $350 million of net run-rate savings by 2028, and that WTW expects share repurchases of more than $1.0 billion in 2026. The Q4 2025 release (8-K, February 3, 2026) gives adjusted diluted earnings per share of $8.12 for Q4 2025 and $17.08 for 2025. The estimate takes 2026 as about $19.80, which is nine months plus Q4 2025 grown by 12%, an assumption. Adjusted earnings leave out amortization of acquired intangible assets, which was $59 million in Q3 2026, and the multiples allow for this as an assumption. The estimate is per share, so it needs no share count. For reference, the Form 10-Q for the quarter ended September 30, 2026 gives 92,216,232 shares outstanding at October 26, 2026. The 2027 adjusted diluted earnings per share and the multiples are assumptions. The low case assumes $20.50, up about 4% from 2026 because growth slows and savings come late, at 15 times. It gives $307.50 per share. The base case assumes $22.50, up about 14%, because of organic growth in the middle single digits, savings from Propel and share repurchases, at 17 times. It gives $382.50 per share. The high case assumes $24.50, up about 24%, because savings arrive early and growth is stronger, at 19 times. It gives $465.50 per share. The estimate assumes weights of 25%, 50% and 25%. The weighted intrinsic value is $384.50 per share.
As of Nov 12, 2026.
- Risks
- AI can cut demand for advice and broking, or force lower fees. WTW says Propel is in its early days. It has reached $18 million of the $400 million of annual savings that it expects.
Organic growth can slow. Q3 2026 organic growth was 4%, and the Q3 result included book-of-business settlements of $20 million and interest income of $35 million. Both can change from year to year.
Debt is large for a services company. Debt was $6,532 million at September 30, 2026, of which $749 million falls due within 12 months.
The Willis Re joint venture and the Newfront purchase reduce 2026 adjusted earnings per share by about $0.30 and about $0.10. If Newfront does not meet its targets, the contingent payments change.
Currency moves change results. WTW expects a tailwind of about $0.35 per share in 2026 at current rates.
- Balance sheet
- Cash: $1.9B
Debt: $6.5B
Net debt: $4.6B
Debt due within 12 months: $749M
At September 30, 2026, WTW had cash of $1,946 million and debt of $6,532 million, of which $749 million is current. Fiduciary assets of $11,057 million are client money with equal liabilities, so they are not part of this view. Lease liabilities were $566 million. Cash was $3,132 million at December 31, 2025. WTW paid about $900 million in cash for Newfront in January 2026. Free cash flow was $1.1 billion for nine months. Total WTW shareholders' equity was $7,764 million.
As of Sep 30, 2026.
- Checkpoints
- Feb 2, 2027 (estimate): Q4 2026 results and 2027 outlook. Pending. Watch: Organic growth stays in the middle single digits and the annual savings from Propel pass the $18 million of September 2026 on a clear path to $400 million, and this passes; slower growth or a delay in savings fails.
Apr 2027 (estimate): Q1 2027 results: Newfront and margin. Pending. Watch: The adjusted operating margin rises again against Q1 2026 and Newfront adds to adjusted earnings, and this passes; a flat margin fails.
- Recent events
- Nov 3, 2026: WTW said in an 8-K that Steven Alcock, Head of Finance, International, will become Principal Accounting Officer and Controller on April 1, 2027. He succeeds Joseph Kurpis, who retires.
Oct 29, 2026: WTW reported Q3 2026 results. Revenue rose 8% to $2,460 million, and organic revenue rose 4%. Net income was $309 million, or $3.24 per diluted share. Adjusted diluted earnings per share was $3.63, up 18%. Free cash flow was $1.1 billion for nine months, up $226 million.
Oct 29, 2026: WTW said it bought back 687,386 shares for $220 million in Q3 2026. It expects share repurchases of more than $1.0 billion in 2026. It had 92,216,232 ordinary shares outstanding at October 26, 2026.
Jul 28, 2026: The board of WTW approved Propel, an AI acceleration plan that runs to December 31, 2028. WTW expects to spend about $625 million of cash and to reach about $400 million of run-rate savings.
Jan 27, 2026: WTW completed the purchase of Newfront Insurance Holdings, a US broker. The up-front price was $1.05 billion, of which about $900 million was cash. The contract adds up to $250 million of contingent payments, and up to $150 million more.