Q1 2026 Willis Towers Watson PLC Earnings Call Transcript
Key Points
- Willis Towers Watson PLC (WTW) achieved 3% organic growth in the first quarter, with an adjusted operating margin of 22.3% and a 19% increase in adjusted diluted earnings per share compared to Q1 2025.
- The company is seeing solid traction in the market for its AI-enabled solutions, which are gaining scale and generating growth, particularly in Health, Wealth & Career (HWC) and Risk & Broking (R&B) segments.
- WTW's AI initiatives, such as the HR AI Assistant Expert and the WorkVue agent, are recognized for delivering measurable efficiency gains and are expected to drive future growth.
- The acquisition of Newfront is expected to enhance WTW's technology capabilities, with early successes in integrating Newfront's technology into WTW's environment.
- WTW's strategic focus on specialization, data, analytics, and smart connections is resonating with clients, leading to notable client engagements and wins in various sectors, including AI and digital infrastructure.
- Revenue came in at the low end of WTW's plan due to a challenging and volatile global market environment, particularly affecting the Middle East region.
- The Risk & Broking segment experienced a slowdown in organic revenue growth, with new business targets not being met and a more competitive pricing environment impacting results.
- The Career business within the Health, Wealth & Career segment declined by 3% due to geopolitical disruption in the Middle East and slower pipeline conversion in North America.
- Benefits Delivery & Outsourcing saw a 1% decline, impacted by lower commissions in the Individual Marketplace business.
- WTW's free cash flow was negative $65 million for the first quarter, although this was an improvement from the prior year, it was still a negative figure.
Good morning. Welcome to the WTW earnings conference call. Please refer to wtwco.com for the press release and supplemental information that were issued earlier today. Today's call is being recorded and will be available for the next three months on WTW's website. Some of the comments in today's call may constitute forward-looking statements within the meaning of the Private Securities Reform Act of 1995.
These forward-looking statements are subject to risks and uncertainties. Actual results may differ materially from those discussed today, and the company undertakes no obligation to update these statements unless required by law. For a more detailed discussion of these and other risk factors, investors should review the forward-looking statements section of the earnings press release issued this morning as well as in the most recent Form 10-K and other subsequent WTW SEC filings.
During the call, certain non-GAAP financial measures may be discussed. To provide direct comparability with prior periods, all commentary regarding the company's revenue growth results will be on a non-GAAP
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