WTW · 10-Q · 2026Q3 · Full report
Operating Margin Drivers
WILLIS TOWERS WATSON PLC · 2026-10-29 · Importance 42 · Surprise 40 · No source text
Adjusted operating income rose to $539 million for the third quarter of 2026 from $467 million a year earlier, and to $1.6 billion for the first nine months from $1.4 billion. Adjusted operating margin increased to 21.9% from 20.4% for the quarter and to 21.2% from 20.2% for the nine-month period. Higher revenue and lower non-income-related tax expense drove the increases, partly offset by higher salary and incentive costs, local office expenses, and professional services costs. Third-quarter results also included a one-time $13 million gain from selling office buildings.
Key facts
- HWC segment operating income was $398 million in the three months ended September 30, 2026, compared with $361 million in the prior-year quarter; the increase primarily reflected improved operating leverage and expense discipline. source
- HWC segment operating income was $1.1 billion in the nine months ended September 30, 2026, compared with $952 million in the prior-year period; the increase primarily reflected improved operating leverage and expense discipline. source
- R&B segment operating income was $726 million in the nine months ended September 30, 2026, compared with $637 million in the prior-year period, primarily due to operating leverage, foreign exchange and book-of-business settlement activity. source
- WTW adjusted operating income was $539 million for the three months ended September 30, 2026, up from $467 million in the prior-year quarter. source
- WTW adjusted operating income was $1.6 billion for the nine months ended September 30, 2026, up from $1.4 billion in the prior-year period. source
- WTW adjusted EBITDA was $577 million for the three months ended September 30, 2026, compared with $515 million in the prior-year quarter. source
- WTW adjusted EBITDA was $1.7 billion for the nine months ended September 30, 2026, compared with $1.5 billion in the prior-year period. source
- R&B segment operating income was $216 million in the three months ended September 30, 2026, compared with $189 million in the prior-year quarter, primarily due to higher book-of-business settlements and disciplined expense management. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +7.9% | WTW adjusted operating income was $1.6 billion for the nine months ended September 30, 2026, up from $1.4 billion in the prior-year period. |
| operating_income | positive | realized | +6.2% | HWC segment operating income was $1.1 billion in the nine months ended September 30, 2026, compared with $952 million in the prior-year… |
| operating_income | positive | realized | +3.7% | R&B segment operating income was $726 million in the nine months ended September 30, 2026, compared with $637 million in the prior-year… |
| operating_income | positive | realized | +1.1% | R&B segment operating income was $216 million in the three months ended September 30, 2026, compared with $189 million in the prior-year… |