Willis Towers Watson Public Limited Co

Q2 financial performance strong; outlook for 2026 unchanged - Organic revenue: +5% (acquisitions contributed ~3 pts to reported growth). - Adjusted operating margin: 19.5%, +100 bps YoY. - Adjusted diluted EPS: $3.35, +17% YoY. - Segment momentum: R&B +7% organic (led by specialization + tech/talent), HWC +4% organic (driven by Health +8%, Wealth +2%, Career flat due to Middle East softness). - Company confidence maintained: mid-single-digit organic growth and continued annual operating margin expansion for 2026.

Propel (AI Acceleration Plan) announced: major margin/cash flow step-up target - Plan scope/timeline: complete by end of 2028. - Cost savings target: ~$400m run-rate savings, with ~$350m net run-rate savings after reinvestment (aiming for ~1.6x cash-cost-to-achieve). - Investment required: ~$625m total investment; expected ~$25m noncash charges. - Margin target: enterprise adjusted operating margin ~30% by 2028 (segment targets: HWC ~35%, R&B ~30%). - Free cash flow: expects improvement commensurate with margin expansion; after plan ends (2029) expects a step-up in free cash flow margin.

Execution signals from AI already in production (surprising/important evidence) - Rewards AI in HWC now used by 5,000+ client users (about 2x vs last quarter). - Violet Suite (benefit decision support) served 12m+ plan participants; increased benefit decision support use +52% and cut follow-ups -60%. - Neuron / Willis Navigator in R&B is live in daily use: - scheduled insurance generated in ~5 minutes vs ~4 hours - real estate premium allocations in minutes vs 2–4 weeks - contract reviews available on demand. - Reinforced theme: business + engineering “forward deployment” improves client experience rather than degrading it.