Willis Towers Watson Public Limited Co

Q2 performance strong (growth + margin + EPS) - Organic revenue +5% enterprise in Q2; acquisitions contributed about ~3 points to reported growth. - Adjusted operating margin 19.5% (+100 bps YoY) and adjusted diluted EPS $3.35 (+17% YoY). - Segment momentum: R&B organic +7% (on top of +6% a year ago), HWC organic +4% (Health +8%, Wealth +2%, Career flat with Middle East weakness). - Capital discipline: repurchased $450M of WTW shares in the quarter; paid $90M quarterly dividends ($0.96/share).

Full-year outlook reiterated; profit/cash expected to improve in 2026 - Management reiterated confidence in mid-single-digit organic growth and ~100 bps margin expansion for the year. - HWC guidance: expects mid-single-digit full-year growth; Health high-single-digit organic, Wealth low-to-high single digit range at high end of low single digits, Career low-to-mid single digit (with improvement expected in 2H 2026). - R&B guidance: expects mid-single digits growth and margin expansion; pricing remains competitive (insurance rates declining in most lines; US casualty still rising). - Free cash flow: $360M in first half; expects free cash flow margin to improve in line with operating margin and notes cash is typically weighted to the second half.

Major strategic update: “Propel” AI Acceleration Plan (2026–end of 2028) - Announced an AI-driven plan expected to be completed by end of 2028. - Target ~$400M run-rate savings from an investment of ~$625M (cash-cost-to-achieve ~1.6x), with ~$350M net run-rate savings after reinvesting part of savings into growth. - Expected adjusted operating margin ~30% enterprise by 2028 (segment targets: ~35% in HWC and ~30% in R&B). - Savings expected to begin contributing meaningfully in 2027 and compound through 2028; ~$25M in noncash charges expected.