Revenue growth turned positive at 9.1% in Q2 2026, while the combined ratio improved to 81.4% in Q1 2026, but reserve releases appear to inflate earnings, with Q4 loss ratios of 45.0% and 49.0% in 2024 and 2025.
Willis Towers Watson Public Limited Company (WTW) annual income statement — 26-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 |
|---|
| Revenue | 10.1B | 9.71B | 9.93B | 9.48B | 8.87B | 9B | 8.62B | 8.37B | 8.51B | 8.2B | 7.89B | 3.83B | 3.8B | 3.65B | 3.48B | 3.45B | 3.33B | 3.26B | 2.83B | 2.58B | 2.43B | 2.27B | 2.27B | 2.08B | 1.74B | 1.42B | 1.3B |
| Revenue Growth % | 3% | -2.24% | 4.71% | 6.96% | -1.47% | 4.45% | 2.93% | -1.68% | 3.79% | 3.99% | 105.98% | 0.71% | 4.02% | 5.03% | 0.96% | 3.45% | 2.11% | 15.42% | 9.66% | 6.18% | 7.1% | -0.35% | 9.59% | 19.65% | 21.84% | 9.12% | - |
| Medical Costs & Claims | 4.67B | 5.63B | 5.5B | 5.34B | 5.07B | 5.25B | 5.16B | 4.93B | 5.12B | 4.97B | 4.85B | 2.3B | 2.31B | 2.21B | 2.48B | 2.09B | 1.87B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Medical Cost Ratio % | 46.24% | 57.94% | 55.41% | 56.35% | 57.13% | 58.38% | 59.86% | 58.89% | 60.18% | 60.56% | 61.48% | 60.15% | 60.86% | 60.38% | 71.12% | 60.55% | 56.06% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Gross Profit | 5.43B | 4.08B | 4.43B | 4.14B | 3.8B | 3.75B | 3.46B | 3.44B | 3.39B | 3.23B | 3.04B | 1.53B | 1.49B | 1.45B | 1B | 1.36B | 1.46B | 3.26B | 2.83B | 2.58B | 2.43B | 2.27B | 2.27B | 2.08B | 1.74B | 1.42B | 1.3B |
| Gross Margin % | 53.76% | 42.06% | 44.59% | 43.65% | 42.87% | 41.62% | 40.14% | 41.11% | 39.82% | 39.44% | 38.52% | 39.85% | 39.14% | 39.62% | 28.88% | 39.45% | 43.94% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | -7.79% | 6.98% | 8.89% | 1.5% | 8.3% | 0.49% | 1.5% | 4.79% | 6.48% | 99.08% | 2.55% | 2.76% | 44.08% | -26.1% | -7.1% | -55.13% | 15.42% | 9.66% | 6.18% | 7.1% | -0.35% | 9.59% | 19.65% | 21.84% | 9.12% | - |
| Operating Expenses | 3.19B | 1.85B | 3.8B | 2.77B | 2.62B | 1.54B | 2.6B | 2.39B | 2.58B | 2.72B | 2.69B | 1.1B | 841M | 785M | 1.23B | 794M | 711M | 2.57B | 2.32B | 1.96B | 1.88B | 1.82B | 1.61B | 1.46B | 1.32B | 1.26B | 1.15B |
| OpEx / Revenue % | 31.53% | 19.05% | 38.28% | 29.25% | 29.58% | 17.15% | 30.17% | 28.52% | 30.32% | 33.15% | 34.11% | 28.7% | 22.12% | 21.48% | 35.34% | 23.03% | 21.34% | 78.73% | 82.21% | 75.95% | 77.27% | 80.11% | 70.73% | 70.13% | 75.85% | 88.69% | 88.2% |
| Depreciation & Amortization | 378M | 418M | 456M | 505M | 567M | 650M | 770M | 729M | 747M | 833M | 769M | 171M | 146M | 149M | 138M | 142M | 145M | 164M | 90M | 66M | 63M | 54M | 47M | 39M | 35M | 68M | 72M |
| Combined Ratio % | 77.77% | 76.99% | 93.69% | 85.61% | 86.71% | 75.53% | 90.03% | 87.41% | 90.5% | 93.71% | 95.59% | 88.85% | 82.98% | 81.86% | 106.47% | 83.58% | 77.4% | 78.73% | 82.21% | 75.95% | 77.27% | 80.11% | 70.73% | 70.13% | 75.85% | 88.69% | 88.2% |
| Operating Income | 2.25B | 2.23B | 627M | 1.36B | 1.18B | 2.2B | 859M | 1.05B | 809M | 516M | 348M | 427M | 647M | 663M | -225M | 566M | 753M | 694M | 503M | 620M | 552M | 451M | 666M | 620M | 419M | 161M | 154M |
| Operating Margin % | 22.23% | 23.01% | 6.31% | 14.39% | 13.29% | 24.47% | 9.97% | 12.59% | 9.5% | 6.29% | 4.41% | 11.15% | 17.02% | 18.14% | -6.47% | 16.42% | 22.6% | 21.27% | 17.79% | 24.05% | 22.73% | 19.89% | 29.27% | 29.87% | 24.15% | 11.31% | 11.8% |
| Operating Income Growth % | - | 256.3% | -54.07% | 15.87% | -46.5% | 156.34% | -18.5% | 30.28% | 56.78% | 48.28% | -18.5% | -34% | -2.41% | 394.67% | -139.75% | -24.83% | 8.5% | 37.97% | -18.87% | 12.32% | 22.39% | -32.28% | 7.42% | 47.97% | 160.25% | 4.55% | - |
| EBITDA | 2.62B | 2.65B | 1.08B | 1.87B | 1.75B | 2.85B | 1.63B | 1.78B | 1.56B | 1.35B | 1.12B | 598M | 793M | 812M | -87M | 708M | 898M | 858M | 593M | 686M | 615M | 505M | 713M | 659M | 454M | 229M | 226M |
| EBITDA Margin % | 25.98% | 27.32% | 10.91% | 19.72% | 19.68% | 31.7% | 18.91% | 21.3% | 18.28% | 16.45% | 14.16% | 15.62% | 20.86% | 22.22% | -2.5% | 20.54% | 26.95% | 26.29% | 20.98% | 26.61% | 25.33% | 22.28% | 31.34% | 31.74% | 26.17% | 16.08% | 17.32% |
| Interest Expense | 286M | 260M | 263M | 235M | 208M | 211M | 244M | 234M | 208M | 188M | 184M | 142M | 135M | 126M | 128M | 156M | 166M | 174M | 105M | 0 | 0 | 0 | 0 | 53K | 0 | 0 | 0 |
| Non-Operating Income | -62M | -23M | 260M | -149M | -288M | -701M | -396M | -226M | -250M | -164M | -178M | -55M | -6M | 38M | -16M | 171M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -18M |
| Pretax Income | 1.98B | 1.93B | 104M | 1.28B | 1.26B | 2.69B | 1.01B | 1.05B | 851M | 495M | 344M | 351M | 532M | 499M | -332M | 251M | 610M | 553M | 420M | 554M | 514M | 421M | 591M | 567M | 354M | 79M | 65M |
| Pretax Margin % | 19.64% | 19.89% | 1.05% | 13.49% | 14.19% | 29.92% | 11.74% | 12.5% | 10% | 6.04% | 4.36% | 9.17% | 13.99% | 13.65% | -9.54% | 7.28% | 18.31% | 16.95% | 14.86% | 21.49% | 21.17% | 18.57% | 25.98% | 27.31% | 20.4% | 5.55% | 4.98% |
| Income Tax | 401M | 318M | 192M | 215M | 194M | 536M | 249M | 197M | 136M | -100M | -96M | -33M | 159M | 122M | 101M | 32M | 140M | 96M | 97M | 144M | 63M | 143M | 197M | 159M | 141M | 62M | 33M |
| Effective Tax Rate % | 20.21% | 16.47% | 184.62% | 16.81% | 15.42% | 19.91% | 24.63% | 18.83% | 15.98% | -20.2% | -27.91% | -9.4% | 29.89% | 24.45% | -30.42% | 12.75% | 22.95% | 17.36% | 23.1% | 25.99% | 12.26% | 33.97% | 33.33% | 28.04% | 39.83% | 78.48% | 50.77% |
| Net Income | 1.56B | 1.6B | -98M | 1.05B | 1.01B | 4.22B | 996M | 1.04B | 695M | 568M | 420M | 373M | 362M | 365M | -446M | 204M | 455M | 438M | 303M | 409M | 449M | 281M | 402M | 414M | 210M | 2M | 9M |
| Net Margin % | 15.49% | 16.53% | -0.99% | 11.13% | 11.38% | 46.92% | 11.56% | 12.47% | 8.16% | 6.93% | 5.33% | 9.74% | 9.52% | 9.99% | -12.82% | 5.92% | 13.66% | 13.42% | 10.72% | 15.87% | 18.49% | 12.4% | 17.67% | 19.94% | 12.1% | 0.14% | 0.69% |
| Net Income Growth % | 1042.34% | 1737.76% | -109.29% | 4.56% | -76.1% | 323.9% | -4.6% | 50.22% | 22.36% | 35.24% | 12.6% | 3.04% | -0.82% | 181.84% | -318.63% | -55.16% | 3.88% | 44.55% | -25.92% | -8.91% | 59.79% | -30.1% | -2.9% | 97.14% | 10400% | -77.78% | - |
| EPS (Diluted) | 16.65 | 16.26 | -0.96 | 9.95 | 8.98 | 14.90 | 7.65 | 8.03 | 5.27 | 4.18 | 2.26 | 5.41 | 5.30 | 5.37 | -6.83 | 3.05 | 7.05 | 6.86 | 5.43 | 7.36 | 7.52 | 4.56 | 6.41 | 5.75 | 3.39 | 0.03 | 0.19 |
| EPS Growth % | 1029.17% | 1793.75% | -109.65% | 10.8% | -39.73% | 94.77% | -4.73% | 52.37% | 26.08% | 84.96% | -58.23% | 2.08% | -1.3% | 178.62% | -323.93% | -56.74% | 2.77% | 26.34% | -26.22% | -2.13% | 64.91% | -28.86% | 11.48% | 69.62% | 12692.45% | -86.05% | - |
| EPS (Basic) | - | 16.34 | -0.96 | 10.05 | 9.00 | 15.02 | 7.68 | 8.03 | 5.31 | 4.21 | 2.28 | 5.49 | 5.38 | 5.53 | -6.83 | 3.10 | 7.10 | 6.91 | 5.43 | 7.47 | 7.58 | 4.64 | 6.78 | 6.36 | 3.79 | 0.03 | 0.19 |
| Diluted Shares Outstanding | 94M | 99M | 102M | 106M | 112M | 129M | 130M | 130M | 132M | 136M | 138M | 69M | 68.33M | 68M | 65.31M | 66.44M | 64.55M | 63.8M | 55.87M | 55.49M | 59.65M | 61.53M | 62.67M | 63.42M | 61.91M | 55.87M | 45.8M |
Quick answers to the most common questions about buying WTW stock.
For fiscal year 2025, Willis Towers Watson Public Limited Company (WTW) reported total revenue of $9.71B. This represents a 643.9% increase compared to $1.30B in 2000.
Willis Towers Watson Public Limited Company (WTW) is profitable, generating $1.60B in net income for the fiscal year ending 2025 with a net profit margin of 16.5%.
Willis Towers Watson Public Limited Company (WTW) reported an operating income of $2.23B, resulting in an operating profit margin of 23.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Willis Towers Watson Public Limited Company (WTW) generated $4.08B in gross profit for the year, representing a gross profit margin of 42.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Reserve volatility and integration risks
Metrics are mathematically derived from official filings.
Premium Growth Stabilizing After Dip
WTW's revenue growth turned positive in 2026, with Q2 2026 up 9.1% year-over-year, according to recent SEC filings, reversing the negative trend seen in 2025.
After a period of contraction in 2025, with quarterly revenue growth ranging from -5.0% to -0.0%, the company has returned to positive territory in 2026, with Q1 and Q2 showing 8.5% and 9.1% growth respectively. This suggests a potential inflection point, possibly driven by improved market conditions or successful strategic initiatives. However, the sustainability of this growth remains to be seen, as the 2025 figures were weak, and the 2026 growth may partly reflect easier comparables.
Underwriting Profitability Shows Resilience
WTW's combined ratio improved to 81.4% in Q1 2026, down from 88.0% in Q1 2024, as reported in financial statements, indicating stronger underwriting discipline.
The combined ratio has generally trended downward from the high 80s in early 2024 to the low 80s in 2025 and 2026, with the exception of a spike to 133.5% in Q3 2024, which was likely due to a one-time charge. This improvement suggests better loss experience or pricing adequacy. However, the Q2 2026 combined ratio is not available, and the loss ratio in Q2 2026 is missing, so investors should monitor whether the trend continues.
Reserve Releases Bolster Earnings
Prior-year reserve releases appear to be inflating earnings, as evidenced by the low loss ratios in Q4 2024 and Q4 2025 (45.0% and 49.0%), according to WTW's quarterly data.
The fourth-quarter loss ratios are significantly lower than other quarters, suggesting favorable reserve development that boosts underwriting income. This may indicate that the company is releasing reserves from prior accident years, which can mask underlying deterioration. Investors should scrutinize the quality of earnings, as such releases are not sustainable indefinitely and may signal that the company is relying on reserve adjustments to meet profit targets.
Investment Income Not a Major Driver
Investment income data is not disclosed in the provided income statement, but given the low interest rate environment, it likely contributes modestly to overall profitability, based on industry norms.
The absence of investment income figures in the data suggests that it is not a significant component of WTW's earnings, consistent with its business model as a broker rather than an underwriter. The company's profitability is primarily driven by fees and commissions, so investment income is unlikely to materially affect the bottom line. However, if interest rates rise, there could be a modest positive impact on net income.
Expense Ratio Reflects Scale
WTW's expense ratio, implied by the combined ratio and loss ratio, appears to be around 20-25%, as per reported figures, indicating moderate operating leverage.
The expense ratio, calculated as the difference between the combined ratio and loss ratio, has been relatively stable, ranging from about 16% to 29% over the past ten quarters. This suggests that the company has achieved some scale efficiencies, but it is not as low as some peers like Brown & Brown, which has a much higher gross margin. WTW's expense ratio may be impacted by ongoing investments in technology and integration costs, which could pressure margins if revenue growth slows.
Q3 2024 Loss Distorts Trend
The Q3 2024 operating loss of $766 million and net loss of $1.7 billion, as reported in financial statements, represent a clear inflection point, likely due to a one-time impairment or restructuring charge.
This quarter stands out as an anomaly, with a combined ratio of 133.5% and a negative net income, which is inconsistent with the surrounding quarters. This suggests a significant non-recurring event, possibly related to the integration of acquired businesses or a write-down. Excluding this quarter, the company's profitability has been relatively stable, but investors should be aware of the potential for such volatility in the future.
What Could Invalidate the Base Case
The apparent reliance on reserve releases and the Q3 2024 loss raise questions about earnings quality, as per WTW's reported figures, warranting caution.
The low loss ratios in Q4 2024 and Q4 2025 may indicate that the company is releasing reserves to boost earnings, which could be masking underlying deterioration in underwriting performance. Additionally, the significant loss in Q3 2024 suggests that the company is exposed to large one-time charges, possibly from acquisitions or impairments. If reserve releases diminish or new charges emerge, the reported profitability could weaken, challenging the sustainability of current earnings levels.