WTW (NASDAQ:WTW) shares rose in pre-market trading Tuesday after the global advisory and broking firm reported fourth-quarter earnings that surpassed Wall Street expectations, driven by strong organic growth and significant margin expansion.
The London-based firm posted adjusted diluted earnings of $8.12 per share for the quarter ended Dec. 31, 2025, beating the $7.96 consensus estimate.
Revenue for the period was $2.94 billion, a 3% decline on a reported basis but a 6% increase organically.
The reported dip was primarily due to the divestiture of its TRANZACT business, a move intended to simplify the company’s portfolio and focus on higher-margin advisory segments.
Operating efficiency remained a central theme, with fourth-quarter operating margins expanding to 34.6%.
For the full year 2025, WTW reported adjusted earnings of $17.08 per share on total revenue of $9.71 billion.
The firm’s "Transformation" program appears to be yielding results, as annual free cash flow climbed to $1.55 billion, an increase of $279 million over the prior year.
CEO Carl Hess highlighted the strength of the Risk & Broking segment, which saw 7% organic growth as clients sought help navigating complex global risks.