MRSH earnings analysis
What we found in MRSH's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Marsh posted solid Q2 operating results: revenue increased 6% to $7.404 billion and diluted EPS increased 7% to $2.63, although revenue was lower sequentially and the 25.6% operating margin remained below the prior-year quarter. Consulting, particularly Marsh Management Consulting, outgrew Risk and Insurance Services, while Guy Carpenter contracted amid declining reinsurance premium rates. First-half profitability and cash flow were burdened by the $425 million Greensill litigation charge, restructuring investment, and higher compensation costs. Item 1A did not add or amend risk factors; it referred readers to the 2025 Form 10-K risk factors.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue rose 6% year over year
- Q2 revenue rose $430 million, or 6%, year over year to $7.404 billion, including 5% underlying growth. Sequentially, revenue declined $193 million from the implied Q1 level of $7.597 billion based on six-month revenue of $15.001 billion.
- EPS and sequential margin improved
- Diluted EPS increased 7% year over year to $2.63 from $2.45. Q2 operating income rose $70 million to $1.899 billion, producing a 25.6% operating margin, up from 23.1% in Q1 2026 but below the prior-year quarter's 26.2% margin.
- Consulting delivered double-digit growth
- Consulting was the principal growth engine: revenue increased $231 million, or 10%, to $2.602 billion, while operating income increased $46 million to $502 million. Marsh Management Consulting grew 15% to $1.004 billion, including 13% underlying growth.
- Marsh Risk growth remained broad-based
- Marsh Risk revenue grew $222 million, or 6%, to $4.071 billion, supported by higher new-business and renewal revenue. International underlying growth was 5%, including 8% in Latin America, 5% in EMEA, and 5% in Asia Pacific.
- Capital returns remained substantial
- The company returned $1.5 billion to shareholders through repurchases of 8.7 million shares in the first six months and paid $878 million in dividends. It retained approximately $4.2 billion under its repurchase authorization at June 30, 2026.
- Cash conversion remained positive
- Six-month operating cash flow was $835 million and fixed-asset/capitalized-software additions were $134 million, implying $701 million of free cash flow and capex equal to 0.9% of $15.001 billion of revenue.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Expense growth exceeded revenue growth
- Operating expenses increased 7% to $5.505 billion in Q2, faster than 6% revenue growth, and the operating margin declined to 25.6% from 26.2% a year earlier. Higher base salaries and incentive compensation were cited as drivers.
- Greensill litigation weighed on first-half profit
- The company recorded an estimated $425 million liability and legal expense related to Greensill litigation in Q1. This contributed to six-month operating income declining $181 million, or 5%, to $3.653 billion despite 7% revenue growth.
- Rate pressure affected reinsurance and interest income
- Guy Carpenter revenue declined $13 million, or 2%, to $664 million, driven primarily by declining reinsurance premium rates; fiduciary interest income also fell $11 million to $88 million due to lower average interest rates.
- Liquidity declined and short-term debt increased
- Cash and cash equivalents decreased $987 million to $1.700 billion at June 30, 2026 from $2.687 billion at December 31, 2025, while commercial paper outstanding increased to $1.0 billion from zero. The company also has $1.024 billion of commercial paper due within one year.
- Thrive execution carries cost and timing risk
- Thrive restructuring costs were $58 million in Q2 and $103 million year to date, with $239 million incurred through June 30. Management expects approximately $500 million of total program costs over three years, and cautioned that timing, costs, and savings may change.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.63
- Operating margin
- 25.6%
- Segment
- Risk and Insurance Services: $4.823 billion revenue, +4% year over year; operating income $1.478 billion, +2%; operating margin 30.6% versus 31.2%.
- Segment
- Consulting: $2.602 billion revenue, +10% year over year; operating income $502 million, +10%; operating margin 19.3% versus 19.2%.
- Segment
- Marsh Risk: $4.071 billion, +6% reported / +4% underlying.
- Segment
- Guy Carpenter: $664 million, -2% reported and underlying.
- Segment
- Mercer: $1.598 billion, +7% reported / +5% underlying.
- Segment
- Marsh Management Consulting: $1.004 billion, +15% reported / +13% underlying.
What they said about what is next.
No formal revenue or EPS guidance was provided in the 10-Q. Management quantified its three-year Thrive program at approximately $500 million of costs and approximately $400 million of annualized savings, with savings and charges expected to be evenly distributed over the program period; it also said timing, costs, and savings may change.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 16, 2026
- Marsh reported Q1 2026 revenue of $7,597 million, up $536 million or 7.6% versus Q1 2025, driven by growth across Risk & Insurance Services and Consulting. Profitability and cash generation weakened: operating income…
- 10-Q · October 16, 2025
- Marsh & McLennan delivered revenue of $6,351M in Q3 2025, an increase of $654M (11.5%) versus Q3 2024, with operating income up $62M to $1,170M but operating margin compressing ~1.0 ppt to 18.4%. Diluted EPS was flat at…
- 10-Q · July 17, 2025
- Marsh & McLennan reported a solid Q2 2025 with revenue of $6,974 million (up $753 million vs Q2 2024) and operating income of $1,829 million (up $187 million). Diluted EPS rose to $2.45 from $2.27. Operating cash flow…
- 10-Q · October 17, 2024
- Marsh & McLennan reported a solid Q3 with revenue of $5,697 million, up $315 million (5.9%) versus Q3 2023, and operating income rising to $1,108 million (an 11.2% increase). Diluted EPS increased to $1.51 from $1.47,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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