10-Q · July 21, 2026
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…
Earnings analysis · 10-Q
MRSH earnings analysis
Filed October 15, 2026 · Our reading of the company's report
The latest report
Marsh delivered 8% year-over-year revenue growth to $6.863 billion and 12% diluted EPS growth to $1.69, led by Consulting and Risk, but reported operating margin compressed to 17.7% and revenue fell from $7.4 billion in…
Read full summary
Marsh delivered 8% year-over-year revenue growth to $6.863 billion and 12% diluted EPS growth to $1.69, led by Consulting and Risk, but reported operating margin compressed to 17.7% and revenue fell from $7.4 billion in the prior quarter. Reinsurance declined 6%, while the $144 million Greensill charge and higher restructuring costs weighed on earnings. Operating cash flow remained strong at $2.3 billion year to date, but declined from $3.1 billion and short-term commercial paper rose to $1.623 billion. No formal numeric revenue or EPS guidance was provided, resulting in a neutral outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.69
- Operating margin
- 17.7%
What stood out
-
Revenue and operating income grew
Third-quarter revenue increased 8% year over year to $6.863 billion, including 5% underlying growth. Operating income rose 4% to $1.215 billion, although the resulting 17.7% operating margin was below the 18.4% margin implied by $1.170 billion of operating income on $6.351 billion of prior-year revenue.
-
GAAP EPS rose year over year
Diluted EPS increased 12% year over year to $1.69 from $1.51, helped by higher operating income and a lower effective tax rate of 21.3% versus 25.1%. EPS declined from $2.63 in the immediately preceding quarter.
-
Consulting drove growth and margin
Consulting was the strongest major segment, with revenue up 9% to $2.685 billion and operating income up to $563 million from $501 million. Management Consulting revenue grew 14% to $1.013 billion.
-
Risk growth was led internationally
Risk revenue rose 10% to $3.726 billion, supported by 5% underlying growth and a $126 million Deasterra remeasurement gain. EMEA underlying revenue grew 7% and Asia Pacific grew 4%.
-
Cash generation remained positive
The company generated $2.3 billion of operating cash flow during the first nine months, versus $3.1 billion in the prior-year period. Capital additions were $215 million, implying approximately $2.085 billion of year-to-date operating cash flow less capital expenditures.
-
Capital returns continued
Share repurchases totaled 2.7 million shares for $500 million in the quarter, while the remaining authorization was approximately $3.7 billion at September 30, 2026. The quarterly dividend was increased to $0.990 per share.
What to watch
-
Greensill settlement burden
The company recorded a $144 million, net-of-insurance, Greensill settlement charge in the quarter and $569 million for the first nine months. The charge increased operating expenses and remains a source of earnings and cash-flow uncertainty.
-
Restructuring costs increased
Thrive restructuring cost estimates increased from $500 million to approximately $750 million, while the company incurred $79 million of restructuring costs in the quarter and $182 million year to date. Management noted that timing, expected costs, and savings may change.
-
Reinsurance and margin pressure
Reinsurance revenue fell 6% to $374 million in the quarter and was down 6% on an underlying basis, driven primarily by declining reinsurance premium rates. Risk and Insurance Services operating margin also declined to 17.8% from 19.2%.
-
Lower cash flow and higher short-term debt
Operating cash flow declined to $2.3 billion from $3.1 billion in the first nine months. The company also had $1.623 billion of commercial paper outstanding at September 30, 2026, compared with none at December 31, 2025.
-
Liquidity concentrated overseas
Cash and cash equivalents available for general corporate purposes declined to $1.842 billion from $2.687 billion at December 31, 2025. Approximately $1.7 billion of cash was held in foreign operations, including $572 million required for regulatory or collateral purposes.
-
FX and macro sensitivity remain
Item 1A did not identify new risk factors and directed investors to the 2025 Form 10-K. The filing nevertheless quantified foreign-exchange sensitivity: a 10% move in major currencies could change full-year net operating income by approximately $129 million.
Management's outlook
No formal quantitative revenue or EPS guidance was provided. Management did state that the Thrive program's expected total costs increased from $500 million to approximately $750 million, while expected annualized savings increased from $400 million to approximately $600 million; savings and charges are expected to be evenly distributed over the program period.
Earlier filings 4
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…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.