The quarter was a narrow earnings beat, not a broad upside surprise. Adjusted EPS of $3.81 was modestly above the published consensus of roughly $3.77, while revenue of $4.246 billion came in slightly below the roughly $4.26 billion expectation.
| Metric | Q2 2026 | Q2 2025 | Change | Market read |
|---|---|---|---|---|
| Revenue | $4.246B | $4.155B | +2% | Slightly below consensus |
| Organic revenue growth | 5% | 5% | — | In line with the stated outlook |
| Adjusted EPS | $3.81 | $3.49 | +9% | Above ~$3.77 consensus |
| Adjusted operating margin | 28.9% | 28.2% | +70 bps | Solid execution |
| Free cash flow | $483M | $732M | -34% | Weak quarterly conversion |
| First-half free cash flow | $846M | $816M | +4% | Still positive year to date |
Underlying operations were steady rather than accelerating. Organic revenue growth reached 5%, matching the prior-year quarter, with Commercial Risk Solutions, Reinsurance Solutions, and Health Solutions each delivering 5% organic growth. The reported 2% revenue increase was held back by a 4% divestiture impact, mainly from the NFP Wealth and Stroz Friedberg sales. (Revenue by solution)
Margin execution provided the main upside. Adjusted operating income rose 5% on only 2% reported revenue growth, lifting adjusted operating margin 70 basis points to 28.9%. The improvement reflected scale benefits and restructuring savings, although investments for growth and a 19% increase in information-technology expense limited the operating leverage. (Financial Highlights; Expenses)
The cash-flow picture was softer in the quarter but less concerning over the first half. Quarterly operating cash flow fell 30% and free cash flow fell 34%, mainly reflecting working-capital effects and higher capital expenditures. Through six months, however, operating cash flow rose 5% and free cash flow rose 4%; the company also repurchased $600 million of shares in the quarter. (Cash Flow statement; Share repurchase disclosures)
The outlook changed little, which caps the surprise value. Management reaffirmed its 2026 targets for mid-single-digit-or-greater organic growth, 70–80 basis points of adjusted-margin expansion, strong adjusted EPS growth, and double-digit free-cash-flow growth. That confirmation supports the modest EPS beat, but without a guidance raise or clear organic-growth acceleration, the filing reads as execution around expectations rather than a material reset. (2026 Guidance)
Read the original 8-K on SEC EDGAR ↗