Marsh — Third Quarter 2026 Earnings Summary

Financial Performance

• Consolidated revenue for the third quarter of 2026 was $6.9 billion, an 8% increase compared to the prior year, or 5% on an underlying basis.
• For the nine months ended September 30, 2026, consolidated revenue was $21.9 billion, a 7% increase on a GAAP basis or 5% on an underlying basis.
• Third quarter GAAP operating income increased 4% to $1.2 billion; adjusted operating income rose 6% to $1.5 billion.
• Nine-month GAAP operating income decreased 3% to $4.9 billion; adjusted operating income rose 7% to $6.1 billion.
• Third quarter GAAP earnings per share (EPS) were $1.69; adjusted EPS increased 10% to $2.03.
• Nine-month GAAP EPS were $6.68; adjusted EPS increased 9% to $8.29.
• Net income attributable to the Company for the third quarter was $808 million; for the nine months, it was $3.2 billion.
• Cash and cash equivalents held at September 30, 2026, were $1.8 billion, down from $2.7 billion at December 31, 2025.
• Short-term debt increased to $1.6 billion at September 30, 2026, from $1.3 billion at December 31, 2025.
• Long-term debt increased to $18.9 billion at September 30, 2026, from $18.3 billion at December 31, 2025.
• Operating cash flow for the nine months ended September 30, 2026, was $2.3 billion, compared to $3.1 billion in the prior year period.

Business Segments and Product Lines

• Risk and Insurance Services revenue was $4.2 billion in the third quarter, an increase of 7% (3% underlying).
• Risk segment revenue was $3.7 billion in the third quarter, an increase of 10% (5% underlying), with 4% underlying growth in U.S./Canada and 6% in International (7% in EMEA, 4% in Asia Pacific, flat in Latin America).
• Reinsurance revenue was $374 million in the third quarter, a decrease of 6% on both GAAP and underlying bases.
• Consulting revenue was $2.7 billion in the third quarter, an increase of 9% (8% underlying).
• Management Consulting revenue was $1.0 billion in the third quarter, an increase of 14% on both GAAP and underlying bases.
• People and Investments revenue was $1.7 billion in the third quarter, an increase of 6% (5% underlying).
• Within People and Investments, Investments and Retirement grew 8%, Health and Benefits increased 5%, and Workforce and Rewards decreased 1% on an underlying basis.
• Nine-month Risk revenue was $11.5 billion (4% underlying growth); nine-month Reinsurance revenue decreased 1% on an underlying basis.
• Nine-month Consulting revenue was $7.8 billion (7% underlying growth); nine-month Management Consulting revenue was $2.9 billion (11% underlying growth).
• Nine-month People and Investments revenue was $4.9 billion (5% underlying growth).
• The Company updated its brand name from Marsh McLennan to Marsh effective January 14, 2026, and reclassified business segments: Guy Carpenter is now "Reinsurance," Mercer is now "People and Investments," and specific sub-segments were renamed (e.g., Wealth to "Investments and Retirement").

Other Key Points

• The Company repurchased approximately 2.7 million shares of stock for $500 million in the third quarter of 2026.
• Through the nine months ended September 30, 2026, the Company repurchased 11.4 million shares of stock for $2.0 billion.
• In the third quarter of 2026, the Company repaid $550 million of Euro-denominated senior notes that matured in September.
• The Company completed its brand transition to "Marsh" and renamed its business units.
• The "Thrive" program, a three-year initiative focusing on brand strategy, client value, growth acceleration, and efficiency, is being executed, with restructuring costs included in noteworthy items.
• Significant noteworthy items impacting adjusted operating income included Greensill litigation expenses ($144 million in Q3, $569 million in nine months), McGriff integration costs, and gains on entity consolidation.
• The Company advises clients in 130 countries and has more than 95,000 colleagues.