Marsh
MRSH · NYSE
Next quarter
Expected to report Oct 15, 2026 — estimated from last year’s reporting date.
Consensus is $1.96 EPS for Sep 2026 across 10 estimates, ranging $1.92 to $2.01.
MRSH Jun 2026
- 2.78%
- -3.08%
- $2.88
- $2.96
- —
- $7.40B
Reported results
- $7.40B
- $1.90B
- 25.65%
- $1.27B
- $2.63
Highlights
- Adjusted EPS: Q2 adjusted EPS was $2.96, up 9% year over year and $0.08, or 2.8%, above the $2.88 consensus; GAAP diluted EPS was $2.63 versus $2.45 a year ago.
- Revenue: Revenue rose 6% year over year to $7.40 billion, including 5% underlying growth, while operating income increased 4% to $1.90 billion.
- Consulting: Consulting revenue grew 10% to $2.60 billion, or 8% underlying, led by Marsh Management Consulting’s 13% underlying growth; operating income rose 10% to $502 million.
- Marsh Risk: Marsh Risk revenue increased 6% to $4.07 billion, or 4% underlying, with underlying growth of 4% in U.S./Canada and 5% internationally.
- Guy Carpenter: Guy Carpenter revenue declined 2% to $664 million, with underlying revenue also down 2% as declining reinsurance premium rates offset new business.
- Greensill litigation: First-half results included a $425 million liability and related legal expenses for Greensill proceedings, contributing to a 5% decline in first-half operating income to $3.65 billion.
- Capital returns: Marsh repurchased 4.5 million shares for $750 million in Q2 and 8.7 million shares for $1.5 billion year to date; the quarterly dividend was raised 10% to $0.990 per share.
- Thrive program: Q2 restructuring costs were $58 million, bringing cumulative Thrive-related restructuring costs to $239 million against an expected three-year cost of approximately $500 million and annualized savings target of approximately $400 million.
Analysis
Marsh’s second quarter was a solid operating print beneath a complicated first-half comparison. Adjusted EPS of $2.96 exceeded the $2.88 consensus by 2.8% and increased 9% from $2.72 a year ago. Revenue reached $7.40 billion, up 6% year over year and 5% on an underlying basis, while operating income rose 4% to $1.90 billion. Versus Q1, revenue declined from $7.60 billion, but operating income increased from $1.75 billion and GAAP diluted EPS rose from $2.36 to $2.63, reflecting the company’s normal quarterly mix and the absence of the prior quarter’s heavier first-half effects.
The defining feature was the continued divergence between the two segments. Consulting delivered 10% reported and 8% underlying revenue growth, with Marsh Management Consulting up 13% underlying and Mercer up 5%. Risk and Insurance Services grew a more modest 3% underlying, as Marsh Risk’s 4% growth was partly offset by Guy Carpenter’s 2% decline. The quarter itself benefited from better operating performance, but the first half remained pressured by the $425 million Greensill liability and legal expense recorded in Q1: first-half operating income fell 5% to $3.65 billion and GAAP EPS fell 5% to $4.99. Share repurchases and a 10% dividend increase underscored continued capital distribution despite the litigation and restructuring charges.
Quarterly financial results
Revenue increased $430 million to $7.40 billion, with 5% underlying growth after a 1% foreign-exchange contribution and 1% from acquisitions. Operating expenses rose 7% to $5.51 billion, faster than revenue, but operating income still increased 4% to $1.90 billion. Adjusted operating income rose 5% to $2.17 billion, and adjusted margin was 29.3% versus 29.5% a year ago.
- Earnings: Net income attributable to Marsh increased 5% to $1.27 billion, while GAAP diluted EPS rose 7% to $2.63. Adjusted net income was $1.43 billion, or $2.96 per share.
- Sequential comparison: Revenue declined 3% from Q1’s $7.60 billion, while operating income increased 9% from $1.75 billion and GAAP diluted EPS increased from $2.36.
- First half: Six-month revenue rose 7% to $15.00 billion, but operating income fell 5% to $3.65 billion and GAAP diluted EPS declined 5% to $4.99, largely because of the Greensill charge recorded in Q1.
Consulting momentum
Consulting was the strongest growth engine in the quarter, with revenue up 10% to $2.60 billion and underlying growth of 8%. Operating income increased 10% to $502 million, while adjusted operating income rose 11% to $533 million. The segment’s 19.3% operating margin was broadly stable with 19.2% a year earlier despite higher compensation and incentive costs.
- Marsh Management Consulting: Revenue rose 15% to $1.00 billion, including 13% underlying growth, reflecting broad-based expansion across most regions.
- Mercer: Revenue increased 7% to $1.60 billion, or 5% underlying. Wealth grew 8% underlying, Health grew 3%, and Career grew 2%. Wealth benefited from investment-management growth, new-business net flows and capital-markets effects.
- Year to date: Consulting revenue was $5.16 billion, up 10% reported and 7% underlying, while operating income rose 12% to $1.03 billion.
Risk brokerage trends
Risk and Insurance Services revenue grew 4% to $4.82 billion, or 3% underlying, and operating income increased 2% to $1.48 billion. The segment’s reported growth included 1% from currency and 1% from acquisitions. Lower average interest rates reduced fiduciary interest income to $88 million from $99 million.
- Marsh Risk: Revenue increased 6% to $4.07 billion, with 4% underlying growth in U.S./Canada and 5% internationally. Latin America led international growth at 8% underlying, followed by 5% in EMEA and Asia Pacific.
- Market backdrop: Marsh Risk’s growth reflected higher new business and renewal revenue, partly offset by declining insurance premium rates.
- Guy Carpenter: Revenue decreased 2% to $664 million on both reported and underlying bases. New business was insufficient to offset declining reinsurance premium rates; first-half underlying revenue was flat.
Greensill and restructuring
The quarter’s results were not materially burdened by a new Greensill provision, but the litigation shaped the first-half comparison. Marsh recorded a $425 million liability and related legal expenses in Q1 for the Australian proceedings, including the settlement with Greensill Bank and an estimate for remaining Credit Suisse claims. Trial is scheduled for September 2026, and the company said the ultimate outcome could differ materially from its estimate.
- First-half impact: Risk and Insurance Services first-half operating income fell 9% to $2.79 billion, compared with $3.06 billion a year earlier, as the Greensill liability was included in segment expenses.
- Thrive charges: Q2 restructuring costs were $58 million, including $52 million associated with Thrive. Cumulative Thrive costs reached $239 million through June 30 against an expected total of approximately $500 million.
- Expected savings: Management expects Thrive to produce approximately $400 million of annualized savings through process and automation efficiencies and optimization of the global operating model.
Capital allocation
Marsh continued to return capital while funding acquisitions and managing its balance sheet. Operating cash flow was $835 million in the first half, down from $1.05 billion a year earlier, while share repurchases and dividends remained significant uses of cash.
- Repurchases: The company bought back 4.5 million shares for $750 million in Q2 and 8.7 million shares for $1.5 billion in the first half. Shares outstanding at June 30 were 478 million versus 492 million a year earlier.
- Dividend: The board increased the quarterly dividend 10% to $0.990 per share, payable August 14, 2026.
- Balance sheet: Cash and cash equivalents were $1.70 billion at June 30, while total debt was approximately $20.6 billion including $1.67 billion of short-term debt. The company also expanded its commercial-paper program and revolving credit facility to $4.25 billion.
