Marsh
MRSH · NYSE
Next quarter
Expected to report Jan 28, 2027 — estimated from last year’s reporting date.
Consensus is $2.20 EPS for Dec 2026 across 10 estimates, ranging $2.12 to $2.28.
MRSH Sep 2026
- 3.57%
- $1.96
- $2.03
- —
- $6.86B
Reported results
- $6.86B
- $1.22B
- 17.70%
- $808.00M
- $1.69
Highlights
- Adjusted EPS beat — Adjusted diluted EPS was $2.03, up 10% year over year and 3.6% above the $1.96 consensus; GAAP diluted EPS was $1.69, versus $1.51 a year ago.
- Underlying growth — Revenue rose 8% to $6.86 billion, including 5% underlying growth; operating income increased 4% to $1.22 billion and adjusted operating income rose 6% to $1.53 billion.
- Consulting led growth — Consulting revenue grew 8% on an underlying basis to $2.69 billion, while operating income rose 12% to $563 million.
- Risk grew, Reinsurance contracted — Risk revenue increased 5% underlying to $3.73 billion; Reinsurance revenue fell 6% to $374 million.
- Greensill remained a major GAAP drag — The quarter included a $144 million charge, net of insurance recoveries, related to Greensill litigation; the nine-month charge was $569 million.
- Thrive investment increased — Marsh raised its estimated three-year program costs from $500 million to about $750 million; $310 million had been incurred through September 30, 2026.
- Quarterly and year-to-date comparisons diverged — Revenue and diluted EPS were $7.40 billion and $2.63 in Q2 FY2026; nine-month GAAP EPS was $6.68, versus $6.75 in the prior-year period, while adjusted EPS rose 9% to $8.29.
- Capital returns continued — Marsh repurchased 2.7 million shares for $500 million in Q3 and 11.4 million shares for $2.0 billion through nine months; it also repaid €550 million of notes at maturity.
Analysis
Marsh delivered a modest beat on adjusted earnings: adjusted EPS of $2.03 exceeded the $1.96 consensus by 3.6% and increased 10% from $1.85 a year ago. Revenue reached $6.86 billion, up 8% reported and 5% underlying, while adjusted operating income rose 6% to $1.53 billion. GAAP EPS was $1.69, up from $1.51. Sequentially, revenue declined from $7.40 billion in Q2 and diluted EPS from $2.63; the quarter’s reported figures were also shaped by large unusual items, so the adjusted comparison gives a clearer view of operating trends.
The print was defined by solid underlying growth, particularly in Consulting, and by the gap between GAAP and adjusted results. Consulting generated 8% underlying revenue growth and a 12% increase in operating income, while Risk grew 5% underlying and Reinsurance revenue fell 6%. GAAP results included a $144 million Greensill-related charge, partly offset by a $126 million gain from consolidating Deasterra; adjusted measures exclude these and other identified items. For the first nine months, revenue increased 7% reported and 5% underlying, but GAAP EPS edged down to $6.68 from $6.75 as the Greensill charge weighed on operating income. Adjusted EPS, by contrast, rose 9% to $8.29.
Underlying growth and earnings
Revenue growth translated into higher adjusted earnings, while unusual items materially affected reported results. Adjusted operating margin was 22.7%, unchanged from a year earlier; GAAP operating margin was 17.7%, compared with 18.4%.
- Reported results — Revenue increased to $6.863 billion from $6.351 billion, and operating income rose to $1.215 billion from $1.170 billion. Net income attributable to Marsh was $808 million, versus $747 million.
- Adjusted results — Adjusted operating income was $1.527 billion, up from $1.439 billion; adjusted EPS was $2.03, compared with $1.85.
- Quarterly context — From Q2 FY2026, revenue declined from $7.40 billion to $6.86 billion and diluted EPS from $2.63 to $1.69.
Risk and Reinsurance
Risk and Insurance Services revenue was $4.20 billion, up 7% reported and 3% underlying. Segment operating income declined 1% to $745 million, while adjusted operating income increased 4% to $1.00 billion. The segment’s reported revenue includes fiduciary interest income.
- Risk — Revenue grew 5% underlying to $3.73 billion. Underlying growth was 4% in U.S./Canada and 6% internationally, including 7% in EMEA, 4% in Asia Pacific and flat growth in Latin America.
- Reinsurance — Revenue declined 6% on both a reported and underlying basis to $374 million.
- Nine-month trend — Risk and Insurance Services underlying revenue growth was 3%; operating income fell 7% to $3.5 billion, while adjusted operating income rose 5% to $4.6 billion.
Consulting growth
Consulting was the strongest major contributor to underlying growth and profit expansion. Revenue increased 8% underlying to $2.69 billion, and operating income rose 12% to $563 million; adjusted operating income increased 9% to $593 million.
- Management Consulting — Revenue increased 14% underlying to $1.01 billion.
- People and Investments — Revenue grew 5% underlying to $1.67 billion: Investments and Retirement rose 8%, Health and Benefits 5%, and Workforce and Rewards declined 1%.
- Nine-month results — Consulting underlying revenue increased 7% to $7.8 billion; operating income rose 13% to $1.6 billion and adjusted operating income increased 11% to $1.7 billion.
Greensill and Thrive
The quarter combined a large litigation expense with ongoing investment in the Thrive transformation program. These items help explain why GAAP operating performance lagged the adjusted measure.
- Greensill settlement — Marsh recorded a $144 million charge, net of insurance proceeds, in Q3 and $569 million for the first nine months. Settlements with Greensill Bank and Credit Suisse concluded Marsh’s involvement in the Australian proceedings; the company said it did not expect further charges related to these matters.
- Thrive costs — The estimated cost of the three-year program rose from $500 million to approximately $750 million. Marsh had incurred $310 million through September 30, including $160 million during the first nine months of 2026.
- Deasterra gain — The acquisition of the remaining 60% of Deasterra generated a $126 million remeasurement gain included in GAAP revenue and excluded from adjusted measures.
Cash flow and capital returns
Marsh continued substantial shareholder returns while operating cash generation was lower year over year. Operating cash flow for the first nine months was $2.31 billion, compared with $3.13 billion in the prior-year period; net receivables used $872 million of cash, versus $388 million a year earlier.
- Repurchases — Marsh bought back approximately 2.7 million shares for $500 million in Q3 and 11.4 million shares for $2.0 billion year to date.
- Debt — The company repaid €550 million of Euro-denominated senior notes at maturity in September.
- Dividend — Marsh declared a quarterly dividend of $0.99 per share, payable in November.
