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Marsh & McLennan Q3 Earnings Beat on Consulting Unit Strength
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Key Takeaways
Marsh & McLennan posted Q3 EPS of $1.85, up 11% year over year and above consensus by 3.4%.
Revenues rose 11% to $6.35B, led by strong Consulting unit growth from Mercer and Oliver Wyman.
Operating income grew 13% to $1.44B, while margins expanded despite higher compensation costs.
Marsh & McLennan Companies, Inc. (MMC - Free Report) reported third-quarter 2025 adjusted earnings per share of $1.85, which surpassed the Zacks Consensus Estimate by 3.4%. The bottom line advanced 11% year over year.
Consolidated revenues of $6.35 billion improved 11% year over year. The figure rose 4% on an underlying basis. Also, the top line beat the consensus mark by 0.5%.
The strong quarterly results were aided by strong growth in the Consulting unit, particularly from the Mercer and Oliver Wyman businesses. However, the upside was partially offset by elevated operating expenses, primarily due to increased compensation and benefits.
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise
Total operating expenses escalated 12.9% year over year to $5.2 billion, higher than our model estimate of $5 billion. The year-over-year rise was due to increased compensation and benefits costs and other operating expenses. Expenses in the Risk and Insurance Services segment rose 16.1% year over year, while the Consulting segment's expenses increased 9.1%.
Marsh & McLennan’s adjusted operating income improved 13% year over year to $1.44 billion. Adjusted operating margin of 22.7% increased 30 basis points year over year.
Q3 Segmental Update
Risk and Insurance Services
The segment recorded revenues of $3.91 billion in the third quarter, which rose 13% year over year and 3% on an underlying basis. The reported figure missed the Zacks Consensus Estimate of $4.05 billion. Adjusted operating income advanced 13.3% year over year to $965 million, which missed the consensus mark by 4.4%.
Revenues of Marsh, a unit within the segment, rose 16% year over year and 4% on an underlying basis to $3.4 billion. In the United States/Canada operations, revenues grew 3% on an underlying basis. International operations also witnessed revenue growth of 5% year over year on an underlying basis. Among the international operations, Latin America witnessed a year-over-year increase of 3% on an underlying basis. Asia Pacific and EMEA’s revenues improved 6% and 5%, respectively, on an underlying basis.
Another unit within the segment, Guy Carpenter's revenues of $398 million rose 5% year over year and on an underlying basis. The figure missed the consensus mark by 0.7%.
Consulting
The unit’s revenues advanced 9% year over year and 5% on an underlying basis to $2.47 billion. The reported figure beat the Zacks Consensus Estimate by 3.9%. Adjusted operating income of $545 million climbed 11% year over year and beat the consensus mark by 9.4%.
Revenues of Mercer, a unit within this segment, grew 9% year over year and 3% on an underlying basis to $1.6 billion. The reported figure beat the Zacks Consensus Estimate by 3.7%. Health and Wealth revenues rose 6% and 3%, respectively, on an underlying basis. Career revenues remained stable year over year, on an underlying basis.
Another unit within the segment, Oliver Wyman, recorded revenues of $886 million, which improved 9% year over year as well as 8% on an underlying basis. Also, the metric beat the Zacks Consensus Estimate by 4.3%.
Financial Update (as of Sep. 30, 2025)
Marsh & McLennan exited the third quarter with cash and cash equivalents of $2.5 billion, which rose from the 2024-end figure of $2.4 billion. Total assets of $58.8 billion inched up from the $56.5 billion figure at 2024-end.
Long-term debt amounted to $18.3 billion, which slipped from the $19.4 billion figure as of Dec. 31, 2024. Short-term debt amounted to $1.3 billion.
Total equity of $15.4 billion advanced from the 2024-end level of $13.5 billion.
Marsh & McLennan generated operating cash flow of $3.1 billion during the first nine months of 2025, up from $2.3 billion a year ago.
Capital Deployment Update
Marsh & McLennan bought back 1.9 million shares worth $400 million in the third quarter. It currently has a Zacks Rank #4 (Sell).
Other Stocks to Report Earnings
While Marsh & McLennan has already delivered an earnings beat, several other companies from the broader Finance space are set to report their September-quarter resultssoon.
The Zacks Consensus Estimate for AON’s bottom line for the to-be-reported quarter of $2.89 per share indicates 6.3% year-over-year growth. It remained stable over the past week. AON’s earnings beat estimates in three of the last four quarters and missed once, with an average surprise of 3%.
Brown & Brown, Inc. (BRO - Free Report) has a Zacks Rank of 3. The Zacks Consensus Estimate for BRO’s bottom line for the to-be-reported quarter is pegged at 90 cents per share, which remained stable over the past week. Brown & Brown’s earnings beat estimates in three of the past four quarters and missed once, with an average surprise of 5.6%.
Willis Towers Watson Public Limited Company (WTW - Free Report) has a Zacks Rank of 3. The Zacks Consensus Estimate for WTW’s bottom line for the to-be-reported quarter is pegged at $3 per share, indicating 2.4% year-over-year growth. Willis Towers’ earnings beat estimates in three of the past four quarters and missed once, with an average surprise of 4.1%.
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Marsh & McLennan Q3 Earnings Beat on Consulting Unit Strength
Key Takeaways
Marsh & McLennan Companies, Inc. (MMC - Free Report) reported third-quarter 2025 adjusted earnings per share of $1.85, which surpassed the Zacks Consensus Estimate by 3.4%. The bottom line advanced 11% year over year.
Consolidated revenues of $6.35 billion improved 11% year over year. The figure rose 4% on an underlying basis. Also, the top line beat the consensus mark by 0.5%.
The strong quarterly results were aided by strong growth in the Consulting unit, particularly from the Mercer and Oliver Wyman businesses. However, the upside was partially offset by elevated operating expenses, primarily due to increased compensation and benefits.
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise
Marsh & McLennan Companies, Inc. price-consensus-eps-surprise-chart | Marsh & McLennan Companies, Inc. Quote
MMC’s Q3 Performance
Total operating expenses escalated 12.9% year over year to $5.2 billion, higher than our model estimate of $5 billion. The year-over-year rise was due to increased compensation and benefits costs and other operating expenses. Expenses in the Risk and Insurance Services segment rose 16.1% year over year, while the Consulting segment's expenses increased 9.1%.
Marsh & McLennan’s adjusted operating income improved 13% year over year to $1.44 billion. Adjusted operating margin of 22.7% increased 30 basis points year over year.
Q3 Segmental Update
Risk and Insurance Services
The segment recorded revenues of $3.91 billion in the third quarter, which rose 13% year over year and 3% on an underlying basis. The reported figure missed the Zacks Consensus Estimate of $4.05 billion. Adjusted operating income advanced 13.3% year over year to $965 million, which missed the consensus mark by 4.4%.
Revenues of Marsh, a unit within the segment, rose 16% year over year and 4% on an underlying basis to $3.4 billion. In the United States/Canada operations, revenues grew 3% on an underlying basis. International operations also witnessed revenue growth of 5% year over year on an underlying basis. Among the international operations, Latin America witnessed a year-over-year increase of 3% on an underlying basis. Asia Pacific and EMEA’s revenues improved 6% and 5%, respectively, on an underlying basis.
Another unit within the segment, Guy Carpenter's revenues of $398 million rose 5% year over year and on an underlying basis. The figure missed the consensus mark by 0.7%.
Consulting
The unit’s revenues advanced 9% year over year and 5% on an underlying basis to $2.47 billion. The reported figure beat the Zacks Consensus Estimate by 3.9%. Adjusted operating income of $545 million climbed 11% year over year and beat the consensus mark by 9.4%.
Revenues of Mercer, a unit within this segment, grew 9% year over year and 3% on an underlying basis to $1.6 billion. The reported figure beat the Zacks Consensus Estimate by 3.7%. Health and Wealth revenues rose 6% and 3%, respectively, on an underlying basis. Career revenues remained stable year over year, on an underlying basis.
Another unit within the segment, Oliver Wyman, recorded revenues of $886 million, which improved 9% year over year as well as 8% on an underlying basis. Also, the metric beat the Zacks Consensus Estimate by 4.3%.
Financial Update (as of Sep. 30, 2025)
Marsh & McLennan exited the third quarter with cash and cash equivalents of $2.5 billion, which rose from the 2024-end figure of $2.4 billion. Total assets of $58.8 billion inched up from the $56.5 billion figure at 2024-end.
Long-term debt amounted to $18.3 billion, which slipped from the $19.4 billion figure as of Dec. 31, 2024. Short-term debt amounted to $1.3 billion.
Total equity of $15.4 billion advanced from the 2024-end level of $13.5 billion.
Marsh & McLennan generated operating cash flow of $3.1 billion during the first nine months of 2025, up from $2.3 billion a year ago.
Capital Deployment Update
Marsh & McLennan bought back 1.9 million shares worth $400 million in the third quarter. It currently has a Zacks Rank #4 (Sell).
Other Stocks to Report Earnings
While Marsh & McLennan has already delivered an earnings beat, several other companies from the broader Finance space are set to report their September-quarter resultssoon.
Aon plc (AON - Free Report) currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for AON’s bottom line for the to-be-reported quarter of $2.89 per share indicates 6.3% year-over-year growth. It remained stable over the past week. AON’s earnings beat estimates in three of the last four quarters and missed once, with an average surprise of 3%.
Brown & Brown, Inc. (BRO - Free Report) has a Zacks Rank of 3. The Zacks Consensus Estimate for BRO’s bottom line for the to-be-reported quarter is pegged at 90 cents per share, which remained stable over the past week. Brown & Brown’s earnings beat estimates in three of the past four quarters and missed once, with an average surprise of 5.6%.
Willis Towers Watson Public Limited Company (WTW - Free Report) has a Zacks Rank of 3. The Zacks Consensus Estimate for WTW’s bottom line for the to-be-reported quarter is pegged at $3 per share, indicating 2.4% year-over-year growth. Willis Towers’ earnings beat estimates in three of the past four quarters and missed once, with an average surprise of 4.1%.