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Will Higher Operating Expenses Play Spoilsport for Marsh Q2 Earnings?
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Key Takeaways
MRSH is expected to post Q2 revenue and EPS growth when it reports results on July 21.
Marsh faces rising operating expenses, with higher compensation and benefits weighing on earnings.
MRSH has a positive Earnings ESP but a Zacks Rank #4, making an earnings beat uncertain.
Marsh & McLennan Companies, Inc. (MRSH - Free Report) is set to report second-quarter 2026 results on July 21, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $2.88 per shareon revenues of $7.27 billion.
The second-quarter earnings estimate has witnessed no upward revisions and three downward movements over the past 60 days. The bottom-line projection still indicates a year-over-year increase of 5.9%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 4.2%.
Image Source: Zacks Investment Research
For the full-year 2026, the Zacks Consensus Estimate for Marsh’s revenues is pegged at $28.36 billion, implying growth of 5.1% year over year. The consensus mark for the current year EPS is pegged at $10.37, signaling an increase of around 6.4% on a year-over-year basis.
Marsh’s earnings beat the consensus estimate in each of the last four quarters, with the average surprise being 3.9%.
However, our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.
Marsh has an Earnings ESP of +0.36% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping MRSH’s Q2 Results?
The Zacks Consensus Estimate for total Risk and Insurance Services revenues indicates 3.9% year-over-year growth, whereas our model signals a 3.5% increase. Revenues from the United States and Canada are expected to grow 3.8% from a year ago. Adjusted operating income from the Risk and Insurance Services segment is pegged at $1.69 billion, indicating only 2.6% growth.
The consensus mark for total Mercer revenues suggests a 4.2% year-over-year jump, while our model suggests 4.7% growth. The consensus estimate for total Consulting revenues indicates 4.7% year-over-year growth, whereas our model signals a 5.2% increase. The Zacks Consensus Estimate for adjusted operating income from the segment of $521.3 million signals an 8.8% rise from a year ago.
The above-mentioned estimates indicate that MRSH is positioned for year-over-year growth. However, rising costs make an earnings beat uncertain. Our model estimate for total operating expenses is pegged at $5.55 billion, which suggests a nearly 8% year-over-year increase due to higher compensations, benefits and other operating expenses.
Stocks That Warrant a Look
While an earnings beat looks uncertain for Marsh, here are some companies from the broader insurance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Zacks Consensus Estimate for Willis Towers’ bottom line for the to-be-reported quarter is pegged at $3.13 per share, which indicates 9.4% year-over-year growth. The consensus estimate for WTW’s revenues is pegged at $2.43 billion, a 7.4% increase from a year ago.
Reinsurance Group of America, Incorporated (RGA - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Reinsurance Group of America’s bottom line for the to-be-reported quarter is pegged at $6.52 per share, a 38.1% jump from a year ago. The consensus estimate for RGA’s revenues is pegged at $6.65 billion, a 17.8% year-over-year jump.
Ategrity Specialty Insurance Company Holdings (ASIC - Free Report) has an Earnings ESP of +27.66% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Ategrity Specialty’s bottom line for the to-be-reported quarter is pegged at 47 cents per share, which indicates 14.6% year-over-year growth. The consensus estimate for ASIC’s revenues is pegged at $137.91 million, a 35.5% increase from a year ago.
View the Zacks #1 Rank List
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Will Higher Operating Expenses Play Spoilsport for Marsh Q2 Earnings?
Key Takeaways
Marsh & McLennan Companies, Inc. (MRSH - Free Report) is set to report second-quarter 2026 results on July 21, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $2.88 per shareon revenues of $7.27 billion.
The second-quarter earnings estimate has witnessed no upward revisions and three downward movements over the past 60 days. The bottom-line projection still indicates a year-over-year increase of 5.9%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 4.2%.
For the full-year 2026, the Zacks Consensus Estimate for Marsh’s revenues is pegged at $28.36 billion, implying growth of 5.1% year over year. The consensus mark for the current year EPS is pegged at $10.37, signaling an increase of around 6.4% on a year-over-year basis.
Marsh’s earnings beat the consensus estimate in each of the last four quarters, with the average surprise being 3.9%.
Marsh Price and EPS Surprise
Marsh price-eps-surprise | Marsh Quote
Q2 Earnings Whispers for MRSH
However, our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.
Marsh has an Earnings ESP of +0.36% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping MRSH’s Q2 Results?
The Zacks Consensus Estimate for total Risk and Insurance Services revenues indicates 3.9% year-over-year growth, whereas our model signals a 3.5% increase. Revenues from the United States and Canada are expected to grow 3.8% from a year ago. Adjusted operating income from the Risk and Insurance Services segment is pegged at $1.69 billion, indicating only 2.6% growth.
The consensus mark for total Mercer revenues suggests a 4.2% year-over-year jump, while our model suggests 4.7% growth. The consensus estimate for total Consulting revenues indicates 4.7% year-over-year growth, whereas our model signals a 5.2% increase. The Zacks Consensus Estimate for adjusted operating income from the segment of $521.3 million signals an 8.8% rise from a year ago.
The above-mentioned estimates indicate that MRSH is positioned for year-over-year growth. However, rising costs make an earnings beat uncertain. Our model estimate for total operating expenses is pegged at $5.55 billion, which suggests a nearly 8% year-over-year increase due to higher compensations, benefits and other operating expenses.
Stocks That Warrant a Look
While an earnings beat looks uncertain for Marsh, here are some companies from the broader insurance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Willis Towers Watson Public Limited Company (WTW - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Willis Towers’ bottom line for the to-be-reported quarter is pegged at $3.13 per share, which indicates 9.4% year-over-year growth. The consensus estimate for WTW’s revenues is pegged at $2.43 billion, a 7.4% increase from a year ago.
Reinsurance Group of America, Incorporated (RGA - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Reinsurance Group of America’s bottom line for the to-be-reported quarter is pegged at $6.52 per share, a 38.1% jump from a year ago. The consensus estimate for RGA’s revenues is pegged at $6.65 billion, a 17.8% year-over-year jump.
Ategrity Specialty Insurance Company Holdings (ASIC - Free Report) has an Earnings ESP of +27.66% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Ategrity Specialty’s bottom line for the to-be-reported quarter is pegged at 47 cents per share, which indicates 14.6% year-over-year growth. The consensus estimate for ASIC’s revenues is pegged at $137.91 million, a 35.5% increase from a year ago.