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Marsh's Q3 adjusted EPS rose 9.7% to $2.03, beating estimates by 3.6%, while revenues climbed 8% to $6.9B.
Consulting revenues grew 9% to $2.7B, driven by 14% growth in Marsh Management Consulting revenues.
Operating expenses rose 9% to $5.6B, while adjusted operating income increased 6.1% to $1.5B.
Marsh & McLennan Companies, Inc. (MRSH - Free Report) reported third-quarter 2026 adjusted earnings per share of $2.03, which surpassed the Zacks Consensus Estimate by 3.6%. The bottom line advanced 9.7% year over year.
Consolidated revenues of $6.9 billion improved 8% year over year. The figure rose 5% on an underlying basis. The top line beat the consensus mark by 3.5%.
Marsh’s third-quarter results benefited from solid revenue growth across Risk and Insurance Services and Consulting. However, higher operating expenses, caused by increased compensation and other operating costs, tempered operating income growth.
Total operating expenses rose 9% year over year to $5.6 billion, exceeding our estimate of $5.3 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 9.4% year over year, while the Consulting segment's expenses increased 8%.
Marsh’s adjusted operating income improved 6.1% year over year to $1.5 billion. The adjusted operating margin remained unchanged year over year at 22.7%.
Q3 Segmental Update
Risk and Insurance Services
The segment recorded revenues of $4.2 billion, which rose 7% year over year and 3% on an underlying basis. The reported figure beat the Zacks Consensus Estimate by 3.3%. Adjusted operating income advanced 4% year over year to $1 billion, which missed the consensus mark by 1.6%.
Revenues of Marsh Risk, a unit within the segment, rose 10% year over year and 5% on an underlying basis to $3.7 billion. In the United States/Canada operations, revenues grew 4% on an underlying basis. International operations witnessed revenue growth of 6% year over year on an underlying basis. International operations reported 6% underlying revenue growth year over year, led by 7% growth in EMEA and 4% growth in Asia Pacific, while Latin America remained flat.
The company’s former Guy Carpenter business is now reported under the Reinsurance name. The unit’s third-quarter revenues fell 6% year over year to $374 million on both GAAP and underlying bases.
Consulting
The unit’s revenues advanced 9% year over year and 8% on an underlying basis to $2.7 billion. The reported figure beat the Zacks Consensus Estimate by 3.8%. Adjusted operating income of $593 million climbed 9% year over year and beat the consensus mark by 4.8%.
People and Investments, previously reported as Mercer, generated revenues of $1.7 billion, up 6% year over year and 5% on an underlying basis. On an underlying basis, Investments and Retirement posted 8% revenue growth, Health and Benefits advanced 5%, while Workforce and Rewards declined 1%.
Another unit within the segment, Marsh Management Consulting, recorded revenues of $1 billion, which improved 14% year over year on both GAAP and underlying bases.
Financial Update (as of Sept. 30, 2026)
Marsh exited the third quarter with cash and cash equivalents of $1.8 billion, which declined from the 2025-end figure of $2.7 billion. Total assets of $59.8 billion increased from $58.7 billion recorded as of 2025-end.
Long-term debt amounted to $18.9 billion, which rose from $18.3 billion recorded as of Dec. 31, 2025. Short-term debt amounted to $1.6 billion.
Total equity declined to $14.9 billion from $15.3 billion at the end of 2025.
Net cash provided by operations totaled $2.3 billion in the first nine months of 2026 compared with $3.1 billion in the year-ago period.
Capital Deployment Update
Marsh bought back 2.7 million shares worth $500 million in the third quarter of 2026.
The Zacks Consensus Estimate for Figure Technology Solutions’ 2026 earnings is pinned at $1.18 per share and has remained stable over the past 60 days. FIGR beat earnings estimates in two of the trailing four quarters, met once and missed in the other, with an average surprise of 28.2%. The consensus estimate for 2026 revenues is pegged at $904.4 million, implying 78.4% year-over-year growth.
The Zacks Consensus Estimate for GigaCloud Technology’s 2026 earnings is pinned at $4.92 per share, which has witnessed one upward revision in the past 60 days against no movement in the opposite direction. GCT beat earnings estimates in each of the trailing four quarters, with the average surprise being 42.1%. The consensus estimate for 2026 revenues is pegged at $1.6 billion, implying 23.4% year-over-year growth.
The Zacks Consensus Estimate for Ralliant Corporation’s 2026 earnings is pinned at $2.88 per share, which has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. RAL beat earnings estimates in each of the trailing four quarters, with the average surprise being 7.1%. The consensus estimate for 2026 revenues is pegged at $2.3 billion, implying 10.7% year-over-year growth.
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Marsh Q3 Earnings Beat Estimates on Consulting Growth Despite Higher Costs
Key Takeaways
Marsh & McLennan Companies, Inc. (MRSH - Free Report) reported third-quarter 2026 adjusted earnings per share of $2.03, which surpassed the Zacks Consensus Estimate by 3.6%. The bottom line advanced 9.7% year over year.
Consolidated revenues of $6.9 billion improved 8% year over year. The figure rose 5% on an underlying basis. The top line beat the consensus mark by 3.5%.
Marsh’s third-quarter results benefited from solid revenue growth across Risk and Insurance Services and Consulting. However, higher operating expenses, caused by increased compensation and other operating costs, tempered operating income growth.
Marsh Price, Consensus and EPS Surprise
Marsh price-consensus-eps-surprise-chart | Marsh Quote
MRSH’s Q3 Performance
Total operating expenses rose 9% year over year to $5.6 billion, exceeding our estimate of $5.3 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 9.4% year over year, while the Consulting segment's expenses increased 8%.
Marsh’s adjusted operating income improved 6.1% year over year to $1.5 billion. The adjusted operating margin remained unchanged year over year at 22.7%.
Q3 Segmental Update
Risk and Insurance Services
The segment recorded revenues of $4.2 billion, which rose 7% year over year and 3% on an underlying basis. The reported figure beat the Zacks Consensus Estimate by 3.3%. Adjusted operating income advanced 4% year over year to $1 billion, which missed the consensus mark by 1.6%.
Revenues of Marsh Risk, a unit within the segment, rose 10% year over year and 5% on an underlying basis to $3.7 billion. In the United States/Canada operations, revenues grew 4% on an underlying basis. International operations witnessed revenue growth of 6% year over year on an underlying basis. International operations reported 6% underlying revenue growth year over year, led by 7% growth in EMEA and 4% growth in Asia Pacific, while Latin America remained flat.
The company’s former Guy Carpenter business is now reported under the Reinsurance name. The unit’s third-quarter revenues fell 6% year over year to $374 million on both GAAP and underlying bases.
Consulting
The unit’s revenues advanced 9% year over year and 8% on an underlying basis to $2.7 billion. The reported figure beat the Zacks Consensus Estimate by 3.8%. Adjusted operating income of $593 million climbed 9% year over year and beat the consensus mark by 4.8%.
People and Investments, previously reported as Mercer, generated revenues of $1.7 billion, up 6% year over year and 5% on an underlying basis. On an underlying basis, Investments and Retirement posted 8% revenue growth, Health and Benefits advanced 5%, while Workforce and Rewards declined 1%.
Another unit within the segment, Marsh Management Consulting, recorded revenues of $1 billion, which improved 14% year over year on both GAAP and underlying bases.
Financial Update (as of Sept. 30, 2026)
Marsh exited the third quarter with cash and cash equivalents of $1.8 billion, which declined from the 2025-end figure of $2.7 billion. Total assets of $59.8 billion increased from $58.7 billion recorded as of 2025-end.
Long-term debt amounted to $18.9 billion, which rose from $18.3 billion recorded as of Dec. 31, 2025. Short-term debt amounted to $1.6 billion.
Total equity declined to $14.9 billion from $15.3 billion at the end of 2025.
Net cash provided by operations totaled $2.3 billion in the first nine months of 2026 compared with $3.1 billion in the year-ago period.
Capital Deployment Update
Marsh bought back 2.7 million shares worth $500 million in the third quarter of 2026.
MRSH’s Zacks Rank & Key Picks
MRSH currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Business Services space are Figure Technology Solutions, Inc. (FIGR - Free Report) , GigaCloud Technology Inc. (GCT - Free Report) and Ralliant Corporation (RAL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Figure Technology Solutions’ 2026 earnings is pinned at $1.18 per share and has remained stable over the past 60 days. FIGR beat earnings estimates in two of the trailing four quarters, met once and missed in the other, with an average surprise of 28.2%. The consensus estimate for 2026 revenues is pegged at $904.4 million, implying 78.4% year-over-year growth.
The Zacks Consensus Estimate for GigaCloud Technology’s 2026 earnings is pinned at $4.92 per share, which has witnessed one upward revision in the past 60 days against no movement in the opposite direction. GCT beat earnings estimates in each of the trailing four quarters, with the average surprise being 42.1%. The consensus estimate for 2026 revenues is pegged at $1.6 billion, implying 23.4% year-over-year growth.
The Zacks Consensus Estimate for Ralliant Corporation’s 2026 earnings is pinned at $2.88 per share, which has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. RAL beat earnings estimates in each of the trailing four quarters, with the average surprise being 7.1%. The consensus estimate for 2026 revenues is pegged at $2.3 billion, implying 10.7% year-over-year growth.