WTW’s net income fell 30% year-on-year to $231m, and reported diluted earnings per share dropped 27% to $2.43. On the adjusted measures that strip out one-off items, the picture reverses entirely: adjusted diluted EPS rose 17% to $3.35, and adjusted operating margin expanded 100 basis points to 19.5%. Two things explain almost all of the gap. Transaction and integration costs tied largely to the Newfront acquisition, which WTW closed in January, jumped from $2m in the same quarter last year to $61m this quarter. On top of that, last year’s comparable quarter benefited from a one-off $74m favourable tax item that flattered the 2025 baseline, making this year’s comparison look worse than the underlying trend really is.
