Willis Towers Watson Defies Price Drop With Surging Profits and Top 500 Trading Volume Position

Willis Towers Watson (WTW) reported mixed performance on August 1, 2025, with a trading volume of $0.29 billion and a 0.33% decline in share price. The firm’s Q2 2025 results highlighted a net income surge to $332 million, a 134% increase year-over-year, driven by a 5% organic revenue growth in its Risk & Broking segment. Adjusted diluted EPS rose to $2.86, up 20% compared to the prior year, while operating margins expanded to 16.3%, reflecting improved cost efficiency.

Key operational metrics underscored resilience in the face of external challenges. The Risk & Broking segment contributed $1.05 billion in revenue, a 7% year-over-year increase, attributed to strong client retention and new business activity. Meanwhile, the Health, Wealth & Career segment saw a 6% revenue drop due to the TRANZACT divestiture but achieved 4% organic growth. Share repurchases totaling $500 million during the quarter signaled strategic capital allocation, though free cash flow declined to $217 million in H1 2025 amid higher compensation and tax payments.

WTW’s performance aligns with broader market dynamics, including elevated demand for insurance products amid heightened natural catastrophe risks. The firm’s recent partnership with the University of East Anglia to address wildfire risk further positions it to capitalize on evolving industry needs. Despite flat overall revenue, margin expansion and earnings growth highlight its operational strength.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% and generating an excess return of 137.53%. This underscores the effectiveness of liquidity concentration in driving short-term stock performance, particularly in high-volume equities like WTW.