- Marsh McLennan’s third-quarter revenue reached $6.35 billion, marking an 11% increase from the previous year, aligning closely with the $6.31 billion estimate.
- The company’s adjusted earnings per share (EPS) were reported at $1.85, surpassing the prior year’s $1.66 and exceeding the estimated $1.77.
- Adjusted operating margin was recorded at 22.7%, slightly below the estimated 22.9% but an improvement from the previous year’s 22.4%.
- In the Risk & Insurance Services segment, the adjusted operating margin was 24.7%, falling short of the expected 25.4%.
- The Consulting segment performed well with an adjusted operating margin of 22.1%, surpassing the expected 21.6%.
- Adjusted operating income rose 13% year-over-year to $1.44 billion, exceeding the projected $1.39 billion.
- The Risk & Insurance Services segment reported an adjusted operating profit of $965 million, reflecting a 13% year-over-year increase, close to the $968.3 million estimate.
- The Consulting segment achieved an adjusted operating profit of $545 million, an 11% year-over-year increase that surpassed the $508.9 million estimate.
- Overall underlying revenue grew by 4%, outpacing the estimated 3.82% growth.
- The Risk & Insurance Services segment saw a 3% increase in underlying revenue.
- The Consulting segment experienced a significant 5% growth in underlying revenue, beating the estimated 3.52% increase.
- Compensation expenses were reported at $3.89 billion, a 13% rise from the previous year, exceeding the $3.77 billion estimate.
Marsh & Mclennan on Smartkarma
Independent analysts on Smartkarma, such as Baptista Research, have been providing insightful coverage of Marsh & McLennan. According to Baptista Research, Marsh & McLennan’s latest earnings report showcased impressive performance, with a 12% increase in revenue, a 14% rise in adjusted operating income, and an 11% growth in adjusted EPS. The company’s diverse business segments, including Marsh, Guy Carpenter, Mercer, and Oliver Wyman, contributed to a solid second quarter amidst challenging macroeconomic conditions. Despite facing geopolitical instability and trade wars, Marsh & McLennan is leveraging economic agility and analytics to drive resilience.
Another report by Baptista Research highlights the importance of Oliver Wyman in Marsh & McLennan’s future growth. In the first quarter of 2025, Marsh & McLennan reported a 9% increase in revenue, driven by underlying revenue growth and contributions from recent acquisitions. The company experienced growth across all its businesses, with adjusted operating income rising by 8%. While the adjusted operating margin saw a slight decline due to seasonal factors, the overall performance underscores the strategic significance of Oliver Wyman in Marsh & McLennan’s growth trajectory.
A look at Marsh & Mclennan Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Marsh & McLennan is projected to have a positive long-term outlook. With favorable scores in Growth and Momentum, the company is poised for expansion and potential upward movement in the market. Additionally, the Resilience score indicates a strong ability to weather economic uncertainties, contributing to its overall stability. While the Value score is moderate, indicating fair pricing, the Dividend score suggests a decent payout to investors.
Overall, Marsh & McLennan Companies, Inc. stands out as a professional services firm specializing in risk, strategy, and human capital services. Providing global clients with expert advice, analysis, and transactional support, the company is well-positioned for steady growth and resilience in the face of market fluctuations, making it a potentially attractive investment option for those seeking long-term stability and growth potential.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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