Marsh McLennan lifts Thrive savings target to $600M as Q3 adjusted EPS rises 10%

Q3 results: revenue and adjusted EPS beat on consulting strength

Marsh & McLennan Companies reported third-quarter 2026 revenue of $6.9 billion, up 8% on a reported basis and 5% on an underlying basis, with adjusted operating income rising 6% to $1.5 billion and adjusted EPS increasing 10% year over year to $2.03. GAAP EPS was $1.69. CEO John Doyle attributed the quarter to "market-leading positions, the value we deliver to clients, and the commitment of our colleagues around the world." (Source 1, Source 2, Source 4)

Segment mix: consulting leads, reinsurance softens

Risk and Insurance Services revenue increased 7% to $4.2 billion, representing 3% underlying growth. Marsh's risk business produced $3.7 billion in revenue, up 10% reported and 5% underlying, with 4% underlying growth in the U.S. and Canada and 6% internationally, including 7% in EMEA. Consulting revenue rose 9% to $2.7 billion, or 8% underlying, driven by 14% underlying growth in Management Consulting to $1 billion, supported by demand for AI-related transformation services and the timing of success fees. People and Investments revenue rose 5% underlying, with Health and Benefits up 5% and Investments and Retirement up 8%. Reinsurance revenue declined 6% to $374 million on continued softness in property reinsurance pricing and a difficult prior-year comparison. (Source 3, Source 4, Source 6)

Thrive savings target raised to $600M

Management raised the Thrive efficiency program's savings target to $600 million from $400 million, citing additional opportunities within Business and Client Services and advances in technology. CFO Mark McGivney said the company expects to take the vast majority of Thrive actions by the end of 2028, with savings realized relatively evenly across the program's three years and total program costs expected to total approximately $750 million. Doyle said the expanded savings are intended to fund investments in sales, new capabilities, the Marsh brand, and technology, including hiring producers and consultants while harvesting attrition in mid- and back-office roles through automation and workflow redesign. Management confirmed on the call that the company settled the Greensill litigation with no additional charges expected. (Source 2, Source 4, Source 6)

AI deployment, cyber risk and insurance pricing

Doyle said AI is already affecting the company's client relationships, operations, and employee workflows, noting the deployment of Marsh Risk Companion, an analytics suite for client risk programs, and the Quotient AI transformation platform, described by Oliver Wyman CEO Ted Moynihan as the fastest-growing part of Management Consulting. Doyle also flagged concern about "the potential for heightened cyber exposure from AI," saying the company is working with governments and insurers to build resilience. According to the Marsh Global Insurance Market Index, global commercial insurance rates decreased 5% in the third quarter, following a 6% decrease in the second quarter; property rates fell 10%, financial and professional liability rates declined 3%, and cyber rates declined 4%, while casualty rates rose 1% globally and U.S. excess casualty rates rose 13%. (Source 4, Source 6)

Capital deployment: $500M buyback, $5.5B full-year plan

Marsh repurchased $500 million of shares during the quarter, bringing year-to-date repurchases to $2 billion, and paid $476 million in dividends and $288 million for acquisitions. The company said it expects to deploy about $5.5 billion of capital during 2026 across dividends, acquisitions, and share repurchases, with McGivney noting that the eventual buyback level will depend on the development of its acquisition pipeline. The quarter-end balance sheet showed $1.8 billion in cash and $20.5 billion in total debt, including $550 million of euro-denominated notes that matured in September and are scheduled for replacement in the fourth quarter. Assets under management stood at $843 billion, up 23% year over year. Management reiterated expectations for full-year underlying revenue growth similar to 2025 levels, continued margin expansion, and solid adjusted EPS growth, and indicated Q4 Management Consulting revenue will be roughly flat due to the pull-forward of success fees. (Source 3, Source 5, Source 6)