Marsh & McLennan Net Income Falls 17% to $1.15B as Operating Income Slips

Marsh & McLennan Companies, a global professional services firm specializing in risk, strategy and people, reported net income of $1.15 billion for the three months ending March 31, 2026, down from $1.38 billion in the same quarter of 2025. The 17% decline came despite an 8% increase in revenue. Read more earnings reports.

Revenue climbed to $7.60 billion from $7.06 billion in the prior-year quarter. Operating income fell 13% to $1.75 billion from $2.01 billion, as operating expenses surged to $5.84 billion from $5.06 billion.

The company's two main segments showed divergent performance. Risk and Insurance Services revenue grew 6% to $5.05 billion from $4.76 billion, while Consulting revenue jumped 11% to $2.56 billion from $2.31 billion. Operating income from Risk and Insurance Services declined 19% to $1.31 billion, while Consulting operating income rose 15% to $525 million.

Labor and related expenses rose 7% to $4.13 billion from $3.85 billion in the year-ago quarter. The increase reflected higher compensation costs across both business segments.

Cash flow from operations was negative $688 million for the quarter, compared to negative $622 million in the first quarter of 2025. The company used $104 million in investing activities and generated $114 million from financing activities.

Diluted earnings per share fell to $2.36 from $2.79, based on 486 million weighted average diluted shares outstanding compared to 495 million a year earlier. The company had 482 million common shares outstanding as of March 31, 2026, down from 493 million a year prior.

Total assets stood at $58.55 billion as of March 31, 2026, down slightly from $58.71 billion at year-end 2025. Long-term debt increased to $18.90 billion from $18.32 billion at the end of December 2025.

Retained earnings rose to $28.04 billion from $27.77 billion at the prior quarter-end, reflecting the quarter's net income partially offset by dividends and other adjustments.