Marsh & McLennan’s fourth quarter was marked by above-consensus revenue and profit, reflecting strong execution on strategic priorities despite a complex market environment. Management credited continued investment in digital infrastructure, talent, and technology, notably through the Thrive program, as key contributors to the company’s growth. CEO John Doyle highlighted Marsh’s ability to “deliver even greater value” through market-leading risk, health, and consulting services, supported by the integration of McGriff and a refreshed brand identity. The quarter also saw solid performance in both risk and consulting segments, with initiatives in AI and advanced analytics beginning to show tangible operational benefits.
Is now the time to buy MRSH? Find out in our full research report (it’s free for active Edge members).
Marsh & McLennan (MRSH) Q4 CY2025 Highlights:
- Revenue: $6.60 billion vs analyst estimates of $6.55 billion (8.7% year-on-year growth, 0.7% beat)
- Adjusted EPS: $2.12 vs analyst estimates of $1.97 (7.4% beat)
- Adjusted EBITDA: $1.66 billion vs analyst estimates of $1.66 billion (25.1% margin, in line)
- Operating Margin: 18.5%, in line with the same quarter last year
- Organic Revenue rose 4% year on year (beat)
- Market Capitalization: $92.03 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Marsh & McLennan’s Q4 Earnings Call
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Gregory Peters (Raymond James) asked how client investment trends in digital infrastructure and AI will affect long-term revenue across segments. CEO John Doyle and business leaders detailed sector-specific strategies, emphasizing risk advisory, capital management, and workforce planning as areas of expected growth.
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Mike Zaremski (BMO) inquired about the overlap between Thrive and AI initiatives and whether AI could impact headcount. Doyle clarified that Thrive focuses on both efficiency and growth, with AI tools designed to enhance productivity rather than reduce jobs, and highlighted ongoing rollout of client-facing technologies.
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David Motemaden (Evercore ISI) asked whether recent talent departures affected U.S. results and how data center projects might impact 2026 growth. Doyle reported minimal impact from turnover and expects digital infrastructure to have a greater effect in future periods.
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Brian Meredith (UBS) questioned whether clients plan to increase insurance coverage amid price declines and if AI poses a revenue headwind for management consulting. Doyle noted mixed client responses to insurance budgets, while Nick Studer, CEO of Marsh Management Consulting, said AI currently enhances productivity without reducing consulting revenues.
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Meyer Shields (KBW) probed whether competition for brokerage talent is raising costs and how lower broker valuations might impact M&A multiples. Doyle observed no broad compensation inflation but flagged increased competition from private equity-backed firms, while noting a widening bid-ask gap in M&A pricing.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will watch (1) the pace of digital infrastructure and data center project wins and their conversion to revenue, (2) the adoption and measurable impact of AI-driven productivity tools and client-facing technologies, and (3) the ability to maintain or expand margins amid persistent industry pricing pressure. Progress in workforce development and execution on targeted acquisitions will also be important markers of Marsh’s strategic effectiveness.
Marsh & McLennan currently trades at $189.34, up from $178.18 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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