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With a market cap of $89.6 billion, Marsh & McLennan Companies, Inc. (MRSH) is a global professional services and risk advisory firm. The New York-based company operates through Risk and Insurance Services and Consulting segments, serving a wide range of clients worldwide.
The insurance broker's shares have struggled to keep up with the broader market over the past 52 weeks. MRSH stock has decreased 9.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.4%. On a YTD basis, shares of the company are up 1.2%, compared to SPX’s 13.7% gain.
Moreover, shares of MRSH have underperformed the State Street Financial Select Sector SPDR ETF’s (XLF) 9.7% return over the past 52 weeks and 6.2% rally in 2026.
On July 21, Marsh & McLennan released its FY2026 Q2 earnings, and its shares dipped 3.1% in the next trading session due to weakness at Guy Carpenter, continued reinsurance pricing pressure, and a relatively modest beat against elevated expectations. Consolidated revenue increased 6.2% year over year to about $7.40 billion, while underlying revenue growth was 5%. Adjusted operating income increased 5.3% year over year to $2.17 billion, reflecting continued operating leverage. Its adjusted EPS climbed 8.8% to $2.96, beating consensus estimates of roughly $2.90.
For the fiscal year ending in December 2026, analysts expect Marsh & McLennan’s adjusted EPS to grow 7% year over year to $10.43. The company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 25 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, 17 “Holds,” and one “Moderate Sell.”
The configuration is bearish than a month ago when the stock had eight “Strong Buy” suggestions.
On July 27, UBS analyst Brian Meredith reiterated a “Buy” rating on MRSH and raised his price target to $216 from $212.
The mean price target of $202.54 represents a 7.8% premium to MRSH’s current price levels. The Street-high price target of $234 suggests a 24.6% potential upside.
