Aon plc (AON) Earnings

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Sep 2026upcoming

Next quarter

Expected to report Oct 30, 2026 — estimated from last year’s reporting date.

Consensus is $3.39 EPS for Sep 2026 across 10 estimates, ranging $3.25 to $3.49.

AON Jun 2026

Reported Jul 29, 2026

: 1.06%
: -2.81%

: $3.77
: $3.81
: —
: $4.25B

Reported results

: $4.25B; from $4.16B
: $915.00M; from $859.00M
: 21.55%; from 20.67%
: $551.00M; from $579.00M
: $2.58; from $2.66

Highlights

Adjusted EPS: Adjusted diluted EPS was $3.81, up 9% year over year and $0.04, or 1.1%, above the $3.77 consensus; GAAP diluted EPS was $2.58 versus $2.66 a year ago.
Organic growth: Revenue rose 2% to $4.25 billion, comprising 5% organic growth and a 1% foreign-exchange benefit, partly offset by a 4% divestiture impact.
Risk Capital: Revenue increased 5% to $3.01 billion, with 5% organic growth in both Commercial Risk Solutions and Reinsurance Solutions; operating margin rose to 30.5% from 30.1%.
Human Capital mix: Revenue declined 4% to $1.24 billion because of the NFP Wealth divestiture, although organic growth was 5% in both Health and Wealth Solutions; operating margin expanded to 13.4% from 9.1%.
Margin expansion: GAAP operating income increased 7% to $915 million and operating margin expanded 80 basis points to 21.5%; adjusted operating margin rose 70 basis points to 28.9%.
Cash returns: Aon returned $775 million to shareholders in the quarter, including $600 million of repurchases and $175 million of dividends; it repurchased 1.9 million shares at an average $320.77.
Cash generation: First-half operating cash flow increased 5% to $986 million and free cash flow increased 4% to $846 million, despite a $20 million increase in capital expenditures.
Guidance: Aon reaffirmed 2026 guidance for mid-single-digit or greater organic revenue growth, 70-80 basis points of adjusted operating margin expansion, strong adjusted EPS growth and double-digit free cash flow growth.

Analysis

Aon’s second quarter was a modest revenue beat with continued underlying growth and margin expansion. Adjusted EPS of $3.81 exceeded the $3.77 consensus by 1.1% and rose 9% from $3.49 a year ago. Revenue increased 2% to $4.25 billion, while adjusted operating income grew 5% to $1.23 billion and adjusted operating margin expanded 70 basis points to 28.9%. GAAP results were less favorable at the bottom line: net income attributable to shareholders fell 5% to $551 million and diluted EPS declined to $2.58 from $2.66, reflecting a higher effective tax rate of 22.0% versus 15.5% and the absence of prior-year deferred-consideration gains.

The print was led by broad 5% organic growth and a widening contribution from Risk Capital, while Human Capital’s reported decline was largely portfolio-driven. Risk Capital revenue rose 5% and operating income increased 6%; Human Capital revenue fell 4% after the NFP Wealth sale, but operating income rose 43% as costs and amortization declined. Relative to the seasonally stronger first quarter, revenue fell from $5.03 billion and operating income from $1.72 billion, while EPS declined from $5.63. Aon also emphasized capital allocation, returning $775 million during the quarter and exceeding its full-year minimum repurchase objective, while reaffirming its full-year outlook.

Underlying revenue growth

Consolidated performance: Revenue increased $91 million, or 2%, to $4.246 billion. The bridge included 5% organic growth driven by net new business and retention, a 1% favorable currency effect and a 4% unfavorable impact primarily from the NFP Wealth and Stroz Friedberg divestitures.
Commercial Risk: Revenue increased 5% to $2.295 billion, with 5% organic growth from North America and EMEA. U.S. core property and casualty and construction were particular strengths, with construction growing at a double-digit rate.
Reinsurance: Revenue increased 3% to $711 million, while organic growth was 5%. Treaty placements benefited from new business and retention, and facultative placements and the Strategy and Technology Group grew at double-digit rates; net market impact was unfavorable.
Health Solutions: Revenue rose 6% to $818 million and organic growth was 5%, supported by international health and benefits demand and strong growth in talent analytics.
Wealth Solutions: Reported revenue fell 18% to $426 million because of the NFP Wealth sale, but organic revenue growth was 5%, led by U.K. and EMEA retirement advisory demand related to regulatory change.

Margin and restructuring

Operating leverage: Operating expenses increased only 1% to $3.331 billion against 2% reported revenue growth, lifting GAAP operating income 7% to $915 million and margin to 21.5% from 20.7%.
Adjusted profitability: Adjusted operating income increased 5% to $1.227 billion, and adjusted margin expanded to 28.9% from 28.2%. Management attributed the improvement to organic growth, scale benefits in Aon Business Services and $25 million of net restructuring savings, partly offset by growth investments.
Accelerating Aon United: The program generated $96 million of charges in the quarter and $188 million in the first half, taking cumulative charges since inception to $1.077 billion. Aon expects total program costs of $1.3 billion and annualized savings of about $450 million by the end of 2027; cumulative annualized savings reached $320 million at quarter-end.
Technology investment: Information technology expense rose 19% to $162 million, reflecting continued Aon Business Services investment, while compensation and benefits declined 4% to $2.271 billion because of divestiture-related savings and restructuring actions.

Segment profitability

Risk Capital: Operating income increased 6% to $916 million on 5% revenue growth, and operating margin rose 40 basis points to 30.5%. Adjusted operating income increased 5% to $1.028 billion, with adjusted margin of 34.2% versus 34.1%.
Human Capital: Operating income increased 43% to $167 million despite the 4% revenue decline. Lower compensation, amortization and other expenses following the NFP Wealth divestiture drove margin to 13.4% from 9.1%; adjusted operating income rose 9% to $268 million and adjusted margin reached 21.5%.
Portfolio effect: The NFP Wealth disposal suppressed reported Human Capital revenue, but the remaining businesses continued to grow organically at 5%. This made the quarter’s consolidated revenue growth look weaker than the underlying demand trends.

Cash and capital allocation

Free cash flow: First-half operating cash flow rose $50 million, or 5%, to $986 million, while free cash flow increased 4% to $846 million after $140 million of capital expenditures. Working-capital pressure and cash taxes related to NFP Wealth partly offset stronger operating income.
Share repurchases: Aon repurchased 1.9 million shares for $600 million in the quarter and 3.4 million shares for $1.1 billion in the first half. The remaining authorization was approximately $7.7 billion after the total authorization was increased to $35.0 billion in June.
Balance sheet: Total debt was $15.0 billion at June 30, down $282 million from year-end, and Aon had $2.0 billion of undrawn committed credit facilities. Cash and short-term investments available outside fiduciary assets totaled $1.3 billion.

2026 outlook

Reaffirmed targets: Aon maintained its expectations for mid-single-digit or greater organic revenue growth, 70-80 basis points of adjusted operating margin expansion, strong adjusted EPS growth and double-digit free cash flow growth in 2026.
Currency sensitivity: Currency had a de minimis impact on second-quarter adjusted EPS. At prevailing rates, Aon expects a de minimis third-quarter impact but approximately $0.42 of favorable adjusted EPS impact for the full year.

Aon plc

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