Aon (AON) AI Stock Analysis

• Market Cap: $75.40B
• Dividend Yield: 0.82%
• Average Volume (3M): 832.82K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.31
• Revenue Growth: 14.06%
• EPS Growth: 5.52%
• Country: US
• Employees: 60,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 3.05
• Shares Outstanding: 214,935,270
• 10 Day Avg. Volume: 645,962
• 30 Day Avg. Volume: 832,823
• PEG Ratio: -72.09
• Price to Book (P/B): 12.40
• Price to Sales (P/S): 4.84
• P/FCF Ratio: 26.95
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 5.49
• Enterprise Value/Gross Profit: 11.62
• Enterprise Value/Ebitda: 17.85
• 1Y Price Target: $396.13
• Price Target Upside: 12.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $368.00 ▲(4.55% Upside)

The score is primarily supported by solid underlying financial performance and a constructive earnings-call outlook with reaffirmed guidance and strong segment momentum (notably data center insurance). Offsetting factors are the leveraged balance sheet, a technically weak price trend (below key moving averages), and a valuation that looks demanding relative to dividend support.

Positive Factors

Revenue Growth

Consistent organic revenue growth indicates strong demand for Aon's services, enhancing its market position and long-term financial stability.

Strategic Initiatives

Focus on data center insurance aligns with industry trends, positioning Aon for substantial growth and competitive advantage in a burgeoning market.

Capital Flexibility

Increased capital flexibility allows Aon to invest in growth opportunities, ensuring long-term sustainability and competitive positioning.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Aon's ability to invest in growth or weather economic downturns.

Margin Pressure

Margin compression may affect profitability if cost pressures persist, challenging Aon's ability to maintain its current financial performance.

Interest Rate Impact

Decreased investment income due to interest rate changes can reduce profitability, affecting Aon's financial results and strategic flexibility.

Aon Business Overview & Revenue Model

Company Description

Aon plc, a professional services firm, provides advice and solutions to clients focused on risk, retirement, and health worldwide. It offers commercial risk solutions, including retail brokerage, cyber, and global risk consulting solutions, as well as acts as a captives management; and health solutions, such as health and benefits brokerages, and health care exchanges. The company also provides treaty and facultative reinsurance, as well as insurance-linked securities, capital raising, strategic advice, restructuring, and mergers and acquisitions services; and corporate finance advisory services and capital markets solutions products. In addition, it offers strategic design consulting services on their retirement programs, actuarial services, and risk management services; advice services on developing and maintaining investment programs across a range of plan types, including defined benefit plans, defined contribution plans, endowments, and foundations for public and private companies, and other institutions; and advice and solutions that help clients in risk, health, and wealth through commercial risk, reinsurance, health, and wealth solutions. Further, the company offers CoverWallet; Affinity; Aon Inpoint; CoverWallet; and ReView services. Aon plc was founded in 1919 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Aon generates revenue primarily through its various consulting and brokerage services. The Commercial Risk Solutions segment earns money by charging clients for insurance brokerage services, risk management consulting, and related advisory services. This includes earning commissions from insurance carriers as well as fees for consulting services. The Retirement Solutions segment derives income from providing pension consulting, investment consulting, and actuarial services, charging clients fees based on the services rendered. Additionally, Aon benefits from partnerships with insurance providers and financial institutions, which enhance its service offerings and expand its client base. The company also leverages technology through its proprietary platforms, which allow for more efficient service delivery and can create additional revenue opportunities through data analytics and digital solutions.

Aon Financial Statement Overview

Summary

Solid profitability and growth signals (healthy net margin and improving free cash flow), but the balance sheet remains a key constraint with elevated leverage (debt-to-equity 2.22). Some margin compression and weak operating cash flow vs. net income also temper the score.

Income Statement

Aon's income statement shows a consistent revenue growth trend, with a TTM revenue growth rate of 1.65%. The gross profit margin has slightly decreased to 43.67% in the TTM, indicating some pressure on cost management. The net profit margin is healthy at 16.03%, although it has decreased from previous years. EBIT and EBITDA margins remain strong, reflecting efficient operations. Overall, the income statement reflects solid growth and profitability, albeit with some margin compression.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.22 in the TTM, indicating significant leverage. However, this is an improvement from previous years, showing efforts to manage debt levels. The return on equity is robust at 37.61%, suggesting effective use of equity to generate profits. The equity ratio is not directly provided, but the high leverage poses a risk if not managed carefully. Overall, the balance sheet shows improvement but remains leveraged.

Cash Flow

Aon's cash flow statement indicates a positive trend in free cash flow growth, with a TTM growth rate of 4.40%. The operating cash flow to net income ratio is relatively low at 0.13, suggesting potential constraints in cash generation relative to net income. The free cash flow to net income ratio is strong at 0.93, indicating efficient cash conversion. Overall, the cash flow statement shows healthy cash generation with some areas for improvement in operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.03B	15.70B	13.38B	12.48B	12.19B	11.07B
Gross Profit	8.04B	7.42B	6.47B	6.00B	5.46B	5.16B
EBITDA	5.24B	4.94B	3.91B	3.83B	2.58B	3.21B
Net Income	2.72B	2.65B	2.56B	2.59B	1.25B	1.97B
Balance Sheet
Total Assets	51.64B	48.97B	33.96B	32.70B	31.93B	32.11B
Cash, Cash Equivalents and Short-Term Investments	1.30B	11.62B	1.15B	1.14B	836.00M	1.19B
Total Debt	17.63B	17.89B	12.03B	11.68B	10.42B	8.93B
Total Liabilities	43.54B	42.53B	34.70B	33.13B	30.77B	28.52B
Stockholders Equity	7.94B	6.12B	-826.00M	-529.00M	1.06B	3.50B
Cash Flow
Free Cash Flow	3.04B	2.82B	3.18B	3.02B	2.04B	2.64B
Operating Cash Flow	3.28B	3.04B	3.44B	3.22B	2.18B	2.78B
Investing Cash Flow	-939.00M	-2.83B	-188.00M	-449.00M	49.00M	-679.00M
Financing Cash Flow	-1.91B	796.00M	-2.87B	-1.79B	-1.92B	-1.77B

Aon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 351.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AON, the sentiment is Negative. The current price of 351.97 is below the 20-day moving average (MA) of 352.70, above the 50-day MA of 348.56, and below the 200-day MA of 357.00, indicating a neutral trend. The MACD of 0.39 indicates Positive momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 62.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AON.

Aon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRO	76 Outperform	$27.53B	24.20	10.47%	0.77%	17.87%	-9.35%
WTW	74 Outperform	$31.62B	15.76	27.79%	1.14%	―	―
MMC	71 Outperform	$91.13B	22.31	28.62%	1.85%	10.57%	2.57%
AJG	69 Neutral	$67.95B	42.10	9.05%	1.01%	17.17%	19.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AON	66 Neutral	$75.40B	28.09	38.33%	0.82%	14.06%	5.52%
RYAN	60 Neutral	$13.40B	398.74	11.16%	0.93%	22.77%	-34.97%

Aon Corporate Events

Aon Announces Separation Agreement With Former President Andersen

On January 6, 2026, Aon Corporation, an indirect wholly owned subsidiary of Aon plc, entered into a separation agreement with former company president Eric Andersen, who had transitioned to the role of senior advisor in March 2025 and will depart the firm effective January 31, 2026. Under the agreement, Andersen will receive a lump-sum cash payment equal to his 2025 target annual incentive, while certain performance share units and special performance stock units will be forfeited, and other equity awards, including LPP 18 PSUs, 2023 ISP RSUs and 2025 ISP RSUs, will vest in early 2026 without continued employment conditions, with these benefits contingent on his release of claims and compliance with the separation terms.

The most recent analyst rating on (AON) stock is a Buy with a $370.00 price target. To see the full list of analyst forecasts on Aon stock, see the AON Stock Forecast page.

Aon Extends CEO Gregory Case’s Contract and Incentives

On December 31, 2025, Aon plc and Aon Corporation renewed and extended President and Chief Executive Officer Gregory C. Case’s employment agreement through December 31, 2030, maintaining his dual role as CEO and board member candidate at each annual general meeting during the term. The amended agreement raises Case’s annual base salary to $1.75 million with a target bonus of at least 250% of base pay, preserves largely unchanged termination provisions, and grants a $50 million target award of performance share units tied to five-year financial and operational metrics from 2026 to 2030, reinforcing long-term incentives and retention. The contract also continues strict two-year non-compete and non-solicitation covenants and standard confidentiality and intellectual property protections, underscoring the company’s commitment to leadership stability and performance-based compensation at the top of the organization.

The most recent analyst rating on (AON) stock is a Buy with a $435.00 price target. To see the full list of analyst forecasts on Aon stock, see the AON Stock Forecast page.

Aon Completes Sale of Wealth Businesses

On October 30, 2025, Aon plc completed the sale of a significant majority of its wealth businesses, including Wealthspire Advisors, Fiducient Advisors, and Newport Private Wealth, to Madison Dearborn Partners. This transaction marks a strategic shift in Aon’s operations, potentially impacting its market positioning and stakeholder relationships by narrowing its focus on core service areas.

The most recent analyst rating on (AON) stock is a Sell with a $412.00 price target. To see the full list of analyst forecasts on Aon stock, see the AON Stock Forecast page.