Aon Plc (AON)
NYSE:AON
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Aon
(NYSE:AON)
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Rating:75Outperform
Price Target:
$350.00
▲(5.49% Upside)
Action:Upgraded
Date:05/02/26
The score is driven primarily by strong financial performance (high margins, steady revenue growth, and reliable free cash flow) and a constructive earnings outlook with reaffirmed guidance and sizable capital returns. These positives are tempered by balance-sheet leverage/history of equity instability and weak technicals (price below key moving averages with negative MACD), while valuation appears reasonable but the dividend yield is modest.
Positive Factors
Profitability & margins
Sustained high net and EBITDA margins indicate durable pricing power and efficient cost structure across advisory and brokerage lines. Strong margins support reinvestment, R&D, and shareholder returns while providing a buffer against cyclical revenue swings in insurance markets.
Negative Factors
Leverage and balance-sheet history
Material absolute debt and past episodes of negative equity amplify refinancing and execution risk. Substantial leverage limits strategic optionality, makes returns more sensitive to cyclicality, and requires sustained cash generation and disciplined allocation to rebuild balance-sheet flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & margins
Sustained high net and EBITDA margins indicate durable pricing power and efficient cost structure across advisory and brokerage lines. Strong margins support reinvestment, R&D, and shareholder returns while providing a buffer against cyclical revenue swings in insurance markets.
Read all positive factors
Aon Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue across different business units, highlighting which segments are driving growth and profitability, and where the company might be facing challenges.
Analyzes revenue across different business units, highlighting which segments are driving growth and profitability, and where the company might be facing challenges.
Data provided by:
The Fly
The FlyAon (AON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.59B
Dividend Yield0.82%
Average Volume (3M)1.46M
Price to Earnings (P/E)14.3
Beta (1Y)0.36
Revenue Growth7.51%
EPS Growth55.21%
CountryUS
Employees60,000
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)18.33
Shares Outstanding213,576,950
10 Day Avg. Volume1,637,258
30 Day Avg. Volume1,458,947
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)8.12
Price to Sales (P/S)4.42
P/FCF Ratio23.59
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue4.77
Enterprise Value/Gross Profit7.24
Enterprise Value/Ebitda12.33
Forecast
1Y Price Target
$388.91Price Target Upside17.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)19.13
Revenue Forecast (FY)$18.04B
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 wel...
How the Company Makes Money
Aon makes money primarily by selling advisory and intermediary services, earning revenue largely in the form of fees and commissions tied to client contracts and placements. A core revenue stream is commercial risk solutions (insurance brokerage a...
Aon Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: consistent execution produced mid-single-digit organic growth (5% in Q1), meaningful margin expansion (+70 bps), strong adjusted EPS growth (+14%), and a large surge in free cash flow (+332%). Management highlighted tangible AI/ABS-driven productivity gains, durable client-quality metrics (mid-90s retention, substantial new business contribution), and disciplined capital allocation (dividend increase, accelerated buybacks, targeted M&A). Headwinds include notable rate pressure in reinsurance and P&C renewals, softness in Wealth and Talent Solutions, lower fiduciary investment income, and geopolitical uncertainty that could create short-term volatility. On balance, the positive financial results, durable strategic progress, and strong capital returns outweigh the manageable challenges.Positive Updates
Solid Top-Line Growth
Q1 organic revenue growth of 5%; total revenue +6% YoY to $5.0 billion; reaffirming full-year objective of mid-single-digit or greater organic growth.
Negative Updates
Rate Pressure in Reinsurance and Property
Reported 10%–15% rate pressure in treaty placements; April 1 renewals showing further rate declines (rates down ~15%–20% in U.S. and Japan), partially offset by ~10% higher demand — creating headwinds for net market impact.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Top-Line Growth
Q1 organic revenue growth of 5%; total revenue +6% YoY to $5.0 billion; reaffirming full-year objective of mid-single-digit or greater organic growth.
Read all positive updates
Company Guidance
Aon reaffirmed its 2026 guidance, targeting mid‑single‑digit or greater organic revenue growth, 70–80 basis points of adjusted operating margin expansion for the year, and double‑digit free cash flow growth, while committing to at least $1 billion of share repurchases in 2026. Management pointed to Q1 results that support the outlook: 5% organic revenue growth, $5.0 billion total revenue, adjusted operating margin of 39.1% (up 70 bps), adjusted EPS of $6.48 (up 14%), and $363 million of free cash flow (up 332%); the firm returned $662 million to shareholders in Q1 (including $500 million of buybacks) and deployed $349 million to tuck‑in M&A. Leadership reiterated planned investments of roughly $1.3 billion in talent and technology by year‑end, restructuring savings of $25 million in Q1 with $100 million expected in 2026 and $450 million by 2027, and near‑term financial guides (Q2 interest expense ≈ $180 million, Q2 other expense $15–20 million, full‑year tax rate 19.5–20.5%), while calling out operational metrics—retention in the mid‑90s (up 20 bps), new business contributing ~9 points to Q1 organic growth, and plans to grow the revenue‑generating population 4–8% in 2026.Aon Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
62
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.49B | 17.18B | 15.70B | 13.38B | 12.48B | 12.19B |
| Gross Profit | 11.54B | 8.20B | 7.42B | 6.47B | 6.00B | 5.46B |
| EBITDA | 6.77B | 5.35B | 4.94B | 3.91B | 3.83B | 2.58B |
| Net Income | 3.94B | 3.69B | 2.65B | 2.56B | 2.59B | 1.25B |
Balance Sheet | ||||||
| Total Assets | 51.43B | 50.78B | 48.97B | 33.96B | 32.70B | 31.93B |
| Cash, Cash Equivalents and Short-Term Investments | 1.42B | 2.80B | 11.62B | 1.15B | 1.14B | 836.00M |
| Total Debt | 15.30B | 16.53B | 17.89B | 12.03B | 11.68B | 10.42B |
| Total Liabilities | 41.47B | 41.24B | 42.53B | 34.70B | 33.13B | 30.77B |
| Stockholders Equity | 9.83B | 9.35B | 6.12B | -826.00M | -529.00M | 1.06B |
Cash Flow | ||||||
| Free Cash Flow | 3.50B | 3.22B | 2.82B | 3.18B | 3.02B | 2.04B |
| Operating Cash Flow | 3.77B | 3.48B | 3.04B | 3.44B | 3.22B | 2.18B |
| Investing Cash Flow | 1.58B | 286.00M | -2.83B | -188.00M | -449.00M | 49.00M |
| Financing Cash Flow | -4.30B | -4.21B | 796.00M | -2.87B | -1.79B | -1.92B |
Aon Technical Analysis
Positive
331.80
Price Trends
320.81
Positive
328.13
Negative
340.53
Negative
Market Momentum
-0.08
Negative
54.56
Neutral
67.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AON, the sentiment is Positive. The current price of 331.8 is above the 20-day moving average (MA) of 316.99, above the 50-day MA of 320.81, and below the 200-day MA of 340.53, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 54.56 is Neutral, neither overbought nor oversold. The STOCH value of 67.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AON.
Aon Risk Analysis
Aon disclosed 36 risk factors in its most recent earnings report. Aon reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aon Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $68.59B | 14.27 | 45.09% | 0.82% | 7.51% | 55.21% | |
72 Outperform | $52.31B | 16.94 | 6.91% | 1.01% | 25.34% | -5.29% | |
70 Outperform | $19.47B | 12.74 | 9.35% | 0.77% | 29.22% | -2.51% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $23.99B | 23.29 | 20.98% | 1.14% | 0.92% | ― | |
51 Neutral | $8.71B | 26.93 | 20.85% | 0.93% | 18.37% | 98.44% |
* Financial Sector Average
AON
Aon
324.22
-29.11
-8.24%
AJG
Arthur J Gallagher & Co
207.41
-127.31
-38.04%
BRO
Brown & Brown
58.52
-51.32
-46.72%
WTW
Willis Towers Watson
258.23
-47.16
-15.44%
RYAN
Ryan Specialty Group
33.31
-34.55
-50.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.