Aon (AON) AI Stock Analysis

• Market Cap: $75.27B
• Dividend Yield: 0.82%
• Average Volume (3M): 928.78K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.30
• Revenue Growth: 14.06%
• EPS Growth: 5.52%
• Country: US
• Employees: 60,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 4.85
• Shares Outstanding: 214,935,270
• 10 Day Avg. Volume: 1,495,071
• 30 Day Avg. Volume: 928,779
• PEG Ratio: 0.57
• Price to Book (P/B): 8.15
• Price to Sales (P/S): 4.43
• P/FCF Ratio: 23.68
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 5.27
• Enterprise Value/Gross Profit: 11.06
• Enterprise Value/Ebitda: 16.94
• 1Y Price Target: $396.67
• Price Target Upside: 13.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $386.00 ▲(10.22% Upside)

The score is driven primarily by strong operating and cash-flow performance and upbeat forward guidance (growth, margin expansion, and higher targeted free cash flow). These positives are moderated by balance-sheet leverage risk and only mixed near-term technical momentum, while valuation appears reasonable but not distinctly cheap given the low dividend yield.

Positive Factors

Consistent organic revenue growth

Two consecutive years of mid-single-digit organic growth show durable client demand for Aon’s brokerage and consulting mix. With revenue-generating hires (4–8% target), strong new-business contribution and cohort seasoning, organic growth supports predictable scale and long-term revenue visibility.

Margin expansion and strong free cash flow

Sustained operating‑margin improvement and double-digit FCF growth reflect structural operating leverage from ABS, restructuring and pricing power. Higher FCF and ~$7B available capital enhance deleveraging, disciplined buybacks and tuck‑in M&A capacity over the medium term.

Product innovation and data center reinsurance capability

Proprietary DCLP and the data‑center reinsurance treaty position Aon to capture structural growth from cloud/AI infrastructure. These differentiated, multi‑line solutions and ABS/AI deployments deepen client stickiness and create high‑margin, scalable offerings over years.

Negative Factors

High balance sheet leverage

A D/E around 2.2 leaves the firm exposed to interest‑rate and cycle shocks and limits strategic optionality. While leverage has improved, sustained high debt can constrain investment, slow opportunistic M&A, and amplify losses in downturns absent continued FCF-led deleveraging.

Signs of margin pressure

Compressing gross and net margins indicate cost or pricing headwinds. Combined with lower fiduciary income and property rate softness, persistent margin pressure could erode return on capital and require continued restructuring or price increases to sustain profitability long term.

Talent competition and tougher M&A sourcing

Aon’s model relies on skilled professionals and tuck-in M&A. Tight labor markets raise compensation costs and retention risk, while widening seller expectations make accretive deals harder to source, pressuring long-term margin and organic growth potential if unresolved.

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

Strong income statement and cash-flow profile (revenue growth, expanding net margins, and reliable cash conversion with higher 2025 OCF/FCF), but meaningfully offset by balance-sheet risk from elevated leverage and a recent history of thin/negative equity despite improvement.

Income Statement

Aon shows strong top-line momentum with revenue rising from $11.1B (2020) to $17.2B (2025), including a sharp acceleration in 2025 versus 2024. Profitability is solid and improving, with net margin expanding to ~21.5% in 2025 from ~16.9% in 2024 (and ~10.3% in 2021), indicating good operating leverage. Gross margin has been steady in the high-40% range, supporting consistent earnings power. The main watch-out is some variability in operating profitability metrics across years (including an anomalous 2025 operating margin datapoint), but the overall earnings trajectory remains favorable.

Balance Sheet

Leverage is meaningful for the business, with total debt at $16.5B in 2025 against $9.35B of equity (down from $17.9B debt and $6.12B equity in 2024). While equity has improved materially since 2022–2023 (when equity was negative), the balance sheet history shows periods of thin/negative equity and elevated leverage risk. Total assets have grown to $50.8B in 2025 from $32.1B in 2020, which supports scale, but the debt load remains a key constraint and makes the company more sensitive to refinancing and rate conditions.

Cash Flow

Cash generation is consistently strong: operating cash flow was $3.48B in 2025 and free cash flow was $3.22B, both higher than 2024 ($3.04B and $2.82B). Free cash flow tracks net income closely (about 0.92–0.95x across years), suggesting earnings quality is solid and cash conversion is reliable. Free cash flow growth is volatile year-to-year (down in 2024, then sharply up in 2025), but the underlying level of free cash flow remains robust and supportive of debt service and shareholder returns.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.18B	15.70B	13.38B	12.48B	12.19B
Gross Profit	8.20B	7.42B	6.47B	6.00B	5.46B
EBITDA	5.35B	4.94B	3.91B	3.83B	2.58B
Net Income	3.69B	2.65B	2.56B	2.59B	1.25B
Balance Sheet
Total Assets	50.78B	48.97B	33.96B	32.70B	31.93B
Cash, Cash Equivalents and Short-Term Investments	2.80B	11.62B	1.15B	1.14B	836.00M
Total Debt	16.53B	17.89B	12.03B	11.68B	10.42B
Total Liabilities	41.24B	42.53B	34.70B	33.13B	30.77B
Stockholders Equity	9.35B	6.12B	-826.00M	-529.00M	1.06B
Cash Flow
Free Cash Flow	3.22B	2.82B	3.18B	3.02B	2.04B
Operating Cash Flow	3.48B	3.04B	3.44B	3.22B	2.18B
Investing Cash Flow	286.00M	-2.83B	-188.00M	-449.00M	49.00M
Financing Cash Flow	-4.21B	796.00M	-2.87B	-1.79B	-1.92B

Aon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 350.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 350.21 is above the 20-day moving average (MA) of 342.94, above the 50-day MA of 346.94, and below the 200-day MA of 353.26, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 71.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AON.

Aon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AON	71 Outperform	$75.27B	20.38	47.76%	0.82%	14.06%	5.52%
AJG	71 Outperform	$64.08B	43.13	6.87%	1.01%	17.17%	19.12%
WTW	68 Neutral	$32.53B	20.61	20.07%	1.14%	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BRO	66 Neutral	$25.28B	22.77	10.99%	0.77%	17.87%	-9.35%
RYAN	60 Neutral	$12.56B	368.52	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.