Aon Plc (AON)
NYSE:AON
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Aon
(NYSE:AON)
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Rating:65Neutral
Price Target:
$341.00
▲(3.41% Upside)
Action:DowngradedDate:03/21/26
The score is driven primarily by strong operating performance and cash generation, tempered by meaningful leverage risk. Technical indicators are notably weak and weigh on the near-term setup, while valuation is moderate with a low dividend yield. Leadership continuity is a modest positive.
Positive Factors
Cash generation
Aon produces consistently strong operating cash flow ($3.48B) and free cash flow ($3.22B in 2025) with FCF tracking net income ~0.92–0.95x. Reliable cash conversion supports debt service, reinvestment, and shareholder returns, bolstering long-term financial resilience.
Negative Factors
Elevated leverage
Aon’s sizeable debt load ($16.5B) relative to equity increases sensitivity to interest rates and refinancing cycles. Elevated leverage constrains financial flexibility for M&A or buybacks and raises long-term solvency and rating pressure in adverse conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Aon produces consistently strong operating cash flow ($3.48B) and free cash flow ($3.22B in 2025) with FCF tracking net income ~0.92–0.95x. Reliable cash conversion supports debt service, reinvestment, and shareholder returns, bolstering long-term financial resilience.
Read all positive factors
Aon (AON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$70.65B
Dividend Yield0.82%
Average Volume (3M)1.32M
Price to Earnings (P/E)20.5
Beta (1Y)0.32
Revenue Growth14.06%
EPS Growth5.52%
CountryUS
Employees60,000
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)N/A
Shares Outstanding214,254,500
10 Day Avg. Volume1,040,311
30 Day Avg. Volume1,324,274
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 Cap1.21
Enterprise Value/Revenue4.96
Enterprise Value/Gross Profit8.88
Enterprise Value/Ebitda13.04
Forecast
1Y Price Target
$393.93Price Target Upside19.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)19.04
Revenue Forecast (FY)$18.03B
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 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 Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call emphasized durable, broad-based performance with multiple strong financial metrics (organic revenue growth, margin expansion, EPS growth, double-digit free cash flow growth) and substantial strategic momentum (ABS, AI, data center innovation, NFP integration). Management acknowledged near-term headwinds—notably large January 1 property rate declines, weaker fiduciary income from lower rates, modest growth in some human capital lines, and tax impacts from disposals—but provided clear plans and guidance for 2026 (mid-single-digit organic growth, margin expansion, and double-digit free cash flow), a strengthened capital position (~$7B), and continued disciplined capital allocation. Overall, positives materially outweigh the noted challenges, and the company presents a confident outlook for continued execution and growth.Positive Updates
Sustained Organic Revenue Growth
Organic revenue growth of 6% for the full year (second consecutive year) and 5% in Q4, supporting the company's mid-single-digit or greater organic growth objective.
Negative Updates
January 1 Property Rate Softness
January 1 property renewals showed rate declines of 15–20%, creating a meaningful market headwind and weighing on near-term top-line pressure in property and treaty segments.
Read all updates
Q4-2025 Updates
Positive
Negative
Sustained Organic Revenue Growth
Organic revenue growth of 6% for the full year (second consecutive year) and 5% in Q4, supporting the company's mid-single-digit or greater organic growth objective.
Read all positive updates
Company Guidance
Aon guided to mid‑single‑digit or greater organic revenue growth for 2026, 70–80 basis points of adjusted operating‑margin expansion and “strong” adjusted EPS growth, with embedded assumptions including a +2‑point FX tailwind, roughly a 2‑point headwind tied to the NFP wealth sale and an $80 million non‑cash pension expense; management expects double‑digit free cash flow growth targeting $4.3 billion of free cash flow, mid‑nineties retention, 0–2 points of net market impact, continued 4–8% growth in revenue‑generating hires, $7 billion of available capital, at least $1 billion of share repurchases, and $180 million of restructuring savings over 2026–27 (including $100 million in 2026 contributing ~50 bps), while lower fiduciary yields are expected to dilute margins by ~20 bps and ABS operating leverage should add ~40–50 bps.Aon Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
55
Neutral
Cash Flow
79
Positive
| 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
Positive
329.76
Price Trends
327.58
Positive
337.60
Negative
346.61
Negative
Market Momentum
-0.89
Negative
54.10
Neutral
80.06
Negative
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 329.76 is above the 20-day moving average (MA) of 322.21, above the 50-day MA of 327.58, and below the 200-day MA of 346.61, indicating a neutral trend. The MACD of -0.89 indicates Negative momentum. The RSI at 54.10 is Neutral, neither overbought nor oversold. The STOCH value of 80.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AON.
Aon Risk Analysis
Aon disclosed 35 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $23.07B | 23.44 | 9.72% | 0.77% | 17.87% | -9.35% | |
69 Neutral | $56.77B | 45.10 | 6.50% | 1.01% | 17.17% | 19.12% | |
68 Neutral | $27.50B | 20.06 | 20.10% | 1.14% | ― | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $70.65B | 20.54 | 45.99% | 0.82% | 14.06% | 5.52% | |
57 Neutral | $9.19B | 103.64 | 10.43% | 0.93% | 22.77% | -34.97% |
* Financial Sector Average
AON
Aon
329.76
-36.13
-9.87%
AJG
Arthur J Gallagher & Co
220.80
-101.72
-31.54%
BRO
Brown & Brown
67.76
-48.64
-41.79%
WTW
Willis Towers Watson
290.82
-22.11
-7.06%
RYAN
Ryan Specialty Group
34.91
-36.38
-51.03%
Aon Corporate Events
Executive/Board Changes
Aon Announces Separation Agreement With Former President Andersen
Neutral
Jan 7, 2026
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 ...
Executive/Board Changes
Aon Extends CEO Gregory Case’s Contract and Incentives
Positive
Jan 2, 2026
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 eac...
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.