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Aon
(NYSE:AON)
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Rating:76Outperform
Price Target:
$375.00
▲(13.02% Upside)
Action:Reiterated
Date:07/02/26
The score is driven primarily by strong financial performance (high margins, solid growth, and reliable free cash flow) and a constructive earnings outlook with reaffirmed guidance and strong Q1 execution. The main constraint is balance-sheet risk from meaningful leverage and historically volatile equity, while technicals are only moderately supportive (below the 200-day average). Valuation is reasonable, and the expanded buyback program is a supportive corporate action despite the negative say-on-pay vote.
Positive Factors
High profitability and margins
Aon’s elevated and improving margins indicate durable pricing power across brokerage, reinsurance and human-capital services. High EBITDA and net margins support reinvestment in tech/talent, fund M&A and sustain returns through cycles, reinforcing long-term operating resilience and cash generation.
Negative Factors
Meaningful leverage and balance-sheet risk
Substantial debt levels and historically volatile equity constrain financial flexibility and amplify interest-rate or shock sensitivity. Low operating-cash-flow-to-debt coverage implies deleveraging will be gradual, limiting ability to pursue large strategic deals or absorb adverse market shocks without relying on continued strong cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and margins
Aon’s elevated and improving margins indicate durable pricing power across brokerage, reinsurance and human-capital services. High EBITDA and net margins support reinvestment in tech/talent, fund M&A and sustain returns through cycles, reinforcing long-term operating resilience and cash generation.
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
$76.35B
Dividend Yield0.82%
Average Volume (3M)1.57M
Price to Earnings (P/E)19.5
Beta (1Y)0.32
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. Volume1,659,431
30 Day Avg. Volume1,573,941
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 Cap1.10
Enterprise Value/Revenue4.81
Enterprise Value/Gross Profit7.29
Enterprise Value/Ebitda12.42
Forecast
1Y Price Target
$378.58Price Target Upside14.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)19.13
Revenue Forecast (FY)$18.02B
Aon Business Overview & Revenue Model
Company Description
Aon plc operates as a professional services firm in the United States, rest of the Americas, the United Kingdom, Ireland, rest of Europe, the Middle East, Africa, and the Asia Pacific. It operates through Risk Capital and Human Capital segments. T...
How the Company Makes Money
Aon primarily makes money by earning fees and commissions for intermediating and advising on insurance, reinsurance, and human-capital programs. Its major revenue streams include: (1) Commercial Risk Solutions (insurance brokerage and related serv...
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 | 15.47B | 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
322.49
Positive
323.24
Positive
334.91
Positive
Market Momentum
4.61
Negative
69.06
Neutral
91.38
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 331.8 is above the 20-day moving average (MA) of 329.26, above the 50-day MA of 322.49, and below the 200-day MA of 334.91, indicating a bullish trend. The MACD of 4.61 indicates Negative momentum. The RSI at 69.06 is Neutral, neither overbought nor oversold. The STOCH value of 91.38 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 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $76.35B | 19.50 | 45.09% | 0.82% | 7.51% | 55.21% | |
72 Outperform | $64.85B | 40.26 | 6.91% | 1.01% | 25.34% | -5.29% | |
71 Outperform | $23.73B | 19.72 | 9.35% | 0.77% | 29.22% | -2.51% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $27.03B | 16.62 | 20.98% | 1.14% | 0.92% | ― | |
53 Neutral | $11.08B | 41.14 | 20.85% | 0.93% | 18.37% | 98.44% |
* Financial Sector Average
AON
Aon
357.46
7.41
2.12%
AJG
Arthur J Gallagher & Co
252.44
-60.11
-19.23%
BRO
Brown & Brown
70.00
-36.85
-34.49%
WTW
Willis Towers Watson
286.22
-15.31
-5.08%
RYAN
Ryan Specialty Group
42.03
-23.58
-35.94%
Aon Corporate Events
Executive/Board ChangesStock BuybackShareholder Meetings
Aon Extends CEO Assignment and Expands Share Buybacks
Positive
Jul 1, 2026
On June 26, 2026, Aon Corporation amended the international assignment letter with chief executive Gregory C. Case, extending its term from a June 30, 2026 expiry to June 30, 2027, signaling continuity in its top leadership’s international r...
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.