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Aon
(NYSE:AON)
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Rating:81Outperform
Price Target:
$440.00
â–²(21.65% Upside)
Action:Reiterated
Date:07/29/26
The score is driven primarily by strong underlying financial performance (high margins and solid cash conversion) and a strong technical uptrend (price above key moving averages). The latest earnings call reinforced the strength with reaffirmed 2026 guidance and continued margin/EPS progress. Valuation is reasonable but tempered by a low dividend yield, while balance-sheet leverage remains the main fundamental risk factor.
Positive Factors
High profitability & margins
Sustained high margins (TTM net ~22.5%, EBIT ~33.5%) indicate durable pricing power and operating efficiency across advisory and brokerage services. This margin base supports reinvestment in tech, funds strategic initiatives, and provides a buffer versus cyclical revenue swings.
Negative Factors
Elevated leverage & prior negative equity
Meaningful leverage (TTM D/E ~1.57) and a recent history of negative equity increase balance-sheet sensitivity to shocks and raise interest and refinancing risk. While improving, leverage constrains downside protection and limits capital flexibility if cash flow weakens or rates rise materially.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability & margins
Sustained high margins (TTM net ~22.5%, EBIT ~33.5%) indicate durable pricing power and operating efficiency across advisory and brokerage services. This margin base supports reinvestment in tech, funds strategic initiatives, and provides a buffer versus cyclical revenue swings.
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
$77.76B
Dividend Yield0.85%
Average Volume (3M)1.52M
Price to Earnings (P/E)19.8
Beta (1Y)0.32
Revenue Growth4.36%
EPS Growth51.69%
CountryUS
Employees60,000
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)18.24
Shares Outstanding212,125,430
10 Day Avg. Volume1,245,022
30 Day Avg. Volume1,519,726
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$403.80Price Target Upside11.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)19.09
Revenue Forecast (FY)$17.95B
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:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call emphasized consistent, broad-based revenue growth (5% organic), margin expansion (+70 bps to 28.9%), 9% adjusted EPS growth, and strong cash generation ($483M FCF) supported by Aon United and ABS investments and significant technology/AI initiatives. Management reaffirmed full-year guidance (mid-single-digit+ organic growth, 70–80 bps margin expansion, strong earnings, and double-digit free cash flow growth). Headwinds include lower fiduciary investment income, a higher Q2 tax rate, persistent rate pressure in P&C/reinsurance (treaty rates down ~15–20%), timing-related softness in M&A services, and intense competition for producer hires. Overall, positive operational and financial momentum materially outweighs the manageable challenges highlighted on the call.Positive Updates
Organic Revenue Growth
Organic revenue growth was 5% in Q2 2026 and across all four solution lines, in line with mid-single-digit or greater guidance; total revenue was $4.2 billion, up 2% year-over-year.
Negative Updates
Fiduciary Investment Income Decline
Fiduciary investment income was $58 million in Q2, down 12% year-over-year as higher average balances were more than offset by lower interest rates.
Read all updates
Q2-2026 Updates
Positive
Negative
Organic Revenue Growth
Organic revenue growth was 5% in Q2 2026 and across all four solution lines, in line with mid-single-digit or greater guidance; total revenue was $4.2 billion, up 2% year-over-year.
Read all positive updates
Company Guidance
Aon reaffirmed 2026 guidance, targeting full‑year organic revenue growth of mid‑single‑digit or greater, 70–80 bps of adjusted operating margin expansion, strong adjusted EPS growth and double‑digit free cash flow growth; in Q2 it delivered 5% organic growth, $4.2B total revenue (+2% YoY), $1.2B adjusted operating income (+5%), a 28.9% adjusted operating margin (+70 bps), $3.81 adjusted EPS (+9%), and $483M free cash flow (FCF +4% YTD) despite a $267M tax impact from NFP wealth proceeds and fiduciary investment income of $58M (-12%). Management said new business contributed ~10 points and net new business 5 points to Q2 organic growth, retention stayed in the mid‑90s with commercial risk +40 bps and reinsurance +20 bps, revenue‑generating headcount is +3% YTD with a plan to grow 4–8% (2024/25 cohorts added ~100 bps), announced transactions are +60%, reinsurance grew 5% despite treaty rates ~15–20% lower and historically ~75% of annual treaty revenue recognized in H1, data center program capacity was increased to $5B, >$350M of tuck‑in capital was deployed YTD, Q2 restructuring savings were $25M (target $100M in 2026 and $450M by 2027), $775M of capital was returned in Q2 including $600M of repurchases (exceeding the $1B+ repurchase objective YTD), Q2 interest expense was $179M (Q3 est. ~$185M) and the full‑year tax rate is expected to be 19.5–20.5%.Aon Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
62
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.58B | 17.18B | 15.70B | 13.38B | 12.48B | 12.19B |
| Gross Profit | 14.61B | 8.20B | 7.42B | 6.47B | 6.00B | 5.46B |
| EBITDA | 6.31B | 5.35B | 4.94B | 3.91B | 3.83B | 2.58B |
| Net Income | 3.91B | 3.69B | 2.65B | 2.56B | 2.59B | 1.25B |
Balance Sheet | ||||||
| Total Assets | 53.35B | 50.78B | 48.97B | 33.96B | 32.70B | 31.93B |
| Cash, Cash Equivalents and Short-Term Investments | 1.27B | 2.80B | 11.62B | 1.15B | 1.14B | 836.00M |
| Total Debt | 15.70B | 16.53B | 17.89B | 12.03B | 11.68B | 10.42B |
| Total Liabilities | 43.64B | 41.24B | 42.53B | 34.70B | 33.13B | 30.77B |
| Stockholders Equity | 9.66B | 9.35B | 6.12B | -826.00M | -529.00M | 1.06B |
Cash Flow | ||||||
| Free Cash Flow | 3.25B | 3.22B | 2.82B | 3.18B | 3.02B | 2.04B |
| Operating Cash Flow | 3.53B | 3.48B | 3.04B | 3.44B | 3.22B | 2.18B |
| Investing Cash Flow | 1.50B | 286.00M | -2.83B | -188.00M | -449.00M | 49.00M |
| Financing Cash Flow | -5.13B | -4.21B | 796.00M | -2.87B | -1.79B | -1.92B |
Aon Technical Analysis
Neutral
361.70
Price Trends
340.60
Positive
330.62
Positive
335.63
Positive
Market Momentum
7.63
Positive
58.97
Neutral
24.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AON, the sentiment is Neutral. The current price of 361.7 is below the 20-day moving average (MA) of 362.43, above the 50-day MA of 340.60, and above the 200-day MA of 335.63, indicating a neutral trend. The MACD of 7.63 indicates Positive momentum. The RSI at 58.97 is Neutral, neither overbought nor oversold. The STOCH value of 24.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $77.76B | 19.77 | 42.56% | 0.83% | 4.36% | 51.69% | |
79 Outperform | $23.71B | 19.45 | 9.62% | 0.95% | 34.22% | 3.21% | |
78 Outperform | $65.88B | 40.89 | 6.91% | 1.07% | 26.74% | -9.59% | |
77 Outperform | $31.74B | 20.60 | 19.95% | 1.27% | 3.00% | 914.66% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $11.62B | 58.75 | 31.03% | 1.20% | 13.83% | 69.95% |
* Financial Sector Average
AON
Aon
360.55
9.54
2.72%
AJG
Arthur J Gallagher & Co
249.42
-31.59
-11.24%
BRO
Brown & Brown
70.40
-21.02
-22.99%
WTW
Willis Towers Watson
335.92
25.03
8.05%
RYAN
Ryan Specialty Group
44.16
-13.02
-22.77%
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.