AON (NYSE:AON) Announces Quarterly Earnings Results

AON (NYSE:AON) posted its quarterly earnings results on Friday. The financial services provider reported $4.85 EPS for the quarter, topping the consensus estimate of $4.75 by $0.10, FiscalAI reports. AON had a net margin of 15.96% and a return on equity of 48.88%. The business had revenue of $4.30 billion during the quarter, compared to analysts’ expectations of $4.38 billion. During the same period last year, the company posted $4.42 earnings per share. The firm’s quarterly revenue was up 3.7% compared to the same quarter last year.

Here are the key takeaways from AON’s conference call:

• Aon reported strong 2025 results with 6% organic revenue growth, 90 bps of full-year adjusted operating margin expansion and doubled-digit free cash flow growth, and it guides to mid-single-digit organic growth, 70–80 bps margin expansion and double-digit free cash flow in 2026.
• The firm is scaling its differentiated capabilities—Aon Business Services (ABS), AI tools (Broker Copilot, Claims Copilot, Risk Analyzers), and new products like the Data Center Lifecycle Program (expanded to $2.5 billion)—and cites a first-ever data-center reinsurance treaty (aligning up to $5 billion) as drivers of future organic growth.
• Balance-sheet and capital actions strengthened flexibility: Aon generated $3.2 billion of free cash flow in 2025, paid down $1.9 billion of debt (leverage ~2.9x), reports ~$7 billion of available capital for 2026 and plans at least $1 billion of share repurchases while pursuing high-return M&A.
• The company is accelerating NFP integration onto ABS and expanding its AAU restructuring (now a $1.3 billion investment) with a target of $450 million in savings, which management expects will expand margins and boost middle‑market revenue contribution.
• Near-term headwinds include softer Jan 1 property renewals with expected 15%–20% rate declines, a 17% drop in fourth-quarter fiduciary investment income, and a roughly $300 million pre-tax reduction in 2026 free cash flow tied to the tax impact of the NFP Wealth sale.

AON Stock Performance

AON stock traded up $6.85 during midday trading on Friday, hitting $349.80. The stock had a trading volume of 1,465,323 shares, compared to its average volume of 1,170,011. The firm has a market capitalization of $75.18 billion, a price-to-earnings ratio of 28.03, a P/E/G ratio of 1.70 and a beta of 0.84. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 1.86. The stock has a 50-day simple moving average of $347.81 and a 200 day simple moving average of $353.79. AON has a 52 week low of $323.73 and a 52 week high of $412.97.

AON Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, February 13th. Investors of record on Monday, February 2nd will be paid a $0.745 dividend. This represents a $2.98 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Monday, February 2nd. AON’s dividend payout ratio is presently 23.88%.

Hedge Funds Weigh In On AON

Hedge funds and other institutional investors have recently modified their holdings of the stock. Wealth Watch Advisors INC bought a new stake in shares of AON in the 3rd quarter valued at $25,000. Strive Asset Management LLC acquired a new stake in shares of AON during the third quarter worth about $35,000. Measured Wealth Private Client Group LLC acquired a new position in shares of AON in the 3rd quarter valued at approximately $37,000. Towarzystwo Funduszy Inwestycyjnych PZU SA raised its holdings in AON by 39.0% during the 3rd quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 285 shares of the financial services provider’s stock worth $102,000 after buying an additional 80 shares during the period. Finally, Johnson Financial Group Inc. bought a new position in AON in the third quarter valued at approximately $110,000. Institutional investors own 86.14% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on AON. The Goldman Sachs Group set a $395.00 price objective on AON in a report on Wednesday, January 7th. Wells Fargo & Company dropped their price target on shares of AON from $449.00 to $448.00 and set an “overweight” rating on the stock in a research note on Tuesday, January 13th. Mizuho set a $387.00 price objective on shares of AON in a report on Wednesday, January 14th. Citigroup upgraded AON from a “neutral” rating to a “buy” rating and set a $402.00 price target for the company in a research note on Monday, November 3rd. Finally, Keefe, Bruyette & Woods raised their price objective on AON from $410.00 to $416.00 and gave the company an “outperform” rating in a research note on Tuesday, January 6th. Twelve equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, AON has an average rating of “Moderate Buy” and an average price target of $408.47.

AON News Summary

Here are the key news stories impacting AON this week:

• Positive Sentiment: EPS beat and profitability — Aon reported Q4 EPS of $4.85 vs. the $4.76 consensus, with improved margins and ROE; the beat confirms solid operating leverage. Aon (AON) Surpasses Q4 Earnings Estimates
• Positive Sentiment: Revenue mix, retention and cost savings — Management cited new-business growth, high client retention and restructuring savings that are boosting margins, which investors view as durable earnings drivers. Aon Q4 Earnings Top Estimates on New Business Growth, Strong Retention
• Positive Sentiment: Balance-sheet progress — Aon reported full-year metrics (9% total revenue growth, 6% organic) and said it paid down $1.9B of debt in 2025 and hit its leverage objective in Q4, reducing financial risk. Aon Reports Fourth-Quarter and Full-Year 2025 Results
• Neutral Sentiment: Revenue slight miss — Q4 revenue came in at $4.30B vs. ~$4.38B expected, moderating the beat; investors will watch guidance and organic growth drivers for confirmation. Aon (AON) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
• Neutral Sentiment: Analyst stance — The consensus rating is around “Moderate Buy,” signaling general analyst support but not unanimous bullishness. Aon plc (NYSE:AON) Receives Consensus Rating of “Moderate Buy” from Analysts
• Neutral Sentiment: New product/strategy — Aon’s launch of an Emerging Markets Climate Transition Fund could broaden growth and ESG positioning, but it’s early to quantify the financial impact. Assessing Aon (AON) Valuation After New Emerging Markets Climate Transition Fund Launch
• Negative Sentiment: Acquisition overhang — Aon’s planned ~$13B acquisition of NFP remains a potential source of execution, regulatory and integration risk that could weigh on sentiment until resolved. Aon Reports Earnings Friday as $13 Billion NFP Acquisition Faces Test

About AON

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.