AON (NYSE:AON) Issues Quarterly Earnings Results

AON (NYSE:AON) released its quarterly earnings results on Friday. The financial services provider reported $4.85 EPS for the quarter, beating analysts’ consensus estimates 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 company had revenue of $4.30 billion for the quarter, compared to analyst estimates of $4.38 billion. During the same quarter last year, the firm posted $4.42 earnings per share. The company’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 Price Performance

NYSE:AON opened at $349.80 on Friday. The company has a market capitalization of $75.18 billion, a price-to-earnings ratio of 28.03, a PEG ratio of 1.76 and a beta of 0.84. The company has a 50-day moving average of $347.88 and a 200-day moving average of $353.72. AON has a 52 week low of $323.73 and a 52 week high of $412.97. The company has a debt-to-equity ratio of 1.86, a quick ratio of 1.35 and a current ratio of 1.35.

AON Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 13th. Stockholders of record on Monday, February 2nd will be issued a dividend of $0.745 per share. This represents a $2.98 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Monday, February 2nd. AON’s dividend payout ratio (DPR) is presently 23.88%.

Wall Street Analyst Weigh In

Several research analysts recently commented on AON shares. Wells Fargo & Company dropped their target price on shares of AON from $449.00 to $448.00 and set an “overweight” rating on the stock in a report on Tuesday, January 13th. Keefe, Bruyette & Woods lifted their price objective on AON from $410.00 to $416.00 and gave the stock an “outperform” rating in a research note on Tuesday, January 6th. Mizuho set a $387.00 target price on AON in a research note on Wednesday, January 14th. Evercore ISI reaffirmed an “outperform” rating and issued a $436.00 price target on shares of AON in a research report on Wednesday, January 7th. Finally, Barclays increased their price objective on AON from $379.00 to $381.00 and gave the company an “equal weight” rating in a research report on Thursday, January 8th. Twelve equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, AON currently has a consensus rating of “Moderate Buy” and a consensus price target of $408.47.

Institutional Investors Weigh In On AON

A number of institutional investors have recently added to or reduced their stakes in AON. Viking Global Investors LP acquired a new position in shares of AON in the 3rd quarter worth approximately $504,424,000. Balyasny Asset Management L.P. grew its position in AON by 40,219.8% in the third quarter. Balyasny Asset Management L.P. now owns 846,715 shares of the financial services provider’s stock valued at $301,922,000 after acquiring an additional 844,615 shares during the period. Amundi raised its stake in AON by 39.8% during the third quarter. Amundi now owns 1,383,137 shares of the financial services provider’s stock worth $505,813,000 after acquiring an additional 393,951 shares in the last quarter. Boston Partners lifted its holdings in shares of AON by 15.5% during the third quarter. Boston Partners now owns 1,711,250 shares of the financial services provider’s stock valued at $610,986,000 after acquiring an additional 230,098 shares during the period. Finally, Moore Capital Management LP boosted its stake in shares of AON by 520.8% in the 2nd quarter. Moore Capital Management LP now owns 201,024 shares of the financial services provider’s stock valued at $71,717,000 after purchasing an additional 168,645 shares in the last quarter. 86.14% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about AON

Here are the key news stories impacting AON this week:

• Positive Sentiment: Q4 EPS topped estimates — Aon reported $4.85 EPS versus consensus near $4.75, and management pointed to margin benefits from restructuring and strong retention as drivers of the beat. Aon (AON) Surpasses Q4 Earnings Estimates
• Positive Sentiment: New business growth and retention — Company commentary and analyst notes highlight new business wins and high client retention that supported revenue composition and improved margins. Aon Q4 Earnings Top Estimates on New Business Growth, Strong Retention
• Positive Sentiment: Balance-sheet and cash flow progress — Full-year results show 9% total revenue growth, 6% organic growth, double-digit free cash flow growth and $1.9B of debt paydown; Aon says it met its leverage objective in Q4. These items reduce financial risk and support capital allocation. Aon Reports Fourth-Quarter and Full-Year 2025 Results
• Neutral Sentiment: Management detail and forward stance — The earnings call/transcript provides context on go-forward priorities (cost actions, cross-selling, integration planning) but offered limited new formal guidance in the release; watch management’s cadence on 2026 execution. Aon plc (AON) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Street reception — Analysts maintain a generally constructive view (consensus “Moderate Buy” and multi-year EPS estimates remain supportive), which can limit downside absent new negative news. Aon plc (NYSE:AON) Receives Consensus Rating of “Moderate Buy” from Analysts
• Negative Sentiment: Revenue slightly missed estimates — Q4 revenue of $4.30B came in below consensus near $4.38B, which raises questions about top-line momentum despite EPS strength from margins and mix. Aon (AON) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
• Negative Sentiment: Acquisition/integration risk — The planned ~$13B NFP acquisition remains a material event and is described as “facing a test” by coverage; any regulatory, execution or financing setbacks could pressure sentiment. Aon Reports Earnings Friday as $13 Billion NFP Acquisition Faces Test

AON Company Profile

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.