AON (NYSE:AON) Releases Earnings Results, Beats Expectations By $0.10 EPS

AON (NYSE:AON) posted its quarterly earnings data on Friday. The financial services provider reported $4.85 earnings per share for the quarter, beating analysts’ consensus estimates of $4.75 by $0.10, FiscalAI reports. The business had revenue of $4.30 billion during the quarter, compared to analyst estimates of $4.38 billion. AON had a net margin of 15.96% and a return on equity of 48.88%. The company’s revenue was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $4.42 earnings per share.

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 Up 2.0%

Shares of AON stock opened at $349.80 on Friday. AON has a fifty-two week low of $323.73 and a fifty-two week high of $412.97. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.86. The firm has a market cap of $75.18 billion, a P/E ratio of 28.03, a P/E/G ratio of 1.76 and a beta of 0.84. The business has a 50-day moving average price of $347.88 and a 200 day moving average price of $353.72.

AON Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, February 13th. Stockholders 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 23.88%.

Key Stories Impacting 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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Viking Global Investors LP bought a new stake in shares of AON in the 3rd quarter worth approximately $504,424,000. Balyasny Asset Management L.P. lifted its stake 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 buying an additional 844,615 shares during the last quarter. Amundi boosted its holdings in shares of AON by 39.8% during the third quarter. Amundi now owns 1,383,137 shares of the financial services provider’s stock valued at $505,813,000 after acquiring an additional 393,951 shares during the period. Boston Partners increased its holdings in shares of AON by 15.5% in the 3rd quarter. Boston Partners now owns 1,711,250 shares of the financial services provider’s stock worth $610,986,000 after acquiring an additional 230,098 shares during the period. Finally, Moore Capital Management LP lifted its position in 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 during the last quarter. 86.14% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on AON. Weiss Ratings restated a “hold (c+)” rating on shares of AON in a report on Monday, December 29th. The Goldman Sachs Group set a $395.00 price objective on shares of AON in a research note on Wednesday, January 7th. Roth Mkm reissued a “buy” rating and issued a $390.00 target price on shares of AON in a research report on Tuesday, November 4th. Evercore ISI reaffirmed an “outperform” rating and set a $436.00 price target on shares of AON in a research report on Wednesday, January 7th. Finally, Barclays boosted their price objective on shares of AON from $379.00 to $381.00 and gave the company an “equal weight” rating in a research note on Thursday, January 8th. Twelve equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $408.47.

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.