Aon Reports Q4 Earnings Beat with Strong Guidance for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy AON?
Source: seekingalpha
- Earnings Highlights: Aon reported a Q4 non-GAAP EPS of $4.85, beating expectations by $0.10, which underscores the company's profitability stability and growth potential.
- Revenue Performance: Although Q4 revenue reached $4.3 billion, reflecting a 3.6% year-over-year increase, it fell short of market expectations by $70 million, indicating challenges from intensified market competition.
- Organic Growth and Cash Flow: The company achieved 6% organic revenue growth and double-digit free cash flow growth, demonstrating the resilience and consistency of its growth model, which enhances investor confidence.
- Future Outlook: Aon anticipates mid-single-digit or greater organic revenue growth by 2026, with adjusted operating margin expansion of 70 to 80 basis points, indicating strong growth potential in the coming years.
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Analyst Views on AON
Wall Street analysts forecast AON stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AON is 396.20 USD with a low forecast of 328.00 USD and a high forecast of 449.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
11 Buy
4 Hold
1 Sell
Moderate Buy
Current: 343.360
Low
328.00
Averages
396.20
High
449.00
Current: 343.360
Low
328.00
Averages
396.20
High
449.00
About AON
Aon PLC is a global professional services company. The Company’s segments include Risk Capital and Human Capital. The Risk Capital segment supports clients through its Commercial Risk and Reinsurance solution lines. Commercial Risk includes insurance and specialty brokerage, global risk consulting, captives’ management, and Affinity programs. Reinsurance includes treaty reinsurance, facultative reinsurance, strategy and technology Group, and capital markets. The Human Capital segment supports clients through its Health solution. Health includes consulting and brokerage, consumer benefits solutions, and talent advisory services. It also provides retirement consulting. Treaty reinsurance addresses underwriting and capital objectives on a portfolio level, allowing its clients to manage the combination of premium growth, return on capital, and rating agency interests on an integrated basis.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Research Background: Conducted by The Jacobson Group and Aon plc, the survey ran from January 12 to February 1, targeting insurance carriers across all sectors to assess hiring and revenue strategies, thereby aiding the industry in adapting its talent strategies amidst a shifting landscape.
- Industry Outlook: While the financial performance in 2025 was strong, analysts predict potential softening market conditions that may impact talent strategies for carriers, with the study offering valuable perspectives on how to navigate these changes.
- Participation Invitation: All members of the insurance community are invited to register for the webinar, where executives from Jacobson Group and Aon will share key findings and discuss labor market trends and staffing expectations for the upcoming year.
See More
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- Webinar Timing: A complimentary webinar on the Q1 2026 Insurance Labor Market Study will take place at 1 p.m. CST on February 19, 2026, aimed at sharing key findings and discussing industry trends to assist insurers in shaping their talent strategies.
- Research Background: Conducted by The Jacobson Group and Aon plc, the survey ran from January 12 to February 1, 2026, covering hiring and revenue plans from insurance carriers across all sectors, providing insights for the next 12 months.
- Industry Outlook: Jeffrey Blair, Senior VP at Jacobson Group, emphasized that the study's results since 2009 have served as a benchmark for insurers to adapt their talent strategies amid a shifting landscape, highlighting the importance of evolving talent markets for organizational success.
- Market Condition Analysis: Jeff Rieder from Aon noted that while financial performance was strong in 2025, analysts predict softening market conditions that may impact talent strategies for carriers, underscoring the study's relevance in navigating these changes.
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See More
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- Capital Expansion Initiative: The company announced an expansion of the Data Center Lifecycle Insurance Protection Program (DCLP) to $2.5 billion, launching the first-ever data center-specific treaty, marking a major advancement in innovation and market demand.
- Strong Cash Flow: Free cash flow grew 14% to $3.2 billion in 2025, with management projecting $4.3 billion in free cash flow for 2026, demonstrating ongoing improvements in capital management and operational efficiency.
- Acquisition and Buyback Commitment: Management reiterated a commitment to at least $1 billion in share repurchases for 2026 while evaluating inorganic growth opportunities in high-margin, high-growth sectors, indicating strategic flexibility in capital allocation.
See More
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- Revenue Miss: Total revenue of $4.30 billion fell short of the expected $4.37 billion, yet increased 4% from $4.15 billion last year, reflecting the company's resilience in a complex market environment.
- Positive Outlook: Aon projects mid-single-digit organic revenue growth for 2026, alongside a targeted 70-80 basis points expansion in adjusted operating margin, demonstrating confidence in future growth.
- Significant Cash Flow Growth: The company generated $1.32 billion in free cash flow for the quarter, a 16% year-over-year increase, which not only enhances financial flexibility but also supports future investments and shareholder returns.
See More
