10-Q · May 1, 2026
Aon plc reported Q1 2026 results with total revenue of $5.034 billion, a 6% increase from the prior year, driven by strong performance in the Risk Capital segment. Diluted EPS surged to $5.63, reflecting a 27%…
Earnings analysis · 10-Q
AON earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Aon delivered 5% organic growth and expanded Q2 GAAP operating margin by 80 basis points to 21.5%, led by Risk Capital, while reported revenue grew only 2% to $4.246 billion because divestitures reduced growth by 4%.…
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Aon delivered 5% organic growth and expanded Q2 GAAP operating margin by 80 basis points to 21.5%, led by Risk Capital, while reported revenue grew only 2% to $4.246 billion because divestitures reduced growth by 4%. Adjusted EPS rose to $3.81, but GAAP EPS fell 3% to $2.58 due primarily to a $73 million year-over-year deterioration in other income/(expense) and a higher tax rate. First-half cash flow and free cash flow increased to $986 million and $846 million, respectively, while debt fell to $15.0 billion; the principal operational weakness remains the 18% reported decline in Wealth Solutions after the NFP Wealth sale.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.58
- Operating margin
- 21.5%
What stood out
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Organic growth offsets divestiture drag
Q2 revenue was $4.246 billion, up $91 million or 2% year over year, with 5% organic growth and a 1% currency benefit partly offset by a 4% divestiture headwind. Sequentially, revenue declined from implied Q1 revenue of $5.034 billion (six-month revenue of $9.280 billion less Q2 revenue of $4.246 billion), reflecting normal seasonality.
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Operating margin expands year over year
GAAP operating income increased $56 million to $915 million and operating margin expanded 80 basis points to 21.5% from 20.7%. Adjusted operating margin rose 70 basis points to 28.9%, aided by 5% organic growth and $25 million of restructuring savings.
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Adjusted EPS rises despite GAAP EPS decline
Adjusted diluted EPS increased $0.32 to $3.81 from $3.49. GAAP diluted EPS was $2.58, down $0.08 from $2.66, as other income moved to a $17 million expense from $56 million of income and the tax rate increased to 22.0% from 15.5%.
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Risk Capital drives reported growth
Risk Capital revenue increased 5% to $3.006 billion and segment operating income increased $52 million to $916 million. Commercial Risk Solutions grew 5% to $2.295 billion and Reinsurance Solutions grew 3% to $711 million, each delivering 5% organic growth.
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First-half cash generation improves
First-half operating cash flow rose $50 million, or 5%, to $986 million and free cash flow rose $30 million, or 4%, to $846 million. Capital expenditures were $140 million, up $20 million from $120 million, equal to 14.2% of operating cash flow.
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Debt reduced and liquidity remains ample
Liquidity remained substantial, with $1.062 billion of cash and cash equivalents plus $205 million of short-term investments at June 30. Total debt declined $282 million from year-end to $15.0 billion, and the company had $2.0 billion of undrawn committed credit facilities.
What to watch
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Wealth divestiture depresses reported growth
Human Capital revenue fell $47 million, or 4%, to $1.244 billion. Wealth Solutions was the main drag, declining $93 million, or 18%, to $426 million following the NFP Wealth divestiture, despite 5% organic growth.
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Below-the-line items pressure GAAP earnings
GAAP net income attributable to shareholders declined $28 million to $551 million and GAAP diluted EPS declined to $2.58 from $2.66. The effective tax rate increased 650 basis points to 22.0% from 15.5%, while other income/(expense) deteriorated by $73 million to a $17 million expense.
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Near-term debt maturities require cash deployment
The company has $1.721 billion of notes classified as current or due within roughly a year: $600 million due March 2027, $600 million due May 2027, and $521 million due January 2027. Management expects to repay these amounts with operating cash flow and available cash.
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Restructuring execution remains a variable
The Accelerating Aon United Program incurred $188 million of costs in the first six months of 2026 and had a remaining liability of $169 million at June 30, 2026. Management cautions that timing, cost estimates and savings may change in the final quarters of the program.
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No new Item 1A risk-factor disclosure
No material risk-factor update was disclosed in this 10-Q: Item 1A directs readers to the risk factors in Aon's Form 10-K for the year ended December 31, 2025. Accordingly, the filing does not identify a newly added or revised risk factor.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management expects approximately $41 million of pension contributions for the remainder of 2026; the Accelerating Aon United Program is currently expected to have cumulative costs of $1.3 billion and generate approximately $450 million of annualized expense savings by the end of 2027.
Earlier filings 4
10-K · February 13, 2026
Aon reports consolidated 2025 Total revenue of $17,181 million, with Risk Capital contributing $11,290 million and Human Capital $5,907 million. The company emphasizes an "Aon United" strategy and a focus on…
10-Q · October 31, 2025
Aon reported Q3 revenue of $3,997 million, up $276 million (+7.4%) versus Q3 2024, with operating income expanding to $816 million (operating margin 20.4%) and diluted EPS of $2.11 (vs $1.57 a year ago). Operating cash…
10-Q · October 25, 2024
Aon reported Q3 revenue of $3,721 million, up $768 million versus Q3 2023 ($2,953 million), driven by across-the-board growth in Commercial Risk, Health, Reinsurance and Wealth Solutions. Operating income declined to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.