DOWLING & PARTN Comments on AON's FY2026 Earnings (NYSE:AON)

Key Points

• FY2026 earnings expectations were lowered: DOWLING & PARTN cut AON’s EPS forecast to $18.70 from $19.50, slightly below the $18.81 consensus estimate.
• Analyst sentiment remains broadly positive: AON has a “Moderate Buy” consensus rating from 19 analysts, with 12 Buy ratings and a consensus price target of about $382.76, despite several firms reducing their targets.
• Shares have weakened while fundamentals remain solid: AON opened at $277.03, near its one-year low, but its latest quarterly EPS of $3.81 exceeded estimates and revenue increased 2.2% year over year. Institutional investors own 86.14% of the stock, while a director recently purchased 20,000 shares.

Aon plc (NYSE:AON - Free Report) - Investment analysts at DOWLING & PARTN lowered their FY2026 EPS estimates for AON in a research note issued on Wednesday, October 7th. DOWLING & PARTN analyst J. Christiana now expects that the financial services provider will post earnings of $18.70 per share for the year, down from their previous forecast of $19.50. The consensus estimate for AON's current full-year earnings is $18.81 per share.

A number of other research firms have also recently commented on AON. Morgan Stanley reduced their price objective on AON from $410.00 to $350.00 and set an "overweight" rating for the company in a research report on Tuesday. Cantor Fitzgerald dropped their target price on AON from $433.00 to $400.00 and set an "overweight" rating on the stock in a research report on Wednesday. TD Cowen upped their price target on shares of AON from $416.00 to $420.00 and gave the company a "buy" rating in a research report on Monday, September 14th. Citigroup initiated coverage on shares of AON in a research note on Monday, September 21st. They issued a "buy" rating and a $435.00 price objective on the stock. Finally, Keefe, Bruyette & Woods raised their price objective on shares of AON from $412.00 to $417.00 and gave the stock an "outperform" rating in a report on Tuesday, September 1st. Twelve equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $382.76.

AON Price Performance

NYSE AON opened at $277.03 on Friday. The business's fifty day moving average price is $320.38 and its 200-day moving average price is $327.92. The stock has a market capitalization of $58.76 billion, a price-to-earnings ratio of 15.27, a PEG ratio of 1.38 and a beta of 0.70. The company has a debt-to-equity ratio of 1.34, a current ratio of 1.54 and a quick ratio of 1.54. AON has a 1-year low of $266.33 and a 1-year high of $382.34.

AON (NYSE:AON - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, beating analysts' consensus estimates of $3.80 by $0.01. AON had a net margin of 22.27% and a return on equity of 42.13%. The company had revenue of $4.25 billion for the quarter, compared to the consensus estimate of $4.28 billion. During the same quarter in the prior year, the firm earned $3.49 earnings per share. The firm's revenue for the quarter was up 2.2% compared to the same quarter last year.

Insider Buying and Selling

In other news, Director Lester B. Knight purchased 20,000 shares of the company's stock in a transaction on Wednesday, September 2nd. The stock was acquired at an average cost of $327.48 per share, for a total transaction of $6,549,600.00. Following the completion of the transaction, the director directly owned 163,000 shares in the company, valued at $53,379,240. This trade represents a 13.99% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, General Counsel Darren Zeidel sold 1,950 shares of the stock in a transaction on Friday, July 17th. The stock was sold at an average price of $372.05, for a total transaction of $725,497.50. Following the completion of the sale, the general counsel directly owned 13,404 shares of the company's stock, valued at approximately $4,986,958.20. This trade represents a 12.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of AON. Independent Franchise Partners LLP raised its holdings in AON by 0.9% during the fourth quarter. Independent Franchise Partners LLP now owns 2,115,523 shares of the financial services provider's stock valued at $746,526,000 after acquiring an additional 19,037 shares during the period. Bank of America Corp DE grew its position in shares of AON by 16.3% during the first quarter. Bank of America Corp DE now owns 1,582,680 shares of the financial services provider's stock worth $510,857,000 after purchasing an additional 222,092 shares in the last quarter. Amundi raised its stake in AON by 23.5% during the 1st quarter. Amundi now owns 1,502,890 shares of the financial services provider's stock valued at $485,103,000 after purchasing an additional 285,549 shares during the period. Dimensional Fund Advisors LP lifted its holdings in AON by 20.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,253,769 shares of the financial services provider's stock worth $404,709,000 after purchasing an additional 213,051 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its stake in AON by 74.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 797,418 shares of the financial services provider's stock worth $257,391,000 after purchasing an additional 340,866 shares during the period. Institutional investors own 86.14% of the company's stock.

Key AON News

Here are the key news stories impacting AON this week:

• Positive Sentiment: Analyst support remains substantial: Morgan Stanley reaffirmed its Buy rating, and Cantor Fitzgerald maintained an Overweight rating despite lowering its price target to $400 from $433. The revised target still implies significant upside, while the broader consensus target is approximately $391. Morgan Stanley Reaffirms Their Buy Rating on Aon AON Given New $400 Price Target
• Positive Sentiment: Middle-market expansion: Aon expanded Denise Perlman’s responsibilities to include middle-market reinsurance growth. The move is intended to strengthen coordination across risk capital and reinsurance and could support longer-term revenue growth in an important market. Aon Expands Denise Perlman’s Leadership Role
• Neutral Sentiment: Aon and the University of Arizona Global Campus expanded a workforce-development partnership. The initiative may help develop talent but is unlikely to materially affect near-term earnings. University of Arizona Global Campus and Aon Partnership
• Negative Sentiment: Reduced valuation target: Cantor Fitzgerald’s cut from $433 to $400 signals lower near-term expectations, even though the firm retained its Overweight rating. A separate investor letter disclosed that Suncoast Equity Management exited its Aon position after reviewing middle-market mergers and acquisitions, potentially adding to investor caution. Exiting Aon Following Middle-Market M&A
• Negative Sentiment: AI-related insurance concerns: Aon and WTW are increasing pressure on insurers regarding exclusions for artificial-intelligence risks. While this could help manage underwriting losses, exclusions may limit coverage offerings and highlight uncertainty around a developing risk category. Aon and WTW Add to Broker Pressure on AI Exclusions

About AON

Aon plc is a global professional services firm that helps organizations manage risk, make better decisions and improve performance. Its services are organized around risk capital and human capital, combining advisory expertise, data, analytics and insurance-related solutions.

The company provides commercial risk brokerage and consulting, reinsurance brokerage, retirement and investment advisory services, health benefits consulting, talent and compensation consulting, and related technology and data products.

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