DOWLING & PARTN Has Bearish Outlook for AON FY2026 Earnings

Key Points

• DOWLING & PARTN cut its FY2026 EPS forecast for Aon to $18.50 from $18.70, roughly in line with the $18.49 consensus estimate.
• Aon beat Q3 expectations, reporting EPS of $3.36 versus $3.30 and revenue of $4.10 billion versus $4.08 billion; revenue rose 2.6% year over year.
• Analyst views remain mixed: MarketBeat’s consensus rating is “Hold,” with an average price target of $369.12, despite several recent upgrades and target increases.

Aon plc (NYSE:AON - Free Report) - Equities research analysts at DOWLING & PARTN decreased their FY2026 earnings per share estimates for shares of AON in a note issued to investors on Wednesday, November 4th. DOWLING & PARTN analyst J. Christiana now expects that the financial services provider will post earnings of $18.50 per share for the year, down from their previous estimate of $18.70. The consensus estimate for AON's current full-year earnings is $18.49 per share.

AON (NYSE:AON - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The financial services provider reported $3.36 earnings per share for the quarter, beating analysts' consensus estimates of $3.30 by $0.06. AON had a return on equity of 40.46% and a net margin of 22.24%. The company had revenue of $4.10 billion for the quarter, compared to the consensus estimate of $4.08 billion. During the same quarter last year, the company earned $3.05 earnings per share. The firm's revenue for the quarter was up 2.6% compared to the same quarter last year.

Several other research analysts have also commented on AON. Cantor Fitzgerald boosted their price objective on shares of AON from $400.00 to $410.00 and gave the stock an "overweight" rating in a research note on Monday. JPMorgan Chase & Co. lowered their target price on shares of AON from $412.00 to $362.00 and set an "overweight" rating for the company in a research note on Thursday, October 1st. Piper Sandler cut their price target on shares of AON from $391.00 to $349.00 and set a "neutral" rating on the stock in a report on Tuesday, September 1st. Mizuho reduced their price target on AON from $366.00 to $324.00 and set an "outperform" rating on the stock in a research report on Wednesday, October 7th. Finally, Citigroup assumed coverage on AON in a report on Monday, September 21st. They set a "buy" rating and a $435.00 price objective for the company. Thirteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, AON currently has a consensus rating of "Hold" and an average price target of $369.12.

AON Stock Performance

AON stock opened at $344.87 on Thursday. AON has a one year low of $266.33 and a one year high of $382.34. The firm has a market cap of $73.17 billion, a price-to-earnings ratio of 17.85, a PEG ratio of 1.74 and a beta of 0.63. The company has a debt-to-equity ratio of 2.58, a quick ratio of 4.72 and a current ratio of 4.72. The firm has a 50-day simple moving average of $300.96 and a two-hundred day simple moving average of $325.95.

AON Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Monday, November 2nd will be paid a $0.82 dividend. The ex-dividend date is Monday, November 2nd. This represents a $3.28 dividend on an annualized basis and a yield of 1.0%. AON's dividend payout ratio (DPR) is 17.96%.

Insiders Place Their Bets

In related news, Director Lester Knight bought 20,000 shares of the company's stock in a transaction on Wednesday, September 2nd. The shares were bought at an average price of $327.48 per share, with a total value of $6,549,600.00. Following the transaction, the director owned 163,000 shares in the company, valued at approximately $53,379,240. This trade represents a 13.99% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.00% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Robeco Institutional Asset Management B.V. grew its position in AON by 11,179.6% during the third quarter. Robeco Institutional Asset Management B.V. now owns 4,026,135 shares of the financial services provider's stock valued at $1,114,313,000 after buying an additional 3,990,441 shares during the period. Bank of America Corp DE increased its holdings in AON by 16.3% in the first quarter. Bank of America Corp DE now owns 1,582,680 shares of the financial services provider's stock valued at $510,857,000 after buying an additional 222,092 shares in the last quarter. Amundi raised its position in shares of AON by 23.5% in the first quarter. Amundi now owns 1,502,890 shares of the financial services provider's stock worth $485,103,000 after acquiring an additional 285,549 shares during the period. Retirement Systems of Alabama boosted its stake in shares of AON by 2,986.4% during the 3rd quarter. Retirement Systems of Alabama now owns 1,384,829 shares of the financial services provider's stock worth $383,279,000 after acquiring an additional 1,339,960 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in shares of AON by 20.5% during 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 acquiring an additional 213,051 shares in the last quarter. Hedge funds and other institutional investors own 86.14% of the company's stock.

Key Stories Impacting AON

Here are the key news stories impacting AON this week:

• Positive Sentiment: Analyst sentiment has improved overall. BMO upgraded AON to “outperform” and raised its price target to $380 from $319. Raymond James also upgraded the stock, while Cantor Fitzgerald and Wells Fargo analysts were reported as expecting shares to rise. Read More., Read More., Read More., Read More..
• Positive Sentiment: Q3 results showed modest growth and beat estimates. Aon reported adjusted earnings of $3.36 per share versus the $3.30 consensus and revenue of $4.10 billion versus $4.08 billion. Investors are also watching the pending USI closing. Read More..
• Positive Sentiment: Aon expanded its client treaty for 2027. The renewed Aon Client Treaty will provide 35% co-insurance on eligible business, up from 28.5% in 2026, and extend the 1.5% client dividend to a larger share of eligible placements. This could strengthen the appeal of Aon’s broking and reinsurance services. Read More..
• Neutral Sentiment: Aon and Munich Re introduced a parametric pandemic insurance solution for Indonesia and the Philippines, broadening their offerings, though the near-term revenue impact is unclear. Read More..
• Neutral Sentiment: Aon says growing capacity and alternative capital are giving insurance buyers more options and easing pricing. This may support placement activity, but softer prices could also weigh on premiums and related brokerage revenue. Read More..
• Negative Sentiment: UBS cut its price target on AON, a cautionary view amid otherwise favorable analyst headlines. Read More..

About AON

Aon plc is a global professional services firm that helps organizations manage risk, make informed decisions and improve workforce outcomes. Its services span commercial risk, health, retirement and investments, and data and analytics.

The company provides insurance brokerage and risk-management services, including coverage placement, claims support, risk transfer and consulting. Through its reinsurance business, Aon also serves insurers and other organizations seeking to manage catastrophe, capital and underwriting risks.

Aon's human capital offerings include employee benefits consulting, retirement advisory services, talent and compensation consulting, and health and workforce solutions.

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