Zacks Research Issues Pessimistic Estimate for AON Earnings

Key Points

• Zacks Research cut near-term earnings estimates for Aon, lowering its Q2 2026 EPS forecast to $3.80 from $3.85 and trimming several other quarterly and full-year projections, including FY2026 EPS to $19.02.
• Aon’s latest quarter beat expectations, reporting EPS of $6.48 versus the $6.37 consensus and revenue of $5.03 billion, up 6.4% year over year.
• Analyst sentiment remains generally positive despite the estimate cuts, with 13 Buy ratings, 4 Holds, and a consensus “Moderate Buy” price target of $397.88.

Aon plc (NYSE:AON - Free Report) - Analysts at Zacks Research cut their Q2 2026 earnings estimates for shares of AON in a research report issued on Thursday, May 14th. Zacks Research analyst Team now anticipates that the financial services provider will post earnings per share of $3.80 for the quarter, down from their prior estimate of $3.85. The consensus estimate for AON's current full-year earnings is $19.07 per share. Zacks Research also issued estimates for AON's Q3 2026 earnings at $3.38 EPS, Q4 2026 earnings at $5.35 EPS, FY2026 earnings at $19.02 EPS, Q1 2027 earnings at $7.03 EPS, Q2 2027 earnings at $4.21 EPS, Q3 2027 earnings at $3.83 EPS, Q4 2027 earnings at $5.90 EPS, FY2027 earnings at $20.96 EPS, Q1 2028 earnings at $7.77 EPS and FY2028 earnings at $23.11 EPS.

AON (NYSE:AON - Get Free Report) last posted its quarterly earnings data on Saturday, May 2nd. The financial services provider reported $6.48 earnings per share for the quarter, topping analysts' consensus estimates of $6.37 by $0.11. AON had a net margin of 22.54% and a return on equity of 43.50%. The company had revenue of $5.03 billion during the quarter, compared to analysts' expectations of $4.97 billion. During the same period in the prior year, the business posted $5.67 earnings per share. The firm's revenue for the quarter was up 6.4% on a year-over-year basis.

Other equities research analysts have also recently issued reports about the company. Weiss Ratings reiterated a "hold (c)" rating on shares of AON in a report on Tuesday, April 21st. Wells Fargo & Company decreased their target price on AON from $443.00 to $402.00 and set an "overweight" rating on the stock in a research report on Thursday, April 9th. Mizuho dropped their price target on AON from $394.00 to $389.00 and set an "outperform" rating for the company in a research report on Tuesday, May 5th. TD Cowen reissued a "buy" rating on shares of AON in a research note on Monday, March 16th. Finally, UBS Group reaffirmed a "neutral" rating and set a $385.00 target price on shares of AON in a research note on Monday, February 2nd. Thirteen equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, AON has a consensus rating of "Moderate Buy" and an average price target of $397.88.

AON Stock Up 1.4%

AON stock opened at $315.34 on Friday. AON has a 52 week low of $304.59 and a 52 week high of $381.00. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 1.36. The firm has a 50-day simple moving average of $322.92 and a 200-day simple moving average of $335.36. The stock has a market capitalization of $67.35 billion, a P/E ratio of 17.31, a P/E/G ratio of 1.65 and a beta of 0.72.

AON Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 1st will be paid a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a yield of 1.0%. This is a boost from AON's previous quarterly dividend of $0.75. The ex-dividend date of this dividend is Friday, May 1st. AON's payout ratio is presently 16.36%.

Insiders Place Their Bets

In other AON news, General Counsel Darren Zeidel sold 5,040 shares of AON stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $325.79, for a total value of $1,641,981.60. Following the sale, the general counsel owned 20,254 shares in the company, valued at $6,598,550.66. The trade was a 19.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 1.00% of the stock is owned by insiders.

Institutional Investors Weigh In On AON

Institutional investors and hedge funds have recently made changes to their positions in the stock. Bridgewater Advisors Inc. acquired a new stake in AON in the 1st quarter valued at approximately $6,785,000. Healthcare of Ontario Pension Plan Trust Fund lifted its stake in AON by 284.1% during the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 159,373 shares of the financial services provider's stock worth $51,442,000 after purchasing an additional 117,877 shares in the last quarter. Renaissance Technologies LLC purchased a new position in shares of AON during the first quarter worth $3,745,000. Gabelli Funds LLC grew its stake in shares of AON by 81.1% in the first quarter. Gabelli Funds LLC now owns 11,880 shares of the financial services provider's stock valued at $3,835,000 after buying an additional 5,320 shares in the last quarter. Finally, Gamco Investors INC. ET AL raised its holdings in shares of AON by 1.4% in the 1st quarter. Gamco Investors INC. ET AL now owns 5,939 shares of the financial services provider's stock valued at $1,917,000 after buying an additional 83 shares during the period. 86.14% of the stock is owned by hedge funds and other institutional investors.

AON News Summary

Here are the key news stories impacting AON this week:

• Positive Sentiment: Zacks Research raised its near-term outlook for Aon by increasing its Q1 2028 EPS estimate to $7.77 from $7.75, suggesting confidence in the company’s longer-term earnings power.
• Positive Sentiment: Analysts also lifted full-year and longer-dated projections, including FY2027 EPS to $20.96 and FY2028 EPS to $23.11, which may reinforce investor optimism that Aon can keep compounding profits.
• Positive Sentiment: A recent report noted that Aon is expanding its Claims Copilot tool globally, a move that could improve analytics, automation and claims visibility while supporting future growth. AON Expands Claims Copilot to Boost Analytics Capabilities
• Positive Sentiment: Another industry update highlighted underwriting discipline and rising interest in alternative risk transfer products, which could support Aon’s specialty and reinsurance-related businesses. Global property softening met by underwriting discipline and rising ART interest: Aon
• Positive Sentiment: Aon also expanded its Global ReSpecialty division with new appointments, signaling continued investment in specialty capabilities and client coverage. Aon expands Global ReSpecialty division with Mitchell and Rimmer appointments
• Neutral Sentiment: Not all analyst revisions were positive: Zacks trimmed several quarterly estimates, including Q2 2026, Q3 2026, Q4 2026, Q1 2027, Q2 2027, Q3 2027, Q4 2027, FY2026, FY2027 and FY2028, which may temper enthusiasm even as the revisions remain broadly above the current consensus in several periods.

AON Company Profile

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.

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