Ireland's Aon Q2 revenue up 2%

Overview

• Ireland-based insurance broker's Q2 revenue grew 2%, slightly missing analyst expectations

• Adjusted EPS for Q2 beat analyst expectations, rising 9% yr/yr

• Company returned $775 mln to shareholders via buybacks and dividends in Q2

Outlook

• Aon reaffirms 2026 guidance of mid-single-digit or greater organic revenue growth

• Company expects 70-80bps adjusted operating margin expansion for full-year 2026

• Aon expects strong adjusted EPS growth and double-digit free cash flow growth in 2026

Result Drivers

• ORGANIC GROWTH - 5% organic revenue growth driven by net new business and strong client retention across core segments

• DIVESTITURES IMPACT - Revenue growth limited by 4% negative impact from divestitures, mainly due to sales of NFP Wealth business and Stroz Friedberg

• OPERATING MARGIN EXPANSION - Margin gains attributed to organic growth, scale improvements, and restructuring savings, partly offset by investments for growth

Company press release: ID:nPn5Btt3Sa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance brokers peer group is "buy"

• Wall Street's median 12-month price target for Aon PLC is $390.00, about 2.3% above its July 28 closing price of $381.26

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• July 28 - Unum Group Q2 revenue eases past estimates on premium growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)