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With a market cap of $76.3 billion, Aon plc (AON) is a global professional services firm, offering a comprehensive range of risk management, insurance, and reinsurance brokerage, and human capital solutions. The company operates through four main revenue lines: Commercial Risk Solutions; Reinsurance Solutions; Wealth Solutions; and Health Solutions, serving clients from individuals to multinational corporations worldwide.
The Dublin, Ireland-based company is expected to announce its fiscal Q2 2025 earnings results on Friday, Jul. 25. Ahead of this event, analysts expect AON to report adjusted earnings of $3.40 per share, up over 16% from $2.93 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions. In Q1 2025, AON missed the consensus adjusted EPS estimate by 6.1%.
For fiscal 2025, analysts predict the insurance brokerage to report an adjusted EPS of $16.76, up 7.4% from $15.60 in fiscal 2024. Moreover, adjusted EPS is anticipated to grow 13.4% year-over-year to $19.01 in fiscal 2026.
Shares of Aon have returned 19.4% over the past 52 weeks, surpassing the S&P 500 Index's ($SPX) 11.9% rise. However, the stock has lagged behind the Financial Select Sector SPDR Fund's (XLF) 26.8% return over the same period.
Shares of Aon tumbled 8% on Apr. 25 after the company reported weaker-than-expected Q1 2025 adjusted EPS of $5.67 and revenue of $4.7 billion. The miss was driven by a 25% rise in total operating expenses to $3.3 billion, largely due to increased compensation costs and higher interest expenses from additional debt taken on to finance the NFP acquisition. Additionally, Aon’s interest income dropped sharply by 82% to $5 million, further weighing on profitability despite strong revenue growth in its Commercial Risk Solutions and Health Solutions units.
Analysts' consensus view on AON’s stock is cautiously optimistic, with an overall “Moderate Buy” rating. Among 20 analysts covering the stock, nine recommend "Strong Buy," one "Moderate Buy," seven suggest "Hold," one "Moderate Sell," and two "Strong Sells." As of writing, AON is trading below the average analyst price target of $402.18.
