Aon Q3 Adjusted EPS Rises 10% as Margin Expands

Aon (AON) reported 6% organic revenue growth for the third quarter of 2026, while adjusted operating margin expanded by 70 basis points and adjusted earnings per share increased 10%. The insurance brokerage and consulting company said the results reinforced its confidence in its prior standalone full-year guidance, which excludes cash and other transaction expenses related to the pending USI acquisition.

Revenue for the quarter ended September 30 rose 3% to $4.10 billion from $4.00 billion a year earlier. Organic growth, which excludes items including currency movements, fiduciary investment income, acquisitions and divestitures, was 6%, compared with 7% in the prior-year quarter. Aon’s illustrative growth bridge attributed 11 percentage points to new business, partly offset by a five-point drag from retention and client losses, while the net market impact was approximately neutral.

GAAP operating income declined 1% to $809 million, and operating margin narrowed to 19.7% from 20.4%. Results included $175 million of intangible-asset amortization and impairment, $93 million of Accelerating Aon United Program expenses and $25 million of transaction costs associated with the USI agreement.

On an adjusted basis, operating income rose 5% to $1.11 billion. Adjusted operating margin increased to 27.0% from 26.3%, reflecting a combination of organic growth and the company’s operating initiatives. Adjusted diluted EPS advanced to $3.36 from $3.05, while GAAP diluted EPS increased 6% to $2.23.

Risk Capital leads organic growth

Aon’s Risk Capital businesses generated 7% organic revenue growth, unchanged from the year-earlier rate. Commercial Risk Solutions grew 7% organically, with reported revenue increasing 6% to $2.11 billion. Reinsurance Solutions also posted 7% organic growth, compared with 8% a year earlier, as reported revenue rose 7% to $572 million. The Reinsurance result included $24 million from the reversal of previously constrained revenue.

Human Capital recorded 5% organic growth, down from 6% in the prior-year quarter. Health Solutions grew 6% organically, matching the year-earlier rate, and reported revenue increased 6% to $992 million. Wealth Solutions delivered 4% organic growth, compared with 5% previously, even as reported revenue declined 21% to $429 million. Aon’s organic reconciliation included a 25-percentage-point adjustment for acquisitions, divestitures and other items in the Wealth business.

Management said its Aon United strategy continues to combine Risk Capital and Human Capital capabilities, supported by investments in Aon Business Services and AI-enabled data and analytics. The company said those investments are intended to help it address changing client needs, connect risks with broader access to capital and expand its addressable market.

Cash flow and USI priorities

Third-quarter free cash flow rose 2% to $1.10 billion. Cash provided by operating activities increased 4% to $1.19 billion, partly offset by a 36% rise in capital expenditures to $94 million. For the first nine months of 2026, free cash flow increased 3% to $1.94 billion, with operating cash flow of $2.18 billion and capital expenditures of $234 million.

Following completion of the pending USI acquisition, Aon plans to prioritize debt repayment. Management outlined a path toward reducing its leverage ratio to a target range of 2.8 to 3.0 times in approximately 24 months. The company did not provide a reconciliation for the forward-looking leverage target because of uncertainty around items included in the corresponding GAAP measures.

Aon said it expects full-year organic revenue growth of mid-single digits or greater and expressed confidence in its previously issued standalone 2026 guidance. That outlook excludes cash and other transaction expenses arising from the USI acquisition.

The outlook remains subject to risks including the ability to secure regulatory approval and complete the USI transaction, potential integration costs and liabilities, and the possibility that expected acquisition benefits may not be realized on schedule. Aon also identified debt levels and borrowing costs, currency and interest-rate movements, tax changes, competitive conditions, legal and regulatory matters, cybersecurity risks, geopolitical developments and the execution of restructuring and cost-saving initiatives as factors that could affect future results.