AON | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 4.246 B

Revenue: As of FY2026 Q2, the actual value is USD 4.246 B, missing the estimate of USD 4.269 B.

EPS: As of FY2026 Q2, the actual value is USD 2.58, missing the estimate of USD 2.8931.

EBIT: As of FY2026 Q2, the actual value is USD 920 M.

Second Quarter 2026 Financial Highlights

Total Revenue

Aon plc reported total revenue of $4,246 million for the second quarter of 2026, an increase of 2% compared to the prior-year period. Organic revenue growth was 5%.

Operating Income and Margin

Operating income increased 7% to $915 million, with an operating margin of 21.5%, which is an 80 basis point increase compared to the prior-year period. Adjusted operating income rose 5% to $1,227 million, and adjusted operating margin increased by 70 basis points to 28.9%.

Net Income Attributable to Aon Shareholders

Net income attributable to Aon shareholders decreased 5% to $551 million. Adjusted net income attributable to Aon shareholders increased 7% to $814 million.

Operating Expenses

Total operating expenses increased 1% to $3,331 million compared to the prior-year period. Compensation and benefits expense decreased 4% to $2,271 million, while information technology expense increased 19% to $162 million. Amortization and impairment of intangible assets decreased 13% to $174 million, and other general expense increased 32% to $494 million. Accelerating Aon United Program expenses increased 2% to $96 million.

Interest and Other Income/Expense

Interest income increased $5 million. Interest expense decreased $33 million. Other expense was $17 million, compared to other income of $56 million in the prior-year period.

Effective Tax Rate

The effective tax rate was 22.0% in the second quarter of 2026, up from 15.5% in the prior-year period. The adjusted effective tax rate was 20.1%, compared to 16.5% in the prior-year period.

Segment Revenue Performance (Organic Growth)

• Risk Capital Revenue increased 5% to $3,006 million. Commercial Risk Solutions organic revenue growth was 5%, and Reinsurance Solutions organic revenue growth was 5%.
• Human Capital Revenue decreased 4% to $1,244 million. Health Solutions organic revenue growth was 5%, and Wealth Solutions organic revenue growth was 5%.

Cash Flow

Cash provided by operations for the quarter was $556 million, a decrease of 30% from the prior-year period. Free cash flow was $483 million, a decrease of 34%. Capital expenditures were - $73 million.

Shareholder Returns

Aon plc returned $775 million to shareholders during the quarter, including $600 million in share repurchases and $175 million in dividends. The company repurchased 1.9 million class A ordinary shares. As of June 30, 2026, approximately $7.7 billion remained authorized under its share repurchase program.

First Half 2026 Financial Highlights

Total Revenue

Total revenue for the first six months of 2026 increased 4% to $9,280 million. Organic revenue growth was 5%.

Operating Income and Margin

Operating income increased 13% to $2,630 million, with an operating margin of 28.3%, an increase of 220 basis points. Adjusted operating income increased 7% to $3,193 million, and adjusted operating margin increased by 80 basis points to 34.4%.

Net Income Attributable to Aon Shareholders

Net income attributable to Aon shareholders increased 14% to $1,763 million. Adjusted net income attributable to Aon shareholders increased 11% to $2,209 million.

Operating Expenses

Total operating expenses increased 1% to $6,650 million. Compensation and benefits increased 1% to $4,664 million, information technology increased 13% to $306 million, and amortization and impairment of intangible assets decreased 19% to $326 million. Other general expense increased 11% to $905 million. Accelerating Aon United Program expenses decreased 8% to $188 million.

Interest and Other Income/Expense

Interest income increased 240% to $17 million. Interest expense decreased 14% to - $358 million. Other expense was - $12 million, compared to other income of $46 million in the prior-year period.

Effective Tax Rate

The effective tax rate for the first half was 20.8%, up from 19.3% in the prior-year period. The adjusted effective tax rate was 20.2%, compared to 19.3% in the prior-year period.

Segment Revenue Performance (Organic Growth)

• Risk Capital Revenue increased from $6,057 million to $6,508 million. Commercial Risk Solutions organic revenue growth was 6%, and Reinsurance Solutions organic revenue growth was 4%.
• Human Capital Revenue decreased from $2,836 million to $2,783 million. Health Solutions organic revenue growth was 5%, and Wealth Solutions organic revenue growth was 3%.

Cash Flow

Cash provided by operations for the first six months of 2026 increased 5% to $986 million. Free cash flow increased 4% to $846 million. Capital expenditures were - $140 million.

Outlook / Guidance

Aon plc reaffirmed its 2026 guidance, expecting mid-single-digit or greater organic revenue growth. The company also anticipates 70-80 basis points of adjusted operating margin expansion and strong adjusted EPS growth. Additionally, Aon plc projects double-digit free cash flow growth for the year.