WS Investor
28 Oct 2026, 14:47
Aon Rises 3.9% as Organic Growth, Margin Expansion and EPS Gains Drive Strong Q3
Aon (NYSE: AON) shares rose about 3.9% after the company reported solid third-quarter 2026 organic growth, higher adjusted earnings and improving profitability across its major businesses.
Revenue increased 3% year over year to $4.1 billion, while organic revenue grew 6%. Growth was broad-based, including 7% in Commercial Risk, 7% in Reinsurance, 6% in Health and 4% in Wealth.
Adjusted operating income increased 5% to $1.11 billion, while adjusted operating margin expanded 70 basis points to 27.0%. Adjusted EPS rose 10% to $3.36, compared with $3.05 a year earlier.
Cash generation remained solid, with third-quarter operating cash flow of $1.19 billion and free cash flow of $1.10 billion. For the first nine months, free cash flow increased 3% to $1.94 billion.
Aon also expects its acquisition of USI to close during the fourth quarter. Following the transaction, management plans to prioritize debt reduction, targeting leverage of approximately 2.8x-3.0x within about two years.
The 3.9% gain appears to reflect strong underlying organic growth, margin expansion and double-digit adjusted EPS growth, alongside management’s confidence in maintaining momentum through the remainder of 2026.
Aon (NYSE: AON) shares rose about 3.9% after the company reported solid third-quarter 2026 organic growth, higher adjusted earnings and improving profitability across its major businesses.
Revenue increased 3% year over year to $4.1 billion, while organic revenue grew 6%. Growth was broad-based, including 7% in Commercial Risk, 7% in Reinsurance, 6% in Health and 4% in Wealth.
Adjusted operating income increased 5% to $1.11 billion, while adjusted operating margin expanded 70 basis points to 27.0%. Adjusted EPS rose 10% to $3.36, compared with $3.05 a year earlier.
Cash generation remained solid, with third-quarter operating cash flow of $1.19 billion and free cash flow of $1.10 billion. For the first nine months, free cash flow increased 3% to $1.94 billion.
Aon also expects its acquisition of USI to close during the fourth quarter. Following the transaction, management plans to prioritize debt reduction, targeting leverage of approximately 2.8x-3.0x within about two years.
The 3.9% gain appears to reflect strong underlying organic growth, margin expansion and double-digit adjusted EPS growth, alongside management’s confidence in maintaining momentum through the remainder of 2026.
