Aon plc (NYSE:AON) reported mixed second-quarter results on Wednesday, with earnings narrowly exceeding Wall Street forecasts while revenue came in slightly below expectations, sending the company’s shares more than 2% lower in pre-market trading.
The professional services firm posted adjusted earnings of $3.81 per share, just ahead of analysts’ consensus estimate of $3.80.
Quarterly revenue rose 2% year over year to $4.25 billion from $4.16 billion but fell short of the market forecast of $4.27 billion. Organic revenue increased 5%, supported by new client wins and strong customer retention across the business.
Organic Growth Remains Strong
Aon continued to deliver solid underlying business momentum during the quarter, driven by healthy demand across its core operations.
President and Chief Executive Officer Greg Case said: “Our second-quarter results demonstrate the consistency of our execution and the strength of our business model. We delivered 5% organic revenue growth, operating margin expansion, and 9% adjusted EPS growth, reflecting robust client demand, disciplined execution, and durable through-the-cycle performance.”
Margins Improve as Profitability Increases
Adjusted operating income increased 5% year over year to $1.23 billion.
The company’s adjusted operating margin expanded by 70 basis points to 28.9%, reflecting continued cost discipline and operating efficiency.
Aon also returned significant capital to shareholders during the quarter, distributing $775 million through a combination of $600 million in share repurchases and $175 million in dividends.
The company has already exceeded its full-year target of repurchasing at least $1 billion of its own shares.
Risk Capital Business Leads Growth
The Risk Capital segment generated revenue of $3.01 billion, an increase of $140 million, or 5%, from the prior year.
Within the division, Commercial Risk Solutions and Reinsurance Solutions each delivered 5% organic revenue growth.
Revenue in the Human Capital segment declined 4% year over year to $1.24 billion. However, both Health Solutions and Wealth Solutions recorded organic growth of 5%, demonstrating continued demand across key advisory businesses.
Full-Year Outlook Unchanged
Aon reaffirmed its financial guidance for 2026, continuing to expect mid-single-digit or higher organic revenue growth for the full year.
The company also maintained its outlook for adjusted operating margin expansion of between 70 and 80 basis points, strong adjusted earnings per share growth and double-digit free cash flow growth.
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