Aon plc (NYSE: AON) reported a 4% increase in total revenue for the fourth quarter of 2025, supported by sustained organic growth and significant margin expansion. The global professional services firm recorded total revenue of $4.3 billion for the period ending December 31, 2025, meeting the lower end of analyst expectations while delivering an earnings beat driven by operational efficiencies. Following the announcement, Aon shares saw modest premarket gains as investors weighed a slight revenue miss against robust profitability and a clear 2026 outlook.
Quarterly and Annual Performance Overview
The fourth quarter results concluded a fiscal year defined by the integration of strategic acquisitions and the execution of the “3×3 Plan,” Aon’s internal roadmap for accelerating its “Aon United” strategy. For the full year 2025, total revenue rose 9% to $17.2 billion, underpinned by 6% organic revenue growth.
Profitability metrics showed notable year-over-year improvement. Adjusted operating income for the fourth quarter reached $1.5 billion, an 11% increase compared to the prior year. This growth was accompanied by a 220-basis-point expansion in adjusted operating margins, which rose to 35.5%. For the full year, adjusted operating margin stood at 32.4%, a 90-basis-point improvement over 2024.
Key Financial Data Points:
- Total Revenue (Q4): $4.3 billion (+4% YoY)
- Organic Revenue Growth (Q4): 5%
- Adjusted EPS (Q4): $4.85 (compared to $4.42 in Q4 2024)
- Full-Year Net Income: $3.7 billion
- Free Cash Flow (Full Year): $3.2 billion (+14% YoY)
Segment Analysis and Business Drivers
Performance across Aon’s primary solution lines remained bifurcated between the Risk Capital and Human Capital segments.
Risk Capital, which includes Commercial Risk and Reinsurance Solutions, was the primary engine of growth. Reinsurance Solutions delivered 8% organic revenue growth in the fourth quarter, fueled by double-digit expansion in insurance-linked securities and strong retention in facultative placements. Commercial Risk Solutions maintained steady performance with 6% organic growth, bolstered by new business wins across North America and the EMEA region.
Conversely, the Human Capital segment experienced a deceleration. Both Health Solutions and Wealth Solutions reported 2% organic revenue growth for the quarter. While Health Solutions benefited from core benefits demand, it faced headwinds from reduced discretionary spending in talent solutions. Wealth Solutions’ performance was tempered by the impact of divestitures, including the sale of the NFP Wealth business, despite strong demand for regulatory advisory services in Europe.
Strategic Execution and Executive Commentary
Management attributed the year’s performance to the “Accelerating Aon United” program, which emphasizes the use of Aon Business Services (ABS) to scale analytics and operational efficiency. The company highlighted the deployment of new AI-driven tools, such as “Broker Copilot” and “Claims Copilot,” as integral to its long-term margin expansion strategy.
In commentary accompanying the results, Chief Executive Officer, Greg Case, noted that the firm met all full-year objectives, marking a second consecutive year of 6% organic revenue growth. Case emphasized that the results reflect the disciplined execution of the firm’s strategic plan and its ability to provide high-margin analytical insights to clients navigating a volatile risk landscape.
Chief Financial Officer, Edmund Reese, added that the company successfully met its leverage objectives in the fourth quarter, having paid down $1.9 billion in debt over the course of the year. This improved balance sheet position is expected to support a flexible capital allocation model in 2026.
2026 Outlook and Market Context
Aon issued forward-looking guidance for 2026, signaling confidence in its ability to maintain current momentum. The firm expects to deliver mid-single-digit or greater organic revenue growth and an additional 70 to 80 basis points of adjusted operating margin expansion.
The company also anticipates double-digit free cash flow growth for 2026, projecting approximately $4.3 billion. This forecast is supported by the expected incremental contributions from the NFP acquisition, which is projected to add $600 million to free cash flow in the coming year.
In the broader macroeconomic context, Aon’s results mirror a stabilizing insurance brokerage sector. While the industry continues to grapple with cooling global inflation and shifting medical trend rates—which Aon predicts will rise by 9.8% globally in 2026—the firm’s shift toward alternative risk capital, including catastrophe bonds and structured solutions, appears to be insulating it from broader market volatility.
Reasons to pass on Aon (AON):
- Top-line growth remains modest: Fourth-quarter revenue rose 4% year over year and met only the lower end of expectations.
- Earnings strength driven by margins, not demand: The EPS beat was largely the result of cost controls and efficiency gains rather than faster revenue growth.
- Human Capital growth has slowed: Health and Wealth Solutions delivered just 2% organic growth, weighed down by softer discretionary spending and divestitures.
- Uneven segment performance: Results are increasingly reliant on the Risk Capital segment for growth.
- Outlook implies continuity, not acceleration: 2026 guidance calls for mid-single-digit organic growth, broadly in line with recent trends.
- Margin gains may be harder to sustain: Ongoing margin expansion is a key driver of performance, leaving limited buffer if efficiency gains taper.
- Free cash flow outlook depends on acquisitions: A significant share of expected 2026 free cash flow growth is tied to the NFP acquisition, adding execution risk.