Second Quarter 2026
Filed Jul 29, 2026Aon Reports Second-Quarter 2026 Results
Aon reported 5% organic revenue growth, operating-margin expansion and 9% adjusted EPS growth, while second-quarter cash provided by operations and free cash flow declined from the prior-year period.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $4,246 | – | 2% |
| Organic revenue growthnon-GAAP | 5% | – | – |
| Total operating expensesGAAP | $3,331 | – | 1% |
| Operating incomeGAAP | $915 | – | 7% |
| Operating marginGAAP | 21.5% | – | 80bps |
| Adjusted operating incomenon-GAAP | $1,227 | – | 5% |
| Adjusted operating marginnon-GAAP | 28.9% | – | 70bps |
| Diluted EPSGAAP | $2.58 | – | (3)% |
| Adjusted EPSnon-GAAP | $3.81 | – | 9% |
| Effective tax rateGAAP | 22.0% | – | – |
| Adjusted effective tax ratenon-GAAP | 20.1% | – | – |
| Weighted average diluted shares outstandingGAAP | 213.9 million | – | – |
| Cash provided by operationsGAAP | $556 | – | (30)% |
| Free cash flownon-GAAP | $483 | – | (34)% |
| First Half 2026 total revenueGAAP | $9,280 | – | 4% |
| First Half 2026 operating incomeGAAP | $2,630 | – | 13% |
| First Half 2026 adjusted operating incomenon-GAAP | $3,193 | – | 7% |
| First Half 2026 operating marginGAAP | 28.3% | – | 220bps |
| First Half 2026 adjusted operating marginnon-GAAP | 34.4% | – | 80bps |
| First Half 2026 diluted EPSGAAP | $8.22 | – | 16% |
| First Half 2026 adjusted EPSnon-GAAP | $10.29 | – | 12% |
| First Half 2026 cash provided by operationsGAAP | $986 | – | 5% |
| First Half 2026 free cash flownon-GAAP | $846 | – | 4% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Risk CapitalRevenue increased $140 million, reflecting growth in Commercial Risk Solutions and Reinsurance Solutions. | $3.0 billion | – | 5% |
| Commercial Risk SolutionsOrganic revenue growth of 5% reflects growth in EMEA and North America, driven by net new business and ongoing strong retention. Net market impact was modestly positive. | $ 2,295 | – | 5 % |
| Reinsurance SolutionsOrganic revenue growth of 5% reflects growth in treaty placements, driven by net new business and strong retention, and double-digit increases in facultative placements and the Strategy and Technology Group. Net market impact was unfavorable. | 711 | – | 3 |
| Human CapitalRevenue decreased $47 million, reflecting the decline in Wealth Solutions revenue. | $1.2 billion | – | (4)% |
| Health SolutionsOrganic revenue growth of 5% reflects strong growth in core health and benefits, including particular strength internationally, and growth in Talent Solutions driven by strong growth in talent analytics. Net market impact was slightly negative. | 818 | – | 6 |
| Wealth SolutionsOrganic revenue growth of 5% reflects strong growth in Retirement, driven by continued demand for advisory work in the UK and EMEA related to the ongoing impact of regulatory change. | 426 | – | (18) |
| EliminationsEliminations were reported in the second-quarter revenue review. | (4) | – | N/A |
2026 outlook
- Revenuemid-single-digit or greater organic revenue growth
- Note70-80 basis points of adjusted operating margin expansion
- Notestrong adjusted EPS growth
- Notedouble-digit free cash flow growth
- NoteIf currency were to remain stable at today’s rates, a de minimis impact on adjusted EPS in the third quarter of 2026
- NoteIf currency were to remain stable at today’s rates, a favorable impact on adjusted EPS of approximately $0.42 per share for the full year 2026
Capital returns
- Returned $775 million to shareholders during the quarter through $600 million of share repurchases and $175 million of dividends.
- Repurchased 1.9 million class A ordinary shares for approximately $600 million in the second quarter.
- Approximately $7.7 billion of remaining authorization under the share repurchase program as of June 30, 2026.
- The company stated that $600 million of quarterly share repurchases exceeded its full-year objective of at least $1 billion.
What drove it
- Total revenue growth reflected 5% organic revenue growth and a 1% favorable impact from foreign currency translation, partially offset by a 4% unfavorable impact primarily from divestitures.
- Organic revenue growth was driven by net new business and ongoing strong retention.
- Adjusted operating income growth reflected organic revenue growth, scale improvements in ABS and net restructuring savings, partially offset by investments for growth.
- Compensation and benefits expense decreased $89 million, or 4%, due primarily to lower expenses from the sale of the NFP Wealth business and savings from Accelerating Aon United restructuring actions.
- Information technology expense increased $26 million, or 19%, due primarily to Aon Business Services investments in ongoing technology initiatives.
Concerns
- Wealth Solutions revenue decreased $47 million, or 18%, with a 24% unfavorable impact from acquisitions, divestitures and other.
- Second-quarter cash provided by operations decreased 30% and free cash flow decreased 34%.
- The effective tax rate increased to 22.0% from 15.5%, driven by changes to the geographical distribution of income and an unfavorable impact from discrete items compared to a favorable impact in the prior-year period.
- Other general expense increased $121 million, or 32%, due primarily to non-recurring gains including sales of portfolios in the prior-year period.
What to watch
- Execution against reaffirmed 2026 guidance for mid-single-digit or greater organic revenue growth.
- Delivery of 70-80 basis points of adjusted operating margin expansion and strong adjusted EPS growth.
- The expected foreign currency impact on adjusted EPS in the third quarter of 2026 and full year 2026 if currency remains stable at today’s rates.
- Free cash flow growth, working-capital effects and cash tax payments related to NFP Wealth.
- Commercial Risk Solutions retention and net new business, Reinsurance Solutions treaty and facultative placements, and demand for Retirement advisory work in the UK and EMEA.
Balance sheet and cash flow
- Cash provided by operations was $556 in the second quarter, compared to $796 in the prior-year period.
- Free cash flow was $483 in the second quarter, compared to $732 in the prior-year period.
- Cash flows provided by operations for the first six months of 2026 were $986, compared to $936 in the prior-year period.
- Free cash flow for the first six months of 2026 was $846, compared to $816 in the prior-year period.
- First-half free cash flow reflected a $20 million increase in capital expenditures.
Analysis
Aon delivered $4,246 of second-quarter revenue, up 2%, with 5% organic revenue growth. A 1% favorable foreign currency translation impact was more than offset by a 4% unfavorable impact primarily from divestitures. The company attributed organic growth to net new business and ongoing strong retention. Risk Capital revenue increased $140 million, or 5%, while Human Capital revenue decreased $47 million, or 4%.
Commercial Risk Solutions produced $ 2,295 of revenue and 5 % growth, supported by EMEA and North America, including strong U.S. core P&C and double-digit construction growth. Reinsurance Solutions generated 711 of revenue, up 3, with 5% organic growth despite unfavorable net market impact. Health Solutions revenue increased 6, while Wealth Solutions revenue declined 18% amid a 24% unfavorable impact from acquisitions, divestitures and other. Wealth Solutions nevertheless recorded 5% organic growth, led by Retirement advisory demand in the UK and EMEA.
Operating income rose 7% to $915 and operating margin expanded 80bps to 21.5%. Adjusted operating income rose 5% to $1,227 and adjusted operating margin expanded 70bps to 28.9%. The company cited organic growth, ABS scale improvements and net restructuring savings, partly offset by investments for growth. Compensation and benefits declined $89 million, but information technology expense rose $26 million and other general expense rose $121 million. Diluted EPS declined 3% to $2.58, while adjusted EPS increased 9% to $3.81. The effective tax rate increased to 22.0% from 15.5%.
Cash generation diverged between the quarter and first half. Second-quarter cash provided by operations fell 30% to $556 and free cash flow declined 34% to $483. For the first six months, cash provided by operations rose 5% to $986 and free cash flow increased 4% to $846, with the company citing adjusted operating income growth offsetting a cash tax payment related to NFP Wealth and working-capital impact. Aon returned $775 million to shareholders in the quarter through $600 million of repurchases and $175 million of dividends.
Management reaffirmed 2026 guidance for mid-single-digit or greater organic revenue growth, 70-80 basis points of adjusted operating margin expansion, strong adjusted EPS growth and double-digit free cash flow growth. If currency remains stable at today’s rates, the company expects a de minimis adjusted EPS impact in the third quarter and a favorable impact of approximately $0.42 per share for the full year 2026. Key reported items remain organic growth, margin expansion, the cash-flow trajectory and the mix effects from divestitures.
Management, verbatim
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.
Greg Case, president and CEO
The structural advantage created by our Aon United strategy, coupled with AI-enabled analytical insights and innovative capital solutions, continues to differentiate Aon in the marketplace.
Greg Case, president and CEO
Not in the filing
stated, not guessed- GAAP net income amount attributable to Aon shareholders
- Gross profit and gross margin
- Cash balance
- Debt balance
- Prior-quarter comparisons for reported metrics
- Segment operating income or segment operating margin
- Quantified third-quarter 2026 revenue, adjusted EPS, operating expense and tax-rate guidance
- Previous-release outlook for comparison with actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.