Aon turned in a stronger first-quarter 2026 print across the board, with the insurance broker beating analyst estimates on both the top and bottom lines and sending its shares higher in premarket trading.
Total revenue rose 6% to US$5.03 billion from US$4.73 billion a year earlier, with organic revenue growth of 5% for the three months ended March 31.
The US$6.48 in adjusted earnings per share topped the US$6.37 consensus, while the US$5.03 billion revenue figure beat the US$4.97 billion estimate. Aon shares climbed about 3.6% in premarket trading.
Diluted EPS rose 27% to US$5.63 from US$4.43, with foreign currency translation contributing a favourable US$0.36 per share to the adjusted figure. Operating income advanced 17% to US$1.72 billion, lifting the operating margin to 34.1% from 30.9%.
Adjusted operating income rose 8% to US$1.97 billion, with the adjusted operating margin widening 70 basis points to 39.1%.
Risk Capital revenue grew 10% to US$3.5 billion, while Human Capital revenue eased less than 1% to US$1.5 billion. Total operating expenses rose 2% to US$3.3 billion, partly offset by the NFP Wealth divestiture and US$25 million in net restructuring savings.
President and chief executive Greg Case (pictured above) opened the earnings call by flagging that 2026 marks the third and final year of the firm's 3x3 Plan.
The strategy was unveiled in October 2023 and built around three pillars – risk capital, human capital, and accelerating business services – alongside a roughly US$900 million restructuring charge designed to fast-track the broader Aon United model.
The accompanying restructuring program is on track to deliver about US$350 million in annualised savings by year-end, Investing.com noted from the company's slide deck.
"Our strong start to the year reflects continued execution of our 3x3 Plan and progress accelerating our client-centric Aon United strategy," Case said.
Aon's NFP acquisition, which closed in April 2024 for US$13.4 billion, brought more than 7,700 staff and deepened the firm's reach into the US middle market – a segment Aon has previously valued at US$30 billion across risk, health and wealth. NFP continues to operate as an independent unit within Aon.
In a notable refinement to that thesis, Aon agreed in April 2026 to sell the majority of NFP's wealth business to Madison Dearborn Partners, the divestiture referenced in the quarterly results.
On the earnings call, management linked some of the Human Capital softness back to the divested wealth operations, according to a transcript published by The Motley Fool.
Cash from operations more than tripled to US$430 million, while free cash flow surged to US$363 million. Aon returned US$662 million to shareholders through dividends and buybacks, repurchasing 1.5 million shares for roughly US$500 million. The board approved a 10% quarterly dividend increase on April 10, the sixth consecutive year of double-digit hikes.
Aon reaffirmed its 2026 guidance of mid-single-digit or greater organic revenue growth and 70 to 80 basis points of adjusted operating margin expansion.
