Aon Posts Slower Revenue Growth, Reaffirms Outlook
The company repurchased $600 million of shares, surpassing its full-year buyback objective.
Aon plc (AON), the global professional-services firm, posted 2% second-quarter revenue growth as divestitures weighed on reported results. Organic revenue growth held at 5% for a third consecutive quarter, down from 7% in the third quarter of 2025.
Revenue rose to $4.246 billion, with growth slowing from 6% in the first quarter, 4% in the fourth quarter and 7% in the third quarter of 2025. Adjusted earnings increased 9% to $3.81 a share, decelerating from 14% growth in the first quarter, and GAAP diluted earnings fell 3% to $2.58 a share.
The revenue bridge reflected a widening divestiture drag. Organic growth of 5% and a 1% currency benefit were reduced by a 4% divestiture impact, compared with a 4% currency benefit and a 3% divestiture drag in the first quarter.
Risk Capital revenue increased 5% to $3.006 billion, though its growth slowed from 10% in the first quarter. Human Capital revenue declined 4% to $1.244 billion, deepening from a decrease of less than 1% in the preceding period. All four operating lines delivered 5% organic growth, while reported Wealth Solutions revenue fell 18% to $426 million after divestitures created a 24% drag.
Operating income rose 7% to $915 million and operating margin expanded 80 basis points to 21.5%, a narrower improvement than in the previous three quarters. Human Capital produced the larger margin gain, with its operating margin rising 430 basis points to 13.4% and its adjusted margin increasing 240 basis points to 21.5%.
A higher tax burden and weaker cash generation tempered the operating gains. The effective tax rate increased to 22.0% from 15.5%, contributing to a 5% decline in net income, and quarterly free cash flow dropped 34% to $483 million. First-half free cash flow remained 4% above the year-earlier period.
Aon reaffirmed its 2026 outlook, which calls for at least mid-single-digit organic revenue growth, 70 to 80 basis points of adjusted operating-margin expansion, strong adjusted EPS growth and double-digit free-cash-flow growth. The company returned $775 million to shareholders during the quarter, up from $662 million in the first quarter, pushing repurchases beyond its objective of at least $1 billion for the year.