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Can AON Beat Q3 Earnings on Commercial Risk Solutions Strength?

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Key Takeaways

  • AON will report Q3 2025 results on Oct. 31, with EPS estimated at $2.89 on $3.94B in revenue.
  • Commercial Risk Solutions revenue is expected to grow 6.1%, with 5% organic growth forecast.
  • Higher costs from compensation and investments may offset gains across key business lines.

Leading global insurer Aon plc (AON - Free Report) is set to report third-quarter 2025 results on Oct. 31, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $2.89 per shareon revenues of $3.94 billion.

The third-quarter earnings estimate has remained stable over the past 60 days. The bottom-line projection indicates a year-over-year increase of 6.3%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 5.9%.

Zacks Investment Research Image Source: Zacks Investment Research

AON beat the consensus estimate for earnings in three of the last four quarters and missed once, with the average surprise being 3%.

Aon plc Price and EPS Surprise

Aon plc Price and EPS Surprise

Aon plc price-eps-surprise | Aon plc Quote

Q3 Earnings Whispers for AON

Our proven model predicts an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s precisely the case here.

AON has an Earnings ESP of +0.60% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

What’s Shaping AON’s Q3 Results?

The Zacks Consensus Estimate for the Commercial Risk Solutions line’s revenues indicates 6.1% growth from $1.85 billion a year ago, whereas our model predicts a 7% increase. We expect the unit to witness 5% organic revenue growth in the quarter under discussion.

The consensus mark for the Health Solutions line’s third-quarter revenues suggests 6.6% growth from the year-ago level, while our model estimate indicates a 6% increase. The segment is likely to have been supported by global expansion initiatives.

The Zacks Consensus Estimate for Reinsurance Solutions' revenues indicates growth of 5.6% from $503 million recorded a year ago, while our model estimate suggests a 3% increase. Favorable retention rates, new business generation and facultative placement growthare expected to have benefited the unit.

The consensus estimate for third-quarter revenues in the Wealth Solutions segment suggests a 5.1% increase from the previous year’s $499 million, whereas our model foresees a 4% rise. The unit is likely to have been supported by sustained demand for advisory services.

The factors mentioned above are expected to have contributed to the company's year-over-year growth, positioning it for an earnings beat. However, the positives are likely to have been partially offset by increased expenses from significant investments in priority areas for long-term growth, coupled with an uptick in certain discretionary and other costs.

Our model indicates a rise in the total operating expenses for the third quarter by 3.5%, attributed to increased costs related to higher compensation and benefits. Specifically, the estimate for other general expenses is set at $411.3 million, while compensation and benefits costs are pegged at more than $2.2 billion.

How Did AON’s Peers Perform?

Several insurance companies, including Marsh & McLennan Companies, Inc. (MMC - Free Report) , The Hartford Insurance Group, Inc. (HIG - Free Report) and RenaissanceRe Holdings Ltd. (RNR - Free Report) , have already reported their financial results for the September quarter of 2025. Here’s how they had performed:

Marsh & McLennan reported third-quarter 2025 adjusted earnings per share of $1.85, which surpassed the Zacks Consensus Estimate by 3.4%. The bottom line advanced 11% year over year. The results were aided by strong growth in the Consulting unit, particularly from the Mercer and Oliver Wyman businesses. However, the upside was partially offset by Marsh & McLennan’s elevated operating expenses.

Hartford Insurance reported third-quarter 2025 adjusted operating earnings of $3.78 per share, which surpassed the Zacks Consensus Estimate by 20.8%. The bottom line climbed 49% year over year. The results were aided by increased earned premiums and investment income, solid segmental performance, improved loss ratios and reduced catastrophe losses. Growth in Hartford Insurance’s invested assets boosted net investment income.

RenaissanceRe reported a third-quarter 2025 operating income of $15.62 per share, which outpaced the Zacks Consensus Estimate by a whopping 64.6%. The bottom line soared 52.7% year over year. The quarterly results benefited from a decline in expenses and strong underwriting performance, particularly in the Property segment. RenaissanceRe’s improved net investment income also contributed to the upside.

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