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Here's Why Investors Should Hold on to AON Shares Right Now
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Key Takeaways
AON is projected to post 8.5% earnings growth in 2025 and 12.1% in 2026.
AON benefits from new business growth, solid retention, and organic revenue gains.
AON's shareholder returns are supported by strong cash flow and a focus on higher-return businesses.
Aon plc (AON - Free Report) is expected to see year-over-year earnings growth of 8.5% in 2025 to $16.93 per share, followed by a 12.1% increase in 2026. It has witnessed 10 upward estimate revisions in the past 60 days against no movement in the opposite direction. The consensus mark for 2025 revenues is pegged at $17.25 billion, indicating a 9.9% year-over-year increase.
It beat earnings estimates in three of the past four quarters and missed once, the average surprise being 1.6%. This is depicted in the figure below.
New business growth and solid retention rates in Aon’s solution lines are major tailwinds. Its Risk Capital and Human Capital segments are gaining from organic revenue growth and net restructuring savings.
Headquartered in Dublin, Ireland, AON offers risk management services, insurance, brokerage and other services. It operates in more than 120 countries and has a market cap of $76.7 billion. This Zacks Rank #3 (Hold) stock continues to enhance its capabilities and global reach through targeted acquisitions and partnerships.
It also divests non-core, lower-margin businesses, sharpening its focus on high-return segments. This has contributed to a trailing 12-month return on capital (ROC) of 14.7%, above the industry average of 11%.
The company expects its revenues to witness mid-single-digit or higher organic growth, adjusted margin expansion and double-digit free cash flow growth over the long term. Its cash-generating abilities help the company take shareholder value-boosting measures. Last year, AON bought back shares worth $1 billion and an additional $750 million in the first nine months of 2025. It had around $1.6 billion of authorization left under its share repurchase program at third-quarter-end.
Risks to Watch
However, there are some factors that investors should keep an eye on.
Aon exited the third quarter with cash and cash equivalents of $1.1 billion, which contrasts with a substantial long-term debt of $15.1 billion. Also, short-term debt and the current portion of long-term debt were at $1.7 billion. Its long-term debt to capital of 65.1% is higher than the industry average of 49%.
The debt-heavy balance sheet has led to an increase in interest expenses. The metric jumped 19.2% in 2023, 62.8% in 2024 and 7% in the first nine months of 2025. The elevated interest burden remains a drag on margin growth. Also, its results are sensitive to foreign exchange rate fluctuations. Nevertheless, we believe that a systematic and strategic plan of action will drive growth and reduce its leverage in the long term.
The Zacks Consensus Estimate for Assurant’s 2025 full-year earnings indicates a 17.1% year-over-year increase. It beat earnings estimates in each of the past four quarters, with an average surprise of 22.7%. Also, the consensus mark for Assurant’s 2025 full-year revenues suggests 7.1% year-over-year growth.
The consensus mark for Assured Guaranty’s 2025 full-year earnings indicates 16.9% year-over-year growth. The earnings estimate has witnessed one upward estimate revision in the past 60 days against no movement in the opposite direction. Furthermore, the consensus estimate for Assured Guaranty’s 2025 full-year revenues suggests 2.1% year-over-year increase.
The Zacks Consensus Estimate for CNO Financial’s 2025 full-year earnings is pegged at $4.14 per share, which indicates 4.3% year-over-year growth. The estimate jumped by 36 cents over the past 60 days. CNO Financial beat earnings estimates in three of the past four quarters and met once, with an average surprise of 6.5%.
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Here's Why Investors Should Hold on to AON Shares Right Now
Key Takeaways
Aon plc (AON - Free Report) is expected to see year-over-year earnings growth of 8.5% in 2025 to $16.93 per share, followed by a 12.1% increase in 2026. It has witnessed 10 upward estimate revisions in the past 60 days against no movement in the opposite direction. The consensus mark for 2025 revenues is pegged at $17.25 billion, indicating a 9.9% year-over-year increase.
It beat earnings estimates in three of the past four quarters and missed once, the average surprise being 1.6%. This is depicted in the figure below.
Aon plc Price, Consensus and EPS Surprise
Aon plc price-consensus-eps-surprise-chart | Aon plc Quote
What's Favoring AON Stock?
New business growth and solid retention rates in Aon’s solution lines are major tailwinds. Its Risk Capital and Human Capital segments are gaining from organic revenue growth and net restructuring savings.
Headquartered in Dublin, Ireland, AON offers risk management services, insurance, brokerage and other services. It operates in more than 120 countries and has a market cap of $76.7 billion. This Zacks Rank #3 (Hold) stock continues to enhance its capabilities and global reach through targeted acquisitions and partnerships.
It also divests non-core, lower-margin businesses, sharpening its focus on high-return segments. This has contributed to a trailing 12-month return on capital (ROC) of 14.7%, above the industry average of 11%.
The company expects its revenues to witness mid-single-digit or higher organic growth, adjusted margin expansion and double-digit free cash flow growth over the long term. Its cash-generating abilities help the company take shareholder value-boosting measures. Last year, AON bought back shares worth $1 billion and an additional $750 million in the first nine months of 2025. It had around $1.6 billion of authorization left under its share repurchase program at third-quarter-end.
Risks to Watch
However, there are some factors that investors should keep an eye on.
Aon exited the third quarter with cash and cash equivalents of $1.1 billion, which contrasts with a substantial long-term debt of $15.1 billion. Also, short-term debt and the current portion of long-term debt were at $1.7 billion. Its long-term debt to capital of 65.1% is higher than the industry average of 49%.
The debt-heavy balance sheet has led to an increase in interest expenses. The metric jumped 19.2% in 2023, 62.8% in 2024 and 7% in the first nine months of 2025. The elevated interest burden remains a drag on margin growth. Also, its results are sensitive to foreign exchange rate fluctuations. Nevertheless, we believe that a systematic and strategic plan of action will drive growth and reduce its leverage in the long term.
Key Picks
Investors interested in the broader Finance space can look at some better-ranked stocks like Assurant, Inc. (AIZ - Free Report) , Assured Guaranty Ltd. (AGO - Free Report) and CNO Financial Group, Inc. (CNO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Assurant’s 2025 full-year earnings indicates a 17.1% year-over-year increase. It beat earnings estimates in each of the past four quarters, with an average surprise of 22.7%. Also, the consensus mark for Assurant’s 2025 full-year revenues suggests 7.1% year-over-year growth.
The consensus mark for Assured Guaranty’s 2025 full-year earnings indicates 16.9% year-over-year growth. The earnings estimate has witnessed one upward estimate revision in the past 60 days against no movement in the opposite direction. Furthermore, the consensus estimate for Assured Guaranty’s 2025 full-year revenues suggests 2.1% year-over-year increase.
The Zacks Consensus Estimate for CNO Financial’s 2025 full-year earnings is pegged at $4.14 per share, which indicates 4.3% year-over-year growth. The estimate jumped by 36 cents over the past 60 days. CNO Financial beat earnings estimates in three of the past four quarters and met once, with an average surprise of 6.5%.