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Can AON Beat on Q3 Earnings Despite Weakness in Wealth Solutions?

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Key Takeaways

  • Aon is set to report Q3 results on Oct. 28, with $3.34 EPS and $4.08B revenues expected; a beat is uncertain.
  • Aon's Wealth Solutions revenues are expected to drop 16.1% as weaker U.S. advisory demand weighs on the unit.
  • Commercial Risk, Health and Reinsurance growth could support Aon, but operating costs may top $3.2B.

Leading global insurer Aon plc (AON - Free Report) is set to report third-quarter 2026 results on Oct. 28, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.34 per share on revenues of $4.08 billion.

The third-quarter earnings estimate has witnessed two upward revisions and six downward movements over the past 60 days. The bottom-line projection indicates a year-over-year increase of 9.5%. The Zacks Consensus Estimate for revenues suggests year-over-year growth of 2%.

Zacks Investment Research
Image Source: Zacks Investment Research

AON beat the consensus estimate for earnings in each of the last four quarters, with the average surprise being 2.7%.

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 does not conclusively predict 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 not the case here.

AON currently has an Earnings ESP of -0.80% and a Zacks Rank #4 (Sell). 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’ revenues indicates 4.9% growth from $2 billion a year ago, whereas our model predicts a 3% increase. We expect the unit to have witnessed 5% organic revenue growth in the quarter.

The consensus mark for the Health Solutions’ third-quarter revenues suggests nearly 4.5% growth from the year-ago level, while our model estimate indicates an 8% increase. The segment is likely to have been supported by new business growth, strong retention rates and positive market impact.

The Zacks Consensus Estimate for Reinsurance Solutions' revenues indicates growth of 3.8% from $537 million recorded a year ago, while our model estimate suggests a 5% increase. Favorable retention rates, new business generation and facultative placement growth are expected to have benefited the unit.

The aforementioned factors might 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 high expenses due to significant investments in priority areas for long-term growth.

Our model projects total operating expenses to exceed $3.2 billion in the third quarter, driven by higher information technology and other general expenses. Other general expenses are estimated at approximately $435 million.

The consensus estimate for third-quarter revenues in the Wealth Solutions segment suggests a 16.1% decrease from the previous year’s $540 million, whereas our model indicates an 18% decline. The unit is likely to have been affected by weaker advisory demand in the United States.

Stocks That Warrant a Look

While an earnings beat looks uncertain for AON, here are some companies from the broader Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +2.51% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Cincinnati Financial’s third-quarter 2026 earnings is pegged at $1.99 per share. Its earnings beat estimates in three of the past four quarters and missed once, delivering an average surprise of 11.8%. The Zacks Consensus Estimate for CINF's revenues is pegged at $3.03 billion, indicating a 5.5% increase from the year-ago reported figure.

Skyward Specialty Insurance Group, Inc. (SKWD - Free Report) has an Earnings ESP of +7.55% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Skyward Specialty Insurance Group’s earnings for the to-be-reported quarter is pegged at $1.22 per share, indicating 16.2% year-over-year growth. The consensus estimate for revenues is pinned at $507.3 million. SKWD beat earnings estimates in each of the past four quarters, with the average surprise being 19.4%.

Palomar Holdings, Inc. (PLMR - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for Palomar Holdings’ bottom line for the to-be-reported quarter is pegged at $2.64 per share, indicating 31.3% year-over-year growth. It beat earnings estimates in each of the past four quarters, with the average surprise being 13%. The consensus estimate for PLMR’s revenues is pegged at $376.5 million.

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