Aon — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 3% to $4,101 million in Q3 2026, compared to $3,997 million in Q3 2025; year-to-date revenue was $13,381 million, up 4% from $12,881 million.
• Organic revenue growth was 6% in Q3 2026 and 5% for the first nine months of 2026.
• Operating income decreased 1% to $809 million in Q3 2026 (from $816 million), while operating margin declined 70 basis points to 19.7% (from 20.4%); year-to-date operating income rose 10% to $3,439 million with a 140 basis point margin expansion to 25.7%.
• Adjusted operating income increased 5% to $1,106 million in Q3 2026 (from $1,051 million), with adjusted operating margin expanding 70 basis points to 27.0% (from 26.3%); year-to-date adjusted operating income rose 6% to $4,299 million with an 80 basis point margin increase to 32.1%.
• Diluted EPS increased 6% to $2.23 in Q3 2026 (from $2.11) and 14% to $10.46 for the first nine months (from $9.21).
• Adjusted diluted EPS increased 10% to $3.36 in Q3 2026 (from $3.05) and 12% to $13.66 for the first nine months (from $12.22).
• Cash provided by operations increased 4% to $1,191 million in Q3 2026 and 4% to $2,177 million for the first nine months.
• Free cash flow (Non-GAAP) increased 2% to $1,097 million in Q3 2026 and 3% to $1,943 million for the first nine months.
• Effective tax rate was 20.6% in Q3 2026 compared to 21.3% in the prior year; adjusted effective tax rate was 20.2% compared to 19.2%.
• Weighted average diluted shares outstanding decreased to 213.0 million in Q3 2026 from 216.7 million.

Guidance and Future Outlook:

• Management expects a de minimis impact on adjusted EPS in Q4 2026 if currency rates remain stable, and a favorable impact of approximately $0.42 per share for the full year 2026.
• The company anticipates the USI Acquisition to close in the fourth quarter of 2026.
• Management expects to prioritize debt repayment with a path towards deleveraging to a leverage ratio of 2.8x-3.0x in approximately 24 months.
• Management expressed confidence in delivering strong financial performance for the full year 2026, citing significant momentum entering the fourth quarter.

Business Segments and Product Lines:

• Risk Capital revenue increased 6% to $2,700 million (calculated as $2,682 million reported) in Q3 2026, driven by Commercial Risk Solutions (7% organic growth) and Reinsurance Solutions (7% organic growth).
• Human Capital revenue decreased 4% to $1,421 million in Q3 2026, driven by Health Solutions (6% organic growth) and Wealth Solutions (4% organic growth).
• Commercial Risk Solutions organic growth of 7% was driven by net new business, strong retention, M&A services, U.S. core P&C, and construction growth in North America and EMEA.
• Reinsurance Solutions organic growth of 7% reflected strong treaty placements and a favorable impact from the reversal of a prior period revenue constraint.
• Health Solutions organic growth of 6% was driven by core health and benefits internationally and Talent Solutions growth via talent analytics.
• Wealth Solutions organic growth of 4% was driven by Retirement advisory work in the UK and EMEA related to regulatory changes.
• Total operating expenses increased 3% to $3,292 million in Q3 2026, driven by revenue growth, long-term growth investments, and $93 million in Accelerating Aon United Program expenses.

Market and Competitive Landscape:

• Net market impact was slightly positive for Commercial Risk Solutions and modestly positive for Health Solutions.
• Net market impact was unfavorable for Reinsurance Solutions.
• Wealth Solutions growth was driven by regulatory changes impacting the UK and EMEA markets.

Risks and Challenges:

• Total operating expenses included $93 million in Accelerating Aon United Program expenses, primarily related to workforce optimization.
• Other general expense increased due to a recovery in the prior year from a legal settlement and USI-related transaction costs.
• Foreign currency translation had a $0.02 favorable impact on Q3 2026 EPS; unfavorable impacts from exchange rates on non-functional currency assets and liabilities contributed to other expense.
• The company faces risks related to the pending USI Acquisition, including integration costs and transaction costs.
• Forward-looking statements note risks including macroeconomic conditions, currency fluctuations, regulatory changes, and potential legal proceedings.

Management Commentary and Tone:

• Greg Case, President and CEO, stated the "Aon United strategy continues to advance and differentiate our platform for clients."
• Management highlighted the progress through the final year of the "3x3 Plan," citing investments in AI-enabled analytics, innovative capabilities, and capital solutions.
• Management noted the acquisition of USI will expand the ability to serve clients across a broader market through access to traditional and alternative capital sources.
• The tone was confident, emphasizing broad-based strength across solution lines and sustained, differentiated performance.

Other Key Points:

• The company entered into a definitive agreement to acquire USI in the third quarter of 2026, incurring $25 million in transaction costs.
• The company had approximately $7.7 billion of remaining authorization under its share repurchase program as of September 30, 2026; no shares were repurchased in the third quarter.
• Divestitures, including the sale of the NFP Wealth business and Stroz Friedberg, contributed to a 3% unfavorable impact on total revenue growth.
• Interest expense was flat year-over-year, though debt issuance near the end of the quarter to fund the USI Acquisition offset lower average debt balances.
• Capital expenditures increased $45 million to $234 million for the first nine months of 2026.
• Long-term debt increased to $26,319 million as of September 30, 2026, from $14,660 million as of December 31, 2025.