Aon Reports Strong Earnings but Misses Revenue Target
Aon plc (NYSE:AON) reported mixed second-quarter results, with adjusted earnings per share of $3.81 slightly exceeding the expected $3.80 while revenue fell short at $4.25 billion versus a forecast of $4.27 billion. Despite this, organic revenue growth reached 5%, driven by new client acquisitions and strong retention rates. The company's adjusted operating income rose to $1.23 billion with an expanded margin of 28.9%. Aon also returned significant capital to shareholders through share repurchases and dividends during the quarter. The Risk Capital segment showed growth, while the Human Capital division saw a revenue decline despite some advisory services showing organic gains. Aon maintained its full-year guidance for mid-single-digit or higher organic revenue growth, margin expansion between 70-80 basis points, strong EPS growth, and double-digit free cash flow. However, shares fell more than 2% in pre-market trading due to the revenue miss.
Tickers: $AON
Topics: earnings operating margin revenue miss stock price reaction