Aon : Q1 FY 2026 Earnings Slides

Published: 2026-05-01 06:35:11 ET AON

Published on 05/01/2026 at 06:35 am EDT

First Quarter 2026

May 1, 2026

Explanation of Non-GAAP Measures

This communication includes supplemental information not calculated in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), including organic revenue growth, free cash flow, adjusted operating income, adjusted operating margin, adjusted net income attributable to Aon shareholders, adjusted diluted net income per share ("EPS"), adjusted effective tax rate, adjusted other income (expense), leverage ratio, and adjusted income before income taxes that exclude the effects of intangible asset amortization and impairment, Accelerating Aon United Program expenses, contingent consideration, NFP integration costs, certain pension settlements, capital expenditures, and certain other noteworthy items that affected results for the comparable periods. Organic revenue growth includes the impact of intercompany activity and excludes foreign exchange rate changes, acquisitions (provided that Organic revenue growth includes Organic growth of an acquired business as calculated assuming that the acquired business was part of the combined company for the same proportion of the relevant prior year period), divestitures (including held for sale disposal groups, which are adjusted from Organic revenue growth upon classification as held for sale, if any), transfers between revenue lines, fiduciary investment income, and gains or losses on derivatives accounted for as hedges. Currency impact represents the effect on prior year period results if they were translated at current period foreign exchange rates. Reconciliations to the closest U.S. GAAP measure for each non-GAAP measure presented in this communication are provided in the attached appendices. Supplemental Organic revenue growth information and additional measures that exclude the effects of certain items noted above do not affect net income or any other U.S. GAAP reported amounts. Free cash flow is cash flows from operating activity less capital expenditures. The adjusted effective tax rate excludes the applicable tax impact associated with adjustments previously described, generally at the estimated annual effective tax rate or jurisdictional rate, where appropriate. Beginning in the third quarter of 2024, the adjusted effective tax rate also excludes interest accruals for income tax reserves related to the termination fee payment made in connection with the Company's terminated proposed combination with Willis Towers Watson. Leverage ratio is calculated by dividing total debt by trailing 12-month EBITDA. EBITDA is net income minus the impact of interest, taxes, depreciation and amortization, and the non-recurring gain from the sale of the substantial majority of NFP's Wealth business. Management believes that these measures are important to make meaningful period-to-period comparisons and that this supplemental information is helpful to investors. Management also uses these measures to assess operating performance and performance for compensation. Non-GAAP measures should be viewed in addition to, not in lieu of, Aon's Condensed Consolidated Financial Statements. Industry peers provide similar supplemental information regarding their performance, although they may not make identical adjustments. Aon does not provide a reconciliation of forward-looking non-GAAP measures, such as adjusted effective tax rate, adjusted other income (expense), adjusted operating margin, and free cash flow where Aon believes such a reconciliation would imply a degree of precision and certainty that could be misleading and is unable to reasonably predict certain items contained in the corresponding GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of Aon's control, or cannot be reasonably predicted. For these reasons, Aon is also unable to address the probable significance of the unavailable information.

Q1'26 Highlights and Key Messages

Organic Revenue Growth

Adj. Op. Margin Expansion Adj. EPS Growth

70bps 14%

Free Cash Flow Growth

332%

Our deliberate investments in priority talent, advanced analytical tools and technology, and innovative capital solutions are positioning Aon to deliver enhanced value and capture expanding client demand

Strong execution of the 3x3 Plan is consistently driving differentiated, high-quality performance that is aligned with our financial objectives, reinforcing confidence in the durability of our business and financial model

Strong free cash flow generation enabled us to invest for growth with $349 million deployed toward acquisitions, significantly increase capital return with $500 million of share repurchases, and subsequently announce a sixth consecutive double-digit annual increase to the dividend

We remain on track to achieve our full-year objectives and are reaffirming our guidance. Growing demand, disciplined execution and financial flexibility position us well for sustained performance through 2026 and beyond

Summary Financial Results

($ in millions) Q1'26 Q1'25 Inc./(Dec.)

Total revenue

$5,034

$4,729

Organic revenue growth (Non-GAAP)

Operating income

$1,715

$1,461

17%

Adjusted operating income (Non-GAAP)

$1,966

$1,816

Adjusted operating margin (Non-GAAP)

39.1%

38.4%

70 bps

Diluted earnings per share

$5.63

$4.43

27%

Adjusted earnings per share (Non-GAAP)

$6.48

$5.67

14%

Free cash flow (Non-GAAP)

$363

$84

332%

Organic Revenue

Q1'26 Q1'25

Risk Capital:

Commercial Risk Solutions

+7%

+5%

Reinsurance Solutions

+4%

Human Capital:

Health Solutions

+4%

+5%

Wealth Solutions

+1%

+8%

Total Aon

+5%

Organic Revenue Growth

Guidance:

Mid-Single-Digit or Greater

1pt

(5pts)

9pts

Q1'25

Baseline

New Business

Retention / (Client Losses)

Net Market Impact

Q1'26

Organic revenue is a non-GAAP measure that is reconciled to its corresponding U.S. GAAP measure in the Appendices of this presentation.

Adjusted Operating Income and Margin

Adjusted Operating Margin

Adjusted Operating Income

($ in millions)

8% $1,966

70bps

$1,816

39.1%

38.4%

Q1'25

Q1'26

Q1'25

Q1'26

Non-Operating Financials

($ in millions) Q1'26 Q1'25

Interest Income

$12

Interest Expense

$(179)

$(206)

Adjusted Other Income (Expense)(1)

$(15)

$(30)

Effective Tax Rate(1)

20.3%

20.9%

Noncontrolling Interest

$(27)

$(17)

Actual Common Shares Outstanding(2)

215.4

217.9

Adjusted Other Income (Expense) and Effective Tax Tate as presented on this page are non-GAAP measures that are reconciled to the corresponding U.S. GAAP measure in the Appendices of this presentation.

As of April 30, 2026, estimated Q2'26 beginning dilutive share count is 214.8 million. 9

Free Cash Flow and Capital Return

Free Cash Flow

($ in millions)

Capital Return

($ in millions)

$662

$500

$250

$147

$162

332%

$363

$84

$397

Q1'25

Q1'26

Q1'25

Q1'26

Free cash flow is a non-GAAP measure that is reconciled to its corresponding U.S. GAAP measure in the Appendices of this presentation. 10

2026 Guidance

Organic Revenue

Adjusted Operating Margin

Financial Guidance Supplemental Information

Mid-Single-Digit or Greater Growth

70-80bps Expansion(1)

Operating Leverage: 40-50bps

Restructuring: ~50bps

Fiduciary Income: ~(20bps)

Strong Growth

Expected Tax Rate(1): 19.5-20.5% Non-Cash Pension Expense: $80MM

FX (based on today's rates): 2pts

Sale of NFP Wealth: (2pts)

Double-Digit Growth

NFP Wealth Sale Tax Impact: ~($300MM)

Adjusted EPS

Free Cash Flow

(1) Adjusted operating margin and adjusted effective tax rate are forward-looking non-GAAP measures. See "Explanation of Non-GAAP Measures" for further information regarding our use of adjusted operating margin

and adjusted effective tax rate on a forward-looking basis. 11

Reconciliation of Non-GAAP Measures

Appendix A: Organic Revenue Growth

Aon Organic Revenue Reconciliation

Q1'26

Q1'25

Total Revenue

Current period revenue

5,034

4,729

Prior year period revenue

4,729

4,070

% change

16%

Less: Currency Impact (1)

(2)%

Less: Fiduciary Investment Income (2)

- %

Less: Acquisitions, Divestitures & Other

(3)%

13%

Organic Revenue Growth (3)

Currency impact represents the effect on prior year period results if they were translated at current period foreign exchange rates.

Fiduciary investment income for the three months ended March 31, 2026 and 2025 was $55 million and $67 million, respectively.

Organic revenue growth includes the impact of certain intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions (provided that organic revenue growth includes organic growth of an acquired business as calculated assuming that the acquired business was part of the combined company for the same proportion of the relevant prior year period), divestitures (including held for sale disposal groups, which are adjusted from organic revenue growth upon classification as held for sale, if any), transfers between revenue lines, and gains or losses on derivatives accounted for as hedges.

Appendix A: Organic Revenue Growth - By Solution Line

($ millions, except percentages) Q1'26 Q1'25

Commercial Risk

Current period revenue

2,223

2,002

Prior year period revenue

2,002

1,808

% change

11%

Less: Currency Impact (1)

(2)%

Less: Fiduciary Investment Income (2)

Less: Acquisitions, Divestitures & Other

(1)%

Organic Revenue Growth (3)

Reinsurance

Current period revenue

1,279

1,189

Prior year period revenue

1,189

1,167

% change

Less: Currency Impact (1)

(1)%

Less: Fiduciary Investment Income (2)

(1)%

Less: Acquisitions, Divestitures & Other

Organic Revenue Growth (3)

Health

Current period revenue

1,119

1,026

Prior year period revenue

1,026

733

% change

40%

Less: Currency Impact (1)

(3)%

Less: Fiduciary Investment Income (2)

Less: Acquisitions, Divestitures & Other

38%

Organic Revenue Growth (3)

5 %

Wealth

Current period revenue

420

519

Prior year period revenue

519

370

% change

(19)%

40%

Less: Currency Impact (1)

(1)%

Less: Fiduciary Investment Income (2)

Less: Acquisitions, Divestitures & Other

(23)%

33%

Organic Revenue Growth (3)

8 %

Currency impact represents the effect on prior year period results if they were translated at current period foreign exchange rates.

Fiduciary investment income for the three months ended March 31, 2026 and 2025 was $55 million and $67 million, respectively.

Appendix B: Operating Income, Operating Margin and Diluted EPS

Three Months Ended March 31,

($ millions, except percentages) 2026 2025

Revenue

$5,034

$4,729

Operating income

$1,715

$1,461

Amortization and impairment of intangible assets

152

199

Change in the fair value of contingent consideration

(5)

Accelerating Aon United Program expenses (3)

110

Integration costs(4)

Adjusted operating income

$1,966

$1,816

Operating margin

34.1%

30.9%

Adjusted operating margin

39.1%

38.4%

Adjusted operating income

$1,966

$1,816

Interest income

Interest expense

(179)

(206)

Other income (expense):

Other income (expense) - pensions

(15)

(23)

Adjusted other income (expense) - other (5)

(7)

Adjusted other income (expense)

(15)

(30)

Adjusted income before income taxes

1,784

1,585

Adjusted income tax expense (6)

362

332

Adjusted net income

1,422

1,253

Less: Net income attributable to redeemable and nonredeemable noncontrolling interests

Adjusted net income attributable to Aon shareholders

$1,395

$1,236

Adjusted diluted net income per share attributable to Aon shareholders

$6.48

$5.67

Weighted average ordinary shares outstanding - diluted

215.4

217.9

Effective tax rates (6)

U.S. GAAP

20.2%

21.4%

Non-GAAP

20.3%

20.9%

Certain noteworthy items impacting operating income in the three months ended March 31, 2026 and 2025 are described in this schedule. The items shown with the caption "adjusted" are non-GAAP financial measures.

Corporate expenses/eliminations include governance costs, post-retirement benefits, and other costs that are not directly attributable to a specific segment.

Total Accelerating Aon United Program expenses include technology-related costs to facilitate streamlining and simplifying operations, headcount reduction costs, and costs associated with asset impairments, including real estate consolidation.

The NFP transaction has continued to result in certain non-recurring integration costs associated with colleague severance, retention bonus awards, termination of redundant third-party agreements, costs associated with legal entity rationalization, and professional or consulting fees related to alignment of management processes and controls, as well as costs associated with the assessment of NFP information technology environment and security protocols. The Company expects to continue to incur integration costs through the end of the second quarter of 2026.

For the three months ended March 31, 2026 and 2025, Other income (expense) was $5 million and $(10) million, respectively. During the three months ended March 31, 2026, Aon recognized a $20 million gain related to the prior year sale of a significant majority of NFP's Wealth business. During the three months ended March 31, 2025, a gain of $20 million related to deferred consideration from the affiliates of The Blackstone Group L.P. and the other designated purchasers related to a divestiture completed in a prior-year period was recognized. Each gain was excluded from Adjusted other income (expense) in the period it was recognized. Adjusted other income (expense) for the three months ended March 31, 2026 and 2025 was $(15) million and

$(30) million, respectively.

Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with Accelerating Aon United Program expenses, deferred consideration from a prior year sale of business, certain integration costs related to the acquisition of NFP, additional gain from the disposal of the NFP Wealth business, and changes in the fair value of contingent consideration, which are adjusted at the related jurisdictional rate. The tax adjustment also excludes interest

accruals for income tax reserves related to the termination fee payment made in connection with the Company's terminated proposed combination with Willis Towers Watson. 15

Appendix C: Free Cash Flow

Three Months Ended March 31,

($ millions)

2026

2025

% Change

Cash Provided by Operating Activities

$430

$140

207%

Capital Expenditures

(67)

(56)

20%

Free Cash Flow (1)

$363

$84

332%

Appendix D: Leverage Ratio

($ millions)

TTM Q1'26

TTM Q4'25

Net income

$4,007

$3,750

Interest expense

788

815

Income tax expense

1,055

1,009

Depreciation of fixed assets

188

Amortization and impairment of intangible assets

731

778

Gain on Sale

(1,199)

EBITDA

$5,570

$5,341

Short-term debt and current portion of long-term debt

1,121

589

Long-term debt

13,542

14,660

Total debt

$14,663

$15,249

Leverage (Total debt/EBITDA)

2.6x

2.9x

Appendix E: Accelerating Aon United Program

Financial Impact of Program Cumulative Annual Expected Savings

($ in millions)

Total Savings

($ in millions)

$450

Total Cash Restructuring Charges

$370

$25

$295

$99

$87

$683

$854

Cash Outflow

2026

2027

Investor Relations

Hallie Miller [email protected]

+1 847-442-0622

Disclaimer

AON plc published this content on May 01, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2026 at 10:34 UTC.