Aon (AON) Stock Forecast & Price Target

Aon reported a notable revenue increase of 22.9% to $4,147 million, reflecting strong performance despite estimates slightly exceeding actual results. The company's pro-forma operating margins improved by approximately 130 basis points year-over-year, signaling efficient cost management and expected margin recovery in the upcoming fiscal year. Key segments, including Health Solutions and Wealth Solutions, demonstrated solid organic growth of 5% and 8%, respectively, driven by strategic acquisitions and expanding client engagement in consulting and regulatory services.

Aon faces a challenging financial outlook driven by a combination of declining commission and fee revenues, slower new business generation, and stagnant global macroeconomic conditions, which collectively contribute to the firm's downside scenario. The company reported a slight decrease in adjusted operating margins, partly due to the dilution effect from the NFP acquisition, while foreign exchange (FX) impacts are expected to create significant headwinds, decreasing EPS by an estimated $0.32 for the fiscal year 2025. Furthermore, vulnerabilities in key sectors such as financial services, construction, and private equity, alongside higher-than-expected costs and insufficient cost-reduction measures, further complicate Aon's financial resilience.