Aon (AON) investor relations material

Executive summary

• Achieved 5% organic revenue growth and 2% total revenue growth in Q2 2026, with all solution lines contributing and strong demand from private equity and non-traditional capital.

• Adjusted operating margin expanded by 70 basis points to 28.9%, and adjusted EPS grew 9% to $3.81.

• Free cash flow for Q2 was $483 million, down 34% year-over-year but up 4% year-to-date to $846 million.

• Returned $775 million to shareholders in Q2, including $600 million in share repurchases and $175 million in dividends, surpassing the full-year repurchase objective.

• Reaffirmed 2026 guidance for mid-single-digit or greater organic revenue growth, 70-80 basis points margin expansion, strong adjusted EPS growth, and double-digit free cash flow growth.

Financial highlights

• Q2 2026 total revenue was $4.25 billion, up 2% year-over-year; first half revenue was $9.28 billion, up 4%.

• Adjusted operating income rose 5% to $1.23 billion; operating income increased 7% to $915 million.

• Adjusted EPS reached $3.81, up from $3.49; diluted EPS was $2.58, down 3% year-over-year.

• Free cash flow for Q2 was $483 million, down from $732 million; year-to-date free cash flow up 4% to $846 million.

• Shareholder returns totaled $775 million in Q2, including $600 million in share repurchases and $175 million in dividends.

Outlook and guidance

• 2026 guidance reaffirmed: mid-single-digit or greater organic revenue growth, 70-80 basis points adjusted operating margin expansion, strong adjusted EPS growth, and double-digit free cash flow growth.

• Management expects continued benefit from restructuring, with the Accelerating Aon United Program projected to yield $450 million in annualized savings by end of 2027.

• Expected adjusted effective tax rate of 19.5-20.5%.

• Sufficient liquidity is anticipated to meet obligations, with distributable profits exceeding $29.3 billion.