Here's Why Investors Should Hold on to AON Shares Right Now

Core Insights - Aon plc (AON) is projected to achieve an 8.5% year-over-year earnings growth in 2025, reaching $16.93 per share, followed by a 12.1% increase in 2026. The consensus revenue estimate for 2025 is $17.25 billion, reflecting a 9.9% year-over-year growth [1]. Financial Performance - Aon has surpassed earnings estimates in three of the last four quarters, with an average surprise of 1.6% [2]. - The company has experienced 10 upward estimate revisions in the past 60 days, indicating positive sentiment among analysts [1]. Growth Drivers - New business growth and strong retention rates in Aon's solution lines are significant factors contributing to its performance. The Risk Capital and Human Capital segments are benefiting from organic revenue growth and net restructuring savings [3]. - Aon operates in over 120 countries and has a market capitalization of $76.7 billion. The company is focused on enhancing its capabilities and global reach through targeted acquisitions and partnerships while divesting non-core, lower-margin businesses [4]. Shareholder Value - Aon has a trailing 12-month return on capital (ROC) of 14.7%, which is above the industry average of 11%. The company anticipates mid-single-digit or higher organic growth, adjusted margin expansion, and double-digit free cash flow growth in the long term [4]. - Aon has been active in returning value to shareholders, having repurchased $1 billion in shares last year and an additional $750 million in the first nine months of 2025. The company has approximately $1.6 billion remaining under its share repurchase authorization as of the end of the third quarter [4]. Debt and Financial Health - Aon ended the third quarter with cash and cash equivalents of $1.1 billion, contrasted by a long-term debt of $15.1 billion. The long-term debt to capital ratio stands at 65.1%, higher than the industry average of 49% [5]. - The company's debt-heavy balance sheet has resulted in increased interest expenses, which rose by 19.2% in 2023, 62.8% in 2024, and 7% in the first nine months of 2025. This elevated interest burden is a challenge for margin growth [6].