How much of the EPS growth came from currency rather than the underlying business?

Currency contributed $0.36 of the $6.48 adjusted diluted EPS, or about 6 points of the 14% growth. Constant-currency adjusted EPS growth was therefore roughly 8%. Management expects FX to be de minimis for adjusted EPS in Q2 2026, with a full-year benefit of about $0.44 per share if current rates hold.

Why did GAAP operating income grow faster than adjusted operating income?

GAAP operating income rose 17%, versus 8% for adjusted, mainly because amortization and impairment of intangibles fell $47 million, largely from the NFP Wealth sale. Those intangible charges are excluded from adjusted results, so their decline lifts GAAP more than adjusted. Lower Accelerating Aon United and integration costs also contributed on the GAAP side.

Is the cash flow improvement sustainable?

Part of the improvement is timing and tax driven. Operating cash flow rose mainly because of stronger adjusted operating income and lower cash taxes, and working capital still absorbed cash (receivables up $905 million). Management reaffirmed double-digit free cash flow growth for 2026, but the Q1 increase of 332% is unlikely to repeat at that pace.

What is the outlook for Human Capital, given flat revenue?

Human Capital revenue was flat at $1.5B and its operating margin rose to 28.8% from 26.1%, driven by lower costs. Health Solutions grew 4% organically, but Wealth Solutions grew only 1% as U.S. advisory demand stayed soft, and Talent Solutions discretionary spend slowed. Investors should watch whether Wealth stabilizes, since it is the segment most exposed to the divestitures.

How is Aon returning capital, and how much buyback capacity remains?

Aon repurchased 1.5 million shares for about $500 million in Q1 and paid $162 million in dividends, for total returns of $662 million. Remaining authorization was about $0.8 billion at March 31, 2026. The company also raised its quarterly dividend 10% in April, its sixth consecutive double-digit annual increase. Diluted weighted shares fell to 215.4 million from 217.9 million.

AON 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.

Aon reported first-quarter 2026 results that were strong on the headline metrics.

Total revenue rose 6% to $5.03 billion^a, with 5% organic growth, 4% favorable currency translation, and a 3% drag from divestitures (mainly NFP Wealth and Stroz Friedberg). Diluted GAAP EPS rose 27% to $5.63 and adjusted EPS rose 14% to $6.48, of which $0.36 came from favorable currency translation. Operating margin expanded 320 basis points to 34.1% on a GAAP basis, and adjusted operating margin expanded 70 basis points to 39.1%.

Risk Capital was the main driver, with revenue up 10%^b and organic growth of 7% in Commercial Risk Solutions and 4% in Reinsurance Solutions. Human Capital revenue was flat, with Health Solutions organic growth of 4% offset by Wealth Solutions organic growth of only 1%. Cash generation improved sharply.

Operating cash flow was $430 million^c, up 207%, and free cash flow was $363 million, up 332%, helped by lower cash taxes. Aon returned $662 million to shareholders through $500 million of buybacks (1.5 million shares) and $162 million of dividends. Management reaffirmed 2026 guidance of mid-single-digit or greater organic growth, 70-80 bps of adjusted margin expansion, strong adjusted EPS growth, and double-digit free cash flow growth.

It also announced a 10% dividend increase in April. Remaining buyback authorization is about $0.8 billion^d.

For investors, the key points are the Risk Capital strength, the margin expansion, and the cash flow inflection. Watch items include the reliance on currency tailwinds for EPS (guidance implies only de minimis FX help in Q2), the softness in U.S. advisory demand within Wealth Solutions, and the continued integration and restructuring costs tied to NFP and Aon United.

02—Key points

Key Highlights

Revenue grew 6% to $5.03B, with 5% organic growth and a 4% currency tailwind partly offset by a 3% divestiture drag from NFP Wealth and Stroz Friedberg.
GAAP diluted EPS rose 27% to $5.63 and adjusted EPS rose 14% to $6.48; the adjusted figure includes a $0.36 favorable FX impact.
Operating margin expanded 320 bps to 34.1% (GAAP) and 70 bps to 39.1% (adjusted), reflecting organic growth and restructuring savings.
Risk Capital revenue rose 10% to $3.5B, led by Commercial Risk Solutions (+7% organic, double-digit in North America), while Human Capital revenue was flat at $1.5B.
Wealth Solutions revenue fell 19% reported and grew only 1% organically, with soft U.S. advisory demand; Health Solutions grew 4% organically.
Free cash flow rose 332% to $363M, and Aon returned $662M to shareholders through $500M of buybacks and $162M of dividends.
2026 guidance was reaffirmed, including mid-single-digit-plus organic growth, 70-80 bps of adjusted margin expansion, and double-digit free cash flow growth; the Q2 FX impact on adjusted EPS is expected to be de minimis.

03—Questions

Frequently Asked Questions

How much of the EPS growth came from currency rather than the underlying business?
Currency contributed $0.36 of the $6.48 adjusted diluted EPS, or about 6 points of the 14% growth. Constant-currency adjusted EPS growth was therefore roughly 8%. Management expects FX to be de minimis for adjusted EPS in Q2 2026, with a full-year benefit of about $0.44 per share if current rates hold.
Why did GAAP operating income grow faster than adjusted operating income?
GAAP operating income rose 17%, versus 8% for adjusted, mainly because amortization and impairment of intangibles fell $47 million, largely from the NFP Wealth sale. Those intangible charges are excluded from adjusted results, so their decline lifts GAAP more than adjusted. Lower Accelerating Aon United and integration costs also contributed on the GAAP side.
Is the cash flow improvement sustainable?
Part of the improvement is timing and tax driven. Operating cash flow rose mainly because of stronger adjusted operating income and lower cash taxes, and working capital still absorbed cash (receivables up $905 million). Management reaffirmed double-digit free cash flow growth for 2026, but the Q1 increase of 332% is unlikely to repeat at that pace.
What is the outlook for Human Capital, given flat revenue?
Human Capital revenue was flat at $1.5B and its operating margin rose to 28.8% from 26.1%, driven by lower costs. Health Solutions grew 4% organically, but Wealth Solutions grew only 1% as U.S. advisory demand stayed soft, and Talent Solutions discretionary spend slowed. Investors should watch whether Wealth stabilizes, since it is the segment most exposed to the divestitures.
How is Aon returning capital, and how much buyback capacity remains?
Aon repurchased 1.5 million shares for about $500 million in Q1 and paid $162 million in dividends, for total returns of $662 million. Remaining authorization was about $0.8 billion at March 31, 2026. The company also raised its quarterly dividend 10% in April, its sixth consecutive double-digit annual increase. Diluted weighted shares fell to 215.4 million from 217.9 million.

04—Continue

← View all 8-K filings