• Aon reported fourth-quarter 2025 results showing sales of US$4,300 million and net income of US$1.69 billions, with earnings per share from continuing operations rising materially versus a year earlier.
• Alongside these figures, Aon outlined an upbeat 2026 outlook and continued to expand its risk, data center and cyber offerings, reinforcing its integrated Aon United model.
• With this backdrop of strong earnings and enhanced cyber and data center capabilities, we’ll examine how the news shapes Aon’s investment narrative.

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What Is Aon's Investment Narrative?

To own Aon today, you need to believe in a fairly steady compounding story built around risk advisory, insurance broking and increasingly data‑driven solutions. The latest quarter reinforced that narrative: Q4 2025 revenue of US$4,300 million and net income of US$1.69 billions pushed earnings per share sharply higher, while management paired those results with guidance for mid‑single‑digit or higher organic growth, margin expansion and double‑digit free cash flow growth in 2026. Short term, the key catalysts are continued execution of the Aon United model, debt already paid down in 2025 that frees up capital for buybacks and M&A, and growing demand for cyber and data center risk products, now supported by the SecurityScorecard partnership and PathWise expansion. The flipside is that the stock’s one year total return of almost 10% decline, a relatively high debt load and a premium earnings multiple versus the insurance group keep valuation, leverage and market expectations firmly in focus. Overall, this earnings print looks material for sentiment, but it does not remove the execution and balance sheet risks that were already there; it simply raises the bar on sustaining them.

However, there is one balance sheet issue investors should not ignore. Aon's shares have been on the rise but are still potentially undervalued by 38%. Find out what it's worth.

Exploring Other Perspectives

Five private investors in the Simply Wall St Community currently see Aon’s fair value anywhere from about US$347 to just under US$551, a very large spread that reflects sharply different expectations. Set against a recent one year total return of almost 10% decline and management’s emphasis on debt reduction and only moderate forecast growth, this variety of views underlines why it is worth weighing multiple angles on Aon’s prospects before making up your mind.

Explore 5 other fair value estimates on Aon - why the stock might be worth as much as 61% more than the current price!

Build Your Own Aon Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Aon research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Aon research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Aon's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.