Aon plc
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 29, 2026
AON$334.81-2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0001628280-26-029322
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001628280-26-050610
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 199 previous paragraphs and 200 current paragraphs.
123 unchanged; 61 reworded; 16 added; 15 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 16 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
◦Risk Capital revenue increased $140 million, or 5%, compared to the prior-year period. For the first six months of 2026, Risk Capital revenue increased $451 million, or 7%, compared to the prior-year period; and
Current report
•Operating expenses increased $35 million, or 1%, compared to the prior-year period due primarily to an increase in expense associated with 5% organic revenue growth and investments in long-term growth, as well as an unfavorable impact from foreign currency translation, partially offset by lower expenses associated with the sale of the NFP Wealth business, $25 million of net restructuring savings and lower compensation expense. For the first six months of 2026, operating expenses increased $86 million, or 1%, compared to the prior-year period due primarily to an increase in expense associated with 5% organic revenue growth and investments in long-term growth, partially offset by lower expenses associated with the sale of the NFP Wealth business and $50 million of net restructuring savings.
Current report
◦Risk Capital operating expenses increased $88 million, or 4%, compared to the prior-year period. For the first six months of 2026, Risk Capital operating expenses increased $214 million, or 5%, to $4.2 billion compared to the prior-year period; and
Current report
◦Risk Capital operating margin increased to 30.5% from 30.1%, compared to the prior-year period. For the first six months of 2026, Risk Capital operating margin increased to 35.3% from 34.0% compared to the prior-year period.
Current report
◦Human Capital operating margin increased to 13.4% from 9.1% compared to the prior-year period. For the first six months of 2026, Human Capital operating margin increased to 21.9% from 18.3% compared to the prior-year period.
Current report
•Net income decreased $29 million, or 5%, compared to the prior-year period, due to the factors set forth above and a $73 million decrease in Other income (expense), as described in the Review of Consolidated Results. For the first six months of 2026, Net income increased $228 million, or 14%, compared to the prior-year period, due to the factors set forth above and a $96 million increase in Income tax expense, as described in the Review of Consolidated Results.
Current report
•Diluted earnings per share was $2.58 compared to $2.66 per share for the prior-year period. For the first six months of 2026, Diluted earnings per share was $8.22 compared to $7.10 per share for the prior-year period.
Current report
◦Risk Capital adjusted operating margin increased to 34.2%compared to 34.1% in the prior-year period. For the first six months of 2026, Risk Capital adjusted operating margin increased to 38.4% compared to 37.9% in the prior-year period.
Current report
◦Human Capital adjusted operating margin increased to 21.5% compared to 19.1% in the prior-year period. For the first six months of 2026, Human Capital adjusted operating margin increased to 28.6% compared to 27.9% in the prior-year period.
Current report
Total revenue increased $91 million, or 2%, in the second quarter of 2026, compared to the prior-year period. The increase reflects 5% organic revenue growth, driven by net new business and ongoing strong retention, and a 1% favorable impact from foreign currency translation, partially offset by a 4% unfavorable impact primarily from divestitures largely due to the sales of the NFP Wealth business and Stroz Friedberg. Risk Capital revenue increased $140 million, or 5%, and Human Capital revenue decreased $47 million, or 4%, in the second quarter of 2026 compared to the prior-year period. For the first six months of 2026, total revenue increased $396 million, or 4%, compared to the prior-year period. The increase reflects 5% organic revenue growth and a 3% favorable impact from foreign currency translation, partially offset by a 4% unfavorable impact primarily from the divestitures previously described. Risk Capital revenue increased $451 million, or 7%, and Human Capital revenue decreased $53 million, or 2%, for the first six months of 2026 compared to the prior-year period.
Current report
Health Solutions revenue increased $46 million, or 6%, in the second quarter of 2026, compared to the second quarter of 2025. Organic revenue growth was 5% in the second quarter of 2026, reflecting strong growth in core health and benefits, including particular strength internationally, driven by net new business and ongoing strong retention, as well as growth in Talent Solutions driven by strong growth in talent analytics. Net market impact was slightly negative. For the first six months of 2026, revenue increased $139 million, or 8%, compared to $1.8 billion in the first six months of 2025. Organic revenue growth was 5% in the first six months of 2026, reflecting strong growth in core health and benefits, including strength internationally, driven by net new business and ongoing strong retention.
Current report
Other general expenses increased $121 million, or 32%, in the second quarter of 2026 due primarily to non-recurring gains including sales of portfolios in the prior-year period, partially offset by lower expenses associated with the sale of the NFP Wealth business. For the first six months of 2026, other general expenses increased $86 million, or 11%, compared to the first six months of 2025. The increase was due primarily to the absence of non-recurring gains including sales of portfolios in the prior-year period, partially offset by lower expenses associated with the sale of the NFP Wealth business.
Current report
Other expense was $17 million for the second quarter of 2026 compared to other income of $56 million for the second quarter of 2025. The decrease was primarily due to the absence of deferred consideration recognized in the prior-year period related to the 2017 sale of our outsourcing business. For the first six months of 2026, other expense was $12 million compared to other income of $46 million for the first six months of 2025. The decrease was primarily due to the absence of deferred consideration recognized in the prior-year period related to the 2017 sale of our outsourcing business, partially offset by the favorable impact of foreign currency remeasurement of assets and liabilities in non-functional currencies and gain from the sale of the NFP Wealth business.
Current report
Risk Capital adjusted operating income increased $52 million, or 5%, in the second quarter of 2026. The increase was primarily due to organic revenue growth of 5% in both Commercial Risk Solutions and Reinsurance Solutions, partially offset by increased expenses and investments in long-term growth. Human Capital adjusted operating income increased $22 million, or 9%, in the second quarter of 2026. The increase was primarily due to organic revenue growth of 5% in both Health Solutions and Wealth Solutions, partially offset by the sale of the NFP Wealth business and increased expenses and investments in long-term growth. For the first six months of 2026, Risk Capital adjusted operating income increased $205 million, or 9%. The increase was primarily due to organic revenue growth of 6% in Commercial Risk Solutions and 4% in Reinsurance Solutions, partially offset by increased expenses and investments in long-term growth. Human Capital adjusted operating income increased $6 million, or 1%, for the first six months of 2026. The increase was primarily due to organic revenue growth of 5% in Health Solutions and 3% in Wealth Solutions, partially offset by the sale of the NFP Wealth business and increased expenses and investments in long-term growth.
Current report
There were no dispositions completed by the Company for the three and six months ended June 30, 2026. The Company completed onedi sposition within Human Capital in the three and six months ended June 30, 2025. Dispositions that impact multiple segments are categorized by the segment primarily impacted.
Current report
In May 2026, Aon Corporation and Aon Global Holdings plc’s $600 million 2.850% Senior Notes due May 2027 were classified as Short-term debt and current portion of long-term debt in the Consolidated Statement of Financial Position as the date of maturity is less than one year. The Company expects to use cash flow from operations and available cash on hand to repay these Senior Notes.
Removed paragraphs (15)
Previous report
◦Risk Capital revenue increased $311 million, or 10%, compared to the prior-year period; and
Previous report
•Operating expenses increased $51 million, or 2%, compared to the prior-year period, due primarily to the increase in expense associated with 5% organic revenue growth and investments in long-term growth, as well as the unfavorable impact of foreign currency translation, partially offset by lower expenses associated with the sale of the NFP Wealth business and $25 million of net restructuring savings.
Previous report
◦Risk Capital operating expenses increased $126 million, or 6%, compared to the prior-year period; and
Previous report
◦Risk Capital operating margin increased to 39.5% from 37.5% in the prior-year period; and
Previous report
◦Human Capital operating margin increased to 28.8% from 26.1% in the prior-year period.
Previous report
•Due to the factors set forth above, net income increased $257 million, or 26%, compared to the prior-year period.
Previous report
•Diluted earnings per share was $5.63 compared to $4.43 per share for the prior-year period.
Previous report
◦Risk Capital adjusted operating margin increased to 42.0% in thefirst quarter of 2026 compared to 41.3% in the prior-year period.
Previous report
◦Human Capital adjusted operating margin decreased to 34.4% in thefirst quarter of 2026 compared to 35.3% in the prior-year period.
Previous report
Total revenue increased $305 million, or 6%, reflecting 5% organic revenue growth and a 4% favorable impact from foreign currency translation, partially offset by a 3% unfavorable impact primarily from divestitures. Risk Capital revenue increased $311 million, or 10%, and Human Capital revenue decreased $6 million, or less than 1%.
Previous report
Health Solutions revenue increased $93 million, or 9%, in the first quarter of 2026, compared to the first quarter of 2025. Organic revenue growth was 4% in the first quarter of 2026, reflecting strong growth in core health and benefits, including particular strength in international, driven by net new business, ongoing strong retention and a positive net market impact. This was partially offset by slower discretionary spend in Talent Solutions.
Previous report
Other general expenses decreased $35 million, or 8%, in the first quarter of 2026 due primarily to non-recurring gains including legal recoveries and sales of portfolios, lower transaction- and integration-related expense and lower expenses associated with the sale of the NFP Wealth business, partially offset by the unfavorable impact of foreign currency translation.
Previous report
Other income was $5 million for the first quarter of 2026 compared to other expense of $10 million for the first quarter of 2025. The increase was due to gains related to the sale of businesses and a decrease in non-cash pension expense.
Previous report
Risk Capital adjusted operating income increased $153 million, or 12%, in the first quarter of 2026. The increase was primarily due to organic revenue growth of 7% in Commercial Risk Solutions and 4% in Reinsurance Solutions and a favorable impact from foreign currency translation, partially offset by increased expenses and lower fiduciary investment income. Human Capital adjusted operating income decreased $16 million, or 3%, in the first quarter of 2026. The decrease was primarily due to the impact of the sale of the NFP Wealth business and increased expenses, partially offset by organic revenue growth of 4% in Health Solutions and 1% in Wealth Solutions.
Previous report
(1)Adjusted other income (expense) for the three months ended March 31, 2026 excluded additional gains from the disposal of the NFP Wealth business totaling $20 million that was recognized associated with revisions to the final closing statement. The gain from the disposal of the NFP Wealth business for the year ended December 31, 2025 was $1,199 million.
Reworded paragraphs (61)
Previous wording
EXECUTIVE SUMMARY OF FIRST-QUARTER 2026 FINANCIAL RESULTS
Current wording
EXECUTIVE SUMMARY OF SECOND-QUARTER 2026 FINANCIAL RESULTS
Previous wording
The following is a summary of our first quarter of 2026 financial results.
Current wording
The following is a summary of our second quarter of 2026 financial results.
Previous wording
•Revenue increased $305 million, or 6%, reflecting 5% organic revenue growth and a 4% favorable impact from foreign currency translation, partially offset by a 3% unfavorable impact primarily from divestitures largely due to the sales of the NFP Wealth business and Stroz Friedberg.
Current wording
•Revenue increased $91 million, or 2%, reflecting 5% organic revenue growth and a 1% favorable impact from foreign currency translation, partially offset by a 4% unfavorable impact primarily from divestitures largely due to the divestitures of the NFP Wealth business and Stroz Friedberg. For the first six months of 2026, revenue increased $396 million, or 4%, compared to the prior-year period reflecting 5% organic revenue growth and a 3% favorable impact from foreign currency translation partially offset by a 4% unfavorable impact primarily from the divestitures previously described.
Previous wording
◦Human Capital revenue decreased $6 million compared to the prior-year period.
Current wording
◦Human Capital revenue decreased $47 million, or 4%, compared to the prior-year period. For the first six months of 2026, Human Capital revenue decreased $53 million, or 2%, compared to the prior-year period.
Previous wording
◦Human Capital operating expenses decreased $46 million, or 4%, compared to the prior-year period.
Current wording
◦Human Capital operating expenses decreased $97 million, or 8%, compared to the prior-year period. For the first six months of 2026, Human Capital operating expenses decreased $143 million, or 6%, to $2.2 billion compared to the prior-year period.
Previous wording
•Operating margin increased to 34.1% from 30.9% in the prior-year period, driven primarily by organic revenue growth of 5% and $25 million of net restructuring savings, partially offset by an increase in operating expenses as previously described.
Current wording
•Operating margin increased to 21.5% from 20.7% in the prior-year period, driven by organic revenue growth of 5% and $25 million of net restructuring savings, partially offset by an increase in operating expenses as previously described. For the first six months of 2026, operating margin increased to 28.3% from 26.1% in the prior-year period, driven primarily by organic revenue growth of 5% and $50 million of net restructuring savings, partially offset by an increase in operating expenses as previously described.
Previous wording
•Cash flows provided by operating activities were $430 million for the first three months of 2026, an increase of $290 million, or 207%, from the prior-year period, due primarily to strong adjusted operating income growth and lower cash taxes.
Current wording
•Cash flows provided by operating activities were $986 million for the first six months of 2026, an increase of $50 million, or 5%, from the prior-year period, as strong adjusted operating income growth offset the cash tax payment related to the sale of NFP Wealth and impact of working capital.
Previous wording
We focus on four key metrics that are not presented in accordance with U.S. GAAP that we communicate to shareholders: organic revenue growth, adjusted operating margin, adjusted diluted earnings per share, and free cash flow. These non-GAAP metrics should be viewed in addition to, not instead of, the most directly comparable U.S. GAAP measures and our Condensed Consolidated Financial Statements. The following is our measure of performance against these four metrics for the first quarter of 2026:
Current wording
We focus on four key metrics that are not presented in accordance with U.S. GAAP that we communicate to shareholders: organic revenue growth, adjusted operating margin, adjusted diluted earnings per share and free cash flow. These non-GAAP metrics should be viewed in addition to, not instead of, the most directly comparable U.S. GAAP measures and our Condensed Consolidated Financial Statements. The following is our measure of performance against these four metrics for the second quarter of 2026:
Previous wording
•Organic revenue growth, a non-GAAP measure defined under the caption “Review of Consolidated Results — Organic Revenue Growth,” was 5% for the first quarter of 2026, driven by net new business and ongoing strong retention.
Current wording
•Organic revenue growth, a non-GAAP measure defined under the caption “Review of Consolidated Results — Organic Revenue Growth,” was 5% for the second quarter of 2026 and 5% for the first six months of 2026, driven by net new business and ongoing strong retention.
Previous wording
•Adjusted operating margin, a non-GAAP measure defined under the caption “Review of Consolidated Results — Adjusted Operating Margin,” was 39.1% for the first quarter of 2026 compared to 38.4% in the prior-year period. The increase in adjusted operating margin reflects organic revenue growth, net restructuring savings and tailwinds from currency movements, partially offset by increased expenses associated with 5% organic revenue growth and lower fiduciary investment income.
Current wording
•Adjusted operating margin, a non-GAAP measure defined under the caption “Review of Consolidated Results — Adjusted Operating Margin,” was 28.9% for the second quarter of 2026 compared to 28.2% in the prior-year period. The increase in adjusted operating margin reflects 5% organic revenue growth and $25 million of net restructuring savings, partially offset by increased expenses associated with 5% organic revenue growth and investments in long-term growth. For the first six months of 2026, adjusted operating margin was 34.4% compared to 33.6% for the prior-year period. The increase primarily reflects 5% organic revenue growth and $50 million of net restructuring savings.
Previous wording
•Adjusted diluted earnings per share, a non-GAAP measure defined under the caption “Review of Consolidated Results — Adjusted Diluted Earnings per Share,” was $6.48 per share for the first quarter of 2026, compared to $5.67 per share for the prior-year period.
Current wording
•Adjusted diluted earnings per share, a non-GAAP measure defined under the caption “Review of Consolidated Results — Adjusted Diluted Earnings per Share,” was $3.81 per share for the second quarter of 2026, compared to $3.49 per share for the prior-year period. For the first six months of 2026, adjusted diluted earnings per share was $10.29 per share, compared to $9.17 per share for the prior-year period.
Previous wording
•Free cash flow, a non-GAAP measure defined under the caption “Review of Consolidated Results — Free Cash Flow,” was $363 million in the first three months of 2026, an increase of $279 million, or 332%, from the prior-year period, reflecting a $290 million increase in cash flows from operations, due primarily to strong adjusted operating income growth and lower cash taxes, partially offset by an $11 million increase in capital expenditures.
Current wording
•Free cash flow, a non-GAAP measure defined under the caption “Review of Consolidated Results — Free Cash Flow,” was $846 million in the first six months of 2026, an increase of $30 million, or 4%, from the prior-year period, as the $50 million increase in cash flows from operations, primarily driven by strong operating income growth, which more than offset the cash tax payment related to NFP Wealth, impact of working capital and a $20 million increase in capital expenditures.
Previous wording
Commercial Risk Solutions revenue increased $221 million, or 11%, in the first quarter of 2026, compared to the first quarter of 2025. Organic revenue growth was 7% in the first quarter of 2026, reflecting double-digit growth in North America and strong growth in EMEA, driven by net new business and ongoing strong retention. Net market impact was slightly positive. Within North America, performance was highlighted by strong growth in M&A services, U.S. core P&C and construction.
Current wording
Commercial Risk Solutions revenue increased $117 million, or 5%, in the second quarter of 2026, compared to $2.2 billion in the second quarter of 2025. Organic revenue growth was 5% in the second quarter of 2026, reflecting growth in EMEA and North America, driven by net new business and ongoing strong retention. Net market impact was modestly positive. Within North America, performance was highlighted by strong growth in U.S. core P&C and double-digit growth in construction. For the first six months of 2026, revenue increased $338 million, or 8%, compared to $4.2 billion in the first six months of 2025. Organic revenue growth was 6% in the first six months of 2026, reflecting strong growth in North America and EMEA. Market impact was slightly positive in the first half of the year. Performance in North America was highlighted by strong growth in core P&C and double-digit growth in construction and M&A services relative to the prior-year period.
Previous wording
Reinsurance Solutions revenue increased $90 million, or 8%, in the first quarter of 2026, compared to the first quarter of 2025. Organic revenue growth was 4% in the first quarter of 2026, reflecting growth in treaty placements, driven by net new business and strong retention, and a double-digit increase in facultative placements. Net market impact was a modest negative in the quarter.
Current wording
Reinsurance Solutions revenue increased $23 million, or 3%, in the second quarter of 2026, compared to $688 million in the second quarter of 2025. Organic revenue growth was 5% in the second quarter of 2026, reflecting growth in treaty placements, driven by net new business and strong retention, and double-digit increases in facultative placements and our Strategy and Technology Group. Net market impact was unfavorable in the quarter. For the first six months of 2026, revenue increased $113 million, or 6%, compared to $1.9 billion in the first six months of 2025. Organic revenue growth was 4% in the first six months of 2026, reflecting growth in treaty placements, driven by net new business and strong retention, and double-digit increases in facultative placements and our Strategy and Technology Group. Market impact had an unfavorable impact in the first half of the year.
Previous wording
Wealth Solutions revenue decreased $99 million, or 19%, in the first quarter of 2026, compared to the first quarter of 2025, driven by the sale of the NFP Wealth business in the fourth quarter of 2025. Organic revenue growth was 1% in the first quarter of 2026, reflecting growth in Retirement, driven by continued demand for advisory work in the UK and EMEA related to the ongoing impact of regulatory change, partially offset by continued soft advisory demand in the U.S.
Current wording
Wealth Solutions revenue decreased $93 million, or 18%, in the second quarter of 2026, compared to $519 million in the second quarter of 2025 due primarily to the sale of the NFP Wealth business in the fourth quarter of 2025. Organic revenue growth was 5% in the second quarter of 2026, reflecting strong growth in Retirement, driven by continued demand for advisory work in the UK and EMEA related to the ongoing impact of regulatory change. For the first six months of 2026, revenue decreased $192 million, or 18%, compared to $1.0 billion in the first six months of 2025. The decrease was primarily driven by the unfavorable impact of divestitures, largely due to the sale of the NFP Wealth business, partially offset by 3% organic revenue growth. Organic revenue growth reflected strength in Retirement, driven by continued demand for advisory work in the UK and EMEA related to the ongoing impact of regulatory change.
Previous wording
Compensation and benefits expense increased $144 million, or 6%, compared to the prior-year perioddue primarily to expenses associated with 5% organic revenue growth and investments in long-term growth, as well as the unfavorable impact of foreign currency translation, partially offset by lower expenses from the sale of the NFP Wealth business and savings from Accelerating Aon United restructuring actions.
Current wording
Compensation and benefits expense decreased $89 million, or 4%, in the second quarter of 2026 compared to the prior-year period due primarily to lower expenses from the sale of the NFP Wealth business and savings from Accelerating Aon United restructuring actions, partially offset by the unfavorable impact of foreign currency translation and expenses associated with 5% organic revenue growth and investments in long-term growth. For the first six months of 2026, compensation and benefits increased $55 million, or 1%, compared to the first six months of 2025. The increase was primarily driven by expense associated with 5% organic revenue growth and investments in long-term growth, as well as an unfavorable impact from foreign currency translation, partially offset by lower expenses associated with the sale of the NFP Wealth business and savings from Accelerating Aon United restructuring actions.
Previous wording
Information technology, which represents costs associated with supporting and maintaining our infrastructure, increased $8 million, or 6%, compared to the prior-year period, due primarily to the expense associated with 5% organic revenue growth, including Aon Business Services investments in ongoing technology initiatives.
Current wording
Information technology, which represents costs associated with supporting and maintaining our infrastructure, increased $26 million, or 19%, in the second quarter of 2026 compared to the prior-year period, due primarily to Aon Business Services investments in ongoing technology initiatives. For the first six months of 2026, information technology increased $34 million, or 13%, compared to the first six months of 2025. The increase was driven by Aon Business Services investments in ongoing technology initiatives.
Previous wording
Premises, which represents the cost of occupying offices in various locations throughout the world, decreased $1 million, or 1%, in the first quarter of 2026 compared to the prior-year period, due primarily to efforts to optimize our real estate footprint and savings from Accelerating Aon United restructuring actions.
Current wording
Premises, which represents the cost of occupying offices in various locations throughout the world, was flat in the second quarter of 2026 compared to the prior-year period, as we continued to optimize our real estate footprint and recognize savings from Accelerating Aon United restructuring actions. For the first six months of 2026, premises decreased $1 million, or 1%, compared to the first six months of 2025. The decrease was due primarily to efforts to optimize our real estate footprint and savings from Accelerating Aon United restructuring actions.
Previous wording
Depreciation of fixed assets primarily relates to software, leasehold improvements, furniture, fixtures, and equipment, computer equipment, buildings and vehicles. Depreciation of fixed assets was flat compared to the prior-year period.
Current wording
Depreciation of fixed assets primarily relates to software, leasehold improvements, furniture, fixtures, and equipment, computer equipment, buildings, and vehicles. Depreciation of fixed assets increased $2 million, or 4%, in the second quarter of 2026 compared to the prior-year period. For the first six months of 2026, depreciation of fixed assets increased $2 million, or 2%, compared to the first six months of 2025.
Previous wording
Amortization and impairment of intangibles primarily relates to finite-lived customer-related and contract-based, technology and tradename assets. Amortization and impairment of intangible assets decreased $47 million, or 24%, in the first quarter of 2026 compared to the prior-year period, due primarily to the decrease in intangible assets associated with the sale of the NFP Wealth business.
Current wording
Amortization and impairment of intangibles primarily relates to finite-lived customer-related and contract-based, technology, and tradename assets. Amortization and impairment of intangible assets decreased $27 million to $174 million in the second quarter of 2026 compared to the prior-year period, due primarily to the decrease in intangible assets associated with the sale of the NFP Wealth business. For the first six months of 2026, amortization and impairment of intangible assets decreased $74 million to $326 million, compared to the first six months of 2025. The decrease was due primarily to the decrease in intangible assets associated with the sale of the NFP Wealth business.
Previous wording
Accelerating Aon United Program expenses decreased $18 million, or 16%, in the first quarter of 2026 compared to the prior-year period, due primarily to lower costs related to workforce optimization.
Current wording
Accelerating Aon United Program expenses increased $2 million, or 2%, in the second quarter of 2026 due primarily to costs related to workforce optimization. For the first six months of 2026, Accelerating Aon United Program expense decreased $16 million, or 8%, due primarily to costs related to workforce optimization.
Previous wording
Total operating expenses increased $51 million, or 2%, in the first quarter of 2026 due primarily to the increase in expense associated with 5% organic revenue growth and investments in long-term growth, as well as the unfavorable impact of foreign currency translation, partially offset by lower expenses associated with the sale of the NFP Wealth business and $25 million of net restructuring savings. Due to the factors set forth above, total operating income increased $254 million to $1.7 billion in the first quarter of 2026.
Current wording
Total operating expenses increased $35 million, or 1%, in the second quarter of 2026 due primarily to an increase in expense associated with 5% organic revenue growth and investments in long-term growth, as well as an unfavorable impact from foreign currency translation, partially offset by lower expenses associated with the sale of the NFP Wealth business, $25 million of net restructuring savings and lower compensation expense. Due to the factors set forth above, total operating income increased $56 million to $915 million in the second quarter of 2026. For the first six months of 2026, total operating expenses increased $86 million, or 1%, due primarily to an increase in expense associated with 5% organic revenue growth and investments in long-term growth, partially offset by lower expenses associated with the sale of the NFP Wealth business and $50 million of net restructuring savings. Due to the factors set forth above, total operating income increased $310 million to $2.6 billion for the first six months of 2026.
Previous wording
Total operating expenses increased $126 million, or 6%, in the first quarter of 2026. The increase was primarily due to an increase in compensation and benefits partially offset by a decrease in other expenses. The increase in compensation and benefits is due to an increase in expense associated with 7% and 4% organic revenue growth in Commercial Risk Solutions and Reinsurance Solutions, respectively, and the unfavorable impact from foreign currency translation. The decrease in other expenses is primarily due to non-recurring gains including legal recoveries and sales of portfolios, partially offset by the unfavorable impact of foreign currency translation. Due to the factors set forth above, Risk Capital operating income increased $185 million, or 15%, in the first quarter of 2026.
Current wording
Total operating expenses increased $88 million, or 4%, in the second quarter of 2026. The increase was primarily due to an increase in other expenses associated with 5% organic revenue growth in both Commercial Risk Solutions and Reinsurance Solutions and non-recurring gains, including sales of portfolios in the prior-year period. Due to the factors set forth above, Risk Capital operating income increased $52 million, or 6%, in the second quarter of 2026. For the first six months of 2026, Risk Capital total operating expenses increased $214 million, or 5%. The increase was primarily due to an increase in compensation and benefits and in other expenses. The increase in compensation and benefits was due to an increase in expense associated with 6% and 4% organic revenue growth in Commercial Risk Solutions and Reinsurance Solutions, respectively, partially offset by restructuring savings. The increase in other expenses was primarily due to the absence of non-recurring gains, including sales of portfolios in the prior-year period. Due to the factors set forth above, Risk Capital operating income increased $237 million, or 11%, for the first six months of 2026.
Previous wording
Total operating expenses decreased $46 million, or 4%, in the first quarter of 2026. The decrease was primarily due to a decrease in other expenses and a decrease in compensation and benefits. The decrease in other expenses is primarily due to lower amortization resulting from the sale of the NFP Wealth business. The decrease in compensation and benefits is due to the sale of the NFP Wealth business, partially offset by an increase in expense associated with 4% and 1% organic revenue growth in Health Solutions and Wealth Solutions, respectively. Due to the factors set forth above, Human Capital operating income increased $40 million, or 10%, in the first quarter of 2026.
Current wording
Total operating expenses decreased $97 million, or 8%, in the second quarter of 2026. The decrease was primarily due to a decrease in compensation and benefits and other expenses. The decrease in compensation and benefits was due to lower expenses associated with the sale of the NFP Wealth business, partially offset by an increase in expense associated with 5% organic revenue growth in both Health Solutions and Wealth Solutions. The decrease in other expenses was primarily due to lower amortization and impairment of intangible assets associated with the sale of the NFP Wealth business. Due to the factors set forth above, Human Capital operating income increased $50 million, or 43%, in the second quarter of 2026. For the first six months of 2026, Human Capital total operating expenses decreased $143 million, or 6%. The decrease was primarily due to a decrease in both compensation and benefits and other expenses. The decrease in compensation and benefits was due to lower expenses associated with the sale of the NFP Wealth business, partially offset by an increase in expense associated with 5% and 3% organic revenue growth in Health Solutions and Wealth Solutions, respectively. The decrease in other expenses was primarily due to lower amortization and impairment of intangible assets associated with the sale of the NFP Wealth business. Due to the factors set forth above, Human Capital operating income increased $90 million, or 17%, for the first six months of 2026.
Previous wording
Interest income represents income earned, net of expense, on operating cash balances and other income-producing investments. Interest income does not include interest earned on funds held on behalf of clients. During the first quarter of 2026, interest income increased $7 million, or 140% compared to the prior-year period, primarily reflecting higher cash balances due to the sale of the NFP Wealth business.
Current wording
Interest income represents income earned, net of expense, on operating cash balances and other income-producing investments. Interest income does not include interest earned on funds held on behalf of clients. During the second quarter of 2026, interest income increased $5 million to $5 million compared to the prior-year period and for the first six months of 2026, interest income increased $12 million to $17 million compared to the prior-year period, both primarily reflecting higher cash balances due to the sale of the NFP Wealth business.
Previous wording
Interest expense, which represents the cost of our debt obligations, decreased $27 million, or 13% during the first quarter of 2026 compared to the prior-year period, reflecting lower total debt.
Current wording
Interest expense, which represents the cost of our debt obligations, decreased $33 million to $179 million during the second quarter of 2026 compared to the prior-year period. For the first six months of 2026, interest expense decreased $60 million to $358 million compared to the prior-year period. The decrease in both periods was driven primarily by lower total debt.
Previous wording
Income before income taxes for the first quarter of 2026 was $1.6 billion, a 24% increase compared to the prior-year period.
Current wording
Income before income taxes for the second quarter of 2026 was $724 million, a 3% increase from $703 million compared to the prior-year period. For the first six months of 2026, income before income taxes was $2.3 billion, a 17% increase from $2.0 billion for the first six months of 2025.
Previous wording
The effective tax rate on net income was 20.2% and 21.4% for the three months ended March 31, 2026 and 2025, respectively.
Current wording
The effective tax rate on net income was 22.0% and 20.8% for the three and six months ended June 30, 2026, respectively. The effective tax rate on net income was 15.5% and 19.3% for the three and six months ended June 30, 2025, respectively.
Previous wording
For thethree months ended March 31, 2026, the tax rate was primarily driven by the geographical distribution of income and certain discrete items, including the favorable impact of a capital loss offset by the unfavorable impact of other discrete items.
Current wording
For the three months ended June 30, 2026, the quarter-to-date tax rate was primarily driven by the geographical distribution of income and an unfavorable impact from discrete items. For the six months ended June 30, 2026, the year-to-date tax rate was primarily driven by the geographical distribution of income and certain discrete items, including the favorable impact of a capital loss offset by the unfavorable impact of other discrete items.
Previous wording
For the three months ended March 31, 2025, the tax rate was primarily driven by the geographical distribution of income and certain discrete items, including the favorable impact of share-based payments offset by the unfavorable impact of discrete items.
Current wording
For the three and six months ended June 30, 2025, the quarter-to-date and year-to-date tax rates were primarily driven by the geographical distribution of income and certain discrete items, including the tax benefit associated with the sale of certain assets and liabilities and share-based payments partially offset by the unfavorable impact of other discrete items.
Previous wording
Ireland, the U.K., Singapore, and many E.U. member states, among others, have enacted legislation to implement the global minimum tax that is generally consistent with the OECD’s proposed Pillar Two tax regime. There remains significant uncertainty, however, as to how Pillar Two applies to the Company in prior years and how its application may change in future years. The OECD has issued numerous guidance documents attempting to change how Pillar Two operates, subject to enactment by each implementing country, and the OECD may issue additional guidance in the future. The Company is actively monitoring developments in this area and continues to evaluate the guidance and the potential impacts this may have on its global effective tax rate, results of operations, cash flows, and financial condition in 2026 and future periods.
Current wording
Ireland, the U.K., Singapore, and many E.U. member states, among others, have enacted legislation to implement the global minimum tax that is generally consistent with the OECD’s proposed Pillar Two tax regime. There remains significant uncertainty, however, as to how Pillar Two applies to the Company in prior years and how its application may change in future years. The OECD has issued numerous guidance documents attempting to change how Pillar Two Tax operates, subject to enactment by each implementing country, and the OECD may issue additional guidance in the future. The Company is actively monitoring developments in this area and continues to evaluate the guidance and the potential impacts this may have on its global effective tax rate, results of operations, cash flows, and financial condition in 2026 and future periods.
Previous wording
Net income attributable to Aon shareholders for the first quarter of 2026 increased to $1.2 billion, or $5.63 per diluted share, from $965 million, or $4.43 per diluted share, in the prior-year period.
Current wording
Net income attributable to Aon shareholders for the second quarter of 2026 decreased to $551 million, or $2.58 per diluted share, from $579 million, or $2.66 per diluted share, in the prior-year period. Net income attributable to Aon shareholders for the first six months of 2026 increased to $1.8 billion, or $8.22 per diluted share, from $1.5 billion, or $7.10 per diluted share, in the prior-year period.
Previous wording
(2)Fiduciary investment income for the three months ended March 31, 2026 and 2025 was $55 million and $67 million, respectively.
Current wording
(2)Fiduciary investment income for the three months ended June 30, 2026 and 2025 was $58 million and $66 million, respectively. Fiduciary investment income for the six months ended June 30, 2026 and 2025 was $113 million and $133 million, respectively.
Previous wording
A reconciliation of adjusted operating income and adjusted operating margin to reported operating income and operating margin is as follows (in millions, except percentages):
Current wording
A reconciliation of reported operating income and reported operating margin to adjusted operating income and adjusted operating margin is as follows (in millions, except percentages):
Previous wording
(2)Total charges are expected to include technology-related costs to facilitate streamlining and simplifying operations, headcount reduction costs, and costs associated with asset impairments, including real estate consolidation and technology costs.
Current wording
(2)Total Accelerating Aon United Program expenses include technology-related costs to facilitate streamlining and simplifying operations, headcount reduction costs, and costs associated with asset impairments, including real estate consolidation.
Previous wording
(3)The NFP transaction has continued to result in certain non-recurring integration costs associated with colleague severance, retention bonus awards, termination of redundant third-party agreements, costs associated with legal entity rationalization, and professional or consulting fees related to alignment of management processes and controls, as well as costs associated with the assessment of NFP information technology environment and security protocols. The Company expects to continue to incur integration costs through the end of the second quarter of 2026.
Current wording
(3)The NFP transaction has continued to result in certain non-recurring integration costs associated with colleague severance, retention bonus awards, termination of redundant third-party agreements, costs associated with legal entity rationalization, and professional or consulting fees related to alignment of management processes and controls, as well as costs associated with the assessment of NFP information technology environment and security protocols. Integration costs related to the NFP acquisition were substantially completed at June 30, 2026.
Previous wording
(2)Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with Accelerating Aon United Program expenses, deferred consideration from a prior year sale of business, certain integration costs related to the acquisition of NFP, additional gain from the disposal of the NFP Wealth business, and changes in the fair value of contingent consideration, which are adjusted at the related jurisdictional rate. The tax adjustment also excludes interest accruals for income tax reserves related to the termination fee payment made in connection with the Company’s terminated proposed combination with Willis Towers Watson.
Current wording
(1)Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with Accelerating Aon United Program expenses, deferred consideration from a prior year sale of business, certain integration costs related to the acquisition of NFP, additional gain from the disposal of the NFP Wealth business, and changes in the fair value of contingent consideration, which are adjusted at the related jurisdictional rate. The tax adjustment also excludes interest accruals for income tax reserves related to the termination fee payment made in connection with the Company’s terminated proposed combination with Willis Towers Watson.
Previous wording
(3)During the three months ended March 31, 2025, a $20 million gain was recognized related to deferred consideration from the affiliates of The Blackstone Group L.P. and the other designated purchasers related to a divestiture completed in a prior-year period.
Current wording
(2)During the six months ended June 30, 2026, Aon recognized a $20 million gain related to the prior-year sale of a significant majority of NFP's Wealth business, all of which was recognized in the first quarter of 2026. During the three and six months ended June 30, 2025, gains of $88 million and $108 million were recognized, respectively. These gains related to deferred consideration from the affiliates of The Blackstone Group L.P. and the other designated purchasers related to a divestiture completed in a prior-year period and were excluded from Adjusted other income (expense).
Previous wording
Currency fluctuations had a favorable impact of $0.35 on net income per diluted share during the three months ended March 31, 2026 if prior-year period results were translated at current period foreign exchange rates. Currency fluctuations had an unfavorable impact of $0.13 on net income per diluted share during the three months ended March 31, 2025 if 2024 results were translated at 2025 rates.
Current wording
Currency fluctuations had a favorable impact of $0.01 and a favorable impact of $0.36 on net income per diluted share during the three and six months ended June 30, 2026, respectively, if prior-year period results were translated at current period foreign exchange rates. Currency fluctuations had no impact andan unfavorable impact of $0.13 on net income per diluted share during the three and six months ended June 30, 2025, respectively, if 2025 results were translated at 2026 rates.
Previous wording
Currency fluctuations had a favorable impact of $0.36 on adjusted diluted earnings per share during the three months ended March 31, 2026 if prior-year period results were translated at current period foreign exchange rates. Currency fluctuations had an unfavorable impact of $0.14 on adjusted diluted earnings per share during the three months ended March 31, 2025 if 2024 results were translated at 2025 rates. These translations are performed for comparative and illustrative purposes only and do not impact the accounting policies or practices for amounts included in our Condensed Consolidated Financial Statements.
Current wording
Currency fluctuations had a favorable impact of $0.02 and a favorable impact of $0.38 on adjusted diluted earnings per share during the three and six months ended June 30, 2026, respectively, if prior-year period results were translated at current period foreign exchange rates. Currency fluctuations had a favorable $0.01 and an unfavorable impact of $0.13 on adjusted diluted earnings per share during the three and six months ended June 30, 2025, respectively, if 2025 results were translated at 2026 rates. These translations are performed for comparative and illustrative purposes only and do not impact the accounting policies or practices for amounts included in our Condensed Consolidated Financial Statements.
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