Aon Stock Falls Pre-Market On Q1 2025 Earnings Miss, Despite Reaffirming Full Year Outlook

Revenue increased 16% year-over-year to $4.73 billion but fell short of a Street estimate of $4.86 billion.

Shares of insurance broker Aon declined over 3% in Friday’s pre-market session after its first-quarter earnings and revenue failed to meet Wall Street estimates.

Revenue increased 16% year-over-year (YoY) to $4.73 billion but fell short of a Street estimate of $4.86 billion. This reflected the contribution from NFP, organic revenue growth of 5%, and a 2% unfavorable impact from foreign currency translation.

NFP, a middle-market property and casualty broker, benefits consultant, wealth manager, and retirement plan advisor, was acquired by Aon in 2024.

Adjusted earnings per share (EPS) stood at $5.67, lower than an analyst estimate of $6.03.

Net income attributable to Aon shareholders declined 10% YoY to $965 million during the quarter.

CEO Greg Case highlighted that the company is entering the second year of its 3x3 Plan, and continued execution drove another quarter of mid-single-digit organic revenue growth and strong operating performance.

During the quarter, Risk Capital's revenue increased 7% YoY to $3.2 billion. Aon noted that Commercial Risk Solutions’ organic revenue growth of 5% reflected growth across all major geographies, driven by net new business and ongoing strong retention.

At the same time, Reinsurance Solutions’ organic revenue growth of 4% reflected growth in treaty, driven by net new business and ongoing strong retention.

During the quarter, Human Capital revenue jumped 40% to $1.5 billion.

Aon said it is reaffirming its 2025 guidance, which includes mid-single-digit or greater organic revenue growth, adjusted operating margin expansion, strong adjusted EPS growth, and double-digit free cash flow growth.

During the quarter, the company repurchased 0.6 million Class A ordinary shares for approximately $250 million. As of March 31, 2025, it had approximately $2.1 billion of remaining authorization under its share repurchase program.

Aon shares have gained 3% in 2025 and are up over 19% in the past 12 months.

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