What changed
$AON — Risk management, insurance brokerage, and consulting services.
🎯 Q1 FY26 | Rev $5B | EPS $6.48 vs $6.35 🟢 | Margin 34.1%
💡 Consensus expects Aon to grow EPS at a mid-single-digit pace, but the Q1 beat (6.48 vs 6.35) was driven by 6.5% revenue growth and 34% operating margins—well above the 30-31% range of recent years. The market is not pricing in the structural margin improvement from the 3x3 Plan and the shift to higher-margin risk capital and health solutions.
🏢 Business Quality: 8/10 | Valuation: fair
📉 Reward/Risk: Upside 15% to $380 (26x $14.60) vs downside 10% to $300 (22x $13.60) = 1.5:1
🔮 Catalyst: Q2 2026 earnings (late July): watch for continued revenue growth >5% and operating margin >33%. Failure signal: margin slips below 32% or organic revenue growth <4%.
💰 Entry: Current price $331.59 is attractive; ideal entry $320-330.
Also in play: $MMC $AON $AJG $BRO $WLTW