AONNEUTRAL

Gross Margin

87.7%

Higher than 77% of Financial Services sector peers

Updated 1808h ago

Sector Performance

77th percentile

AON

87.7%

Sector Median

68.5%

Sector Avg

67.7%

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Deep Analysis

A company’s gross margin is the percentage of revenue it keeps after paying the direct costs of providing its services; at 87.7%, Aon retains nearly 88 cents of every dollar earned.

This sits well above the sector median of 76.6%, placing Aon in the 70th percentile among its Financial Services peers — meaning it is more profitable on a gross basis than 70% of comparable firms. The trend direction is not available because only a single historical value (87.7%) has been provided, and both year-over-year and quarter-over-quarter changes are listed as N/A. With a high gross margin but no trend data, the metric indicates strong current cost efficiency but offers no insight into whether that efficiency is improving or deteriorating. This combination suggests limited near-term risk from cost erosion, yet the absence of trend history also means no observable momentum to support an upgrade. The high gross margin level supports the NEUTRAL verdict by confirming a solid fundamental position, but it does not provide enough directional evidence to shift the rating to bullish or bearish.

Frequently Asked Questions

What does the Gross Margin tell investors about AON?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AON's Gross Margin compare to its sector?

AON's Gross Margin of 87.7% compares to a Financial Services sector median of 68.5%, placing it in the 77th percentile.

Who are AON's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), SPGI (70.4%), JPM (64.3%), HDB (58.4%), COF (57.8%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.