Arthur J. Gallagher & Co. (NYSE:AJG) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Arthur J. Gallagher & Co. (NYSE:AJG) released its quarterly earnings results on Thursday. The financial services provider reported $2.38 EPS for the quarter, topping analysts’ consensus estimates of $2.35 by $0.03, FiscalAI reports. Arthur J. Gallagher & Co. had a return on equity of 12.19% and a net margin of 11.84%.The company had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.61 billion. During the same quarter last year, the firm posted $1.12 earnings per share. Arthur J. Gallagher & Co.’s revenue was up 33.9% compared to the same quarter last year.

Here are the key takeaways from Arthur J. Gallagher & Co.’s conference call:

• The company reported a strong quarter and year — Q4 revenue growth of more than 30% (including 5% organic) and full?year combined brokerage & risk management results of ~21% revenue growth, 6% organic, with adjusted EBITDA up ~26% and the 23rd consecutive quarter of double?digit EBITDA growth.
• Brokerage segment delivered reported Q4 revenue growth of 38% and 5% organic with an adjusted EBITDA margin of 32.2% (underlying expansion ~50 bps); management reiterates brokerage organic growth of roughly 5.5% for 2026 and showed broad geographic/line?level organic gains.
• Market pricing is mixed: property renewal premiums were down (~5%) while casualty lines were up (casualty ~+5%, US casualty ~+7%); property reinsurance saw rate declines (down in the teens) but premiums fell only mid?to?high single digits and management expects a buyer’s market to persist through 2026.
• M&A momentum and AssuredPartners integration remain a focal point — >$3.5bn of acquired annualized revenue in 2025, >40 term sheets (~$350m) in the pipeline, integration is ahead of plan, and management targets synergies of ~$160m by end?2026 and $260–$280m by early?2028 with ~$10bn potential M&A funding before issuing stock.
• Underlying margin outlook is constructive: management expects brokerage margins to expand ~40–60 bps in 2026 and GB (risk management) margins around 21–22%, however headline margins will show near?term noise from lost investment income tied to the AP acquisition and rolling M&A impacts.

Arthur J. Gallagher & Co. Price Performance

Arthur J. Gallagher & Co. stock opened at $249.40 on Friday. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.06 and a current ratio of 1.06. The stock has a market capitalization of $64.05 billion, a P/E ratio of 40.55, a price-to-earnings-growth ratio of 1.32 and a beta of 0.67. Arthur J. Gallagher & Co. has a 52 week low of $236.34 and a 52 week high of $351.23. The stock has a fifty day moving average of $253.16 and a 200-day moving average of $276.61.

Arthur J. Gallagher & Co. Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Friday, March 6th will be paid a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Friday, March 6th. This is a positive change from Arthur J. Gallagher & Co.’s previous quarterly dividend of $0.65. Arthur J. Gallagher & Co.’s dividend payout ratio is 38.86%.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the company. UBS Group lowered their target price on Arthur J. Gallagher & Co. from $329.00 to $285.00 and set a “neutral” rating for the company in a report on Wednesday, December 17th. Wolfe Research set a $289.00 target price on shares of Arthur J. Gallagher & Co. and gave the company an “outperform” rating in a research note on Wednesday, December 17th. Morgan Stanley set a $300.00 price target on Arthur J. Gallagher & Co. in a report on Friday, December 19th. Keefe, Bruyette & Woods reduced their price objective on shares of Arthur J. Gallagher & Co. from $279.00 to $249.00 and set a “market perform” rating for the company in a research report on Friday. Finally, Truist Financial set a $271.00 price objective on Arthur J. Gallagher & Co. in a report on Friday. Six analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Arthur J. Gallagher & Co. presently has an average rating of “Hold” and an average price target of $283.18.

Arthur J. Gallagher & Co. News Summary

Here are the key news stories impacting Arthur J. Gallagher & Co. this week:

• Positive Sentiment: Q4 EPS beat and margin expansion — AJG reported $2.38 EPS (above estimates) with improving commissions/fees and Risk Management margin expansion, underpinning profit growth. Arthur J. Gallagher Q4 Earnings & Revenues Beat, Dividend Raised
• Positive Sentiment: Dividend increase — the company raised its quarterly dividend (7.7% increase), a cash-return signal that supports investor sentiment. Arthur J. Gallagher & Co. Announces Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Analyst support — William Blair reiterated a Buy rating today, citing reaffirmed growth outlook and margin expansion that support upside. Arthur J. Gallagher & Co.: Reaffirmed Growth Outlook and Margin Expansion Support Buy Rating
• Positive Sentiment: Operational outlook — management is targeting ~5.5% organic brokerage growth for 2026 and cites accelerating integration synergies, supporting medium?term revenue expansion. Arthur J Gallagher targets 5.5% brokerage organic growth for 2026 as integration synergies accelerate
• Neutral Sentiment: Earnings call available — the full Q4 earnings call transcript and slide deck are posted, useful for investors who want details on segment performance and integration assumptions. Arthur J. Gallagher & Co. (AJG) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Analyst target cut — Keefe, Bruyette & Woods trimmed its price target to $249 and moved to Market Perform, introducing near-term selling pressure. Benzinga
• Negative Sentiment: Revenue shortfall vs. street — while EPS beat, some outlets report revenue missed consensus, which could temper enthusiasm until organic growth and integration gains prove durable. Arthur J Gallagher earnings missed by $1.77, revenue fell short of estimates

Insider Activity

In related news, VP Michael Robert Pesch acquired 4,000 shares of the firm’s stock in a transaction that occurred on Monday, November 3rd. The stock was acquired at an average cost of $247.12 per share, for a total transaction of $988,480.00. Following the completion of the acquisition, the vice president directly owned 41,849 shares of the company’s stock, valued at approximately $10,341,724.88. This trade represents a 10.57% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, General Counsel Walter D. Bay sold 15,850 shares of the stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $255.00, for a total value of $4,041,750.00. Following the completion of the sale, the general counsel directly owned 79,549 shares of the company’s stock, valued at approximately $20,284,995. The trade was a 16.61% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 32,100 shares of company stock valued at $8,243,865. 1.60% of the stock is currently owned by insiders.

Institutional Trading of Arthur J. Gallagher & Co.

A number of institutional investors have recently bought and sold shares of the company. Voleon Capital Management LP acquired a new position in shares of Arthur J. Gallagher & Co. during the second quarter valued at about $631,000. ICONIQ Capital LLC increased its holdings in Arthur J. Gallagher & Co. by 6.7% during the 2nd quarter. ICONIQ Capital LLC now owns 1,466 shares of the financial services provider’s stock worth $469,000 after purchasing an additional 92 shares in the last quarter. CTC Alternative Strategies Ltd. purchased a new position in shares of Arthur J. Gallagher & Co. during the second quarter valued at approximately $1,076,000. Armistice Capital LLC bought a new stake in shares of Arthur J. Gallagher & Co. in the 2nd quarter worth $412,000. Finally, Prosperity Financial Group Inc. grew its position in Arthur J. Gallagher & Co. by 17.5% in the 3rd quarter. Prosperity Financial Group Inc. now owns 1,072 shares of the financial services provider’s stock worth $332,000 after purchasing an additional 160 shares in the last quarter. Institutional investors own 85.53% of the company’s stock.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co is a global insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois. Founded in 1927 by Arthur J. Gallagher, the company has grown from a regional broker into an international professional services organization that arranges insurance, provides consulting and designs risk-transfer solutions for commercial, industrial, public sector and individual clients.

The company’s core activities include property and casualty insurance brokerage, employee benefits consulting and administration, and a range of risk management services.