Arthur J. Gallagher & Co. (NYSE:AJG) Posts Earnings Results, Beats Estimates By $0.03 EPS

Arthur J. Gallagher & Co. (NYSE:AJG) posted its earnings results on Thursday. The financial services provider reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $2.35 by $0.03, FiscalAI reports. The firm had revenue of $3.57 billion for the quarter, compared to analysts’ expectations of $3.61 billion. Arthur J. Gallagher & Co. had a net margin of 13.58% and a return on equity of 11.98%.

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. Stock Up 1.9%

NYSE:AJG opened at $250.54 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 firm has a market cap of $64.34 billion, a P/E ratio of 37.52, a P/E/G ratio of 1.31 and a beta of 0.67. Arthur J. Gallagher & Co. has a fifty-two week low of $236.34 and a fifty-two week high of $351.23. The firm has a 50-day simple moving average of $253.20 and a two-hundred day simple moving average of $277.07.

Arthur J. Gallagher & Co. Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Friday, March 6th will be paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a 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 (DPR) is presently 38.86%.

Arthur J. Gallagher & Co. News Roundup

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

• Positive Sentiment: Q4 EPS beat and profit growth — AJG reported $2.38 EPS vs. $2.35 consensus and posted a 24.5% rise in adjusted profit driven by stronger fees and commissions, which supports margin resilience. Arthur J Gallagher’s quarterly profit rises
• Positive Sentiment: Dividend increase — AJG raised its quarterly cash dividend to $0.70 (a 7.7% bump), signaling confidence in cash flow and returning capital to shareholders. Arthur J. Gallagher Increases Cash Dividend
• Positive Sentiment: Operational outlook — Management is targeting ~5.5% brokerage organic growth for 2026 and says integration synergies are accelerating, which supports medium‑term revenue expansion assumptions. Arthur J Gallagher targets 5.5% brokerage organic growth
• Neutral Sentiment: Earnings call color and metric detail — The full Q4 earnings call transcript and analyst write‑ups provide context on segment performance, M&A integration progress and expense timing; useful for modeling forward EPS and margin assumptions. AJG Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue shortfall — Reported revenue of about $3.56B missed the ~$3.61B consensus, which tempers the EPS beat and raises questions about topline momentum. AJG Press Release (Q4 Results)
• Negative Sentiment: Analyst price-target cut — Keefe, Bruyette & Woods lowered their AJG target to $249 and set a “market perform” rating, indicating limited near-term upside from current levels. KBW Lowers AJG Price Target

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on AJG shares. Keefe, Bruyette & Woods reduced their target price 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 note on Friday. Truist Financial reduced their price target on shares of Arthur J. Gallagher & Co. from $290.00 to $280.00 and set a “hold” rating for the company in a research report on Tuesday, December 16th. UBS Group cut their price target on shares of Arthur J. Gallagher & Co. from $329.00 to $285.00 and set a “neutral” rating for the company in a research note on Wednesday, December 17th. TD Cowen reiterated a “buy” rating on shares of Arthur J. Gallagher & Co. in a report on Friday, October 31st. Finally, Wolfe Research set a $289.00 price target on Arthur J. Gallagher & Co. and gave the company an “outperform” rating in a research report on Wednesday, December 17th. Seven research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $288.11.

Insider Activity at Arthur J. Gallagher & Co.

In other Arthur J. Gallagher & Co. news, VP Michael Robert Pesch acquired 4,000 shares of the company’s stock in a transaction that occurred on Monday, November 3rd. The shares were bought at an average cost of $247.12 per share, with a total value of $988,480.00. Following the completion of the transaction, the vice president directly owned 41,849 shares of the company’s stock, valued at approximately $10,341,724.88. This represents a 10.57% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Richard C. Cary sold 6,000 shares of the business’s stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $261.00, for a total value of $1,566,000.00. Following the completion of the transaction, the chief accounting officer directly owned 50,668 shares of the company’s stock, valued at approximately $13,224,348. This trade represents a 10.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 32,100 shares of company stock valued at $8,243,865 over the last ninety days. Corporate insiders own 1.60% of the company’s stock.

Institutional Investors Weigh In On Arthur J. Gallagher & Co.

Large investors have recently made changes to their positions in the company. State Street Corp boosted its holdings in Arthur J. Gallagher & Co. by 1.4% during the third quarter. State Street Corp now owns 10,891,080 shares of the financial services provider’s stock worth $3,373,403,000 after buying an additional 147,587 shares in the last quarter. Boston Partners grew its position in shares of Arthur J. Gallagher & Co. by 40.0% during the 3rd quarter. Boston Partners now owns 1,032,253 shares of the financial services provider’s stock valued at $319,587,000 after acquiring an additional 294,954 shares during the period. Viking Global Investors LP increased its stake in shares of Arthur J. Gallagher & Co. by 8.9% in the 2nd quarter. Viking Global Investors LP now owns 725,795 shares of the financial services provider’s stock valued at $232,341,000 after purchasing an additional 59,243 shares in the last quarter. Raymond James Financial Inc. raised its holdings in Arthur J. Gallagher & Co. by 2.8% in the 3rd quarter. Raymond James Financial Inc. now owns 597,620 shares of the financial services provider’s stock worth $185,106,000 after purchasing an additional 16,038 shares during the period. Finally, Unisphere Establishment grew its holdings in Arthur J. Gallagher & Co. by 1.4% in the third quarter. Unisphere Establishment now owns 537,500 shares of the financial services provider’s stock valued at $166,485,000 after purchasing an additional 7,200 shares during the period. 85.53% of the stock is owned by institutional investors.

Arthur J. Gallagher & Co. Company Profile

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.