Arthur J. Gallagher & Co. (NYSE:AJG) Announces Earnings Results

Arthur J. Gallagher & Co. (NYSE:AJG) issued its earnings results on Thursday. The financial services provider reported $3.00 EPS for the quarter, topping the consensus estimate of $2.99 by $0.01, FiscalAI reports. Arthur J. Gallagher & Co. had a return on equity of 13.28% and a net margin of 9.96%. The company had revenue of $3.92 billion during the quarter, compared to the consensus estimate of $3.98 billion. During the same period in the previous year, the company posted $2.32 EPS. The firm’s revenue for the quarter was up 19.6% compared to the same quarter last year.

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

• Strong third-quarter results: Combined brokerage and risk management revenue increased 18%, organic growth was 5%, and net earnings and adjusted EBITDAC each grew 25%, marking the company’s 26th consecutive quarter of double-digit adjusted EBITDAC growth.
• AssuredPartners integration is progressing well: The acquisition contributed $285 million of adjusted EBITDAC in the quarter, with the company on track for $160 million of annualized run-rate synergies by year-end 2026 and $325 million by early 2028.
• Gallagher Bassett delivered 10% organic growth and a 22.8% adjusted EBITDA margin, while management cited strong new business, retention, technology investments, and a favorable pipeline for continued momentum into 2027.
• Management maintained its outlook for approximately 6% full-year 2026 organic growth and expects 2027 growth to remain strong, although the inclusion of AssuredPartners may create a 40–50 basis point headwind to reported brokerage organic growth.
• Property pricing remains competitive and declining, while several employee-benefits consulting projects were delayed as clients focused on rising medical and prescription costs; management also acknowledged that brokerage M&A activity has begun to slow.

Arthur J. Gallagher & Co. Price Performance

Shares of NYSE AJG traded up $2.27 during mid-day trading on Friday, hitting $270.46. 499,072 shares of the company’s stock traded hands, compared to its average volume of 1,871,667. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.05 and a quick ratio of 1.05. Arthur J. Gallagher & Co. has a 1 year low of $190.75 and a 1 year high of $277.00. The company has a market capitalization of $69.32 billion, a P/E ratio of 44.96, a PEG ratio of 1.49 and a beta of 0.55. The company’s 50-day moving average is $248.07 and its two-hundred day moving average is $232.49.

Arthur J. Gallagher & Co. Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Monday, December 7th will be given a dividend of $0.70 per share. The ex-dividend date is Monday, December 7th. This represents a $2.80 annualized dividend and a dividend yield of 1.0%. Arthur J. Gallagher & Co.’s dividend payout ratio (DPR) is presently 46.43%.

Key Stories Impacting Arthur J. Gallagher & Co.

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

• Positive Sentiment: Mizuho raised its price target to $302 from $271 and maintained an “outperform” rating, implying further upside from the recent trading level. Mizuho adjusts price target
• Positive Sentiment: Gallagher said it has approximately $12 billion of capacity for mergers and acquisitions over the next two years. Continued deal activity could support revenue growth and reflects management’s confidence in its balance sheet and business model. The company completed five acquisitions during the quarter, representing about $102 million in estimated annualized revenue. Gallagher M&A capacity and organic growth
• Positive Sentiment: Third-quarter revenue rose roughly 18% to $3.92 billion-$3.93 billion, while reported earnings per share increased to $3.00 from $2.32 a year earlier. Combined Brokerage and Risk Management revenue grew 18%, with organic growth of approximately 5%. Arthur J. Gallagher third-quarter results
• Neutral Sentiment: Management maintained its 2026 organic-growth outlook near 6%, suggesting stable underlying demand but limited acceleration from current levels. Gallagher organic-growth outlook
• Negative Sentiment: Quarterly revenue came in below the approximately $3.98 billion consensus estimate. Earnings were slightly above some analyst estimates but narrowly below the Zacks consensus of $3.01 per share, making the quarter mixed rather than a clear beat. Arthur J. Gallagher misses sales expectations

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. Wells Fargo & Company reduced their price objective on shares of Arthur J. Gallagher & Co. from $291.00 to $284.00 and set an “overweight” rating on the stock in a research note on Monday, October 12th. The Goldman Sachs Group reissued a “buy” rating and set a $296.00 target price on shares of Arthur J. Gallagher & Co. in a research report on Friday. Keefe, Bruyette & Woods reiterated an “outperform” rating on shares of Arthur J. Gallagher & Co. in a research note on Friday. UBS Group increased their price objective on shares of Arthur J. Gallagher & Co. from $291.00 to $299.00 and gave the company a “buy” rating in a research note on Monday, August 3rd. Finally, Jefferies Financial Group dropped their price target on Arthur J. Gallagher & Co. from $300.00 to $295.00 and set a “buy” rating on the stock in a report on Wednesday, September 30th. Sixteen investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $285.21.

Insider Buying and Selling at Arthur J. Gallagher & Co.

In other news, General Counsel Walter D. Bay sold 12,000 shares of the company’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $270.08, for a total value of $3,240,960.00. Following the sale, the general counsel owned 71,292 shares in the company, valued at $19,254,543.36. This represents a 14.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Richard C. Cary sold 1,000 shares of the stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $252.86, for a total transaction of $252,860.00. Following the transaction, the chief accounting officer directly owned 46,819 shares in the company, valued at approximately $11,838,652.34. The trade was a 2.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 28,500 shares of company stock valued at $7,562,950 in the last 90 days. Insiders own 1.40% of the company’s stock.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co is a global insurance brokerage, risk management and consulting company. The firm helps businesses, public entities and individuals identify, manage and transfer risk through insurance and related services.

Its operations include retail insurance brokerage, employee benefits consulting, wholesale brokerage, reinsurance brokerage, claims administration and risk management consulting. Gallagher places commercial and personal insurance coverage and provides services related to property and casualty risks, health care, benefits, and other specialized insurance needs.

Founded in 1927 by Arthur J.