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

Posted by Wayne Rhoads on Jan 29th, 2026

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

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

AJG opened at $245.62 on Friday. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.52. The company has a market cap of $63.08 billion, a price-to-earnings ratio of 36.71, a price-to-earnings-growth ratio of 1.31 and a beta of 0.67. The stock has a fifty day simple moving average of $253.20 and a two-hundred day simple moving average of $277.07. Arthur J. Gallagher & Co. has a 12-month low of $236.34 and a 12-month high of $351.23.

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. The ex-dividend date of this dividend is Friday, March 6th. This is a positive change from Arthur J. Gallagher & Co.’s previous quarterly dividend of $0.65. This represents a $2.80 annualized dividend and a yield of 1.1%. Arthur J. Gallagher & Co.’s payout ratio is currently 38.86%.

Key Headlines Impacting Arthur J. Gallagher & Co.

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

Positive Sentiment: Board raised the quarterly cash dividend to $0.70 (7.7% increase), supporting income investors and signaling confidence in cash generation. Arthur J. Gallagher & Co. Increases Cash Dividend to $0.70 per Share
Positive Sentiment: Adjusted profit rose strongly (Reuters: +24.5% in the fourth quarter) driven by commissions and fees, indicating healthy demand and margin drivers that investors favor. Arthur J Gallagher’s quarterly profit rises on fees, commission growth
Positive Sentiment: Some outlets and market reactions framed the report as a beat, with shares described as jumping after the results — supporting short-term bullish momentum. Arthur J. Gallagher shares jump after beating Q4 expectations
Neutral Sentiment: Reported EPS was $2.38; some services (Zacks) treated it as a beat versus their $2.35 consensus, showing year-over-year improvement from $2.13. This supports earnings momentum but depends on which consensus you reference. Arthur J. Gallagher (AJG) Q4 Earnings and Revenues Beat Estimates
Neutral Sentiment: Company released full-quarter and FY-2025 results and hosted a conference call — useful for investors wanting management commentary on outlook, inorganic growth and expense trends. Arthur J. Gallagher & Co. Announces Fourth Quarter and Full Year 2025 Financial Results
Negative Sentiment: Other reports show the quarter missed some street expectations: EPS was slightly below certain consensus figures (e.g., $2.42) and revenue came in below estimates (~$3.56B vs. ~$3.61B), which tempers the upbeat adjusted-profit headlines. Arthur J. Gallagher & Co. Q4 results (MarketBeat) Arthur J Gallagher earnings missed by $1.77, revenue fell short of estimates

Analysts Set New Price Targets

AJG has been the topic of a number of analyst reports. Piper Sandler cut Arthur J. Gallagher & Co. from an “overweight” rating to a “neutral” rating and decreased their price target for the stock from $276.00 to $272.00 in a research note on Wednesday, January 7th. BMO Capital Markets cut shares of Arthur J. Gallagher & Co. from an “outperform” rating to a “market perform” rating and decreased their price objective for the company from $289.00 to $275.00 in a research report on Tuesday, January 13th. Needham & Company LLC set a $272.00 price objective on shares of Arthur J. Gallagher & Co. in a research note on Thursday, December 18th. Morgan Stanley set a $300.00 target price on Arthur J. Gallagher & Co. in a research note on Friday, December 19th. Finally, Wall Street Zen lowered Arthur J. Gallagher & Co. from a “hold” rating to a “sell” rating in a research report on Saturday, November 1st. Seven analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Arthur J. Gallagher & Co. has a consensus rating of “Hold” and a consensus price target of $290.50.

Get Our Latest Report on AJG

Insider Activity

In related news, CAO Richard C. Cary sold 6,000 shares of the stock in a transaction dated Tuesday, November 18th. The shares were 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 in the company, valued at $13,224,348. This trade represents a 10.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Christopher E. Mead sold 4,000 shares of Arthur J. Gallagher & Co. stock in a transaction dated Tuesday, December 23rd. The shares were sold at an average price of $258.11, for a total transaction of $1,032,440.00. Following the transaction, the vice president directly owned 17,327 shares of the company’s stock, valued at approximately $4,472,271.97. This trade represents a 18.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 32,100 shares of company stock worth $8,243,865. 1.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in AJG. Rakuten Securities Inc. grew its position in Arthur J. Gallagher & Co. by 650.0% in the 2nd quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider’s stock worth $34,000 after purchasing an additional 91 shares during the period. Measured Wealth Private Client Group LLC purchased a new position in shares of Arthur J. Gallagher & Co. in the 3rd quarter worth $192,000. Eisler Capital Management Ltd. bought a new stake in shares of Arthur J. Gallagher & Co. in the third quarter worth $224,000. MUFG Securities EMEA plc purchased a new stake in Arthur J. Gallagher & Co. during the second quarter valued at $242,000. Finally, Moors & Cabot Inc. bought a new position in Arthur J. Gallagher & Co. in the third quarter valued at about $270,000. Institutional investors own 85.53% of the company’s stock.

Arthur J. Gallagher & Co. Company Profile

(Get Free Report)

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.