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 analysts’ consensus estimates of $2.99 by $0.01, FiscalAI reports. The company had revenue of $3.92 billion for the quarter, compared to the consensus estimate of $3.98 billion. Arthur J. Gallagher & Co. had a net margin of 9.96% and a return on equity of 13.28%.

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. Stock Up 2.9%

Shares of AJG traded up $7.57 during mid-day trading on Thursday, hitting $267.99. 2,501,805 shares of the company’s stock were exchanged, compared to its average volume of 1,879,031. The stock’s 50-day moving average is $248.07 and its 200-day moving average is $232.49. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.05 and a current ratio of 1.05. Arthur J. Gallagher & Co. has a fifty-two week low of $190.75 and a fifty-two week high of $272.80. The company has a market cap of $68.69 billion, a price-to-earnings ratio of 44.44, a P/E/G ratio of 1.53 and a beta of 0.55.

Arthur J. Gallagher & Co. Dividend Announcement

The firm also recently declared 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. This represents a $2.80 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Monday, December 7th. Arthur J. Gallagher & Co.’s dividend payout ratio is currently 46.43%.

Arthur J. Gallagher & Co. News Summary

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

• Positive Sentiment: Gallagher reported third-quarter adjusted earnings of $3.00 per share, up from $2.32 a year earlier and slightly ahead of the $2.99 analyst estimate cited by MarketBeat. Total revenue before reimbursements rose to approximately $3.93 billion from $3.33 billion, while reported net earnings increased to $406 million from $273 million. Arthur J. Gallagher third-quarter financial results
• Positive Sentiment: The Brokerage and Risk Management businesses delivered 18% combined revenue growth, including 5% organic growth. Gallagher also completed five acquisitions during the quarter, adding an estimated $102 million in annualized revenue, supporting its long-term expansion strategy. Gallagher reports third-quarter revenue
• Positive Sentiment: The company repurchased approximately 400,000 shares for about $100 million, providing additional support for per-share results. Evercore ISI also raised its price target to $307 from $297, signaling continued analyst confidence. Evercore raises Gallagher price target
• Neutral Sentiment: Gallagher declared a quarterly dividend of $0.70 per share, or $2.80 annualized, representing a yield of roughly 1.1%. The payout adds shareholder income but is unlikely to be the primary near-term catalyst. Gallagher dividend announcement
• Negative Sentiment: Revenue of roughly $3.92 billion fell short of the $3.98 billion consensus estimate, and Zacks reported adjusted EPS of $3.00 versus its $3.01 estimate. Gallagher also carried substantial borrowings, while reported insider activity showed selling rather than purchases. Gallagher misses third-quarter estimates

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on AJG shares. Truist Financial raised their price target on shares of Arthur J. Gallagher & Co. from $225.00 to $265.00 and gave the stock a “hold” rating in a report on Friday, July 31st. Citigroup upped their price objective on Arthur J. Gallagher & Co. from $250.00 to $285.00 and gave the company a “buy” rating in a report on Tuesday, August 4th. Wells Fargo & Company decreased their price objective on Arthur J. Gallagher & Co. from $291.00 to $284.00 and set an “overweight” rating on the stock in a report on Monday, October 12th. Evercore increased their price objective on Arthur J. Gallagher & Co. from $295.00 to $307.00 and gave the stock an “outperform” rating in a research report on Thursday, October 8th. Finally, Oppenheimer initiated coverage on Arthur J. Gallagher & Co. in a research note on Wednesday, October 7th. They set a “market perform” rating for the company. Sixteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Arthur J. Gallagher & Co. presently has an average rating of “Moderate Buy” and an average target price of $280.74.

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

In related news, General Counsel Walter Bay sold 12,000 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $270.08, for a total transaction of $3,240,960.00. Following the sale, the general counsel directly owned 71,292 shares of the company’s stock, valued at $19,254,543.36. This represents a 14.41% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Richard Cary sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $252.86, for a total transaction of $252,860.00. Following the sale, the chief accounting officer owned 46,819 shares in the company, valued at approximately $11,838,652.34. This trade represents a 2.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 28,500 shares of company stock worth $7,562,950. 1.40% of the stock is currently owned by company insiders.

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.