Arthur J. Gallagher & Co. (NYSE:AJG) Issues Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Arthur J. Gallagher & Co. (NYSE:AJG) released its quarterly earnings results on Thursday. The financial services provider reported $3.00 earnings per share for the quarter, beating the consensus estimate of $2.99 by $0.01, FiscalAI reports. The firm had revenue of $3.92 billion for the quarter, compared to analysts’ expectations of $3.98 billion. Arthur J. Gallagher & Co. had a return on equity of 13.97% and a net margin of 10.39%. The company’s revenue was up 19.6% compared to the same quarter last year. During the same quarter last year, the firm posted $2.32 EPS.

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

AJG traded up $8.26 during trading on Friday, hitting $276.46. 3,190,830 shares of the company traded hands, compared to its average volume of 1,475,193. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.50. Arthur J. Gallagher & Co. has a 1 year low of $190.75 and a 1 year high of $277.45. The stock’s 50-day simple moving average is $248.41 and its two-hundred day simple moving average is $232.55. The company has a market cap of $70.86 billion, a PE ratio of 42.27, a P/E/G ratio of 1.53 and a beta of 0.55.

Arthur J. Gallagher & Co. Announces Dividend

The company 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. This represents a $2.80 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Monday, December 7th. Arthur J. Gallagher & Co.’s dividend payout ratio (DPR) is presently 42.81%.

Analyst Upgrades and Downgrades

AJG has been the subject of several research reports. Seaport Research Partners upgraded shares of Arthur J. Gallagher & Co. to a “buy” rating in a research note on Wednesday, October 7th. Jefferies Financial Group lowered their price objective on Arthur J. Gallagher & Co. from $300.00 to $295.00 and set a “buy” rating for the company in a research note on Wednesday, September 30th. UBS Group increased their target price on Arthur J. Gallagher & Co. from $291.00 to $299.00 and gave the stock a “buy” rating in a research note on Monday, August 3rd. Keefe, Bruyette & Woods restated an “outperform” rating on shares of Arthur J. Gallagher & Co. in a report on Friday. Finally, Royal Bank Of Canada lifted their price target on Arthur J. Gallagher & Co. from $290.00 to $315.00 and gave the stock an “outperform” rating in a research report on Friday. Fifteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, Arthur J. Gallagher & Co. currently has a consensus rating of “Moderate Buy” and an average target price of $286.53.

More Arthur J. Gallagher & Co. News

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

• Positive Sentiment: Strong quarterly growth: Third-quarter revenue rose approximately 19.6% to $3.92 billion, while reported earnings increased to $3.00 per share from $2.32 a year earlier. Brokerage and Risk Management revenue grew 18%, supported by acquisitions, organic growth and margin expansion. Arthur J. Gallagher Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Acquisition strategy remains a catalyst: Gallagher completed five acquisitions during the quarter, representing approximately $102 million in annualized acquired revenue. Management also indicated it has roughly $12 billion of M&A capacity over the next two years, supporting expectations for continued expansion. Gallagher Signals $12 Billion M&A Capacity
• Positive Sentiment: Analysts raised targets: Mizuho lifted its target to $302 from $271 and kept an “outperform” rating. Royal Bank of Canada raised its target to $315 from $290 and also rated the stock “outperform,” reinforcing the bullish view on Gallagher’s long-term earnings and acquisition opportunities. Mizuho Adjusts Price Target on Arthur J. Gallagher
• Neutral Sentiment: Organic growth outlook maintained: Management held its 2026 organic-growth outlook near 6%, suggesting steady underlying demand even as acquisition activity remains central to the company’s growth model. AJG Q3 2026 Earnings Call Transcript
• Negative Sentiment: Revenue missed expectations: Quarterly revenue of about $3.92 billion was below the roughly $3.98 billion analyst estimate. Some reports also characterized adjusted EPS of $3.00 as narrowly below a $3.01 consensus, with lower interest income cited as a factor. AJG Q3 Earnings and Revenues Miss on Lower Interest Income
• Negative Sentiment: Valuation and leverage warrant monitoring: With the stock near its 52-week high, a forward-looking valuation above 45 times earnings and substantial borrowings, future performance may depend on Gallagher continuing to deliver acquisition synergies and organic growth.

Insider Activity

In related news, VP Scott Hudson sold 12,000 shares of Arthur J. Gallagher & Co. stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $264.13, for a total transaction of $3,169,560.00. Following the completion of the sale, the vice president owned 90,262 shares in the company, valued at $23,840,902.06. This trade represents a 11.73% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Richard Cary sold 1,000 shares of Arthur J. Gallagher & Co. stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $252.86, for a total value of $252,860.00. Following the completion of the sale, the chief accounting officer owned 46,819 shares of the company’s stock, valued at $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. Over the last quarter, insiders sold 28,500 shares of company stock valued at $7,562,950. Company 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.