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

Key Points

• Arthur J. Gallagher reported adjusted EPS of $3.00, narrowly beating analysts’ $2.99 consensus, while quarterly revenue of approximately $3.92 billion fell short of the $3.98 billion estimate.
• Shares rose to $267.99 during Thursday trading, near their 52-week high, and analysts maintained a “Moderate Buy” consensus with an average price target of $280.74.
• The company declared a quarterly dividend of $0.70 per share, equivalent to $2.80 annually and an approximately 1.0% yield; insiders have sold 28,500 shares worth about $7.6 million over the past 90 days.

Arthur J. Gallagher & Co. (NYSE:AJG - Get Free Report) released its quarterly earnings data on Thursday. The financial services provider reported $3.00 EPS for the quarter, beating analysts' consensus estimates 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 13.28% and a net margin of 9.96%.

Arthur J. Gallagher & Co. Price Performance

Shares of AJG stock traded up $7.57 during midday trading on Thursday, reaching $267.99. 2,501,679 shares of the company traded hands, compared to its average volume of 1,879,019. The firm's 50 day simple moving average is $247.87 and its two-hundred day simple moving average is $232.48. The firm has a market cap of $68.69 billion, a PE ratio of 44.44, a price-to-earnings-growth ratio of 1.53 and a beta of 0.55. 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 $272.80.

Arthur J. Gallagher & Co. Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Shareholders of record on Monday, December 7th will be issued a $0.70 dividend. The ex-dividend date of this dividend is Monday, December 7th. This represents a $2.80 dividend on an annualized basis and a yield of 1.0%. Arthur J. Gallagher & Co.'s dividend payout ratio (DPR) is 46.43%.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on AJG. Citigroup raised their target price on shares of Arthur J. Gallagher & Co. from $250.00 to $285.00 and gave the company a "buy" rating in a report on Tuesday, August 4th. Barclays increased their target price on shares of Arthur J. Gallagher & Co. from $275.00 to $292.00 and gave the company an "overweight" rating in a research report on Tuesday, July 7th. Morgan Stanley reduced their price target on shares of Arthur J. Gallagher & Co. from $285.00 to $260.00 and set an "overweight" rating for the company in a research report on Tuesday, October 6th. The Goldman Sachs Group raised their price objective on Arthur J. Gallagher & Co. from $272.00 to $277.00 and gave the stock a "buy" rating in a report on Thursday, October 1st. Finally, Wells Fargo & Company cut their target price on Arthur J. Gallagher & Co. from $291.00 to $284.00 and set an "overweight" rating on the stock in a research report on Monday, October 12th. Sixteen equities research 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, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $280.74.

Insider Transactions at Arthur J. Gallagher & Co.

In related news, VP Christopher Mead sold 3,500 shares of Arthur J. Gallagher & Co. stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $257.02, for a total transaction of $899,570.00. Following the completion of the transaction, the vice president directly owned 22,223 shares of the company's stock, valued at approximately $5,711,755.46. The trade was a 13.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Scott Hudson sold 12,000 shares of the business's stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $264.13, for a total value of $3,169,560.00. Following the sale, the vice president owned 90,262 shares in the company, valued at approximately $23,840,902.06. The trade was a 11.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 28,500 shares of company stock worth $7,562,950. 1.40% of the stock is currently owned by insiders.

Key Stories Impacting Arthur J. Gallagher & Co.

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

• Positive Sentiment: Third-quarter results showed substantial year-over-year growth: total revenue before reimbursements rose to $3.93 billion from $3.33 billion, while net earnings increased to $406 million from $273 million. Diluted earnings per share reached $1.55, compared with $1.04 a year earlier. Arthur J. Gallagher Reports $3.93 Billion Third-Quarter Revenue
• Positive Sentiment: Combined Brokerage and Risk Management revenue grew 18%, including 5% organic growth, suggesting continued demand and successful integration of acquired businesses.
• Positive Sentiment: Management completed five acquisitions during the quarter, adding approximately $102 million in estimated annualized revenue. Gallagher also repurchased about 400,000 shares for roughly $100 million, supporting per-share value. Arthur J. Gallagher Posts Strong Third-Quarter 2026 Results
• Positive Sentiment: Adjusted EPS of $3.00 narrowly exceeded the $2.99 analyst consensus, providing a modest earnings beat. Arthur J. Gallagher quarterly earnings
• Positive Sentiment: Evercore ISI raised its price target to $307 from $297, indicating improved expectations for AJG’s future performance. Evercore ISI Adjusts Price Target on Arthur J. Gallagher
• Neutral Sentiment: Gallagher declared a quarterly dividend of $0.70 per share, equivalent to $2.80 annually and a yield of approximately 1.1%. The payment is scheduled for December 18 for shareholders of record on December 7.
• Negative Sentiment: Reported quarterly revenue of approximately $3.92 billion was below the $3.98 billion consensus estimate, limiting the strength of the headline beat.
• Negative Sentiment: The company carried substantial borrowings at quarter-end, including $9.55 billion in public debt, $2.68 billion in private-placement debt and $630 million drawn on its credit facility. Recent insider activity also consisted of sales rather than purchases.

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.

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