Arthur J. Gallagher & Co. (NYSE:AJG) Posts Earnings Results, Beats Expectations By $0.07 EPS
by Teresa Graham · The Cerbat GemArthur J. Gallagher & Co. (NYSE:AJG – Get Free Report) announced its quarterly earnings results on Thursday. The financial services provider reported $4.47 EPS for the quarter, beating analysts’ consensus estimates of $4.40 by $0.07, FiscalAI reports. Arthur J. Gallagher & Co. had a return on equity of 12.13% and a net margin of 11.84%.The firm had revenue of $4.71 billion for the quarter, compared to analyst estimates of $4.74 billion. During the same period last year, the firm posted $3.67 earnings per share. The business’s revenue for the quarter was up 29.0% on a year-over-year basis.
Here are the key takeaways from Arthur J. Gallagher & Co.’s conference call:
- Strong Q1 results — combined brokerage and risk management revenue grew ~28% (organic 5%, M&A 23%), adjusted revenues/EBITAC/EPS rose ~30%, and this marks the 24th consecutive quarter of double‑digit adjusted EBITA growth.
- Management reaffirmed a 2026 organic growth outlook of 6% and expects Q2 brokerage organic around 5%, citing new business wins, client retention, exposure growth and AI/digitization to boost productivity and win rates.
- M&A and capital deployment remain priorities — nine tuck‑ins (~$60M estimated revenue) closed in Q1, a pipeline of ~40 term sheets (~$400M), AssuredPartners integration is on plan with $160M 2026 synergies (up to $300M by early 2028), and the company repurchased ~$310M of shares while noting nearly $10B of potential M&A funding before using stock.
- Property pricing is a clear headwind (global retail property renewals down ~7%), which management says could cost roughly a point of organic growth if deterioration continues, while reinsurance and war‑related cover dynamics are creating selective repricing and placement complexity.
Arthur J. Gallagher & Co. Trading Down 2.7%
AJG stock traded down $5.62 during mid-day trading on Thursday, reaching $206.19. The company’s stock had a trading volume of 3,093,154 shares, compared to its average volume of 1,602,807. The company has a market cap of $53.01 billion, a price-to-earnings ratio of 33.53, a price-to-earnings-growth ratio of 1.06 and a beta of 0.68. Arthur J. Gallagher & Co. has a 12 month low of $195.00 and a 12 month high of $351.23. The business’s 50 day moving average price is $217.24 and its 200 day moving average price is $240.38. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.52.
Arthur J. Gallagher & Co. Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Friday, June 19th. Shareholders of record on Friday, June 5th will be issued a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Friday, June 5th. Arthur J. Gallagher & Co.’s payout ratio is presently 45.53%.
More Arthur J. Gallagher & Co. News
Here are the key news stories impacting Arthur J. Gallagher & Co. this week:
- Positive Sentiment: Q1 EPS beat and strong year-over-year revenue growth — AJG reported $4.47 EPS, beating consensus (~$4.40) and showing meaningful operating profit (net margin ~11.8%, ROE ~12.1%). Revenue was up ~29% year-over-year, supporting the case for continued top-line momentum. Arthur J. Gallagher (AJG) Q1 Earnings and Revenues Surpass Estimates
- Positive Sentiment: Dividend maintained/increased cadence — AJG declared the regular quarterly dividend (paid June 19; record June 5), reinforcing the company’s shareholder-return posture and supporting income-oriented investor demand. Arthur J. Gallagher & Co. Announces Regular Second Quarter Dividend
- Neutral Sentiment: Deeper metric review — Analysts and outlets are parsing organic growth, acquisition contribution and margin trends to judge sustainability of the beat; deeper metric analysis may determine forward estimates and guidance reactions. Here’s What Key Metrics Tell Us About Arthur J. Gallagher (AJG) Q1 Earnings
- Neutral Sentiment: Official filings and call available — The company issued a press release and hosted the conference call; management commentary on organic growth, expense/integration trends from recent M&A (e.g., Bridge Insurance Brokers) will guide near-term sentiment. AJG Press Release / Q1 2026 Report
- Negative Sentiment: Pre-earnings de-risking and insider/position shifts — The stock had pulled back ahead of results as investors trimmed exposure (options positioning and risk-off). Reporting of sizable insider sales and mixed institutional rebalancing raises short-term concern about conviction and could sustain downward pressure if guidance isn’t reassuring. AJG slides as investors de-risk ahead of Q1 earnings
Analysts Set New Price Targets
A number of research firms recently commented on AJG. Citigroup lifted their price objective on Arthur J. Gallagher & Co. from $277.00 to $280.00 and gave the stock a “neutral” rating in a research note on Monday, February 2nd. Cantor Fitzgerald reaffirmed a “neutral” rating on shares of Arthur J. Gallagher & Co. in a research note on Friday, January 30th. Wall Street Zen raised Arthur J. Gallagher & Co. from a “sell” rating to a “hold” rating in a research note on Saturday, February 21st. UBS Group cut their price objective on Arthur J. Gallagher & Co. from $285.00 to $283.00 and set a “neutral” rating on the stock in a research note on Monday, February 2nd. Finally, Mizuho cut their price objective on Arthur J. Gallagher & Co. from $260.00 to $259.00 and set an “outperform” rating on the stock in a research note on Monday, April 13th. Ten analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $273.94.
View Our Latest Stock Analysis on Arthur J. Gallagher & Co.
Insider Activity at Arthur J. Gallagher & Co.
In other news, VP Scott R. Hudson sold 3,800 shares of the business’s stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $227.57, for a total transaction of $864,766.00. Following the completion of the sale, the vice president owned 85,920 shares in the company, valued at $19,552,814.40. The trade was a 4.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Christopher E. Mead sold 4,000 shares of the business’s stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $227.12, for a total value of $908,480.00. Following the sale, the vice president owned 19,306 shares of the company’s stock, valued at approximately $4,384,778.72. This represents a 17.16% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.40% of the company’s stock.
Institutional Investors Weigh In On Arthur J. Gallagher & Co.
Several hedge funds and other institutional investors have recently modified their holdings of AJG. T. Rowe Price Investment Management Inc. increased its holdings in shares of Arthur J. Gallagher & Co. by 44.9% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 3,815,684 shares of the financial services provider’s stock valued at $987,461,000 after acquiring an additional 1,181,644 shares in the last quarter. Viking Global Investors LP bought a new stake in shares of Arthur J. Gallagher & Co. during the fourth quarter valued at approximately $269,394,000. Dodge & Cox bought a new stake in Arthur J. Gallagher & Co. during the fourth quarter worth $227,887,000. Amundi grew its holdings in Arthur J. Gallagher & Co. by 65.9% during the fourth quarter. Amundi now owns 930,585 shares of the financial services provider’s stock worth $240,826,000 after buying an additional 369,716 shares in the last quarter. Finally, Credit Agricole S A bought a new stake in Arthur J. Gallagher & Co. during the third quarter worth $95,337,000. Institutional investors own 85.53% of the company’s stock.
Arthur J. Gallagher & Co. Company Profile
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.