Arthur J. Gallagher (AJG) reported $3.33 billion in revenue for the quarter ended September 2025, representing a year-over-year increase of 21.5%. EPS of $2.32 for the same period compares to $2.26 a year ago.
The reported revenue represents a surprise of -3.43% over the Zacks Consensus Estimate of $3.45 billion. With the consensus EPS estimate being $2.51, the EPS surprise was -7.57%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arthur J. Gallagher performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Brokerage - Compensation expense ratio: 56.4% versus the two-analyst average estimate of 54.5%.
- Risk Management Segment - Operating expense ratio: 19% versus 17.9% estimated by two analysts on average.
- Risk Management Segment - Compensation expense ratio: 60.6% compared to the 58.5% average estimate based on two analysts.
- Brokerage - Operating expense ratio: 14.8% versus the two-analyst average estimate of 13.8%.
- Revenues- Total Company- Fees: $1.06 billion versus the four-analyst average estimate of $1.04 billion. The reported number represents a year-over-year change of +11.9%.
- Revenues- Total Company- Interest income, premium finance revenues and other income: $167.1 million compared to the $215.97 million average estimate based on three analysts. The reported number represents a change of +23.5% year over year.
- Revenues- Risk Management Segment- Revenues before reimbursements: $402.1 million compared to the $397.89 million average estimate based on three analysts. The reported number represents a change of +8.8% year over year.
- Revenues- Total Company- Commissions: $1.91 billion versus the three-analyst average estimate of $1.96 billion. The reported number represents a year-over-year change of +24.1%.
- Revenues- Brokerage, as adjusted: $2.93 billion versus the three-analyst average estimate of $2.96 billion. The reported number represents a year-over-year change of +23.5%.
- Revenues- Brokerage Segment- Interest income, premium finance revenues and other income: $157.1 million compared to the $200.5 million average estimate based on two analysts. The reported number represents a change of +25.7% year over year.
- Revenues- Risk Management Segment- Fees: $392.5 million compared to the $390.29 million average estimate based on two analysts. The reported number represents a change of +9.1% year over year.
- Revenues- Risk Management Segment- Interest income and other income: $9.6 million versus the two-analyst average estimate of $8.95 million. The reported number represents a year-over-year change of -3%.
View all Key Company Metrics for Arthur J. Gallagher here>>>
Shares of Arthur J. Gallagher have returned -14.3% over the past month versus the Zacks S&P 500 composite's +3.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Arthur J. Gallagher & Co. (AJG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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