Arthur J. Gallagher Q3 Earnings & Revenues Miss Estimates, Rise Y/Y

Arthur J. Gallagher & Co. AJG reported third-quarter 2025 adjusted net earnings of $2.32 per share, which missed the Zacks Consensus Estimate by 7.6%. 

The bottom line increased 2.7% on a year-over-year basis. The quarter’s results benefited from higher commissions, fees, and improved adjusted EBITDAC across both segments, partially offset by higher expenses.

The quarter witnessed the 19th straight quarter of double-digit top-line growth.

Operational Update

Total revenues were $3.3 billion, up 21.5% year over year, primarily driven by higher commissions, fees and supplemental, contingent revenues and interest income, premium finance revenues and other income. The top line, however, missed the Zacks Consensus Estimate by 3.4%.
 

Arthur J. Gallagher & Co. Price, Consensus and EPS Surprise

Arthur J. Gallagher & Co. price-consensus-eps-surprise-chart | Arthur J. Gallagher & Co. Quote

Arthur J. Gallagher’s total expenses increased 25.6% year over year to $3 billion in the reported quarter due to higher compensation, reimbursements, interest, and amortization. 

Adjusted earnings before interest, tax, depreciation, and amortization and change in estimated acquisition earnout payables (EBITDAC) grew 22% from the prior-year quarter to $981.6 million. 

Adjusted EBITDAC margin was 32.1%.

Segmental Results

Brokerage: Revenues of $2.9 billion increased 22.7% year over year on higher commissions, supplemental revenues, contingent revenues, interest income, premium finance revenues and other income. The figure missed the Zacks Consensus Estimate by 1.1%. 

Adjusted EBITDAC climbed 22.7% from the year-ago level to $981.6 million, and the margin was flat year over year at 33.5%. Adjusted EBITDAC for the quarter missed the Zacks Consensus Estimate by 4.2%.

Risk Management: Revenues were up 9.1% year over year to $401.9 million, mainly owing to higher fees and interest income and other income. The figure beat the Zacks Consensus Estimate by 0.8%. 

Adjusted EBITDAC improved 14.2% year over year to $88 million and the margin expanded 100 basis points (bps) to 21.8%. Adjusted EBITDAC for the quarter beat the Zacks Consensus Estimate by 8.8%.

Corporate: EBITDAC was a negative $109.4 million compared with a negative $74.7 million in the year-ago quarter.

Financial Update

As of Sept. 30, 2025, total assets were $79.1 billion, up 23.1% from the 2024-end level. 

At the third-quarter end, cash and cash equivalents of $1.4 billion dropped 91% from the 2024-end level. 

As of Sept. 30, 2025, shareholders’ equity increased 15.2% to $23 billion from the level on Dec. 31, 2024.

Acquisition Update

In the quarter under review, Arthur J. Gallagher closed six acquisitions with estimated annualized revenues of about $3,036 million.

Zacks Rank

AJG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Brown & Brown, Inc.’s BRO third-quarter 2025 adjusted earnings of $1.05 per share beat the Zacks Consensus Estimate by 16.6%. The bottom line increased 15.4% year over year. Total revenues of $1.6 billion beat the Zacks Consensus Estimate by 6.6%. The top line improved 35.4% year over year. 

Adjusted EBITDAC was $587 million, up 41.8% year over year. EBITDAC margin expanded 170 bps year over year to 36.6%. Our estimate for adjusted EBITDAC was $483.7 million.

Willis Towers Watson Public Limited Company WTW delivered third-quarter 2025 adjusted earnings of $3.07 per share, which beat the Zacks Consensus Estimate by 2.3%. The bottom line increased 11% year over year. Willis Towers posted adjusted consolidated revenues of $2.3 billion, which remained unchanged year over year on a reported basis. Revenues increased 5% on an organic basis but declined 1% on a constant currency basis. The top line beat the Zacks Consensus Estimate by 0.5%.

Adjusted EBITDA was $515 million, up 8% year over year. Our estimate was $502.1 million. Adjusted EBITDA margin expanded 160 bps to 22.5%. Our estimate was 22.2%.

Aon plc AON reported third-quarter 2025 adjusted earnings of $3.05 per share, which beat the Zacks Consensus Estimate by 5.5%. The bottom line increased 12% from the year-ago period.

Total revenues rose 7% year over year to $4 billion. The top line surpassed the consensus mark by 1.4%. Organic revenue growth was 7%.

Revenues are still expected to register mid-single-digit or higher organic growth for 2025 and beyond. The company expects the adjusted operating margin to expand in 2025. It also estimates adjusted EPS to witness strong growth this year. Free cash flow is still projected to witness double-digit growth in the long term.

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