Q1 25 EPS
$3.67
BEAT +2.52%
Est. $3.58
Q1 25 Revenue
$3.73B
BEAT +0.15%
Est. $3.72B
vs S&P Since Q1 25
-61.0%
TRAILING MARKET
AJG -33.9% vs S&P +27.2%
Market Reaction
Did AJG Beat Earnings? Q1 2025 Results
Arthur J. Gallagher delivered a strong first quarter for 2025, with adjusted EPS of $3.67 beating the $3.58 consensus estimate by 2.52% and revenue of $3.73 billion edging past forecasts by 0.15% on 14.4% year-over-year growth, as CEO J. Patrick Gall… Read more Arthur J. Gallagher delivered a strong first quarter for 2025, with adjusted EPS of $3.67 beating the $3.58 consensus estimate by 2.52% and revenue of $3.73 billion edging past forecasts by 0.15% on 14.4% year-over-year growth, as CEO J. Patrick Gallagher, Jr. Declared the period "fantastic." The primary engine behind the results was a combination of 9% organic revenue growth across the brokerage and risk management segments and $143 million in interest income earned on proceeds from the December 2024 AssuredPartners financing, which helped drive adjusted EBITDAC margin expansion of 338 basis points to 41.1%, marking the company's 20th consecutive quarter of double-digit adjusted EBITDAC growth. The company also completed 11 mergers in the quarter representing roughly $100 million in estimated annualized revenue, and in early April closed the acquisition of Woodruff Sawyer, adding more than $250 million in estimated annual revenue. Looking ahead, management anticipates closing the pending $13.45 billion AssuredPartners acquisition in the second half of 2025, with executives noting no meaningful disruption to client activity from tariffs or geopolitical uncertainty.
Key Takeaways
- • 9% organic revenue growth in combined brokerage and risk management segments
- • Brokerage segment organic change in base commissions and fees of 9.1%
- • Supplemental revenue organic growth of 21.6%
- • Adjusted EBITDAC margin expansion of 338 basis points to 41.1%
- • Interest income of approximately $143 million from AssuredPartners financing proceeds
- • Savings from headcount controls and office consolidations
- • Lower travel and entertainment and technology costs
- • Casualty renewal premium increases of 8%
AJG YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
AJG Revenue by Segment
With YoY comparisons, source: SEC Filings
“We had a fantastic first quarter. Our core brokerage and risk management segments combined to deliver 14% revenue growth, including organic revenue growth of 9%. Our first quarter net earnings margin increased 175 basis points to 23.0%, our adjusted EBITDAC margin increased 338 basis points to 41.1%, and adjusted EBITDAC grew year-over-year by 26%, the 20th consecutive quarter of double-digit growth.”
— J. Patrick Gallagher, Jr., Q1 2025 Earnings Press Release
AJG Earnings Trends
AJG vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
AJG EPS Trend
Earnings per share: estimate vs actual
AJG Revenue Trend
Quarterly revenue: estimate vs actual
AJG Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $4.47 | — | $4.76B | -0.18% |
| Q4 25 BEAT FY | $2.35 | $2.38 | +1.28% | $3.59B | +4.83% |
| FY Full Year | $10.70 | $10.69 | -0.06% | $13.78B | +0.31% |
| Q3 25 MISS | $2.54 | $2.32 | -8.54% | $3.33B | -3.92% |
| Q2 25 MISS | $2.36 | $2.33 | -1.21% | $3.18B | -0.71% |
| Q1 25 BEAT | $3.58 | $3.67 | +2.52% | $3.73B | +0.15% |