Q2 25 EPS
$2.33
MISS 1.21%
Est. $2.36
Q2 25 Revenue
$3.18B
MISS 0.71%
Est. $3.20B
vs S&P Since Q2 25
-42.3%
TRAILING MARKET
AJG -26.4% vs S&P +15.9%
Market Reaction
Did AJG Beat Earnings? Q2 2025 Results
Arthur J. Gallagher came up just short of Wall Street expectations in the second quarter of 2025, with adjusted EPS of $2.33 missing the $2.36 consensus by 1.21% and revenue of $3.18 billion falling 0.71% below the $3.20 billion estimate, though the … Read more Arthur J. Gallagher came up just short of Wall Street expectations in the second quarter of 2025, with adjusted EPS of $2.33 missing the $2.36 consensus by 1.21% and revenue of $3.18 billion falling 0.71% below the $3.20 billion estimate, though the insurer's top line still grew a robust 14.5% year over year. The shortfall was largely absorbed by a sharp widening in profitability metrics, as net earnings margin expanded 343 basis points to 17.3% and adjusted EBITDAC margin reached 34.5%, marking the company's 21st consecutive quarter of double-digit adjusted EBITDAC growth at 26% year over year. The brokerage segment was the primary engine, generating $2.79 billion in revenue before reimbursements on 5.3% organic growth, with supplemental revenues up 10.5% and contingent revenues rising 16.5%. Shares fell roughly 8% on the headline misses, though analysts see the story improving materially once the pending $13.45 billion AssuredPartners acquisition, expected to close in the third quarter of 2025, begins contributing to results and driving the roughly 21% revenue growth projected for the full year.
Key Takeaways
- • 5.4% organic revenue growth in combined brokerage and risk management segments
- • Brokerage organic base commissions and fees grew 4.7%
- • Brokerage supplemental revenues grew 10.5% organically
- • Brokerage contingent revenues grew 16.5% organically
- • Risk Management organic fee growth of 6.2%
- • Adjusted EBITDAC margin expanded 307 basis points to 34.5%
- • Interest income revenues from AssuredPartners Financing proceeds (approximately $144 million in Q2 Brokerage)
- • Headcount controls and savings in real estate expenses from office consolidations
- • Lower integration costs year over year
- • 21st consecutive quarter of double-digit adjusted EBITDAC growth
AJG YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
AJG Revenue by Segment
With YoY comparisons, source: SEC Filings
“We had a great second quarter. Our core brokerage and risk management segments combined to deliver 16% revenue growth, including organic revenue growth of 5.4%. Our second quarter net earnings margin increased 343 basis points to 17.3%, our adjusted EBITDAC margin increased 307 basis points to 34.5%, and adjusted EBITDAC grew year over year by 26%, the 21st consecutive quarter of double-digit growth.”
— J. Patrick Gallagher, Jr., Q2 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% |