Arthur J. Gallagher (NYSE:AJG) is set to give its latest quarterly earnings report on Thursday, 2025-10-30. Here's what investors need to know before the announcement.
Analysts estimate that Arthur J. Gallagher will report an earnings per share (EPS) of $2.53.
Arthur J. Gallagher bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Performance in Previous Earnings
The company's EPS missed by $0.03 in the last quarter, leading to a 1.07% drop in the share price on the following day.
Here's a look at Arthur J. Gallagher's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.36 | 3.58 | 2.03 | 2.27 |
| EPS Actual | 2.33 | 3.67 | 2.13 | 2.26 |
| Price Change % | -1.00 | 4.00 | 1.00 | -2.00 |
Performance of Arthur J. Gallagher Shares
Shares of Arthur J. Gallagher were trading at $267.5 as of October 28. Over the last 52-week period, shares are down 5.51%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Insights Shared by Analysts on Arthur J. Gallagher
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Arthur J. Gallagher.
A total of 10 analyst ratings have been received for Arthur J. Gallagher, with the consensus rating being Outperform. The average one-year price target stands at $342.6, suggesting a potential 28.07% upside.
Analyzing Analyst Ratings Among Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of Aon, Marsh & McLennan Cos and Willis Towers Watson, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Aon, with an average 1-year price target of $420.5, suggesting a potential 57.2% upside.
- Analysts currently favor an Neutral trajectory for Marsh & McLennan Cos, with an average 1-year price target of $221.64, suggesting a potential 17.14% downside.
- Analysts currently favor an Outperform trajectory for Willis Towers Watson, with an average 1-year price target of $377.67, suggesting a potential 41.19% upside.
Key Findings: Peer Analysis Summary
Within the peer analysis summary, vital metrics for Aon, Marsh & McLennan Cos and Willis Towers Watson are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Arthur J. Gallagher | Outperform | 16.05% | $1.37B | 1.61% |
| Aon | Outperform | 10.51% | $1.79B | 7.80% |
| Marsh & McLennan Cos | Neutral | 11.48% | $2.46B | 4.83% |
| Willis Towers Watson | Outperform | -0.18% | $812M | 4.08% |
Key Takeaway:
Arthur J. Gallagher ranks first in revenue growth among its peers. It has the lowest gross profit and return on equity.
Unveiling the Story Behind Arthur J. Gallagher
Founded in 1927 as a one-person agency, Gallagher's primary business is insurance brokerage, with a focus on serving middle-market companies. The company's risk management segment provides third-party claims adjustment to companies that choose to self-insure. Gallagher has about 56,000 employees and generates about a third of its revenue internationally, primarily in Australia, Canada, New Zealand, and the UK
Arthur J. Gallagher: Financial Performance Dissected
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Revenue Growth: Arthur J. Gallagher's remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 16.05%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Arthur J. Gallagher's net margin is impressive, surpassing industry averages. With a net margin of 11.36%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Arthur J. Gallagher's ROE stands out, surpassing industry averages. With an impressive ROE of 1.61%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.47%, the company showcases effective utilization of assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.58.
To track all earnings releases for Arthur J. Gallagher visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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