Arthur J. Gallagher & Co. (AJG) AI Stock Analysis

Arthur J. Gallagher & Co. operates as a global provider of insurance and reinsurance brokerage services, consulting, and third-party property and casualty claims administration. The company conducts business through two main segments: Brokerage and Risk Management. The Brokerage segment offers retail and wholesale insurance brokerage services, managing specialized placements, underwriting distribution, policy issuance, and reinsurance negotiations. The Risk Management segment provides contract claim settlement, claims management, loss control consulting, and property appraisal services. Gallagher serves commercial, industrial, public, religious, and non-profit clients worldwide from its headquarters in Rolling Meadows, Illinois.

Annual revenue grew from $8.21B in FY2021 to $13.94B in FY2025, driven by a 5-year revenue CAGR of 14.8%. In FY2025, revenue increased 20.7%, gross margin reached 54.8%, and operating margin was 18.3%, leading to net income of $1.49B and diluted EPS of $10.70. Free cash flow totaled $1.78B in FY2025 alongside operating cash flow of $1.93B. Over the trailing twelve months, revenue reached $15.11B with an operating margin of 19.2% and net margin of 10.4%. For the latest quarter ended June 30, 2026, revenue rose 30.9% year-over-year, while quarterly earnings declined 10.7%.

As of June 30, 2026, Arthur J. Gallagher & Co. held $1.39B in cash and short-term investments against total debt of $2.02B, resulting in net debt of $631.0M. Total assets stood at $81.81B and shareholders' equity was $23.72B, supported by a debt-to-equity ratio of 0.09 and a current ratio of 1.05. During FY2025, capital expenditures were $145.0M, dividends paid totaled $667.0M, and share issuances generated $1.50B.

At a last close of $254.88, Arthur J. Gallagher & Co. trades at a trailing P/E of 42.3x and a forward P/E of 16.3x, compared to the median of its S&P 500 Financial Services peers of 14.2x and 12.2x, respectively. The company carries an enterprise value of $71.59B and an EV-to-EBITDA multiple of 18.8x, above the peer median of 15.1x. Over the past year, the stock returned -7.9% against a 16.8% return for the S&P 500, while its 5-year return of 64.8% trailed the index return of 83.0%.

Arthur J. Gallagher & Co. pays a quarterly dividend with an annualized forward payout of $2.80, translating to a dividend yield of 1.10% and a payout ratio of 22.9%. The company has paid dividends for 42 consecutive years and achieved a 5-year annualized dividend growth rate of 7.6%. Its last ex-dividend date was September 8, 2026.

Consensus analyst ratings include 12 Strong Buy, 4 Buy, and 7 Hold recommendations, with zero Sell or Strong Sell ratings. The mean price target is $283.33, implying an 11.2% upside from the last close of $254.88. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $16.61B and EPS of $13.10, representing 22.5% earnings growth. The company beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of Arthur J. Gallagher & Co. (AJG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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