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With a market cap of $79.3 billion, Arthur J. Gallagher & Co. (AJG) is a leading global insurance brokerage, risk management, and consulting firm. The company provides customized insurance, reinsurance, and employee benefits solutions through its Brokerage and Risk Management segments, serving clients across commercial, industrial, public, and nonprofit sectors worldwide.
The Rolling Meadows, Illinois-based company is expected to release its fiscal Q3 2025 results soon. Ahead of this event, analysts predict AJG to report an adjusted EPS of $2.46, up 8.9% from $2.26 in the prior year's quarter. It has surpassed or met Wall Street's bottom-line estimates in three of the past four quarters while missing on another occasion.
For fiscal 2025, analysts forecast the insurance and risk-management company to post adjusted EPS of $11.03, reflecting a 9.3% increase from $10.09 in fiscal 2024. Looking ahead, adjusted EPS is projected to grow 23.1% year-over-year to $13.58 in fiscal 2026.
Shares of Arthur J. Gallagher have risen 6.7% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 17.2% gain and the Financial Select Sector SPDR Fund's (XLF) 17.6% return over the period.
Despite reporting better-than-expected Q2 2025 adjusted revenue of $3.18 billion on Jul. 31, Arthur J. Gallagher’s shares fell 1.1% the next day because its adjusted EPS of $2.33 missed analysts’ expectations. Investors were also cautious about the 14.1% rise in total expenses to $2.7 billion.
Analysts' consensus view on AJG stock is cautiously optimistic, with an overall "Moderate Buy" rating. Among 21 analysts covering the stock, 11 recommend "Strong Buy," nine suggest "Hold," and one indicates “Strong Sell.” This configuration is more bullish than three months ago, with nine analysts suggesting a "Strong Buy."
The average analyst price target for Arthur J. Gallagher is $339.62, indicating a potential upside of 9.9% from the current levels.
