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With a market cap of $83.3 billion, Arthur J. Gallagher & Co. (AJG) provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. Founded in 1927, the Rolling Meadows, Illinois-based company operates in Brokerage and Risk Management segments.
The company is expected to report its Q1 earnings on Thursday, Apr. 24. Ahead of the event, analysts expect AJG to report an EPS of $3.53 per share, up 1.2% from $3.49 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in three of the past four quarters, while successfully meeting in one quarter. Its adjusted EPS of $2.13 in the recent quarter surpassed analysts’ expectations by 5.5%, driven by a solid performance of its brokerage and risk management segments.
For fiscal 2025, analysts expect AJG to report an adjusted EPS of $11.21, up 11.1% from $10.09 in fiscal 2024. In fiscal 2026, its adjusted EPS is expected to grow 19.5% year-over-year to $13.39.
Over the past year, AJG shares have surged 35.7%, outperforming the S&P 500 Index’s ($SPX) 2.1% gains and the Financial Select Sector SPDR Fund’s (XLF) 12.3% surge over the same time frame.
AJG shares rose 1.7% following its Q4 earnings release on Jan. 30. The company’s total revenue grew 14% year-over-year to $11.4 billion, beating the Wall Street estimates. Additionally, its net earnings amounted to $258.2 million for the quarter, increasing from a net loss of $39.6 in the previous year’s quarter.
The consensus opinion on AJG stock is reasonably optimistic, with an overall “Moderate Buy” rating. Out of the 19 analysts covering the stock, nine recommend a “Strong Buy,” one suggests a “Moderate Buy,” eight suggest a “Hold” rating, and one suggests a “Strong Sell” rating. Its mean price target of $335.75 indicates a 3.1% upside potential from current price levels.
