We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arthur J. Gallagher (AJG) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
Read MoreHide Full Article
Arthur J. Gallagher (AJG - Free Report) reported $3.18 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 16.2%. EPS of $2.33 for the same period compares to $2.26 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.17 billion, representing a surprise of +0.25%. The company delivered an EPS surprise of -1.27%, with the consensus EPS estimate being $2.36.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arthur J. Gallagher performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Brokerage - Compensation expense ratio: 54.8% versus the two-analyst average estimate of 55.2%.
Risk Management Segment - Operating expense ratio: 18.6% compared to the 18.8% average estimate based on two analysts.
Risk Management Segment - Compensation expense ratio: 62.2% compared to the 57.1% average estimate based on two analysts.
Brokerage - Operating expense ratio: 13.2% compared to the 13.2% average estimate based on two analysts.
Revenues- Total Company- Commissions: $1.81 billion versus $1.87 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.8% change.
Revenues- Total Company- Fees: $962.4 million compared to the $925.39 million average estimate based on four analysts. The reported number represents a change of +16.4% year over year.
Revenues- Total Company- Interest income, premium finance revenues and other income: $232.5 million versus the three-analyst average estimate of $227.37 million.
Revenues- Risk Management Segment- Revenues before reimbursements: $391.9 million versus $387.95 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +9.3% change.
Total revenues- Risk Management: $434.8 million versus the three-analyst average estimate of $440.35 million. The reported number represents a year-over-year change of +9.3%.
Total revenues- Brokerage: $2.79 billion versus $2.79 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +17.2% change.
Revenues- Brokerage Segment- Contingent revenues: $72.7 million versus $65.04 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +21.6% change.
Revenues- Brokerage Segment- Commissions: $1.81 billion versus the two-analyst average estimate of $1.83 billion. The reported number represents a year-over-year change of +8.8%.
Shares of Arthur J. Gallagher have returned -9.5% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Arthur J. Gallagher (AJG) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
Arthur J. Gallagher (AJG - Free Report) reported $3.18 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 16.2%. EPS of $2.33 for the same period compares to $2.26 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.17 billion, representing a surprise of +0.25%. The company delivered an EPS surprise of -1.27%, with the consensus EPS estimate being $2.36.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arthur J. Gallagher performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:View all Key Company Metrics for Arthur J. Gallagher here>>>
Shares of Arthur J. Gallagher have returned -9.5% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.