Arthur J. Gallagher & Co. (AJG)
NYSEFinancialsInsurance BrokersSnapshot 2026-07-07
$254.69+1.97%
Close 2026-07-07 · 1-day change
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Track AJG free→Arthur J. Gallagher grows revenue about 15% yearly through organic growth and acquisitions. Profit margins remain strong near 31%. The company completed 33 mergers adding $3.5 billion in annual revenue. Earnings per share beat estimates consistently, showing solid execution.
Growth could slow if integration of acquisitions falters or if profit margins shrink below 30%. Revenue growth below 7% would signal trouble. Rising costs or weaker demand could pressure earnings.
The stock price reflects about 15% premium to our valuation and analysts expect roughly 15% revenue growth. Our view aligns with this growth but we see risk if margins or integration progress weaken.
Breaks if: Integration delays or revenue contribution falls significantly below $3.5B by 2025-Q4
Focus on integrating the AssuredPartners acquisition to realize synergies and enhance service offerings.
Stated in 4 of last 4 quarters. Completed 33 mergers with more than $3.5 billion in estimated annualized revenue in 2025, indicating progress in integrating AssuredPartners. The trajectory shows active integration efforts, aligning with management's stated focus.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“CEO: 'The early days of AssuredPartners professionals joining the Gallagher team is off to a terrific start!'”
“CEO: 'We are making excellent progress on the pending AssuredPartners acquisition and believe we are on track to close here in the third quarter of 2025.'”
“CEO: 'We also completed 11 new mergers in the quarter with approximately $100 million of estimated annualized revenue. And in early April, we completed the acquisition of Woodruff Sawyer, adding more…”
“CEO: 'We also completed 14 new mergers in the quarter with estimated annualized revenues of $410 million.'”
Breaks if: Adjusted EBITDAC margin falls below 28% next year
Continue to focus on maintaining strong adjusted EBITDAC margins through operational efficiencies.
Stated in 5 of last 5 quarters. Adjusted EBITDAC margin was 30.8% in 2025-Q4, showing consistent focus on maintaining strong margins. The trajectory indicates effective cost management and operational efficiencies, aligning with management's priority.
“CEO: 'Adjusted EBITDAC margin was 30.8% and adjusted EBITDAC grew 30%.'”
“CEO: 'Adjusted EBITDAC margin was 32.1%, and adjusted EBITDAC grew 22%.'”
“CEO: 'Our adjusted EBITDAC margin increased 307 basis points to 34.5%, and adjusted EBITDAC grew year over year by 26%.”
“CEO: 'Our adjusted EBITDAC margin increased 338 basis points to 41.1%, and adjusted EBITDAC grew year-over-year by 26%.”
“CEO: 'Adjusted EBITDAC margin was 31.6%.'”
Breaks if: YoY revenue growth falls below ~7% next year
Focus on driving revenue growth through both organic means and mergers and acquisitions.
Stated in 6 of last 6 quarters. Revenue grew from $8,720.6M in 2024-Q3 to $13,778M in 2025-Q4, indicating strong execution of the growth strategy. The trajectory is delivering as management has consistently emphasized organic and M&A growth.
“CEO: 'Our two-pronged revenue growth strategy, that's organic and M&A, drove double-digit top line growth.'”
“CEO: 'Our two-pronged growth strategy – organic and M&A – continues to benefit from our leading niche experts.'”
“CEO: 'Our core brokerage and risk management segments combined to deliver 16% revenue growth, including organic revenue growth of 5.4%.”
“CEO: 'Our core brokerage and risk management segments combined to deliver 14% revenue growth, including organic revenue growth of 9%.”
“CEO: 'During the quarter, our core brokerage and risk management segments combined to deliver 20% growth in revenue, of which 8.1% was organic revenue growth.'”
“CEO: 'For our combined brokerage and risk management segments, total revenues increased 13%, organic revenues increased 6%.”