Arthur J. Gallagher Reports Strong Q4 2025 Earnings with 30% Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Significant Revenue Growth: Arthur J. Gallagher achieved over 30% revenue growth in Q4 2025, with organic growth at 5%, indicating the success of its dual strategy of M&A and organic growth, thereby enhancing its competitive position in the market.
- Strong Adjusted EBITDAC Performance: The company reported a 30% increase in adjusted EBITDAC, marking the 23rd consecutive quarter of double-digit growth, demonstrating sustained profitability and operational efficiency, which further solidifies investor confidence.
- Active M&A Activity: In 2025, the company completed seven new mergers, representing an estimated annualized revenue of $145 million, bringing total annualized acquired revenue to over $3.5 billion, indicating a proactive approach to expanding market share.
- Optimistic Future Outlook: Management anticipates a 5.5% organic growth in the Brokerage segment and a 7% organic growth in Risk Management for 2026, reflecting the company's confidence in future growth and its keen understanding of market demand.
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Analyst Views on AJG
Wall Street analysts forecast AJG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AJG is 288.18 USD with a low forecast of 247.00 USD and a high forecast of 334.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
5 Buy
6 Hold
1 Sell
Moderate Buy
Current: 242.370
Low
247.00
Averages
288.18
High
334.00
Current: 242.370
Low
247.00
Averages
288.18
High
334.00
About AJG
Arthur J. Gallagher & Co. is a global insurance brokerage, risk management and consulting services company. The Company’s segments include brokerage, risk management and corporate. The brokerage segment operations provide brokerage and consulting services to entities of all types, including commercial, nonprofit, public sector entities, insurance companies and insurance capital providers, and to a lesser extent, individuals, in the areas of insurance and reinsurance placements, risk of loss management, and management of employer- sponsored benefit programs. The risk management segment operations provide contract claim settlement, claim administration, loss control services and risk management consulting for commercial, non-profit, captive and public sector entities, and various other organizations that choose to self-insure property/casualty coverage or choose to use a third party claims management organization rather than the claim services provided by an underwriting enterprise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Arthur J. Gallagher Reports Strong Q4 2025 Earnings with 30% Revenue Growth
- Significant Revenue Growth: Arthur J. Gallagher achieved over 30% revenue growth in Q4 2025, with organic growth at 5%, indicating the success of its dual strategy of M&A and organic growth, thereby enhancing its competitive position in the market.
- Strong Adjusted EBITDAC Performance: The company reported a 30% increase in adjusted EBITDAC, marking the 23rd consecutive quarter of double-digit growth, demonstrating sustained profitability and operational efficiency, which further solidifies investor confidence.
- Active M&A Activity: In 2025, the company completed seven new mergers, representing an estimated annualized revenue of $145 million, bringing total annualized acquired revenue to over $3.5 billion, indicating a proactive approach to expanding market share.
- Optimistic Future Outlook: Management anticipates a 5.5% organic growth in the Brokerage segment and a 7% organic growth in Risk Management for 2026, reflecting the company's confidence in future growth and its keen understanding of market demand.
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Arthur J. Gallagher & Co. Reports Strong Q4 and FY-2025 Results
- Strong Financial Performance: Arthur J. Gallagher & Co. reported over 30% revenue growth and 30% adjusted EBITDA growth in Q4 2025, including approximately 5% organic growth, marking the 23rd consecutive quarter of double-digit adjusted EBITDA growth, demonstrating robust business resilience.
- Successful Integration of Acquisitions: The integration of AssuredPartners and the rebranding of U.S. retail operations are ahead of schedule, with management expecting annualized run-rate synergies of $160 million by the end of 2026, rising to $260 million to $280 million by early 2028, enhancing competitive positioning.
- Robust M&A Pipeline: The firm closed seven deals in Q4, adding over $3.5 billion of annualized acquired revenue, with around 40 term sheets in negotiation, indicating nearly $10 billion available for M&A over the next two years, showcasing the company's active market engagement and expansion potential.
- Market Environment Analysis: Despite a soft property market, casualty pricing is expected to grow by 7% to 8%, driven by loss cost concerns and reserving uncertainties, with management maintaining an optimistic outlook for future market conditions, which is likely to continue supporting the company's growth.
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