Arthur J. Gallagher & (AJG) Q2 2025 Earnings
How Did AJG Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +3.54%.
Did AJG Beat Earnings? Q2 2025 Results
No. Arthur J. Gallagher & reported Q2 2025 earnings of $2.33 a share on Jul 31, 2025, missing the $2.36 consensus estimate by 1.2%. Revenue was $3.2B against a $3.2B estimate.
Arthur J. Gallagher came up just short of Wall Street expectations in the second quarter of 2025, with adjusted EPS of $2.33 missing the $2.36 consensus by 1.21% and revenue of $3.18 billion falling 0.71% below the $3.20 billion estimate, though the insurer's top line still grew a robust 14.5% year over year. The shortfall was largely absorbed by a sharp widening in profitability metrics, as net earnings margin expanded 343 basis points to 17.3% and adjusted EBITDAC margin reached 34.5%, marking the company's 21st consecutive quarter of double-digit adjusted EBITDAC growth at 26% year over year. The brokerage segment was the primary engine, generating $2.79 billion in revenue before reimbursements on 5.3% organic growth, with supplemental revenues up 10.5% and contingent revenues rising 16.5%. Shares fell roughly 8% on the headline misses, though analysts see the story improving materially once the pending $13.45 billion AssuredPartners acquisition, expected to close in the third quarter of 2025, begins contributing to results and driving the roughly 21% revenue growth projected for the full year.
- 5.4% organic revenue growth in combined brokerage and risk management segments
- Brokerage organic base commissions and fees grew 4.7%
- Brokerage supplemental revenues grew 10.5% organically
- Brokerage contingent revenues grew 16.5% organically
- Risk Management organic fee growth of 6.2%
- Adjusted EBITDAC margin expanded 307 basis points to 34.5%
- Interest income revenues from AssuredPartners Financing proceeds (approximately $144 million in Q2 Brokerage)
- Headcount controls and savings in real estate expenses from office consolidations
- Lower integration costs year over year
- 21st consecutive quarter of double-digit adjusted EBITDAC growth
“We had a great second quarter. Our core brokerage and risk management segments combined to deliver 16% revenue growth, including organic revenue growth of 5.4%. Our second quarter net earnings margin increased 343 basis points to 17.3%, our adjusted EBITDAC margin increased 307 basis points to 34.5%, and adjusted EBITDAC grew year over year by 26%, the 21st consecutive quarter of double-digit growth.”
Arthur J. Gallagher & CEO, on the earnings call
What Was Arthur J. Gallagher &'s Outlook in Q2 2025?
Management stated it remains well positioned for the remainder of 2025 and beyond. The pending AssuredPartners acquisition for approximately $13.45 billion is expected to close in Q3 2025. The company noted the global P/C insurance market remains rational with property renewal premiums declining 7% and casualty increasing 8%. Gallagher Bassett daily revenue indications and claim counts are not indicating a meaningful change in customers' business activity.
AJG YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $3.2B | $2.8B | +14.5% |
| Net Income | $366.2M | $283.4M | +29.2% |
| Operating Income | $471.4M | $478.7M | −1.5% |
AJG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.