Arthur J. Gallagher & Company

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.