Arthur J. Gallagher & Co. (AJG) Stock

Arthur J. Gallagher & Co. (AJG) is a Financials stock trading at $264.52 (as of 2026-09-02), with a market capitalization of $67.96B and a trailing P/E of 43.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Arthur J. Gallagher & Co. provides insurance brokerage, consulting, third-party claims settlement, and administration services, operating through Brokerage and Risk Management segments. Its services support commercial businesses, not-for-profit and public entities, and individuals, across multiple countries including the U.S., Australia, Canada, the U.K., and others.

Understand Arthur J. Gallagher & Co.: how it makes money

Gallagher is a global insurance broker that intermediates hard-to-place policies for corporations and individuals, earning a commission on every premium placed. Brokerage generates the overwhelming majority of revenue, with Risk Management a smaller consultative layer; a substantial share of revenue growth is fueled by bolt-on M&A.

Gallagher earns a fixed commission percentage on every premium it places, so profit scales linearly with the premium book; the compounding loop is buy a regional broker, add their recurring commission stream, and redeploy that cash to fund the next deal.

Revenue by segment (latest quarter)
Brokerage$3.9B
Risk Management$0.4B
Other$0.5B

Business quality (Mixed): Growth is real (24% revenue, 10% operating margin) but the 31x multiple already prices in years of mid-teens earnings expansion, leaving limited cushion if M&A pacing or property pricing disappoints.

Valuation: At 31× earnings, AJG trades 139% above the Insurance average (13×).

Bull case

  • Synergy target now quantified: Management guided Assured Partners synergies to $160 million by year-end 2026, converting a completed acquisition into near-term EPS accretion rather than a distant promise.
  • Reinsurance growth is volume-led: Management noted reinsurance growth is primarily driven by new business rather than pricing, meaning premium volume is expanding even as the broader pricing environment cools, supporting the commission base independent of rate cycles.
  • Top-line momentum at scale: Quarterly revenue reached $4.0 billion, up 24% year over year, confirming the brokerage flywheel is still accelerating across the full global client base.

Bear case

  • Property-cat rates rolling over: Management flagged that property pricing is easing, particularly for larger catastrophe-exposed risks, and abundant reinsurance capacity is driving further category price declines, compressing the premium base from which Gallagher extracts its commission.
  • Deal pipeline is cooling: Acquisition activity is running below historical levels as sellers adjust to lower valuations, which could slow the inorganic growth engine that has powered the company's market-share expansion.
  • Multiple leaves little margin for error: The stock trades at 31.2x earnings versus an insurance-industry average of 13x (139% above), so any growth deceleration or missed synergy target hits both the earnings line and the multiple simultaneously.
Valuation — source: SEC EDGAR (first-party)
Price$264.52
Market Cap$67.96B
P/E Ratio43.4
EV / EBITDA25.8
Price / Book2.86
Price / Sales4.31
DCF Value (model)$70.61
DCF Upside vs Price-73.3%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$13.94B
Net Margin10.7%
Revenue Growth (YoY)24.3%
EPS Growth (YoY)-11.9%
Financial Health — source: SEC EDGAR
Altman Z-Score1.28 (distress)
Valuation vs Sector & Industry
Stock P/E43.4
Sector P/E (Financials)14.9
Industry P/E (Insurance)12.1
vs Sector191.1%
vs Industry257.5%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($8.12B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorFinancials
IndustryInsurance
CEOJ. Patrick Gallagher Jr.
Employees53,714
CountryUS
IPO Date1984-06-20

Arthur J. Gallagher & Co. earnings call transcripts

  • AJG Q2 FY26 earnings call transcript (reported 2026-07-30) · analysis
  • AJG Q4 FY25 earnings call transcript (reported 2026-01-29) · analysis
  • AJG Q1 FY24 earnings call transcript (reported 2024-04-25) · analysis

All AJG earnings calls

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AJG earnings history · AJG institutional & insider holders · AJG KPIs & operating metrics · AJG financials · AJG investor presentations & press releases · AJG SEC filings · AJG peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.