Arthur J. Gallagher & Co. (AJG) reported fourth‑quarter 2025 results on January 29, 2026, with total revenue of $3.63 billion, up 33.6% from $2.68 billion in Q4 2024. The growth was driven by a 5% organic increase in the core brokerage segment and a $417 million contribution from the recently completed AssuredPartners acquisition, which added new clients and cross‑sell opportunities.
Non‑GAAP earnings per share rose to $2.38, beating the consensus estimate of $2.35–$2.37 by $0.01–$0.03. The beat was largely due to disciplined cost management and a favorable mix shift toward higher‑margin brokerage work, offsetting a modest rise in cost of sales that pressured margins. GAAP net income was $151 million, translating to a diluted EPS of $0.58, while non‑GAAP EPS reflected the company’s operating leverage and the impact of one‑time integration costs.
Adjusted EBITDAC margins expanded to 30.8%, a slight improvement over the 30.4% margin reported in Q4 2024. The margin lift was supported by the AssuredPartners integration, which delivered early cost synergies and cross‑sell revenue, and by pricing power in the brokerage segment. However, cost inflation in the risk‑management side and a higher mix of lower‑margin products tempered the margin growth, keeping the expansion modest.
Management highlighted that the AssuredPartners integration is on track to deliver $417 million in incremental revenue and that early synergies are already visible in both cost savings and revenue cross‑sell. CEO J. Patrick Gallagher Jr. emphasized the company’s “two‑pronged growth strategy”—organic expansion and strategic acquisitions—has produced more than 30% revenue growth in the quarter, reinforcing the firm’s competitive moat.
For the full year 2025, AJG reaffirmed a revenue growth target of 21% and an underlying EBITDAC margin expansion of 60–100 basis points, reflecting confidence in continued demand and operational efficiencies. Looking ahead to 2026, the company projected brokerage segment organic growth of about 5.5% and risk‑management segment growth of roughly 7%, signaling sustained momentum in both core areas.
Investors reacted positively to the earnings release, with the EPS beat and strong revenue growth driving a favorable market response. Analysts noted the company’s disciplined cost control and successful integration of AssuredPartners as key factors underpinning the robust results.
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