Arthur J. Gallagher & Co. (AJG) Q4 2025 Financial Results Summary
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Arthur J. Gallagher & Co. (AJG) Q4 2025 Financial Results Summary
Release Date: January 29, 2026
Arthur J. Gallagher & Co. (NYSE: AJG) announced its financial results for the fourth quarter ended December 31, 2025. The following is a summary of the key financial metrics and performance indicators for the quarter as well as the full year comparison:
Fourth Quarter 2025 Highlights:
- Total Revenues:
- Q4 2025: $3,586 million vs. Q4 2024: $2,679 million
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Increase of 33.8%
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Net Earnings:
- Q4 2025: $154 million vs. Q4 2024: $258 million
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Decrease of 40.3%, attributed to nonrecurring costs primarily related to acquisitions.
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EBITDAC (Earnings Before Interest, Taxes, Depreciation, Amortization, Change in estimated acquisition earnout):
- Q4 2025: $710 million vs. Q4 2024: $687 million
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Increase of 3.3%
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Diluted Net Earnings Per Share (EPS):
- Q4 2025: $0.58 vs. Q4 2024: $1.12
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Decrease of 48.2%.
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Net Earnings Margin:
- Q4 2025: 10.0% vs. Q4 2024: 13.8%
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Decrease of 3.8 percentage points.
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EBITDAC Margin:
- Q4 2025: 32.2% vs. Q4 2024: 33.0%
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Decrease of 0.8 percentage points.
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Organic Revenue Growth:
- 5% increase compared to the same quarter in the previous year.
Year Ended December 31, 2025 Highlights:
- Total Revenues:
- 2025: $13,778 million vs. 2024: $11,401 million
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Increase of 20.8%.
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Net Earnings:
- 2025: $1,503 million vs. 2024: $1,471 million
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Increase of 2.2%.
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EBITDAC:
- 2025: $3,678 million vs. 2024: $3,125 million
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Increase of 17.6%.
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Diluted Net Earnings Per Share:
- 2025: $5.74 vs. 2024: $6.50
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Decrease of 11.7%.
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Net Earnings Margin:
- 2025: 10.9% vs. 2024: 12.9%
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Decrease of 2.0 percentage points.
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EBITDAC Margin:
- 2025: 26.7% vs. 2024: 27.1%
- Decrease of 0.4 percentage points.
Shareholder Returns:
- Quarterly Dividend:
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Q4 2025: $0.65 per share declared, an increase of 8.3% from $0.60 per share in Q4 2024.
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Share Repurchase:
- In Q4 2025, Gallagher issued 6,000 shares of common stock in connection with tax-free exchange acquisitions.
Significant Changes in Operations:
- Number of Acquisitions:
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2025 saw the completion of 33 mergers, contributing over $3.5 billion in estimated annualized revenue.
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Reduction in Compensation Expense Ratios:
- The reported compensation expense ratio was 59% for Q4 2025 compared to 56.2% in Q4 2024.
- Adjusted compensation ratios were 53% vs. 52.6% in the previous year.
Economic Context & Forward Outlook:
- Gallagher’s CEO expressed strong confidence in the company’s ability to continue generating momentum into 2026, emphasizing a robust growth strategy that utilizes both organic growth and mergers & acquisitions.
- The company anticipates continued growth and expansion of its operations with a focus on integrating recent acquisitions and optimizing its value creation strategy.
This summary outlines key financial metrics for Arthur J. Gallagher & Co. as they navigate their operational and market challenges while setting a positive outlook for the upcoming fiscal year.
Condensed Consolidated Statements of Income (In millions)
| Segment | 4th Q 25 | 4th Q 24 | 4th Q 25 | 4th Q 24 | 4th Q 25 | 4th Q 24 | 4th Q 25 | 4th Q 24 |
|---|---|---|---|---|---|---|---|---|
| Brokerage, as reported | $3,169 | $2,296 | $317 | $317 | $774 | $661 | $1.21 | $1.37 |
| Net losses (gains) on divestitures | $(20) | 1 | $(15) | 1 | $(20) | 1 | $(0.06) | — |
| Acquisition integration | — | — | 79 | 29 | 106 | 39 | 0.30 | 0.13 |
| Workforce and lease termination | — | — | 80 | 23 | 107 | 31 | 0.31 | 0.10 |
| Acquisition related adjustments | — | — | 30 | 40 | 48 | 29 | 0.12 | 0.17 |
| Amortization of intangible assets | — | — | 223 | 121 | — | — | 0.86 | 0.53 |
| Effective income tax rate impact | — | — | — | 1 | — | — | — | 0.01 |
| Levelized foreign currency translation | — | 30 | — | 5 | — | 8 | — | 0.02 |
| Brokerage, as adjusted | 3,149 | 2,327 | 714 | 537 | 1,015 | 769 | 2.74 | 2.33 |
| Risk Management, as reported | 417 | 369 | 49 | 43 | 84 | 72 | 0.19 | 0.19 |
| Net (gains) on divestitures | $(1) | — | $(1) | — | $(1) | — | — | — |
| Acquisition integration | — | — | 1 | — | 2 | 2 | — | — |
| Workforce and lease termination | — | — | 1 | 3 | 2 | 2 | — | 0.01 |
| Acquisition related adjustments | — | — | 3 | — | 3 | — | 0.01 | — |
| Amortization of intangible assets | — | — | 4 | 3 | — | — | 0.02 | 0.01 |
| Levelized foreign currency translation | — | 3 | — | 1 | — | 1 | — | — |
| Risk Management, as adjusted | 416 | 372 | 58 | 50 | 90 | 77 | 0.22 | 0.21 |
| Corporate, as reported | — | 14 | $(212) | $(102) | $(148) | $(46) | $(0.82) | $(0.44) |
| Total Company, as reported | $3,586 | $2,679 | $154 | $258 | $710 | $687 | $0.58 | $1.12 |
Consolidated Balance Sheet (Unaudited – in millions)
| Dec 31, 2025 | Dec 31, 2024 | |
|---|---|---|
| Cash and cash equivalents | $1,396 | $14,987 |
| Fiduciary assets | 26,899 | 24,712 |
| Accounts receivable, net | 5,175 | 3,896 |
| Other current assets | 886 | 518 |
| Total current assets | 34,356 | 44,113 |
| Fixed assets – net | 789 | 650 |
| Deferred income taxes | 43 | 959 |
| Other noncurrent assets | 1,602 | 1,355 |
| Right-of-use assets | 598 | 378 |
| Goodwill | 22,593 | 12,270 |
| Amortizable intangible assets – net | 10,684 | 4,530 |
| Total assets | $70,665 | $64,255 |
| Fiduciary liabilities | $26,899 | $24,712 |
| Accrued compensation and other | 4,017 | 3,586 |
| current liabilities | — | — |
| Deferred revenue – current | 737 | 537 |
| Premium financing debt | 226 | 225 |
| Corporate related borrowings – current | 640 | 200 |
| Total current liabilities | 32,519 | 29,260 |
| Corporate related borrowings – noncurrent | 12,104 | 12,732 |
| Deferred revenue – noncurrent | 155 | 67 |
| Lease liabilities – noncurrent | 515 | 328 |
| Other noncurrent liabilities | 2,025 | 1,688 |
| Total liabilities | 47,318 | 44,075 |
| Stockholders’ equity: | — | — |
| Common stock – issued and outstanding | 257 | 250 |
| Capital in excess of par value | 17,783 | 16,069 |
| Retained earnings | 5,806 | 4,986 |
| Accumulated other comprehensive loss | (525) | (1,151) |
| Total controlling interests stockholders’ equity | 23,321 | 20,154 |
| Noncontrolling interests | 26 | 26 |
| Total stockholders’ equity | 23,347 | 20,180 |
| Total liabilities and stockholders’ equity | $70,665 | $64,255 |