Arthur J. Gallagher (AJG) reported $3.33 billion in revenue for the quarter ended September 2025, representing a year-over-year increase of 21.5%. EPS of $2.32 for the same period compares to $2.26 a year ago.
The reported revenue represents a surprise of -3.43% over the Zacks Consensus Estimate of $3.45 billion. With the consensus EPS estimate being $2.51, the EPS surprise was -7.57%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arthur J. Gallagher performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:- Brokerage - Compensation expense ratio: 56.4% versus the two-analyst average estimate of 54.5%.
- Risk Management Segment - Operating expense ratio: 19% versus 17.9% estimated by two analysts on average.
- Risk Management Segment - Compensation expense ratio: 60.6% compared to the 58.5% average estimate based on two analysts.
- Brokerage - Operating expense ratio: 14.8% versus the two-analyst average estimate of 13.8%.
- Revenues- Total Company- Fees: $1.06 billion versus the four-analyst average estimate of $1.04 billion. The reported number represents a year-over-year change of +11.9%.
- Revenues- Total Company- Interest income, premium finance revenues and other income: $167.1 million compared to the $215.97 million average estimate based on three analysts. The reported number represents a change of +23.5% year over year.
- Revenues- Risk Management Segment- Revenues before reimbursements: $402.1 million compared to the $397.89 million average estimate based on three analysts. The reported number represents a change of +8.8% year over year.
- Revenues- Total Company- Commissions: $1.91 billion versus the three-analyst average estimate of $1.96 billion. The reported number represents a year-over-year change of +24.1%.
- Revenues- Brokerage, as adjusted: $2.93 billion versus the three-analyst average estimate of $2.96 billion. The reported number represents a year-over-year change of +23.5%.
- Revenues- Brokerage Segment- Interest income, premium finance revenues and other income: $157.1 million compared to the $200.5 million average estimate based on two analysts. The reported number represents a change of +25.7% year over year.
- Revenues- Risk Management Segment- Fees: $392.5 million compared to the $390.29 million average estimate based on two analysts. The reported number represents a change of +9.1% year over year.
- Revenues- Risk Management Segment- Interest income and other income: $9.6 million versus the two-analyst average estimate of $8.95 million. The reported number represents a year-over-year change of -3%.
View all Key Company Metrics for Arthur J. Gallagher here>>>
Shares of Arthur J. Gallagher have returned -14.3% over the past month versus the Zacks S&P 500 composite's +3.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
