Arthur J. Gallagher & (US:AJG) ZACKS·2025-10-30 23:31Core Insights - Arthur J. Gallagher (AJG) reported $3.33 billion in revenue for Q3 2025, a year-over-year increase of 21.5%, with EPS of $2.32 compared to $2.26 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate by 3.43%, while the EPS also missed the consensus estimate by 7.57% [1] Financial Performance Metrics - The company’s shares have returned -14.3% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the broader market [3] Revenue Breakdown - Total Company Fees reached $1.06 billion, exceeding the four-analyst average estimate of $1.04 billion, representing an 11.9% year-over-year change [4] - Interest income, premium finance revenues, and other income totaled $167.1 million, below the $215.97 million average estimate, but showing a 23.5% year-over-year increase [4] - Risk Management Segment revenues before reimbursements were $402.1 million, slightly above the $397.89 million average estimate, reflecting an 8.8% year-over-year increase [4] - Total Company Commissions were $1.91 billion, below the three-analyst average estimate of $1.96 billion, with a year-over-year change of 24.1% [4] - Adjusted Brokerage revenues were $2.93 billion, slightly below the three-analyst average estimate of $2.96 billion, with a year-over-year change of 23.5% [4] Expense Ratios - The Brokerage compensation expense ratio was reported at 56.4%, higher than the two-analyst average estimate of 54.5% [4] - The Risk Management Segment's operating expense ratio was 19%, above the estimated 17.9% [4] - The Risk Management Segment's compensation expense ratio was 60.6%, compared to the average estimate of 58.5% [4] - The Brokerage operating expense ratio was 14.8%, exceeding the two-analyst average estimate of 13.8% [4]