Arthur J. Gallagher Q3 Earnings & Revenues Miss Estimates, Rise Y/Y

Core Insights - Arthur J. Gallagher & Co. (AJG) reported third-quarter 2025 adjusted net earnings of $2.32 per share, missing the Zacks Consensus Estimate by 7.6%, but showing a year-over-year increase of 2.7% [1][7] - The company achieved total revenues of $3.3 billion, reflecting a 21.5% year-over-year growth, although it fell short of the Zacks Consensus Estimate by 3.4% [2][7] - This quarter marked the 19th consecutive quarter of double-digit top-line growth for the company [7] Operational Update - Total revenues increased to $3.3 billion, up 21.5% year over year, driven by higher commissions, fees, and interest income [2] - Total expenses rose by 25.6% year over year to $3 billion, attributed to increased compensation and reimbursements [2] Earnings Performance - Adjusted EBITDAC grew by 22% year over year to $981.6 million, with an adjusted EBITDAC margin of 32.1% [3] - In the Brokerage segment, revenues reached $2.9 billion, a 22.7% increase year over year, although it missed the Zacks Consensus Estimate by 1.1% [4] - Risk Management revenues increased by 9.1% year over year to $401.9 million, surpassing the Zacks Consensus Estimate by 0.8% [5] Financial Update - As of September 30, 2025, total assets were $79.1 billion, up 23.1% from the end of 2024 [6] - Cash and cash equivalents decreased by 91% to $1.4 billion compared to the end of 2024 [6] - Shareholders' equity increased by 15.2% to $23 billion from December 31, 2024 [6] Acquisition Update - During the quarter, Arthur J. Gallagher completed six acquisitions with estimated annualized revenues of approximately $3,036 million [8] Industry Performance - Brown & Brown, Inc. reported third-quarter 2025 adjusted earnings of $1.05 per share, beating estimates by 16.6% with total revenues of $1.6 billion, up 35.4% year over year [10] - Willis Towers Watson Public Limited Company delivered adjusted earnings of $3.07 per share, beating estimates by 2.3%, with revenues of $2.3 billion remaining unchanged year over year [11] - Aon plc reported adjusted earnings of $3.05 per share, exceeding estimates by 5.5%, with total revenues rising 7% year over year to $4 billion [12] Future Outlook - The company anticipates mid-single-digit or higher organic growth for 2025 and beyond, with expectations for adjusted operating margin expansion and strong growth in adjusted EPS [13]