Arthur J. Gallagher & Co.AJG
NYSE•Financial Services•Insurance Brokers
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. The company operates in Brokerage and Risk Management segments. Its Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises. This segment performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers services in the areas of insurance and reinsurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent brokers and consultants. It serves commercial, industrial, public, religious, and nonprofit entities, as well as underwriting enterprises. The company was founded in 1927 and is headquartered in Rolling Meadows, Illinois.
Arthur J. Gallagher & Co. (AJG) reported trailing twelve months revenue of $14.97B as of March 2026, a 24.5% increase year-over-year. Quarterly revenue reached $4.76B, reflecting continued top-line momentum.
Arthur J. Gallagher & Co. generated $1.61B in TTM net income, with quarterly EBITDA of $1.10B. The operating margin contracted from 23.4% to 21.9%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (21.9%) and net margin (17.3%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 18.9% a year ago, reflecting increased costs or interest expense.
AJG trades at a P/E of 34.5x (a premium multiple) and a P/S of 3.7x. The price-to-book ratio of 2.3x reflects a moderate premium to book value.
The company generated $921.00M in free cash flow over the trailing twelve months, a 9.2% increase year-over-year, indicating cash generation ability. The balance sheet shows $78.30B in total assets with $12.08B in long-term debt against $23.77B in stockholders equity for a debt-to-equity ratio of 0.5. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~14.4% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~7.6% on average, adequate but below the threshold typically associated with wide moats.
7 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~36.7% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 18.0% — watch for continued compression, which may signal competitive or cost pressure.
FCF covers net income by 1.8x on average — earnings are well-supported by cash generation.
D/E ratio is 0.5 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding increased 17.5% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation