Revenue growth accelerated to 27.6% in 2026Q1, supported by a robust underwriting efficiency reflected in a 74.4% combined ratio.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 14.97B | 13.94B | 11.55B | 10.07B | 8.55B | 8.21B | 7.01B | 7.12B | 6.92B | 6.25B | 5.68B | 5.39B | 4.63B | 3.18B | 2.52B | 2.13B | 1.86B | 1.73B | 1.65B | 1.62B | 1.47B | 1.43B | 1.44B | 1.22B | 1.06B | 888M | 800.58M | 713.53M | 582.77M | 524.6M | 449.7M |
| Revenue Growth % | 24.5% | 20.66% | 14.72% | 17.79% | 4.16% | 17.12% | -1.55% | 2.83% | 10.86% | 9.95% | 5.34% | 16.55% | 45.51% | 26.16% | 18.06% | 14.51% | 7.8% | 5.12% | 1.34% | 10.42% | 2.88% | -0.56% | 17.68% | 15.17% | 19.4% | 10.92% | 12.2% | 22.44% | 11.09% | 16.66% | 6.06% |
| Medical Costs & Claims | 5.09B | 6.31B | 6.68B | 5.83B | 4.95B | 5.23B | 4.5B | 4.83B | 4.98B | 4.52B | 4.08B | 3.78B | 3.23B | 2.12B | 1.6B | 1.36B | 1.18B | 1.07B | 381.2M | 437M | 416.3M | 473.4M | 267.9M | 251.8M | 230.4M | 197.5M | 232.07M | 220.82M | 184.91M | 256M | 146.4M |
| Medical Cost Ratio % | 34.01% | 45.25% | 57.78% | 57.85% | 57.93% | 63.75% | 64.2% | 67.85% | 71.98% | 72.36% | 71.79% | 70.11% | 69.74% | 66.75% | 63.68% | 63.62% | 63.38% | 61.8% | 23.17% | 26.92% | 28.32% | 33.13% | 18.64% | 20.62% | 21.73% | 22.24% | 28.99% | 30.95% | 31.73% | 48.8% | 32.56% |
| Gross Profit | 9.88B | 7.63B | 4.88B | 4.25B | 3.6B | 2.98B | 2.51B | 2.29B | 1.94B | 1.73B | 1.6B | 1.61B | 1.4B | 1.06B | 915.3M | 776.6M | 682.7M | 660.6M | 1.26B | 1.19B | 1.05B | 955.5M | 1.17B | 969.3M | 829.9M | 690.5M | 568.51M | 492.71M | 397.86M | 268.6M | 303.3M |
| Gross Margin % | 65.99% | 54.75% | 42.22% | 42.15% | 42.07% | 36.25% | 35.8% | 32.15% | 28.02% | 27.64% | 28.21% | 29.89% | 30.26% | 33.25% | 36.32% | 36.38% | 36.62% | 38.2% | 76.83% | 73.08% | 71.68% | 66.87% | 81.36% | 79.38% | 78.27% | 77.76% | 71.01% | 69.05% | 68.27% | 51.2% | 67.44% |
| Gross Profit Growth % | - | 56.47% | 14.91% | 18.01% | 20.89% | 18.6% | 9.63% | 17.99% | 12.37% | 7.72% | -0.58% | 15.14% | 32.41% | 15.51% | 17.86% | 13.75% | 3.35% | -47.73% | 6.53% | 12.57% | 10.29% | -18.27% | 20.61% | 16.8% | 20.19% | 21.46% | 15.38% | 23.84% | 48.12% | -11.44% | 3.66% |
| Operating Expenses | 7.16B | 5.08B | 2.6B | 2.39B | 1.93B | 1.64B | 1.47B | 1.54B | 1.32B | 1.21B | 1.13B | 1.17B | 1B | 714.5M | 623.6M | 534.2M | 447.7M | 416.9M | 1.07B | 970.2M | 890.8M | 800M | 922.3M | 768.5M | 634.9M | 538.2M | 434.77M | 365.69M | 331.8M | 183M | 260.4M |
| OpEx / Revenue % | 47.83% | 36.47% | 22.47% | 23.69% | 22.58% | 19.96% | 20.96% | 21.67% | 19.1% | 19.45% | 19.84% | 21.79% | 21.66% | 22.47% | 24.74% | 25.02% | 24.02% | 24.11% | 65.14% | 59.77% | 60.59% | 55.99% | 64.18% | 62.94% | 59.88% | 60.61% | 54.31% | 51.25% | 56.94% | 34.88% | 57.91% |
| Depreciation & Amortization | 1.21B | 1.12B | 842.3M | 696.5M | 599.6M | 566.3M | 562.4M | 474.4M | 419M | 385.8M | 350.8M | 334.2M | 258.9M | 178.6M | 140.4M | 115.2M | 93.1M | 85.6M | 73.7M | 65.3M | 60.7M | 56.6M | 63.3M | 48.7M | 35.8M | 23.15M | 19.43M | 17.68M | 13.39M | 11.6M | 10.7M |
| Combined Ratio % | 81.83% | 81.72% | 80.25% | 81.54% | 80.51% | 83.71% | 85.16% | 89.52% | 91.09% | 91.81% | 91.63% | 91.89% | 91.4% | 89.22% | 88.43% | 88.64% | 87.39% | 85.91% | 88.32% | 86.69% | 88.91% | 89.12% | 82.83% | 83.56% | 81.61% | 82.85% | 83.29% | 82.2% | 88.67% | 83.68% | 90.46% |
| Operating Income | 2.72B | 2.55B | 2.28B | 1.86B | 1.67B | 1.34B | 1.04B | 745.9M | 617.2M | 511.4M | 475.5M | 437.1M | 398M | 342.8M | 291.7M | 242.4M | 235M | 243.7M | 192.2M | 216.1M | 163M | 155.5M | 246.8M | 200.8M | 195M | 152.3M | 133.74M | 127.02M | 66.05M | 85.6M | 42.9M |
| Operating Margin % | 18.17% | 18.28% | 19.75% | 18.46% | 19.49% | 16.29% | 14.84% | 10.48% | 8.91% | 8.19% | 8.37% | 8.11% | 8.6% | 10.78% | 11.57% | 11.36% | 12.61% | 14.09% | 11.68% | 13.31% | 11.09% | 10.88% | 17.17% | 16.44% | 18.39% | 17.15% | 16.71% | 17.8% | 11.33% | 16.32% | 9.54% |
| Operating Income Growth % | - | 11.69% | 22.75% | 11.53% | 24.67% | 28.53% | 39.46% | 20.85% | 20.69% | 7.55% | 8.79% | 9.82% | 16.1% | 17.52% | 20.34% | 3.15% | -3.57% | 26.8% | -11.06% | 32.58% | 4.82% | -36.99% | 22.91% | 2.97% | 28.04% | 13.88% | 5.29% | 92.3% | -22.83% | 99.53% | -7.54% |
| EBITDA | 3.93B | 3.67B | 3.12B | 2.56B | 2.27B | 1.9B | 1.6B | 1.22B | 1.04B | 897.2M | 826.3M | 771.3M | 656.9M | 521.4M | 432.1M | 357.6M | 328.1M | 329.3M | 265.9M | 281.4M | 223.7M | 212.1M | 310.1M | 249.5M | 230.8M | 175.45M | 153.16M | 144.7M | 79.45M | 97.2M | 53.6M |
| EBITDA Margin % | 26.24% | 26.33% | 27.04% | 25.37% | 26.51% | 23.18% | 22.86% | 17.14% | 14.97% | 14.37% | 14.55% | 14.3% | 14.2% | 16.4% | 17.14% | 16.75% | 17.6% | 19.04% | 16.16% | 17.34% | 15.22% | 14.84% | 21.58% | 20.43% | 21.77% | 19.76% | 19.13% | 20.28% | 13.63% | 18.53% | 11.92% |
| Interest Expense | 638.4M | 638.8M | 381.3M | 296.7M | 256.9M | 226.1M | 196.4M | 179.8M | 138.4M | 124.1M | 109.8M | 103M | 89M | 50.1M | 43M | 40.8M | 34.6M | 28.5M | 28.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Operating Income | 40.3M | 10.2M | 26M | 377.3M | 83M | 135.8M | -27.1M | -60M | -600K | 27.5M | 32.1M | 40.6M | 17.5M | 1.7M | 3.4M | -6.2M | -2.6M | 4.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 2.04B | 1.87B | 1.87B | 1.19B | 1.33B | 975.1M | 870.9M | 626.1M | 479.4M | 359.8M | 333.6M | 293.5M | 291.5M | 291M | 245.3M | 207.8M | 203M | 211.1M | 163.6M | 200.1M | 154.5M | 12.9M | 237.3M | 192.8M | 185.5M | 141.8M | 133.74M | 127.02M | 86.99M | 85.7M | 67M |
| Pretax Margin % | 13.63% | 13.42% | 16.23% | 11.77% | 15.52% | 11.88% | 12.42% | 8.79% | 6.92% | 5.76% | 5.87% | 5.44% | 6.3% | 9.15% | 9.73% | 9.73% | 10.89% | 12.21% | 9.95% | 12.33% | 10.51% | 0.9% | 16.51% | 15.79% | 17.5% | 15.97% | 16.71% | 17.8% | 14.93% | 16.34% | 14.9% |
| Income Tax | 424.5M | 368.3M | 404.4M | 219.1M | 211M | 20.1M | 12.8M | -89.7M | -196.5M | -157.1M | -96.7M | -95.6M | -36M | 6.4M | 50.3M | 63.7M | 39.7M | 78M | 52.2M | 45.5M | 26.1M | -26.2M | 47.8M | 46.9M | 55.6M | 16.5M | 40.78M | 43.78M | 28.31M | 28.1M | 22.8M |
| Effective Tax Rate % | 20.8% | 19.68% | 21.57% | 18.49% | 15.9% | 2.06% | 1.47% | -14.33% | -40.99% | -43.66% | -28.99% | -32.57% | -12.35% | 2.2% | 20.51% | 30.65% | 19.56% | 36.95% | 31.91% | 22.74% | 16.89% | -203.1% | 20.14% | 24.33% | 29.97% | 11.64% | 30.5% | 34.47% | 32.54% | 32.79% | 34.03% |
| Net Income | 1.61B | 1.49B | 1.46B | 969.5M | 1.11B | 906.8M | 818.8M | 668.8M | 633.5M | 481.3M | 396.8M | 356.8M | 303.4M | 268.6M | 195M | 144.1M | 174.1M | 128.6M | 77.3M | 138.8M | 128.5M | 30.8M | 188.5M | 146.2M | 129.9M | 125.3M | 92.95M | 83.24M | 58.68M | 57.6M | 44.2M |
| Net Margin % | 10.76% | 10.72% | 12.66% | 9.63% | 13.03% | 11.05% | 11.68% | 9.39% | 9.15% | 7.71% | 6.99% | 6.62% | 6.56% | 8.45% | 7.74% | 6.75% | 9.34% | 7.44% | 4.7% | 8.55% | 8.74% | 2.16% | 13.12% | 11.97% | 12.25% | 14.11% | 11.61% | 11.67% | 10.07% | 10.98% | 9.83% |
| Net Income Growth % | 3.39% | 2.13% | 50.87% | -12.99% | 22.87% | 10.75% | 22.43% | 5.57% | 31.62% | 21.3% | 11.21% | 17.6% | 12.96% | 37.74% | 35.32% | -17.23% | 35.38% | 66.36% | -44.31% | 8.02% | 317.21% | -83.66% | 28.93% | 12.55% | 3.67% | 34.8% | 11.67% | 41.85% | 1.88% | 30.32% | 4.25% |
| EPS (Diluted) | 6.20 | 5.75 | 6.53 | 4.42 | 5.19 | 4.37 | 4.20 | 3.52 | 3.40 | 2.54 | 2.32 | 2.06 | 1.97 | 2.06 | 1.59 | 1.28 | 1.61 | 1.28 | 0.82 | 1.43 | 1.31 | 0.32 | 1.99 | 1.57 | 1.41 | 1.39 | 1.04 | 0.87 | 0.77 | 0.80 | 0.64 |
| EPS Growth % | -4.77% | -11.94% | 47.74% | -14.84% | 18.76% | 4.05% | 19.32% | 3.53% | 33.86% | 9.48% | 12.62% | 4.57% | -4.37% | 29.56% | 24.22% | -20.5% | 25.78% | 56.1% | -42.66% | 9.16% | 309.38% | -83.92% | 26.75% | 11.35% | 1.44% | 33.65% | 19.54% | 12.99% | -3.75% | 25% | 4.92% |
| EPS (Basic) | - | 5.83 | 6.63 | 4.51 | 5.30 | 4.47 | 4.29 | 3.60 | 3.47 | 2.57 | 2.33 | 2.07 | 1.97 | 2.08 | 1.61 | 1.28 | 1.61 | 1.28 | 0.83 | 1.45 | 1.32 | 0.32 | 2.05 | 1.62 | 1.47 | 1.47 | 1.11 | 0.92 | 0.81 | 0.80 | 0.64 |
| Diluted Shares Outstanding | 259.82M | 260.34M | 223.9M | 219.3M | 214.7M | 207.3M | 195M | 190.1M | 186.16M | 182.12M | 178.39M | 173.22M | 154.26M | 130.47M | 122.48M | 112.47M | 108.4M | 100.63M | 94.27M | 97.06M | 98.09M | 96.1M | 94.5M | 93.12M | 92.13M | 90.14M | 89.38M | 95.68M | 76.21M | 72M | 69.06M |
Integration and wage inflation
As reported in recent financial statements, AJG achieved a significant revenue growth rate of 27.6% in 2026Q1, suggesting that the firm's aggressive acquisition strategy and middle-market focus are successfully capturing market share despite broader economic headwinds that have historically pressured insurance brokerage top-line performance across the industry.
The acceleration in revenue growth appears to be driven by both organic expansion and the successful integration of larger-scale acquisitions like the Willis Re assets. Investors should monitor whether this growth trajectory remains sustainable as the firm moves further into the more volatile reinsurance brokerage space.
Based on reported figures, AJG maintained a combined ratio of 74.4% in 2026Q1, which indicates robust underwriting profitability and suggests that the firm's decentralized branch structure effectively manages operational costs even as the company scales its global footprint through high-frequency M&A activity in the current market.
The significant improvement in the combined ratio compared to the 90.6% reported in 2025Q4 suggests that the company is successfully leveraging its scale to drive margin expansion. This performance warrants further investigation into whether these efficiencies are structural or if they are being temporarily bolstered by favorable seasonal commission timing.
According to recent SEC filings, the company's transition into the reinsurance brokerage space represents a material inflection point, evidenced by the 2026Q1 net income of $822.0M, which suggests that the firm is successfully diversifying its revenue base beyond its traditional middle-market brokerage and risk management segments.
This shift into reinsurance introduces a higher degree of volatility compared to the firm's historical focus on middle-market accounts. Analysts should evaluate whether the current profitability levels can be maintained if the reinsurance market experiences a cyclical downturn or increased pricing pressure from global competitors.
Financial data reveals significant quarterly fluctuations in net income, such as the $32.2M loss in 2023Q4 followed by strong recovery, which suggests that AJG's reliance on acquisition-related accounting adjustments may mask the underlying operational performance and create potential risks for investors relying on headline earnings metrics.
The volatility in EPS, ranging from a loss of $0.15 to a high of $3.16 over the observed period, indicates that integration costs and earn-out payables remain a primary source of earnings noise. Investors should remain cautious regarding the sustainability of these margins until the firm demonstrates consistent, non-acquisition-driven profitability.
Quick answers to the most common questions about buying AJG stock.
For fiscal year 2025, Arthur J. Gallagher & Co. (AJG) reported total revenue of $13.94B. This represents a 3000.2% increase compared to $449.7M in 1996.
Arthur J. Gallagher & Co. (AJG) is profitable, generating $1.49B in net income for the fiscal year ending 2025 with a net profit margin of 10.7%.
Arthur J. Gallagher & Co. (AJG) reported an operating income of $2.55B, resulting in an operating profit margin of 18.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Arthur J. Gallagher & Co. (AJG) generated $7.63B in gross profit for the year, representing a gross profit margin of 54.8%. This demonstrates the company's core pricing power and production efficiency.