| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 28 | 39.9x | 17.8x | Bottom tier | |
Growth | 80 | 26.3% | 7.1% | Top tier | |
Quality | 44 | — | — | Around median | |
Safety | 36 | — | — | Bottom tier | |
Capital Return | 41 | 1.12% | 2.12% | Around median | |
Momentum | 53 | -15.6% | 2.9% | Around median | |
Sentiment | 67 | 14 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Arthur J. Gallagher & Co. operates in insurance brokerage and risk management, and achieves growth through two parallel paths: organic expansion and acquisitions. Its brokerage businesses include property and casualty insurance, employee benefits, reinsurance, and specialty markets, while Gallagher Bassett provides claims and risk management services; revenue depends on client retention, winning new business, growth in client exposures, brokerage commissions, and supplemental and contingent revenues.
In the second quarter of fiscal year 2026, revenue according to EDGAR data was approximately $4.0 billion, net income was $324 million, and earnings per share were $1.25. Based on the adjusted earnings reported in the results announcement, earnings per share were $2.84 versus expectations of $2.81, while reported revenue was $3.95 billion versus expectations of $4.01 billion. During the twelve months ended in fiscal year 2026, the company recorded revenue of $15.0 billion, net income of $1.6 billion, and earnings per share of approximately $6.27, compared with revenue of $13.9 billion and net income of $1.5 billion in fiscal year 2025.
Combined revenue from the brokerage and risk management segments grew 24% in the second quarter of fiscal year 2026, including 6% organic growth. Brokerage revenue increased 26%, including 5% organically, while Gallagher Bassett achieved 12% organic growth; the adjusted EBITAC margin for risk management also increased 140 basis points to 22.3%, and brokerage recorded underlying margin expansion of 50 basis points. The same quarter also marked the twenty-fifth consecutive quarter of double-digit adjusted EBITAC growth.
The average analyst price target is $284.5, within a wide range of $225 to $300, compared with the stock's 52-week range of $190.75 to $313.55; the average target is approximately 9% below the top of the annual range. The consensus rating is Buy, but the wide gap between the lowest and highest targets and the absence of an available price-to-earnings ratio reflect meaningful disagreement over the effect of weak property pricing and the pace at which AssuredPartners savings will be realized on fair value.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Combined brokerage and risk management revenue grew 24%, and organic growth was 6% in the second quarter of fiscal year 2026. Brokerage revenue increased 26%, including 5% organically, while Gallagher Bassett recorded 12% organic growth. According to EDGAR data, revenue was approximately $4.0 billion, net income was $324 million, and earnings per share were $1.25, while reported adjusted earnings per share were $2.84.
AssuredPartners generated EBITA of $222 million in the second quarter of fiscal year 2026, consistent with the company's estimates provided in June 2026. Its underlying growth was approximately 4% at the time of the July 30, 2026 call, with client retention remaining strong according to management. The company expects annual run-rate savings of $160 million by the end of 2026, rising to $325 million by early 2028.
Property renewal premiums fell 10% in the second quarter of fiscal year 2026, and management indicated that pricing contributed only approximately one percentage point to organic growth. In contrast, casualty lines increased 3% overall, professional lines 1%, workers' compensation 2%, and personal lines 3%. The company is targeting overall organic growth of 6% in fiscal year 2026, relying to a greater extent on new business, client retention, and exposure growth.
Automated analysis for informational purposes only — not investment advice.
Gallagher Bassett achieved 12% organic growth in the second quarter of fiscal year 2026, driven by new business and strong client retention. The adjusted EBITAC margin increased 140 basis points to 22.3%, and adjusted EBITAC grew 22% as adjusted revenue grew 14%. Management expects a margin above 22% in the third quarter of fiscal year 2026 and for the full fiscal year, benefiting from scale and the use of data and artificial intelligence in claims management.
The company completed seven tuck-in acquisitions in the second quarter of fiscal year 2026 with estimated annual revenue of approximately $63 million. The opportunity pipeline includes more than 30 signed or pending term sheets representing approximately $500 million in annual revenue. It also repurchased approximately 850 thousand shares for $170 million in the second quarter, bringing total repurchases to $480 million through June 30, 2026, but clarified that acquisitions remain the priority for capital deployment.
The first indicator is the company's ability to achieve overall organic growth of 6%, including 5.5% for brokerage and 9% for risk management in fiscal year 2026. The targeted underlying brokerage margin expansion of between 40 and 60 basis points should also be monitored, along with Gallagher Bassett's margin remaining above 22%. Other key factors include targeted AssuredPartners savings at a run rate of $160 million by the end of 2026, as well as the impact of continued declines in property pricing, which reached 10% in second-quarter renewals.
