Arthur J. Gallagher & Co (NYSE:AJG) Q3 2025 Earnings Miss Estimates, Stock Plunges Over 10%

Arthur J. Gallagher & Co (NYSE:AJG) reported financial results for the third quarter of 2025 that fell short of analyst expectations, triggering a significant negative reaction in after-hours trading. The global insurance brokerage and risk management firm released its earnings after the market close on October 30, 2025.

Q3 2025 Earnings Versus Estimates

The company's performance for the quarter ended September 30, 2025, did not meet the financial targets set by Wall Street analysts. Both key metrics of revenue and earnings per share came in below consensus estimates.

• Reported Revenue: $3.33 billion
• Estimated Revenue: $3.49 billion
• Reported Non-GAAP EPS: $2.32
• Estimated Non-GAAP EPS: $2.57

This revenue miss of approximately $155 million and an EPS shortfall of about $0.25 per share represent a notable deviation from market expectations for the quarter.

Market Reaction and Recent Performance

The immediate market response to the earnings release was sharply negative. Following the announcement, the stock experienced a steep decline in after-market trading.

• After-Market Performance: -10.3%

This dramatic drop suggests investor disappointment with the quarterly results. The negative sentiment contrasts with the stock's performance in the lead-up to the earnings announcement, which showed more modest declines over recent weeks, indicating that the Q3 results were a significant negative catalyst.

• Last Week Performance: -0.07%
• Last Two Weeks Performance: -0.12%
• Last Month Performance: -0.14%

Press Release Summary and Forward Outlook

The company’s press release announced the Q3 2025 financial results and notified investors that management would host a conference call to discuss them. The release directed readers to the company’s investor relations website for additional materials, including a "CFO Commentary" and "Supplemental Quarterly Data," which often contain deeper insights and management's perspective on the quarter and future expectations. The documents provided include both GAAP and non-GAAP financial measures.

Looking ahead, analyst estimates for the company's future performance are already established. For the upcoming fourth quarter of 2025, the consensus estimates are for sales of $3.75 billion. For the full 2025 year, analysts are projecting revenue of $11.24 billion and sales of $14.18 billion. The press release did not include a specific financial outlook or guidance from the company itself for these periods, leaving the analyst estimates as the current benchmark for investor expectations.

Conclusion

Arthur J. Gallagher & Co.'s third-quarter earnings report presented a clear miss on both top and bottom-line estimates, which was met with a substantial sell-off in the after-hours market. The focus for investors will now shift to the management’s discussion on the earnings webcast for explanations behind the quarterly shortfall and any commentary on the firm's trajectory for the remainder of the fiscal year.

For a detailed breakdown of historical earnings and future analyst estimates for Arthur J. Gallagher & Co., you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The information presented should not be used as the sole basis for any investment decision.