Arthur J. Gallagher & Co.

(New York Stock Exchange)
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Somewhat Bearish -25

Arthur J. Gallagher stock faces lower FY2026 EPS forecast

Analyst downgrade AI-generated analysis

πŸ“‰ Dowling & PARTN reduced its FY2026 EPS forecast for Arthur J. Gallagher to $13.15 from $13.75 following recent quarterly results.

πŸ’° Third-quarter revenue reached $3.92 billion, a 19.6% year-over-year increase that missed the $3.98 billion analyst consensus estimate.

πŸ“ˆ Quarterly earnings per share hit $3.00, narrowly surpassing the $2.99 consensus and growing from $2.32 in the prior-year quarter.

πŸ” The revenue shortfall has shifted investor focus toward organic growth execution and the integration of recent acquisitions.

πŸ’Ή Arthur J. Gallagher stock traded at 250.25 euros on Friday, November 13, 2026.

Bullish Signals
  • Third-quarter earnings per share reached $3.00, narrowly beating the $2.99 analyst consensus estimate.
  • Revenue grew 19.6% year over year to reach $3.92 billion, demonstrating strong top-line expansion despite missing absolute targets.
Risk Factors
  • Quarterly revenue of $3.92 billion missed the $3.98 billion analyst forecast, indicating a gap between sales growth and consensus expectations.
  • Dowling & PARTN lowered its FY2026 EPS guidance to $13.15 from $13.75 due to the revenue miss and concerns about converting sales into earnings.
Full Analysis
Arthur J. Gallagher reported mixed third-quarter financial results, with revenue growth failing to meet analyst expectations despite strong year-over-year expansion. The company posted quarterly revenue of $3.92 billion, representing a 19.6% increase from the prior year, but this figure fell short of the $3.98 billion consensus forecast. Consequently, Dowling & PARTN lowered its full-year 2026 earnings per share (EPS) guidance to $13.15, down from a previous estimate of $13.75. While the brokerage's revised outlook aligns closely with the broader analyst consensus, the revenue miss highlights challenges in converting aggressive sales growth into proportional profitability. Third-quarter EPS reached $3.00 per share, narrowly beating the $2.99 consensus estimate and rising from $2.32 in the same quarter a year ago. Investors are now focusing on the company's ability to execute organic growth strategies and successfully integrate acquisitions to improve margins moving forward.