Rolling Meadows, Illinois-based Arthur J. Gallagher & Co. (AJG) provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals. With a market cap of $81.5 billion, the company operates through Brokerage and Risk Management segments. The insurance giant is set to unveil its second-quarter results on Thursday, Jul. 24.

Ahead of the event, analysts expect AJG to deliver a non-GAAP profit of $2.38 per share, up 5.3% from $2.26 reported in the year-ago quarter. The company has a solid earnings surprise history. It has matched or surpassed the Street’s bottom-line projections in each of the past four quarters.

For the full fiscal 2025, analysts expect AJG to report an EPS of $11.04, up 9.4% from $10.09 reported in fiscal 2024. While in fiscal 2026, its earnings are expected to surge 22.6% year-over-year to $13.53 per share.

AJG stock has gained 21.2% over the past 52 weeks, outpacing the S&P 500 Index’s ($SPX) 13.4% returns, but lagging behind the Financial Select Sector SPDR Fund’s (XLF) 28% surge during the same time frame.

Arthur J. Gallagher’s stock prices rose 4.2% in the trading session after the release of its impressive Q1 results on May 1. Driven by the solid organic growth in brokerage and risk management revenues and an inorganic boost, the company’s overall revenues for the quarter surged 14.5% year-over-year to $3.7 billion. Its adjusted EBITDAC margin expanded by 338 bps to 41.1% and adjusted EBITDAC surged 26%, marking the 20th consecutive quarter of double-digit growth. Furthermore, the company adjusted EPS increased 6.4% year-over-year to $3.67, surpassing the Street’s expectations by 2.8%.

The stock holds a consensus “Moderate Buy” rating overall. Of the 17 analysts covering the stock, opinions include nine “Strong Buys,” seven “Holds,” and one “Strong Sell.” Its mean price target of $347.43 suggests a 9.2% upside potential from current price levels.