Wells Fargo Notes Q4 2025 Pressure on AJG Margins, Trims Price Target

Arthur J. Gallagher & Co. (NYSE:AJG) is included among the 15 Best Stocks to Buy for the Long Term.

Wells Fargo analyst Elyse Greenspan trimmed her outlook on Arthur J. Gallagher & Co. (NYSE:AJG) on December 5, reducing the price target to $344 from $362 while sticking with an Overweight rating. The analyst also nudged EPS estimates lower, saying that the revision reflects the firm’s read on AJG’s expected Q4 2025 margins, as the company heads into its investor day on December 16.

In the meantime, Arthur J. Gallagher & Co. (NYSE:AJG) has been busy. The company has been on a steady acquisition run over the last couple of months, adding yet another deal on December 2, with its purchase of UK-based First Actuarial, a firm that specializes in pension administration, employee benefits, and investment services for employers and pension trustees across the UK. A few weeks earlier, in November, Gallagher took over Tompkins Insurance Agencies in Batavia, New York, which had been a wholly-owned unit of Tompkins Financial Corporation.

Arthur J. Gallagher & Co. (NYSE:AJG) had a strong third quarter. The company’s combined brokerage and risk management segments delivered a 20% total revenue growth, which marked its 19th consecutive quarter of double-digit top-line growth. Its incremental revenue from acquisitions was $450 million. In Q3, Gallagher closed six acquisitions, with an estimated annualized revenue of over $3 billion.

Arthur J. Gallagher & Co. (NYSE:AJG) is an American insurance brokerage, risk management, and consulting services firm that provides its services in approximately 130 countries globally.

While we acknowledge the potential of AJG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AJG and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 15 Dividend Stocks Paying 4%+ Yield in 2025 and 11 Worst Performing Dividend Stocks Year-to-Date.

Disclosure: None.