AJGNEUTRAL

AJG Gross Margin Analysis

84.9%

Higher than 71% of Financial Services sector peers

Updated 2937h ago·SEC filings & market data

Key Takeaway

Arthur J.

Sector Performance

71th percentile

AJG

84.9%

Sector Median

68.5%

Sector Avg

69.1%

Prior Period

39.1%(Apr 2026)

↑ Improving

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Deep Analysis

Arthur J.

Gallagher & Co.'s gross margin of 84.9% means that for every dollar of revenue, the company keeps nearly 85 cents after deducting the direct costs of delivering its insurance brokerage and consulting services. This figure sits well above the Financial Services sector median of 76.6%, placing the company in the 77th percentile among its peers. Over the past eight quarters, gross margin has been completely stable, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. The combination of an already high margin and a flat trend suggests limited near-term risk from cost pressures, but also no momentum for margin expansion that could drive stock upside. This stability supports the overall NEUTRAL verdict — the metric indicates consistent profitability without signaling either a clear competitive advantage or a looming weakness.

Frequently Asked Questions

What does the Gross Margin tell investors about AJG?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AJG's Gross Margin compare to its sector?

AJG's Gross Margin of 84.9% compares to a Financial Services sector median of 68.5%, placing it in the 71th percentile.

Who are AJG's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), JPM (64.3%), CACC (63.0%), HDB (58.4%), COF (57.8%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.