, /PRNewswire/ -- Life Time Group Holdings, Inc. (NYSE: LTH) ("Life Time" or the "Company") announced today that it has agreed to purchase an aggregate of 2,192,500 shares of its common stock at a price of $28.60 per share for an aggregate purchase price of $62,705,500 in a private transaction (the "Share Repurchase") from certain of its existing stockholders, including affiliates of Leonard Green & Partners, L.P., TPG Inc. and Partners Group (USA) Inc. (the "Selling Stockholders").
In addition to the Share Repurchase, the Selling Stockholders informed the Company that they have agreed to sell 8,770,000 shares of the Company's common stock at a price of $28.60 per share for an aggregate purchase price of $250,822,000 to an affiliate of Atairos Group, Inc. in a private transaction exempt from registration under the Securities Act of 1933 (the "Investor Purchase"), for a total of 10,962,500 shares sold by the Selling Stockholders. The Investor Purchase is expected to be settled in two tranches, with the second tranche of shares of Common Stock related to the Investor Purchase expected to be acquired after satisfaction of customary closing conditions, including that the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired or been terminated.
Following the closings of the Share Repurchase and the Investor Purchase, funds associated with Leonard Green & Partners, L.P., funds associated with TPG Inc. and funds associated with Partners Group (USA) Inc. will hold approximately 8.5%, 6.1% and 1.3%, respectively, of the Company's common stock (based on 222,602,738 shares outstanding as of May 1, 2026).
The Company intends to fund the Share Repurchase with cash on hand. The Share Repurchase is being conducted pursuant to the Company's stock repurchase program approved by its board of directors in February 2026.
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its more than 190 athletic country clubs across the U.S. and Canada, the complementary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 25 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the Company is committed to upholding an exceptional culture for its over 45,000 team members.
About Atairos
Atairos is an independent strategic investment company focused on supporting growth-oriented businesses across a wide range of industries. Atairos provides a unique combination of active strategic partnership and patient long-term capital to high-potential companies and their management teams. Atairos was launched in 2016 and has over $6 billion of equity capital. Atairos has offices in New York City and Philadelphia. For more information, please visit www.atairos.com.
Cautionary Statement Concerning Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of federal securities regulations. Forward-looking statements in this press release include, but are not limited to, statements relating to the consummation of the Investor Purchase. These statements are based on the beliefs and assumptions of the Company's management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.
Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include the factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on February 24, 2026 (File No. 001-40887), as such factors may be updated from time to time in the Company's other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
One of Arizona's longest-running road races enters its 51st year as founder Dr. Art Mollen entrusts its future to Life Time
, /PRNewswire/ -- Life Time (NYSE: LTH), the nation's premier healthy lifestyle brand, today announced it has acquired the Phoenix 10K, one of Arizona's longest‑running road races. As the race enters its 51st year, the transition marks a meaningful passing of the baton from renowned founder, Dr. Art Mollen, to Life Time—positioning the iconic event for continued growth for generations to come.
Founder Dr. Art Mollen at the third annual Phoenix 10K event Founded in 1976, the Phoenix 10K has been a cornerstone of the local running community for more than five decades. Built by Dr. Mollen into a beloved annual tradition, the event has welcomed generations of runners to Phoenix streets and neighborhoods. As ownership transitions to Life Time, Dr. Mollen will remain actively involved as founder and ambassador—continuing to champion the values, community pride, and traditions that have defined the race since its inception.
"I'm incredibly proud of what the Phoenix 10K has become over more than 50 years, and I'm excited about where it's headed next," said Dr. Mollen. "This race grew organically from small beginnings along the Arizona Canal into one of the most iconic running traditions in Arizona. As I look to the future, there's no better steward than Life Time—the nation's preeminent athletic events owner, producer, and operator. I'm thrilled to remain personally involved as this cherished community event continues to evolve."
For more than 25 years, Life Time has owned and operated some of the world's most iconic, desirable, and in‑demand endurance events, delivering best‑in‑class athlete experiences grounded in community connection, operational excellence, and innovation. With running participation surging nationwide, Life Time continues to thoughtfully expand its events portfolio—preserving legacy events while elevating them for modern athletes.
"Running continues to experience explosive participation growth, and athletes are seeking events that combine authenticity, quality, and community," said Kimo Seymour, Senior Vice President of Media and Events at Life Time. "The Phoenix 10K embodies all of that. Its history, legendary founder, and place in Phoenix running culture make it an exceptional fit for Life Time. We're honored to carry this event forward while celebrating everything that has made it special for so long."
Life Time brings both national expertise and deep local connection to the event. With a strong and growing presence in the greater Phoenix area, Life Time currently serves members through 9 athletic country club destinations, a broad ecosystem of health and wellness programs and service, endurance training programs, and local running communities—creating a natural extension from club experiences to race day. The announcement coincides with a landmark week for Life Time in Arizona, marked by the openings of Life Time Paradise Valley in the PV development and Life Time Ocotillo in Gilbert.
The 2026 Life Time Phoenix 10K will take place on Sunday, November 8, 2026, with a start and finish in Phoenix's iconic Biltmore neighborhood. The scenic out‑and‑back course travels through Paradise Valley, offering runners an approachable and picturesque race experience in one of the region's most sought‑after settings. In line with Life Time's mission, the event will continue to feature the Mollen Mile for Kids, encouraging children ages 3-10 to start running as part of a healthy lifestyle, a cause that Dr. Mollen and the Mollen Foundation champion.
To register for the 2026 event, visit phoenix10k.com.
The Life Time Phoenix 10K joins a portfolio of 30 premier athletic events owned and produced by Life Time, including the Miami Marathon, UNBOUND Gravel, and the Leadville Race Series. Together, these events form an integrated ecosystem that complements Life Time's athletic country clubs, digital platforms, and healthy way of life programming—offering multiple entry points to an active lifestyle for both members and nonmembers alike.
For more information about Life Time athletic events, visit my.lifetime.life/athletic-events.
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through more than 190 athletic country clubs across the U.S. and Canada, a complimentary and comprehensive Life Time app featuring its L•AI•C™ AI‑powered health companion, and 30 iconic athletic events. Serving people ages 90 days to 90+ years, Life Time delivers experiences across healthy living, healthy aging, and healthy entertainment, along with trusted nutritional supplements and healthy way of life services. Recognized as a Great Place to Work®, the company is committed to an exceptional culture for its 45,000 team members.
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Investors interested in stocks from the Leisure and Recreation Services sector have probably already heard of Life Time Group Holdings, Inc. (LTH - Free Report) and Vail Resorts (MTN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Life Time Group Holdings, Inc. has a Zacks Rank of #2 (Buy), while Vail Resorts has a Zacks Rank of #5 (Strong Sell) right now. This means that LTH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LTH currently has a forward P/E ratio of 20.41, while MTN has a forward P/E of 25.34. We also note that LTH has a PEG ratio of 1.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MTN currently has a PEG ratio of 10.26.
Another notable valuation metric for LTH is its P/B ratio of 2.33. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MTN has a P/B of 6.71.
Based on these metrics and many more, LTH holds a Value grade of B, while MTN has a Value grade of C.
LTH is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that LTH is likely the superior value option right now.
Life Time draws on 30+ years of aquatics expertise, 500+ pools and a vast lifeguard certification operation to help families make safer choices in and around water
Key Highlights:
Life Time certifies more lifeguards than any other business nationwide through StarGuard Elite. Life Time teaches more than 30,000 people crucial swim safety skills every month across its athletic country clubs through swim lessons and clinics. Life Time's proprietary 25:10 Rule helps families reduce risk around water. Life Time aquatics experts and lifeguards are available for media interviews and pool-side demonstrations throughout May through September. , /PRNewswire/ -- As families head back to pools and lakes this summer, Life Time (NYSE: LTH) is marking National Water Safety Month in May with a practical set of swim-safety guidelines designed to help keep kids and adults safer in and around water. With drowning ranking as the leading cause of unintentional injury death for children ages 1 to 4 and the second leading cause for children ages 5 to 14 (CDC), Life Time is drawing on more than three decades of aquatics expertise to help families have a safe and confident summer in the water.
Alicia Kockler, Life Time's Senior Vice President of Kids and Aquatics, explains the importance of swim lessons.
Every month, Life Time teaches more than 30,000 people crucial swim safety skills through swim lessons and clinics held across many of its 190+ athletic country clubs in the United States and Canada. While children face the greatest risk, Life Time's aquatics programs welcome swimmers of every age and ability, because confidence in the water is a lifelong skill.
Every month, Life Time teaches more than 30,000 people crucial swim safety skills through swim lessons and clinics held across many of its 190+ athletic country clubs in the United States and Canada. While children face the greatest risk, Life Time's aquatics programs welcome swimmers of every age and ability, because confidence in the water is a lifelong skill. The company operates more than 500 indoor and outdoor pools spanning everything from resort-style beach club pool decks to indoor lap pools and aquatics centers.
"We want families to have fun all summer, and a fun summer is a safe summer," said Alicia Kockler, Life Time's Senior Vice President of Kids and Aquatics. "It really comes down to a few simple things: Keep your eyes on your kids at all times and invest in swim lessons to teach them how to swim."
Life Time's Golden Rule for Swim Safety: The 25:10 Rule
At the center of Life Time's swim safety education is the 25:10 Rule: If a child cannot swim a standard 25-meter pool length without assistance, a parent or guardian should always remain within 10 feet. Drowning can happen silently and within seconds, often without the splashing or cries for help that most people expect. Staying alert and close is key.
Additional Swim Safety Tips from Life Time's Aquatics Team
Start swim lessons early. Early access to water and structured lessons help children become stronger swimmers and smarter decision-makers around water as they grow. Wear bright swimsuits. Neon and bright-colored swimwear are easier to spot in the water. Blue and pale colors can blend in. Skip the floaties. Many inflatable flotation devices provide a false sense of security. Only Coast Guard-approved life jackets provide reliable protection. Maintain a 1:3 guardian-to-swimmer ratio. One adult should never be responsible for monitoring more than three swimmers at a time. Put the phone and book down. Distractions are a leading contributing factor in water incidents. Get CPR certified. This skill may one day save a life. As summer gets underway, Life Time's athletic country clubs across North America are opening outdoor pools, beach club deck experiences and expanded aquatics programming. Swim lessons, clinics, and kids programming are available at Life Time locations nationwide. Kids enrolled in Life Time summer camps receive swim lessons twice weekly, included in the camp price. Life Time aims to ensure all campers become more confident swimmers.
For more information about Life Time, visit www.lifetime.life, follow on social media at Facebook, Instagram and LinkedIn, or download the complimentary Life Time App.
Frequently Asked Questions:
What is the best age to start swim lessons?
The earlier, the better. Enrolling children in swim lessons as early as four months old provides them the opportunity to learn basic swim skills early in life, grow comfortable in and around water faster and learn the importance of necessary safety measures.
What is the 25:10 swimming rule and why does it matter?
The 25:10 rule is Life Time's foundational swim safety guideline: If a child cannot swim a standard 25-meter pool length without assistance, an adult should always be within 10 feet.
How does Life Time keep its pools safe?
Life Time certifies more lifeguards than any other business in the country through its partnership with StarGuard Elite. With more than 30 years of aquatics expertise and 500+ pools across North America, Life Time's commitment to water safety is built into every aspect of its operations.
Where can I find swim lessons near me?
Life Time offers swim lessons and aquatics programming at select athletic country clubs across the United States and Canada. Visit lifetime.life or the Life Time app to find a club near you and explore available swim lesson schedules, clinics, and Kids programming.
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its more than 190 athletic country clubs across the U.S. and Canada, the complimentary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 30 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the company is committed to upholding an exceptional culture for its more than 50,000 team members.
New youth initiative powered by the Life Time Foundation brings Chicago students to the finish line—reinforcing Life Time's commitment to healthy communities
, /PRNewswire/ -- Chicago's lakefront was transformed into a celebration of movement, community and spring this weekend as 9,500 runners from 47 states and 35 countries took part in the sold-out Life Time Chicago Spring Half Marathon & 5K, one of the city's signature spring running events.
Now in its 17th year, the race—owned and produced by Life Time—brought together participants ages 2 to 79 across multiple distances, including the half marathon, 5K and youth events, all set against sweeping views of Lake Michigan and the Chicago skyline.
Life Time Chicago Spring Half Marathon and 5K This year's event marked the introduction of a new 5K distance, replacing the previous 10K and expanding access for beginners, families and those looking to kick off their race season. The course began on Columbus Drive and followed Chicago's iconic Lakefront Trail, delivering a fast, scenic experience through one of the country's most recognizable urban running backdrops. At the finish line, participants transitioned into a Spring Market Festival, featuring live music, a hot brunch, beer garden, DIY flower planting station, and brand activations.
Full race results are available here.
A defining highlight of the weekend was the debut of the Life Time Chicago Spring Kids Run Final Mile, powered by the Life Time Foundation and developed in partnership with Chicago Public Schools. In its first year, more than 200 students completed the final mile of the half marathon course, crossing the official finish line to earn medals and celebrate the culmination of a multi-week youth training program focused on building confidence, goal-setting skills and lifelong healthy habits.
The Chicago program mirrors the success of the Life Time Foundation's Kids Run Miami initiative, where hundreds of students annually complete a similar Final Mile experience as part of a months-long running journey tied to the Life Time Miami Marathon weekend.
"The Life Time Chicago Spring Half & 5K shows what a race can be beyond just miles and finish times," said Allison Humbert Wilkinson, Associate Marketing Director at Life Time. "From the energy on the course to kids crossing the finish line in the Kids Run, it's all part of a bigger experience that connects people to movement, community and healthy living beyond race day."
As the popularity of running continues to grow, the Life Time Chicago Spring Half Marathon & 5K reflects a broader demand for experiences rooted in health and wellness. Across Chicagoland, Life Time supports healthy living through its 15 athletic country clubs, offering a broad array of renowned health and wellness programs, services, experts and community that help members prepare for events like this—or whatever their personal journey may be. A new Northbrook location is set to open in June.
The Chicago Spring Half Marathon & 5K serves as the kickoff to the Life Time Chicago Half Marathon Series. Runners who register for both the Spring Half and the Life Time Chicago Half Marathon on September 27 earn a commemorative third medal, encouraging continued participation throughout the season. The event is part of Life Time's portfolio of nearly 30 athletic events, including the Miami Marathon, UNBOUND Gravel and the Leadville Race Series—all designed to meet participants at different stages of their health and endurance journeys.
To learn more about Life Time athletic events, visit: my.lifetime.life/athletic-events.html.
About Life Time®
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through more than 190 athletic country clubs across the U.S. and Canada, a complimentary and comprehensive Life Time app featuring its L•AI•C™ AI‑powered health companion, and 30 iconic athletic events. Serving people ages 90 days to 90+ years, Life Time delivers experiences across healthy living, healthy aging, and healthy entertainment, along with trusted nutritional supplements and healthy way of life services. Recognized as a Great Place to Work®, the company is committed to an exceptional culture for its more than 50,000 team members.
More than 500 nutrition coaches across more than 190 locations expands Life Time's wellness offerings beyond the workout floor
Key Highlights:
What: Dynamic Nutrition Coaching is a personalized, in-club offering designed to help members achieve lasting results through metabolism-driven food guidance that feels realistic. How it Works: Members begin with a complimentary consultation and personalized assessment, then work one-on-one with a Life Time nutrition coach to build a customized plan that fits their schedule, budget, and goals. Scale: Delivered by more than 500 Life Time nutrition coaches nationwide, providing in-person guidance across the company's athletic country clubs. Why: Most people know nutrition matters, but real-life schedules and demands make it challenging to find an approach that sticks. Dynamic Nutrition Coaching bridges that gap, available exclusively in-club at Life Time's more than 190 athletic country clubs across North America. , /PRNewswire/ -- Getting stronger, losing body fat and feeling your best all start with what you eat, but with conflicting nutrition advice everywhere, many people don't know where to begin, or why their current approach isn't working. Life Time (NYSE: LTH), the nation's premier healthy lifestyle brand, is cutting through the noise with the launch of Dynamic Nutrition Coaching, an in-club coaching service that pairs members with expert coaches to deliver personalized nutrition guidance built around their metabolism, training and lifestyle.
Building on Life Time’s three-decade commitment to in-club nutrition support, Dynamic Nutrition Coaching marks a significant evolution of that offering. It introduces a standardized, metabolism-driven framework that formally integrates nutrition into Life Time's Dynamic service ecosystem alongside Dynamic Personal Training and Dynamic Stretch, designed to meet members where they are and help them go further than they could on their own. Building on Life Time's three-decade commitment to in-club nutrition support, Dynamic Nutrition Coaching marks a significant evolution of that offering. It introduces a standardized, metabolism-driven framework that formally integrates nutrition into Life Time's Dynamic service ecosystem alongside Dynamic Personal Training and Dynamic Stretch, designed to meet members where they are and help them go further than they could on their own.
"Nutrition advice is everywhere, but most people don't need more information — they need a plan built for their goals, lifestyle and body," said Anika Christ, Senior Director of Life Time Health. "Without understanding their baseline or having the right support and accountability, lasting progress can be difficult to achieve. Dynamic Nutrition Coaching gives members personalized guidance and sustainable strategies designed to help them see real results"
Dynamic Nutrition Coaching is designed to work in concert with Life Time's broader in-club Dynamic ecosystem. Members pursuing strength, body composition or performance goals can pair nutrition guidance with Dynamic Personal Training to align fueling with their training demands and Dynamic Stretch to support recovery and mobility. Many members also begin by taking Life Time's proprietary resting and active metabolic assessment, which provides a personalized look at how their body uses energy and gives coaches a shared baseline to build from. Together, these offerings create a connected, data-informed approach to training, recovery, and nutrition, all delivered in-person at a member's club.
Clients begin with a complimentary consultation and personalized assessment. From there, they work with a dedicated coach to build a clear plan around their individual goals, preferences, and training demands.
Unlike nutrition programs that operate entirely online, Dynamic Nutrition Coaching is delivered in-person, inside Life Time clubs, by coaches who understand both exercise science and nutrition. Supported by a network of more than 500 nutrition coaches nationwide along with corporate and club-based registered dietitians, Life Time's coaching team understands how training, recovery and metabolism work together and adjusts guidance as a member's body and goals evolve.
Dynamic Nutrition Coaching reinforces nutrition as a core pillar alongside the fitness, recovery, and lifestyle programming already available across Life Time's 190 athletic country clubs. Members can also access foundational nutrition education through the Life Time app and Experience Life magazine.
This launch comes as Americans are increasingly focused on sustainable health. According to Life Time's annual Health and Wellness Survey, 82% of respondents said they plan to focus more on their overall health this year, with strength training and body composition among their top goals.
Members can connect with a Life Time nutrition coach for a consultation at their home club. To learn more, visit www.lifetime.life or speak with a team member at your local Life Time. You can also learn more about Dynamic Personal Training at Life Time by following along on Instagram.
For more information about Life Time, visit www.lifetime.life, follow on social media at Facebook, Instagram and LinkedIn, or download the Life Time app. You can also find Life Time's collection of supplements, equipment and apparel on the LT Shop by following its Instagram page.
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its more than 190 athletic country clubs across the U.S. and Canada, the complimentary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 30 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the company is committed to upholding an exceptional culture for its more than 50,000 team members.
Life Time Group Holdings, Inc. (LTH - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Life Time Group Holdings basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Life Time Group Holdings imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Life Time Group HoldingsThis company is expected to earn $1.65 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Life Time Group Holdings. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Life Time Group Holdings to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Investors interested in Leisure and Recreation Services stocks are likely familiar with Life Time Group Holdings, Inc. (LTH - Free Report) and Viking Holdings (VIK - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Life Time Group Holdings, Inc. is sporting a Zacks Rank of #2 (Buy), while Viking Holdings has a Zacks Rank of #3 (Hold). This means that LTH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
LTH currently has a forward P/E ratio of 20.00, while VIK has a forward P/E of 28.08. We also note that LTH has a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VIK currently has a PEG ratio of 1.33.
Another notable valuation metric for LTH is its P/B ratio of 2.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, VIK has a P/B of 38.48.
These are just a few of the metrics contributing to LTH's Value grade of B and VIK's Value grade of D.
LTH sticks out from VIK in both our Zacks Rank and Style Scores models, so value investors will likely feel that LTH is the better option right now.
Emporia hosts milestone edition as riders and fans from around the world celebrate two decades of gravel racing in the Flint Hills
Key Highlights
Milestone 20th anniversary celebration of the world's premier gravel race Largest athlete field yet with nearly 5,000 participants across five distances (XL, 200, 100, 50, 25) plus kids events Riders representing all 50 states and 52 countries Ages ranged from 2 to 93-year-old Fred Schmid in his final UNBOUND Gravel start Elite 200-mile race livestream generated 1.8M impressions, 470K views and 18K chat messages within 24 hours Expanded Life Time Foundation impact through youth, accessibility and community grants , /PRNewswire/ -- Life Time (NYSE: LTH), the nation's premier healthy lifestyle brand, celebrated the 20th anniversary of Life Time UNBOUND Gravel presented by Shimano this weekend, welcoming nearly 5,000 athletes from all 50 U.S. states and 52 countries to the Flint Hills for one of the most iconic events in endurance sport.
2026 Life Time UNBOUND Gravel presented by Shimano What began in 2006 with just 34 riders has grown into the world's largest gravel event, drawing thousands of cyclists, spectators and brands to Emporia annually. Now in its third decade, UNBOUND Gravel is a cornerstone of Life Time's premier athletic events portfolio—expanding participation, elevating elite competition and helping grow gravel cycling globally. Despite its scale, the event remains deeply rooted in community, transforming Emporia into "Gravel City, USA" while preserving the grassroots spirit that continues to define the sport.
"Life Time UNBOUND Gravel represents everything we aim to achieve through our athletic events—world-class competition, inclusive community and meaningful experiences," said Michelle Duffy, Vice President of Marketing, Life Time Events. "For 20 years, this event has grown along with the community of Emporia. UNBOUND Gravel wouldn't be what it is today without the people, businesses and spirit of this town. That deep connection is what continues to make it so special while driving growth of the sport of gravel cycling globally."
Racing the Flint Hills
True to its legacy, the 20th edition delivered demanding and unpredictable conditions, with rain and mud testing riders' endurance, resilience and mechanical skill across the Flint Hills. Every finish line crossed was a hard-earned accomplishment.
Denmark's Mads Würtz Schmidt claimed the elite men's UNBOUND Gravel 200 title, while Sofía Gómez Villafañe topped the elite women's field. In the 350-mile XL race, Switzerland's Robin Gemperle captured victory after more than 21 hours of racing, while Svenja Betz led the women's field finishing in just over 27 hours.
Full race results for all distances are available here.
Growing the Sport On and Off the Course
As part of Life Time's professional off-road racing series, the Life Time Grand Prix, UNBOUND Gravel continues to elevate gravel racing on a global stage. That growth was on full display through the livestream of the elite 200-mile race on the Life Time Grand Prix YouTube channel, which generated 1.8 million impressions, 470,000 views and 18,000 live chat messages in the first 24 hours—highlighting increasing fan engagement and visibility for the sport.
Lasting Community Impact
Beyond race day, UNBOUND Gravel delivered a multi-day celebration featuring the All Things Gravel Expo presented by City of Emporia, group rides, athlete panels, and family-friendly programming. To celebrate two decades of gravel racing in the Flint Hills, this year's courses featured iconic sections from past editions. Finishers of the marquee 200-mile race also received a commemorative finisher jacket.
In its 20th year, UNBOUND Gravel expanded its impact beyond the racecourse through key Life Time Foundation initiatives:
Chase the Race: Ultra-endurance athlete and 2015 champion Yuri Hauswald started dead last in the 200-mile race with the goal of passing as many riders as possible to raise money for youth cycling programs in Emporia. On race day he passed over 1,200 riders and raised more than $37,000. Donations are still open. Five National Interscholastic Cycling Association (NICA) student-athletes were selected to race the 50-mile event, fundraising through the Life Time Foundation to give back directly to NICA and support youth cycling programs. A $10,000 grant to Adventures for All provided individuals with exceptionalities the opportunity to participate in UNBOUND, removing financial and logistical barriers. A $40,000 grant to the Emporia Youth Pump Track will support the creation of a new community riding space. In addition to UNBOUND Gravel, Life Time produces nearly 30 athletic events in iconic destinations nationwide —all designed to meet participants at different stages of their health and endurance journeys. For more information, visit www.lifetime.life/athletic-events.
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its more than 190 athletic country clubs across the U.S. and Canada, the complimentary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 30 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the company is committed to upholding an exceptional culture for its more than 50,000 team members.
Life Time coaches reveal why strength training, not just more miles, is the breakthrough, and how GTX and Ultra Fit help runners of every level unlock it this Global Running Day and beyond
Key Highlights:
Expert Life Time coaches say strength training is the most overlooked piece of a runner's program, and it is essential for prevention of injury, faster recovery and long-term performance. GTX and Ultra Fit, two of Life Time's exclusive Signature Group Training formats, give runners the strength, power and variety to build and complement a running schedule. Life Time experts share their top tips for first-time runners, the four strength movements every runner should be doing, and how to make Global Running Day the start of a lasting habit. , /PRNewswire/ -- As running continues to surge in popularity, Life Time (NYSE: LTH), the nation's premier healthy lifestyle brand, is underscoring an often-overlooked truth in endurance training: Runners who want to go farther, faster and stay injury-free need more than mileage. They need consistent strength training.
GTX and Ultra Fit, two of Life Time's exclusive Signature Group Training formats, give runners the strength, power and variety to build and complement a running schedule. Life Time coaches say that building the strength to handle that load is what separates runners who progress from runners who plateau or get sidelined by injury. It is also what makes Life Time's GTX and Ultra Fit programs natural complements to any running routine, whether a member is lacing up for the first time today or training for the next marathon.
"Running is the most global sport we have. There are no barriers, just movement," said Frankie Ruiz, Chief Running Officer at Life Time and Co-Founder of the Miami Marathon. "Global Running Day is an invitation for anyone, anywhere, to take that first step and realize we get more out of it when we do it together. At Life Time, we see every day how one run can spark connection, confidence, and even change the course of someone's life."
For new and experienced runners alike: Strength work is an essential ingredient in finding success. It can aid with muscular endurance, power, joint stability and much more (NASM).
"Strength training for newer runners is essential because we are training not only the resilience of our muscles, but our tendons and ligaments are getting stronger as well," said Donovan Stewart, Certified Personal Trainer and Run Coach at Life Time. "With hundreds of pounds of force happening on our bodies during a run, having the strength to support us will provide a lower chance of injury and help with coming back from injury quicker."
To build that foundation, Stewart recommends focusing on four essential movements every runner should master:
Bulgarian Split Squats Calf Raises Kettlebell Swings Single-Leg Deadlifts Where GTX and Ultra Fit Slot In
Life Time's GTX and Ultra Fit Signature Group Training classes are designed to build strength, power and conditioning that running alone cannot deliver. GTX uses a 50/50 structure that layers strength and conditioning into 60-minute sessions led by certified coaches. Ultra Fit blends total-body strength with challenging balance work and sprint interval training, building the metabolic health and mental resilience that runners rely on at every distance.
Together, the two formats give runners progressive overload, mobility work, and group motivation inside one membership, along with access to best-in-class treadmills, recovery amenities and Life Time's portfolio of athletic events to work toward.
Tips for New Runners on Global Running Day
For those lacing up for the first time this Global Running Day, Ruiz emphasizes one mindset: start small, stay consistent and make it social:
Run less and slower than you think you should. Move for no more than 20 minutes. Do it with others. Keep it social and conversational. Joining a group is the best way to start. Do not skip your warm-up, even if it is just a brisk walk. "Global Running Day reminds us that while running can feel personal, its real power is collective," Ruiz said. "Different reasons, same direction. We move, we grow, we inspire ourselves and others. Through Life Time events and communities, we are creating spaces where that shared energy turns a simple run into something much bigger."
For more information about Life Time, visit www.lifetime.life, follow on social media at Facebook, Instagram and LinkedIn, or download the Life Time app. You can also find Life Time's collection of supplements, equipment and apparel on the LT Shop by following its Instagram page.
Frequently Asked Questions
Why should runners do strength training? Strength training builds the muscles, tendons and ligaments that absorb the repeated impact of running.
What are the best strength exercises for runners?
Life Time Trainer and Certified Run Coach Donovan Stewart recommends Bulgarian split squats, calf raises, kettlebell swings and single-leg deadlifts. These moves target the lower body, aid with balance and posterior strength that runners rely on.
How often should runners strength train?
Life Time trainers recommend two to three strength sessions per week, layered in alongside easy runs and recovery days. GTX and Ultra Fit classes are built to deliver that strength stimulus in a structured group setting. Ultra Fit can also slot in as a high-intensity workout in weekly training.
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its more than 190 athletic country clubs across the U.S. and Canada, the complimentary and comprehensive Life Time app featuring its L•AI•C™ AI-powered health companion, and more than 30 iconic athletic events. Serving people ages 90 days to 90+ years, the Life Time ecosystem uniquely delivers healthy living, healthy aging, and healthy entertainment experiences, a range of unique healthy way of life programs, highly trusted LTH nutritional supplements and more. Recognized as a Great Place to Work®, the company is committed to upholding an exceptional culture for its more than 50,000 team members.
Key Takeaways DELL, LTH, VRT and CLS stand out for impressive interest coverage ratios tied to debt-paying ability.Dell Technologies' consensus calls for 47.4% sales and 81.2% EPS growth vs year-ago.Celestica's consensus sees 53.8% sales and 67.9% EPS growth; shares soared 177.7% past year. We often judge a company based on its sales and earnings. However, these metrics may not be sufficient on their own. A stock might get a boost if these figures rise year over year or surpass estimates in a particular quarter, offering a lucrative opportunity for short-term investors to cash in. Relying solely on sales and earnings numbers may not yield the desired long-term returns. For those seeking sustainable investment growth, a deeper dive into the company’s financial health and stability is essential.
A critical analysis of a company’s financial background is a prerequisite for an informed investment decision. Coverage ratios, which assess whether a company is robust enough to meet its financial obligations, play a crucial role in this analysis. A higher ratio generally indicates a stronger financial position. This article focuses on the Interest Coverage Ratio, a key indicator used to evaluate a company's ability to pay interest on its debt, ensuring that the company is not over-leveraged and can comfortably meet its interest obligations from its operating earnings.
Interest Coverage Ratio is equal to Earnings before Interest & Taxes (EBIT) divided by Interest Expense. Dell Technologies Inc. (DELL - Free Report) , Life Time Group Holdings, Inc. (LTH - Free Report) , Vertiv Holdings Co (VRT - Free Report) and Celestica Inc. (CLS - Free Report) have impressive interest coverage ratios.
Why Interest Coverage Ratio?The interest coverage ratio is used to determine how effectively a company can pay the interest charges on its debt.
Debt, which is crucial for most companies to finance operations, comes at a cost called interest. Interest expense has a direct bearing on a company's profitability, and its creditworthiness depends on how effectively it meets interest obligations. Therefore, the interest coverage ratio is one of the important criteria to factor in before making any investment decision.
The interest coverage ratio suggests the number of times the interest could be paid from earnings and gauges the margin of safety a firm carries for paying interest.
An interest coverage ratio lower than 1.0 implies that the company is unable to fulfill its interest obligations and could default on repaying debt. A company that is capable of generating earnings well above its interest expense can withstand financial hardships. One should also track the company’s past performance to determine whether the interest coverage ratio has improved or worsened over time.
The Winning StrategyApart from having an Interest Coverage Ratio that is more than the industry average, adding a favorable Zacks Rank and a VGM Score of A or B to your search criteria should lead to better results.
Interest Coverage Ratio greater than X-Industry Median
Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.
5-Year Historical EPS Growth (%) greater than X-Industry Median: Stocks that have a strong EPS growth history.
Projected EPS Growth (%) greater than X-Industry Median: This is the projected EPS growth over the next three to five years. This shows that the stock has near-term earnings growth potential.
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
VGM Score of less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Here are four of the 10 stocks that qualified the screening:
Dell Technologies, a global technology company that provides IT infrastructure, cloud computing, data storage and digital transformation solutions, sports a Zacks Rank #1 and has a VGM Score of A. DELL has a trailing four-quarter earnings surprise of 18.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dell Technologies’ current financial-year sales and EPS indicates growth of 47.4% and 81.2%, respectively, from the year-ago period. The stock has soared 226.2% over the past year.
Life Time Group Holdings, the nation's premier healthy lifestyle brand, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 10.9%, on average.
The Zacks Consensus Estimate for Life Time Group Holdings’ current financial-year sales and EPS implies growth of 11.2% and 14.6%, respectively, from the year-ago period. LTH has a VGM Score of B. The stock has risen 18.7% over the past year.
Vertiv Holdings, a global leader in critical digital infrastructure, carries a Zacks Rank #2 and has a VGM Score of B. The company has a trailing four-quarter earnings surprise of 14.7%, on average.
The Zacks Consensus Estimate for Vertiv Holdings’ current financial-year sales and EPS suggests growth of 34.4% and 51.4%, respectively, from the year-ago period. The stock has advanced 145.4% over the past year.
Celestica, a global leader in data center infrastructure and advanced technology solutions, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 8%, on average.
The Zacks Consensus Estimate for Celestica’s current financial-year sales and EPS implies growth of 53.8% and 67.9%, respectively, from the year-ago period. CLS has a VGM Score of A. The stock has soared 177.7% over the past year.
The health and fitness industry has grown well beyond its former niche status to become a powerful global market, supported by a broad shift toward healthier lifestyles. Consumers are no longer satisfied with occasional exercise alone. They are placing greater emphasis on balanced nutrition, consistent workout routines and more holistic wellness solutions. Demand continues to rise across gyms, supplements and personalized programs, while technological innovation has made managing health easier and more interactive. Wearables, fitness apps and virtual coaching platforms now offer real-time insights, tailored plans and ongoing encouragement. Meanwhile, growing awareness around obesity, chronic illnesses and mental well-being has strengthened the focus on preventive care as part of everyday life.
Major technology companies are helping accelerate this transformation. Apple (AAPL - Free Report) , with its Apple Watch ecosystem and Fitness+ service, integrates activity monitoring with guided fitness experiences. Amazon (AMZN - Free Report) is deepening its presence in healthcare through One Medical, pairing AI-enabled tools with virtual care to enhance accessibility and convenience. These efforts are changing the way consumers approach wellness, bringing together fitness, healthcare and daily habits, while simultaneously supporting the industry’s long-term expansion.
Market forecasts underscore the scale of this opportunity. The global health and wellness market is projected to reach $7.76 trillion by 2035, at a steady CAGR of 4.94% from 2026. Preventive healthcare initiatives, workplace wellness programs and favorable policy support continue to fuel demand. At the same time, niche offerings such as boutique fitness studios and premium wellness clubs point to a more integrated view of physical, nutritional and mental health. This changing landscape is creating fresh growth opportunities for companies such as Columbia Sportswear Company (COLM - Free Report) , Beyond Meat (BYND - Free Report) and Life Time Group Holdings (LTH - Free Report) .
For investors, the takeaway is straightforward: wellness remains a durable long-term trend. As people continue to make health a priority, demand for fitness, nutrition and digital health solutions is likely to remain resilient. This Health & Fitness Screen highlights key companies in the space — including the names mentioned above — helping investors identify opportunities in a market positioned for continued growth.
Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.
3 Health & Fitness Stocks to Buy Now
Columbia Sportswear Company’s health and fitness-related business is built around outdoor, active and lifestyle products across apparel, footwear, accessories and equipment. Its portfolio spans Columbia, SOREL, Mountain Hardwear and prAna, giving the company exposure to everyday activity as well as more demanding outdoor pursuits. Columbia serves hikers, trail runners, snow-sport consumers, anglers, hunters and people looking for daily outdoor essentials. Mountain Hardwear focuses on technical apparel, accessories and equipment for climbers, mountaineers, skiers, snowboarders and trail athletes. prAna adds a softer active-lifestyle angle, combining versatile apparel and accessories with movement, mindfulness and personal style.
Over time, the business has moved from functional outdoor utility toward a broader wellness-and-active-living platform. Columbia began in 1938 as a regional hat distributor and has grown into a global designer, marketer and distributor of products meant to help people stay active outdoors. The Zacks Rank #1 (Strong Buy) company’s offerings are not positioned as gym equipment or medical wellness products; rather, its connection to health and fitness comes through enabling movement, recreation and comfort in outdoor settings. Product design has remained central to this evolution, with the company emphasizing innovation, fit, construction, technical performance, quality, value, versatility and style. You can see the complete list of today’s Zacks #1 Rank stocks here.
More recently, Columbia has tried to sharpen this active positioning through its ACCELERATE Growth Strategy. Announced in 2024, the strategy is aimed at bringing younger, more active consumers into the Columbia brand while retaining existing value-oriented shoppers. In 2025, the company marked progress by launching the “Engineered for Whatever” brand platform, introducing products designed for a younger active consumer and refreshing Columbia.com with stronger features and photography. The strategy also calls for more focused demand creation, elevated omni-channel brand experiences, fewer and clearer product collections, and continued delivery of durable, high-value outdoor essentials.
Beyond Meat offers plant-based meats and newer plant-based food and beverage products built around beef, pork and poultry platforms. Its portfolio includes Beyond Burger, Beyond Beef, Beyond Sausage, Beyond Breakfast Sausage, Beyond Chicken, Beyond Steak, Beyond Sun Sausage, value-added meals such as Beyond Bakes, Beyond Skillet Meals and Beyond Bowls, and the newer Beyond Ground, Beyond Steak Filet and Beyond Chicken Pieces. These products are designed to give consumers the taste, texture and everyday use of animal-based meat while using plant-derived proteins and ingredients.
The Zacks Rank #2 (Buy) company’s intent of health and fitness has become more direct over time. Its mission ties plant-based eating to human health, while its product work focuses on nutrition, macronutrients and simpler ingredients. In 2024, Beyond Burger IV, Beyond Beef IV and Beyond Sausage IV moved to avocado oil, simplified ingredient lists, 0 mg cholesterol, no added antibiotics or hormones and no GMOs. Beyond Steak also became the first plant-based meat product to meet the nutritional guidelines of the American Diabetes Association’s Better Choices for Life program. Beyond Sun Sausage followed with similar nutrition-focused positioning, while the value-added meals line extended Beyond Meat protein into convenient, ready-to-heat formats.
By 2025 and early 2026, the business had evolved beyond meat analogues into broader plant-based protein. Beyond Ground was launched as a four-ingredient, unseasoned protein base, while Beyond Steak Filet and Beyond Chicken Pieces added more center-of-plate options with avocado oil and plant proteins. The clearest step into fitness-oriented adjacencies was Beyond Immerse, a protein drink combining plant protein, fiber, antioxidants and electrolytes through the Beyond Test Kitchen direct-to-consumer platform.
This shift reflects a company trying to respond to weaker plant-based meat demand by improving health perception, working with nutrition and medical organizations, and broadening into products built around protein, fiber and other functional macronutrients.
Life Time Group Holdings is a provider of premium health, fitness and wellness experiences through resort-like athletic country clubs, supported by a broader physical and digital ecosystem. Its centers typically include large fitness floors with high-end equipment, locker rooms, group fitness studios, recovery areas, indoor and outdoor pools, bistros, tennis and pickleball courts, basketball courts, LifeSpa, LifeCafe, childcare and Kids Academy spaces. The company serves nearly 1.6 million individual members, representing about 873,000 memberships as of December 31, 2025, across more than 185 centers in the United States and Canada. Its offerings are delivered by more than 44,000 team members, including over 11,100 certified fitness professionals.
Life Time’s business has evolved from a traditional fitness-center concept into what it describes as a “Healthy Way of Life” lifestyle and leisure brand. Over more than 30 years, the company has built a model that combines fitness, wellness, community and country club-style amenities. Member engagement is central to this model. Life Time offers services and activities for different age groups and needs, including Dynamic Personal Training, Dynamic Stretch, small group training, swim lessons, sport-specific coaching, nutrition coaching, ARORA for older adults, MIORA performance and longevity health services, athletic events, kids’ programs and social events. In 2025, it also organized about 51,800 events, reinforcing its role as a community hub.
The #2 Ranked company has continued to broaden the health and fitness theme through new services, digital tools and adjacent lifestyle offerings. Recent initiatives include pickleball expansion, LT Games, broader sales of LTH nutritional products and an integrated digital app with live fitness classes, remote personal training, nutrition and weight-loss support, wellness content and the L•AI•C personal companion. Life Time has also extended its ecosystem into healthy work and living environments through Life Time Work and Life Time Living, helping members connect health and wellness with daily routines beyond the club.
PriceSmart, Inc. (NASDAQ: PSMT - Get Free Report)'s share price passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $131.40 and traded as high as $147.81. PriceSmart shares last traded at $146.43, with a volume of 194,552 shares changing hands. Analyst Upgrades and Downgrades Several brokerages
PriceSmart remains a soft 'buy' after significant outperformance, supported by consistent growth and undervaluation versus peers. PSMT's Q1 2026 revenue rose 9.9% to $1.38B, driven by strong Colombia comps (+27.9%) and membership expansion. Membership income reached $89M, with platinum penetration increasing to 19.3%, enhancing recurring revenue and customer engagement.
PriceSmart (NASDAQ:PSMT – Get Free Report) will likely be releasing its Q2 2026 results after the market closes on Wednesday, April 8th. Analysts expect the company to announce earnings of $1.57 per share and revenue of $1.4776 billion for the quarter. Investors are encouraged to explore the company’s upcoming Q2 2026 earning overview page for the latest details on the call scheduled for Thursday, April 9, 2026 at 12:00 PM ET.
PriceSmart (NASDAQ:PSMT – Get Free Report) last announced its earnings results on Wednesday, January 7th. The company reported $1.29 EPS for the quarter, topping the consensus estimate of $1.28 by $0.01. The firm had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.36 billion. PriceSmart had a net margin of 2.79% and a return on equity of 12.20%. The business’s quarterly revenue was up 9.9% on a year-over-year basis. During the same quarter last year, the firm posted $1.21 EPS.
PriceSmart Stock Performance Shares of NASDAQ PSMT opened at $150.50 on Wednesday. PriceSmart has a 12 month low of $81.25 and a 12 month high of $158.01. The business’s 50 day moving average is $149.10 and its two-hundred day moving average is $132.40. The company has a market cap of $4.64 billion, a P/E ratio of 30.71 and a beta of 0.73. The company has a quick ratio of 0.55, a current ratio of 1.33 and a debt-to-equity ratio of 0.11.
PriceSmart Announces Dividend The firm also recently declared a dividend, which will be paid on Monday, August 31st. Investors of record on Monday, August 17th will be given a $0.70 dividend. This represents a yield of 89.0%. The ex-dividend date of this dividend is Monday, August 17th. PriceSmart’s dividend payout ratio is 28.57%.
Wall Street Analysts Forecast Growth A number of brokerages have recently weighed in on PSMT. Weiss Ratings upgraded PriceSmart from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Tuesday, March 10th. Wall Street Zen downgraded PriceSmart from a “buy” rating to a “hold” rating in a research note on Sunday, January 11th. One research analyst has rated the stock with a Strong Buy rating, Based on data from MarketBeat.com, PriceSmart has an average rating of “Strong Buy”.
Get Our Latest Research Report on PSMT
Insiders Place Their Bets In related news, Director Beatriz V. Infante sold 1,995 shares of PriceSmart stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $136.87, for a total value of $273,055.65. Following the transaction, the director directly owned 10,879 shares of the company’s stock, valued at $1,489,008.73. This trade represents a 15.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Leon C. Janks sold 3,000 shares of the business’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $137.29, for a total value of $411,870.00. Following the transaction, the director directly owned 30,734 shares of the company’s stock, valued at approximately $4,219,470.86. The trade was a 8.89% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 16,671 shares of company stock worth $2,283,051 in the last three months. 17.00% of the stock is owned by corporate insiders.
Hedge Funds Weigh In On PriceSmart A number of hedge funds have recently modified their holdings of PSMT. UMB Bank n.a. raised its position in PriceSmart by 76.0% during the 4th quarter. UMB Bank n.a. now owns 227 shares of the company’s stock worth $28,000 after purchasing an additional 98 shares during the last quarter. Geneos Wealth Management Inc. increased its stake in shares of PriceSmart by 560.0% in the first quarter. Geneos Wealth Management Inc. now owns 297 shares of the company’s stock valued at $26,000 after buying an additional 252 shares during the period. Osaic Holdings Inc. raised its position in shares of PriceSmart by 57.2% during the second quarter. Osaic Holdings Inc. now owns 492 shares of the company’s stock worth $52,000 after acquiring an additional 179 shares during the last quarter. Parallel Advisors LLC lifted its stake in shares of PriceSmart by 27.4% in the third quarter. Parallel Advisors LLC now owns 516 shares of the company’s stock worth $63,000 after acquiring an additional 111 shares during the period. Finally, Advisors Asset Management Inc. lifted its stake in shares of PriceSmart by 124.2% in the first quarter. Advisors Asset Management Inc. now owns 668 shares of the company’s stock worth $59,000 after acquiring an additional 370 shares during the period. Institutional investors and hedge funds own 80.46% of the company’s stock.
PriceSmart Company Profile (Get Free Report)
PriceSmart, Inc (NASDAQ: PSMT) is a U.S.-based retailer specializing in membership warehouse clubs. Founded in 1993, the company operates under a business model that offers bulk quantities of goods at discounted prices to individuals and businesses that purchase annual memberships. PriceSmart’s value proposition centers on low-cost operations, high-volume purchasing, and a no-frills shopping environment designed to pass savings directly to its members.
The company’s product assortment covers a broad range of merchandise categories, including groceries and fresh produce, household essentials, electronics, appliances, office supplies, furniture, and health and beauty items.
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SG Americas Securities LLC reduced its stake in shares of PriceSmart, Inc. (NASDAQ:PSMT – Free Report) by 39.9% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 14,908 shares of the company’s stock after selling 9,887 shares during the quarter. SG Americas Securities LLC’s holdings in PriceSmart were worth $1,829,000 as of its most recent filing with the SEC.
A number of other institutional investors have also recently bought and sold shares of PSMT. Geneos Wealth Management Inc. lifted its holdings in shares of PriceSmart by 560.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 297 shares of the company’s stock valued at $26,000 after buying an additional 252 shares during the last quarter. First Horizon Corp bought a new stake in shares of PriceSmart during the 3rd quarter worth $30,000. Steward Partners Investment Advisory LLC boosted its holdings in PriceSmart by 52.5% during the second quarter. Steward Partners Investment Advisory LLC now owns 363 shares of the company’s stock valued at $38,000 after acquiring an additional 125 shares during the period. Mather Group LLC. acquired a new stake in PriceSmart in the 3rd quarter valued at approximately $39,000. Finally, AlphaQuest LLC grew its stake in shares of PriceSmart by 127.5% in the third quarter. AlphaQuest LLC now owns 414 shares of the company’s stock worth $50,000 after acquiring an additional 232 shares during the last quarter. Institutional investors and hedge funds own 80.46% of the company’s stock.
Insider Activity In other PriceSmart news, Director Leon C. Janks sold 3,000 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $137.29, for a total value of $411,870.00. Following the completion of the sale, the director owned 30,734 shares of the company’s stock, valued at approximately $4,219,470.86. This represents a 8.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Paul Kovaleski sold 4,255 shares of the stock in a transaction on Monday, January 12th. The stock was sold at an average price of $136.86, for a total transaction of $582,339.30. Following the completion of the sale, the executive vice president owned 38,854 shares in the company, valued at approximately $5,317,558.44. This trade represents a 9.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 16,671 shares of company stock valued at $2,283,051. Insiders own 17.00% of the company’s stock.
PriceSmart Stock Performance Shares of NASDAQ:PSMT opened at $152.48 on Monday. The company has a current ratio of 1.33, a quick ratio of 0.55 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $4.70 billion, a P/E ratio of 31.12 and a beta of 0.74. The business has a 50-day moving average price of $149.66 and a two-hundred day moving average price of $133.15. PriceSmart, Inc. has a 1-year low of $81.25 and a 1-year high of $158.01.
PriceSmart (NASDAQ:PSMT – Get Free Report) last announced its quarterly earnings data on Wednesday, January 7th. The company reported $1.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.01. PriceSmart had a net margin of 2.79% and a return on equity of 12.20%. The firm had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.36 billion. During the same period last year, the firm earned $1.21 earnings per share. The business’s revenue for the quarter was up 9.9% on a year-over-year basis. Equities analysts predict that PriceSmart, Inc. will post 5.28 earnings per share for the current year.
PriceSmart Announces Dividend The business also recently declared a dividend, which will be paid on Monday, August 31st. Stockholders of record on Monday, August 17th will be paid a $0.70 dividend. The ex-dividend date of this dividend is Monday, August 17th. This represents a dividend yield of 89.0%. PriceSmart’s dividend payout ratio is 28.57%.
Analyst Upgrades and Downgrades Several brokerages recently issued reports on PSMT. Weiss Ratings upgraded PriceSmart from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Tuesday, March 10th. Wall Street Zen cut shares of PriceSmart from a “buy” rating to a “hold” rating in a research report on Sunday, January 11th. One research analyst has rated the stock with a Strong Buy rating, According to MarketBeat, the stock currently has an average rating of “Strong Buy”.
Read Our Latest Report on PriceSmart
PriceSmart Profile (Free Report)
PriceSmart, Inc (NASDAQ: PSMT) is a U.S.-based retailer specializing in membership warehouse clubs. Founded in 1993, the company operates under a business model that offers bulk quantities of goods at discounted prices to individuals and businesses that purchase annual memberships. PriceSmart’s value proposition centers on low-cost operations, high-volume purchasing, and a no-frills shopping environment designed to pass savings directly to its members.
The company’s product assortment covers a broad range of merchandise categories, including groceries and fresh produce, household essentials, electronics, appliances, office supplies, furniture, and health and beauty items.
Featured Articles Five stocks we like better than PriceSmart Want to see what other hedge funds are holding PSMT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PriceSmart, Inc. (NASDAQ:PSMT – Free Report).
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NET MERCHANDISE SALES GREW 9.9%
COMPARABLE NET MERCHANDISE SALES INCREASED 7.6%
$1.62 EARNINGS PER DILUTED SHARE
, /PRNewswire/ -- PriceSmart, Inc. ("PriceSmart" or the "Company") (NASDAQ: PSMT), operator of 56 warehouse clubs in 12 countries and one U.S. territory, today announced results for the fiscal second quarter of 2026, which ended on February 28, 2026.
Second Quarter Financial Results
Total revenues for the second quarter of fiscal year 2026 increased 9.7% to $1.50 billion compared to $1.36 billion in the comparable period of the prior year. For the second quarter of fiscal year 2026, net merchandise sales increased 9.9% to $1.47 billion from $1.33 billion in the second quarter of fiscal year 2025. Net merchandise sales - constant currency increased 7.8% over the comparable prior-year period. Foreign currency exchange rate fluctuations impacted net merchandise sales positively by $27.7 million, or 2.1%, versus the same period in the prior year.
The Company had 56 warehouse clubs in operation as of February 28, 2026 compared to 54 warehouse clubs in operation as of February 28, 2025.
Comparable net merchandise sales for the 54 warehouse clubs that have been open for greater than 13 ½ calendar months increased 7.6% for the 13-week period ended March 1, 2026 compared to the comparable 13-week period of the prior year. Comparable net merchandise sales - constant currency for the 13 weeks ended March 1, 2026 increased 5.5%. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales positively by 2.1% versus the same period in the prior year.
The Company recorded operating income during the fiscal second quarter of $75.4 million compared to operating income of $65.3 million in the prior-year period. Net income increased 12.2% to $49.1 million, or $1.62 per diluted share, in the second quarter of fiscal year 2026 compared to $43.8 million, or $1.45 per diluted share, in the second quarter of fiscal year 2025.
Adjusted EBITDA for the second quarter of fiscal year 2026 was $99.7 million compared to $87.0 million in the same period last year.
Year-to-Date Financial Results
Total revenues for the six months ended February 28, 2026 increased 9.8% to $2.88 billion compared to $2.62 billion in the comparable period of the prior year. For the first six months of fiscal year 2026, net merchandise sales increased 10.2% to $2.82 billion from $2.56 billion in the comparable prior-year period. Net merchandise sales - constant currency increased 8.6% over the comparable prior-year period. Foreign currency exchange rate fluctuations impacted net merchandise sales positively by $41.5 million, or 1.6%, versus the same period in the prior year.
Comparable net merchandise sales for the 54 warehouse clubs that have been open for greater than 13 ½ calendar months increased 7.8% for the 26-week period ended March 1, 2026 compared to the comparable 26-week period of the prior year. Comparable net merchandise sales - constant currency for the 26 weeks ended March 1, 2026 increased 6.2%. Foreign currency exchange rate fluctuations impacted comparable net merchandise sales positively by 1.6% versus the same period in the prior year.
The Company recorded operating income during the first six months of fiscal year 2026 of $138.3 million compared to operating income of $123.5 million in the prior-year period. Net income increased 9.9% to $89.3 million, or $2.91 per diluted share, in the first six months of fiscal year 2026 compared to $81.2 million, or $2.66 per diluted share, in the first six months of fiscal year 2025.
Adjusted EBITDA for the first six months of fiscal year 2026 was $186.6 million compared to $166.1 million in the same period last year.
Plans for New Club
The Company has leased land and plans to open its eighth warehouse club in Guatemala, located in Villa Nueva, approximately 13 miles south from the nearest club in the capital of Guatemala City, subject to all permits being obtained. The club will be built on a five-acre property and is anticipated to open in the spring of 2027. Once this club and four other previously announced clubs are open, the Company will operate 61 warehouse clubs.
The foregoing discussion of the Company's operating results includes references to Adjusted EBITDA, net merchandise sales - constant currency and comparable net merchandise sales - constant currency, which are non-GAAP financial measures. We believe these supplemental measures are useful to investors and analysts because they exclude items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures are defined and reconciled to the most comparable GAAP measures later in this document.
Conference Call Information
PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Thursday, April 9, 2026, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing toll free (800) 715-9871 for domestic callers or +1 (646) 307-1963 for international callers and asking to join the PriceSmart earnings call. A digital replay will be available shortly following the conclusion of the call through Thursday, April 16, 2026, by dialing +1 (800) 770-2030 for domestic callers or +1 (647) 362-9199 for international callers and entering replay passcode 5898084.
About PriceSmart
PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, selling high quality merchandise and providing services at low prices to PriceSmart Members. PriceSmart operates 56 warehouse clubs in 12 countries and one U.S. territory (ten in Colombia; nine in Costa Rica; seven each in Panama and Guatemala; five in Dominican Republic; four each in Trinidad and El Salvador; three in Honduras; two each in Nicaragua and Jamaica; and one each in Aruba, Barbados and the United States Virgin Islands). In addition, the Company plans to open one new warehouse club in La Romana, Dominican Republic in May 2026, one warehouse club in each of Montego Bay and South Camp Road (Kingston), Jamaica in the summer and winter of 2026, respectively, one warehouse club in Ciudad Quesada, Costa Rica in the summer of 2026 and one warehouse club in Villa Nueva, Guatemala in the spring of 2027. Once these five new clubs are open, the Company will operate 61 warehouse clubs.
This press release may contain forward-looking statements concerning PriceSmart, Inc.'s ("PriceSmart", the "Company" or "we") anticipated future revenues and earnings, adequacy of future cash flows, future dividends, omni-channel initiatives, proposed warehouse club and distribution center openings, the Company's performance relative to competitors and related matters. These forward-looking statements include, but are not limited to, statements containing the words "expect," "believe," "will," "may," "should," "project," "estimate," "anticipated," "scheduled," "intend," and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to: various political, economic and compliance risks associated with our international operations, including the effects of tariffs and/or international trade wars and disruptions to remittances, adverse changes in economic conditions in our markets, natural disasters, volatility in currency exchange rates and illiquidity of certain local currencies in our markets, competition, consumer and small business spending patterns, political instability, increased costs associated with the integration of online commerce with our traditional business, whether the Company can successfully execute strategic initiatives, our reliance on third party service providers, including those who support transaction and payment processing, data security and other technology services, cybersecurity breaches that could cause disruptions in our systems or jeopardize the security of Member, employee or business information, cost increases from product and service providers, interruption of supply chains, exposure to product liability claims and product recalls, recoverability of moneys owed to PriceSmart from governments, and other important factors discussed in the Risk Factors section of the Company's most recent Annual Report on Form 10-K, and other factors discussed from time to time in other filings with the SEC, which are accessible on the SEC's website at www.sec.gov, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date that they are made, and the Company does not undertake to update them, except as required by law. In addition, these risks are not the only risks that the Company faces. The Company could also be affected by additional factors that apply to all companies operating globally and in the U.S., as well as other risks that are not presently known to the Company or that the Company considers to be immaterial.
For further information, please contact Investor Relations (858) 404-8826 or send an email to [email protected].
PRICESMART, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED—AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended
Six Months Ended
February 28,
2026
February 28,
2025
February 28,
2026
February 28,
2025
Revenues:
Net merchandise sales
$ 1,466,530
$ 1,334,555
$ 2,820,326
$ 2,558,414
Export sales
359
3,987
486
13,605
Membership income
24,459
20,915
47,879
41,114
Other revenue and income
4,180
4,429
9,566
8,697
Total revenues
1,495,528
1,363,886
2,878,257
2,621,830
Operating expenses:
Cost of goods sold:
Net merchandise sales
1,230,128
1,126,335
2,368,310
2,156,212
Export sales
327
3,800
489
12,813
Selling, general and administrative:
Warehouse club and other operations
139,464
124,232
271,279
242,087
General and administrative
49,742
43,034
99,050
85,599
Pre-opening expenses
45
293
47
315
Loss on disposal of assets
402
922
735
1,274
Total operating expenses
1,420,108
1,298,616
2,739,910
2,498,300
Operating income
75,420
65,270
138,347
123,530
Other income (expense):
Interest income
3,632
2,735
6,581
4,955
Interest expense
(3,959)
(2,538)
(8,379)
(5,233)
Other expense, net
(8,405)
(5,306)
(14,166)
(12,162)
Total other expense
(8,732)
(5,109)
(15,964)
(12,440)
Income before provision for income taxes and
loss of unconsolidated affiliates
66,688
60,161
122,383
111,090
Provision for income taxes
(17,597)
(16,384)
(33,126)
(29,880)
Loss of unconsolidated affiliates
—
(17)
—
(22)
Net income
$ 49,091
$ 43,760
$ 89,257
$ 81,188
Net income per share available for distribution:
Basic
$ 1.62
$ 1.45
$ 2.91
$ 2.66
Diluted
$ 1.62
$ 1.45
$ 2.91
$ 2.66
Shares used in per share computations:
Basic
30,226
30,063
30,199
30,041
Diluted
30,245
30,068
30,212
30,044
PRICESMART, INC.
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
February 28,
2026
(Unaudited)
August 31,
2025
ASSETS
Current Assets:
Cash and cash equivalents
$ 156,249
$ 241,024
Short-term restricted cash
8,559
11,061
Short-term investments
149,712
73,186
Receivables, net of allowance for credit losses of $2 as of February 28, 2026 and
August 31, 2025
22,953
17,400
Merchandise inventories
623,142
560,730
Prepaid expenses and other current assets
81,305
71,059
Total current assets
1,041,920
974,460
Long-term restricted cash
30,279
33,206
Property and equipment, net
1,071,674
996,281
Operating lease right-of-use assets, net
125,744
113,479
Goodwill
43,263
43,238
Deferred tax assets
44,468
41,229
Other non-current assets (includes $488 and $701 as of February 28, 2026 and
August 31, 2025, respectively, for the fair value of derivative instruments)
79,410
60,375
Investment in unconsolidated affiliates
—
6,889
Total Assets
$ 2,436,758
$ 2,269,157
LIABILITIES AND EQUITY
Current Liabilities:
Short-term borrowings
$ 3,981
$ 12,286
Accounts payable
556,342
506,949
Accrued salaries and benefits
44,875
52,478
Deferred income
49,903
43,061
Income taxes payable
4,816
7,265
Other accrued expenses and other current liabilities (includes $2,456 and $551 as of
February 28, 2026 and August 31, 2025, respectively, for the fair value of derivative
instruments)
81,509
57,627
Operating lease liabilities, current portion
8,129
7,930
Dividends payable
21,683
—
Long-term debt, current portion
34,004
38,675
Total current liabilities
805,242
726,271
Deferred tax liability
764
1,100
Long-term income taxes payable, net of current portion
4,489
4,424
Long-term operating lease liabilities
134,835
122,244
Long-term debt, net of current portion
129,148
147,922
Other long-term liabilities (includes $5,013 and $6,196 for the fair value of derivative
instruments and $14,352 and $13,628 for post-employment plans as of February 28,
2026 and August 31, 2025, respectively)
29,241
19,824
Total Liabilities
1,103,719
1,021,785
Stockholders' Equity:
Common stock $0.0001 par value, 45,000,000 shares authorized; 32,852,656 and
32,688,047 shares issued and 30,895,879 and 30,745,833 shares outstanding (net of
treasury shares) as of February 28, 2026 and August 31, 2025, respectively
3
3
Additional paid-in capital
536,554
529,354
Accumulated other comprehensive loss
(123,496)
(161,439)
Retained earnings
1,045,373
999,426
Less: treasury stock at cost, 1,956,777 shares as of February 28, 2026 and 1,942,214
shares as of August 31, 2025
The accompanying Consolidated Financial Statements are presented in accordance with U.S. GAAP (Generally Accepted Accounting Principles). In addition to relevant GAAP measures, we also provide non-GAAP measures including Adjusted EBITDA, net merchandise sales - constant currency and comparable net merchandise sales - constant currency because management believes these metrics are useful to investors and analysts by excluding items that we do not believe are indicative of our core operating performance. These measures are customary for our industry and commonly used by competitors. However, these non-GAAP financial measures should not be reviewed in isolation or considered as an alternative to any other performance measure derived in accordance with GAAP and may not be comparable to similarly titled measures used by other companies in our industry or across different industries.
Adjusted EBITDA
Adjusted EBITDA is defined as net income before interest expense, provision for income taxes and depreciation and amortization, adjusted for the impact of certain other items, including interest income and other income (expense), net. The following is a reconciliation of our Net income to Adjusted EBITDA for the periods presented:
Three Months Ended
Six Months Ended
(Amounts in thousands)
February 28,
2026
February 28,
2025
February 28,
2026
February 28,
2025
Net income as reported
$ 49,091
$ 43,760
$ 89,257
$ 81,188
Adjustments:
Interest expense
3,959
2,538
8,379
5,233
Provision for income taxes
17,597
16,384
33,126
29,880
Depreciation and amortization
24,272
21,767
48,249
42,629
Interest income
(3,632)
(2,735)
(6,581)
(4,955)
Other expense, net (1)
8,405
5,306
14,166
12,162
Adjusted EBITDA
$ 99,692
$ 87,020
$ 186,596
$ 166,137
(1)
Primarily consists of transaction costs of converting the local currencies into available tradable currencies in some of our countries with liquidity issues and foreign currency losses or gains due to the revaluation of monetary assets and liabilities (primarily U.S. dollars) for the three and six months ended February 28, 2026 and 2025.
Net Merchandise Sales - Constant Currency and Comparable Net Merchandise Sales – Constant Currency
As a multinational enterprise, we are exposed to changes in foreign currency exchange rates. The translation of the operations of our foreign-based entities from their local currencies into U.S. dollars is sensitive to changes in foreign currency exchange rates and can have a significant impact on our reported financial results. We believe that constant currency is a useful measure, indicating the actual growth of our operations. When we use the term "net merchandise sales – constant currency," it means that we have translated current year net merchandise sales at prior year monthly average exchange rates. Net merchandise sales - constant currency results exclude the effects of foreign currency translation. Similarly, when we use the term "comparable net merchandise sales – constant currency," it means that we have translated current year comparable net merchandise sales at prior year monthly average exchange rates. Comparable net merchandise sales – constant currency results exclude the effects of foreign currency translation. Refer to "Management's Discussion & Analysis – Net Merchandise Sales" and "Management's Discussion & Analysis – Comparable Net Merchandise Sales" in our Quarterly Report on Form 10-Q for the period ended February 28, 2026 for our quantitative analysis and discussion. Reconciliations between net merchandise sales – constant currency and comparable net merchandise sales - constant currency and the most directly comparable GAAP measures are included below.
Net merchandise sales growth rate on a net merchandise sales - constant currency basis is calculated as follows:
February 28, 2026
Three Months Ended
Six Months Ended
(Amounts in thousands, except % growth)
Net
merchandise
sales
% Growth
Net
merchandise
sales
% Growth
Net merchandise sales
$ 1,466,530
9.9 %
$ 2,820,326
10.2 %
Favorable impact of foreign currency exchange
27,720
2.1 %
41,536
1.6 %
Net merchandise sales on a constant-currency basis
$ 1,438,810
7.8 %
$ 2,778,790
8.6 %
Comparable net merchandise sales growth rate on a net merchandise sales - constant currency basis is calculated as follows:
March 1, 2026
Thirteen Weeks
Ended
Twenty-Six Weeks Ended
% Growth
% Growth
Comparable net merchandise sales
7.6 %
7.8 %
Favorable impact of foreign currency exchange
2.1 %
1.6 %
Comparable net merchandise sales on a constant-currency basis
This is a fair market value price provided by Massive. Learn more.
52-Week Range$99.98▼
$183.00Dividend Yield0.77%
P/E Ratio35.83
PriceSmart NASDAQ: PSMT has elevated risk as an emerging-market stock, but it is well positioned and trading at a value relative to its peers, Walmart’s NASDAQ: WMT Sam’s Club and Costco NASDAQ: COST.
These two leading membership club retailers, which trade at much higher valuations, suggest PriceSmart's stock has plenty of upside. Trading at approximately 29x earnings versus Costco’s approximately 50x, the upside potential is significant indeed, and underpinned by its ability to grow.
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PriceSmart self-funds its growth and leads in terms of percentage gains. The fiscal Q2 2026 results reflect a 9.7% growth rate, compared with Costco's 9.1% and Walmart's 5.6% during the comparable period.
Looking ahead, PriceSmart expects to sustain its double-digit pace, driven by market share gains, comp-store growth, and new store openings. As of FQ2 2026, the company’s store count increased by 3.7% year-over-year and is expected to increase by nearly 9% by the end of FY2027.
PriceSmart Outperformance Triggers Continuation Signal PriceSmart has a solid fiscal Q2, with revenue growing by 9.7% to $1.5 billion, outperforming the consensus estimate by 135 basis points.
The gain was driven by a 9.9% increase in merchandise sales, underpinned by a 7.8% increase in net sales and a 2.1% currency tailwind. Comp store sales increased by 7.6% (5.5% adjusted for currency translation), and membership fees grew by 17%, suggesting comp store gains will continue in the upcoming quarters.
Margin news is also good. The company’s improving revenue leverage, better-than-expected traffic, and operational quality led to an accelerated earnings growth. EBITDA, a measure of core profitability, grew by 14.5%, leaving the GAAP EPS at $1.62 or more than a nickel ahead of the consensus. Margins are expected to remain strong in the upcoming quarter, helping trigger a robust market response.
PriceSmart’s stock price surged by more than 2% following the release, taking the market to a new all time high.
The move confirms an uptrend and a bullish Flag Pattern, signaling the continuation of the trend. Targets for this move are based on the magnitude of the Flag’s Pole—approximately $22—putting this market near $175 by mid-year. Higher highs are likely over the longer term due to growth, cash flow, and the ability to return capital.
PriceSmart’s Dividend and Distribution Growth Make It a Buy-and-Hold Investment PriceSmart Dividend PaymentsDividend Yield0.78%
Annual Dividend$1.40
Dividend Increase Track Record4 Years
Annualized 5-Year Dividend Growth12.47%
Dividend Payout Ratio27.61%
Next Dividend PaymentAug. 31
PSMT Dividend History
PriceSmart isn’t a high-yielding stock, but it is a reliable dividend payer with a track record for aggressive increases.
In early 2026, the yield was less than 1%, mitigated by the low payout ratio and distribution growth compound annual growth rate (CAGR).
The payout ratio is very low, about 20%, leaving room for distribution increases without the double-digit earnings growth pace.
The CAGR is in the low teens and is likely to be sustained, given the payout ratio and earnings growth.
Institutional activity affirms the stock's dividend-paying power and growth outlook, but may provide a headwind for the price action. The group owns more than 80% of the stock and has bought on balance over the trailing-12-month period, sometimes aggressively, but sold on balance in Q1 2026.
With this in play, the price action may struggle to advance and hold gains, but there is a flipside. The fiscal Q2 release affirms this company’s growth outlook and may lead institutions back into accumulation, as similar results have done for other retail companies.
There were no obvious red flags in the reported quarter's balance sheet—only signs that it can continue executing its strategy. Even with a modest decline in cash at the end of fiscal Q2, PriceSmart remains well-capitalized, and gains in current and total assets help offset the decrease.
At the same time, increases in liability were manageable, leaving equity up and leverage at persistently low levels. Long-term debt is less than 0.25x equity, leaving the company nimble and able to raise capital as needed.
The biggest risks this year are rising costs, margin pressures, and FX volatility. Rising costs and margin pressures have, so far, been mitigated, and FX volatility is an uncontrollable influence likely to remain volatile for the foreseeable future.
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PriceSmart, Inc. reported a good growth story continuation in Q2 as the existing club footprint's financial momentum stood strong. Membership income rose by 16.9%, providing an increasingly important high-margin revenue stream as platinum penetration continues to increase. PSMT continues to invest in new locations at a good pace and with good capital returns.
, /PRNewswire/ -- PriceSmart, Inc. ("PriceSmart" or the "Company") (NASDAQ: PSMT), a leading operator of membership warehouse clubs in Central America, the Caribbean, and Colombia, today announced the release of its Fiscal Year 2025 Sustainability Report, outlining continued progress across environmental, social, and governance priorities across its operations in the United States, 12 countries, and one U.S. territory.
"Sustainability is part of how we do business every day, supporting long-term growth and value creation. We remain focused on continuous improvement and responsible practices across our operations," said David Price, Chief Executive Officer of PriceSmart. "This year's progress demonstrates how sustainability and business performance go hand in hand."
Key Highlights from the FY2025 Sustainability Report
Implemented an origin consolidation initiative in two cities in Asia, enabling direct shipments to distribution centers in Panama, Costa Rica, and Guatemala and reducing delivery times, handling, and carbon emissions. Introduced a formal Code of Ethics for Vendors, applicable to all suppliers, contractors, and service providers, reinforcing transparency and accountability. Expanded renewable energy adoption, with 48 of 56 warehouse clubs powered by solar energy. Solar installations generated more than 36,000 megawatt hours of clean electricity, reducing reliance on conventional energy sources, and lowering emissions. Launched Women@PriceSmart, a new program focused on advancing female employees' personal and professional development, reaching nearly 9,000 total participant engagements and providing training, mentorship, and leadership development opportunities. FY2025 marked the third year of our Food for All campaign, and once again set a new record, bringing in more than 458 metric tons of food and providing the equivalent of more than 1 million meals in support of communities in 11 countries. PriceSmart's FY2025 Sustainability Report reflects the company's continued focus on integrating sustainability into core business strategy, guided by its values of integrity, excellence, and community.
As PriceSmart approaches its 30th anniversary, the Company remains dedicated to advancing sustainability initiatives and delivering long term value for its shareholders.
Access the full Sustainability report at https://investors.pricesmart.com under the ESG tab.
About PriceSmart
PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, selling high quality merchandise and services at low prices to PriceSmart Members. PriceSmart operates 56 warehouse clubs in 12 countries and one U.S. territory (ten in Colombia; nine in Costa Rica; seven each in Panama and Guatemala; five in Dominican Republic; four each in Trinidad and El Salvador; three in Honduras; two each in Nicaragua and Jamaica; and one each in Aruba, Barbados and the United States Virgin Islands). In addition, the Company plans to open one new warehouse club in La Romana, Dominican Republic in May 2026, one warehouse club in each of Montego Bay and South Camp Road (Kingston), Jamaica in the summer and winter of 2026, respectively, one warehouse club in Ciudad Quesada, Costa Rica in the summer of 2026 and one warehouse club in Villa Nueva, Guatemala in the spring of 2027. Once these five new clubs are open, the Company will operate 61 warehouse clubs.
This press release may contain forward-looking statements concerning PriceSmart, Inc.'s ("PriceSmart", the "Company" or "we") anticipated future revenues and earnings, adequacy of future cash flows, future dividends, omni-channel initiatives, proposed warehouse club and distribution center openings, the Company's performance relative to competitors and related matters. These forward-looking statements include, but are not limited to, statements containing the words "expect," "believe," "will," "may," "should," "project," "estimate," "anticipated," "scheduled," "intend," and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to: various political, economic and compliance risks associated with our international operations, including the effects of tariffs and/or international trade wars and disruptions to remittances, adverse changes in economic conditions in our markets, natural disasters, volatility in currency exchange rates and illiquidity of certain local currencies in our markets, competition, consumer and small business spending patterns, political instability, increased costs associated with the integration of online commerce with our traditional business, whether the Company can successfully execute strategic initiatives, our reliance on third party service providers, including those who support transaction and payment processing, data security and other technology services, cybersecurity breaches that could cause disruptions in our systems or jeopardize the security of Member, employee or business information, cost increases from product and service providers, interruption of supply chains, exposure to product liability claims and product recalls, recoverability of moneys owed to PriceSmart from governments, and other important factors discussed in the Risk Factors section of the Company's most recent Annual Report on Form 10-K, and other factors discussed from time to time in other filings with the SEC, which are accessible on the SEC's website at www.sec.gov, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date that they are made, and the Company does not undertake to update them, except as required by law. In addition, these risks are not the only risks that the Company faces. The Company could also be affected by additional factors that apply to all companies operating globally and in the U.S., as well as other risks that are not presently known to the Company or that the Company considers to be immaterial.
For further information, please contact Investor Relations (858) 404-8826 or send an email to [email protected].
Black Creek Investment Management Inc. disclosed a sale of 473,785 shares of PriceSmart (PSMT +0.43%) in a filing dated May 13, 2026, an estimated $69.20 million transaction based on average quarterly pricing.
What happenedAccording to an SEC filing dated May 13, 2026, Black Creek Investment Management Inc. sold 473,785 shares of PriceSmart. The estimated transaction value was $69.20 million, calculated using the average unadjusted closing price for the first quarter of 2026. At quarter close, the fund’s remaining PriceSmart stake was 1,164,834 shares, valued at $175.31 million, with the overall position value changing by $25.70 million during the period.
What else to knowBlack Creek’s reduction brings PriceSmart to 9.41% of reportable AUM as of March 31, 2026Top holdings after the filing:NYSE:ELAN: $251.12 million (13.5% of AUM)NYSE:BAH: $207.43 million (11.1% of AUM)NYSE:FCN: $194.28 million (10.4% of AUM)NYSE:EXP: $147.31 million (7.9% of AUM)NASDAQ:PYPL: $143.55 million (7.7% of AUM)As of May 18, 2026, PriceSmart shares were priced at $162.90, up 55.8% over the past year, outperforming the S&P 500 by 31.3 percentage pointsCompany OverviewMetricValuePrice (as of market close 2026-05-18)$162.90Market Capitalization$5.03 billionRevenue (TTM)$5.53 billionNet Income (TTM)$152.92 millionCompany SnapshotOffers brand name and private label consumer products, fresh produce, prepared foods, and ancillary services such as optical and tire centers through warehouse clubs and e-commerce platforms.Operates a membership-based warehouse club model, generating revenue from product sales and annual membership fees, supplemented by online ordering and delivery services.Targets individual consumers and small businesses in Central America, the Caribbean (including the U.S. Virgin Islands), and Colombia seeking value-oriented bulk purchasing and essential goods.56 warehouse clubs across 12 countries and one U.S. territory as of February 28, 2026, with five more under development that would bring the total to 61, leveraging scale and operational efficiency to deliver value to its members. The company’s strategy centers on a hybrid retail and membership model, supported by both physical locations and a growing e-commerce presence. PriceSmart’s competitive edge lies in its ability to offer a broad assortment of essential goods and services at attractive price points in underserved international markets.
What this transaction means for investorsBlack Creek trimmed its PriceSmart position during Q1 2026, but this is a reduction after a strong run, not a change of direction. The fund still holds a significant stake, and nothing about the filing suggests the underlying thesis has shifted. PriceSmart operates membership warehouse clubs across Central America, the Caribbean, and Colombia — markets where it faces nothing like the competitive pressure a Costco or Sam's Club would encounter in the U.S. Members pay annual fees for access to bulk goods and services, which creates recurring revenue and keeps customers sticky. That model, planted in underserved international markets with limited direct competition, is the core of the investment case. The business has been executing: comparable sales are growing, membership is expanding, and the company is actively opening new clubs while scoping Chile as its next frontier. A trim after a strong run is consistent with routine portfolio management, not a reassessment of those fundamentals. For anyone evaluating PriceSmart, the more useful question is whether the growth story can justify where the stock is trading after its run. Black Creek's remaining conviction suggests they think there's still room — just less of it than before.
Seena Hassouna has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booz Allen Hamilton, FTI Consulting, and PayPal. The Motley Fool recommends Eagle Materials and recommends the following options: short June 2026 $50 calls on PayPal. The Motley Fool has a disclosure policy.
, /PRNewswire/ -- PriceSmart, Inc. ("PriceSmart", the "Company" or "we") (NASDAQ: PSMT) plans to release financial results for the third quarter of fiscal year 2026 on Wednesday, July 8, 2026, after the market closes. PriceSmart management will host a conference call at 12:00 p.m. Eastern time (9:00 a.m. Pacific time) on Thursday, July 9, 2026, to discuss the financial results. Individuals interested in participating in the conference call may do so by dialing toll-free (800) 715-9871 for domestic callers or +1 (646) 307-1963 for international callers and asking to join the PriceSmart earnings call. A digital replay will be available shortly following the conclusion of the call through Thursday, July 16, 2026, by dialing +1 (800) 770-2030 for domestic callers or +1 (647) 362-9199 for international callers and entering replay passcode 5898084#.
New Club Opening
The Company opened its sixth warehouse club in the Dominican Republic in May 2026. The new warehouse club occupies a five-acre property in La Romana, approximately 73 miles east from the nearest club in the capital of Santo Domingo. We are proud to have incorporated new sustainable design practices into the club and are encouraged by its initial performance in this secondary city since its opening. The Company now operates 57 warehouse clubs in total.
About PriceSmart
PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean, selling high quality merchandise and services at low prices to PriceSmart Members. PriceSmart operates 57 warehouse clubs in 12 countries and one U.S. territory (ten in Colombia; nine in Costa Rica; seven each in Panama and Guatemala; six in Dominican Republic; four each in Trinidad and El Salvador; three in Honduras; two each in Nicaragua and Jamaica; and one each in Aruba, Barbados and the United States Virgin Islands). In addition, the Company plans to open one warehouse club in each of Montego Bay and South Camp Road (Kingston), Jamaica in the fall and winter of 2026, respectively, one warehouse club in Ciudad Quesada, Costa Rica in the summer of 2026 and one warehouse club in Villa Nueva, Guatemala in the winter of 2027. Once these four new clubs are opened, the Company will operate 61 warehouse clubs.
This press release may contain forward-looking statements concerning PriceSmart, Inc.'s ("PriceSmart", the "Company" or "we") anticipated future revenues and earnings, adequacy of future cash flows, future dividends, omni-channel initiatives, proposed warehouse club and distribution center openings, the Company's performance relative to competitors and related matters. These forward-looking statements include, but are not limited to, statements containing the words "expect," "believe," "will," "may," "should," "project," "estimate," "anticipated," "scheduled," "intend," and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, but not limited to: various political, economic and compliance risks associated with our international operations, including the effects of tariffs and/or international trade wars and disruptions to remittances, adverse changes in economic conditions in our markets, natural disasters, volatility in currency exchange rates and illiquidity of certain local currencies in our markets, competition, consumer and small business spending patterns, political instability, increased costs associated with the integration of online commerce with our traditional business, whether the Company can successfully execute strategic initiatives, our reliance on third party service providers, including those who support transaction and payment processing, data security and other technology services, cybersecurity breaches that could cause disruptions in our systems or jeopardize the security of Member, employee or business information, cost increases from product and service providers, interruption of supply chains, exposure to product liability claims and product recalls, recoverability of moneys owed to PriceSmart from governments, and other important factors discussed in the Risk Factors section of the Company's most recent Annual Report on Form 10-K, and other factors discussed from time to time in other filings with the SEC, which are accessible on the SEC's website at www.sec.gov, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date that they are made, and the Company does not undertake to update them, except as required by law. In addition, these risks are not the only risks that the Company faces. The Company could also be affected by additional factors that apply to all companies operating globally and, in the U.S., as well as other risks that are not presently known to the Company or that the Company considers to be immaterial.
For further information, please contact Investor Relations (858) 404-8826 or send an email to [email protected].
Hyatt Hotels (H), PriceSmart (PSMT) and Voya Financial (VOYA) reached new highs Friday, as the stock market endured another round of selling. All three stocks are in Investor's Business Daily's New Highs list.
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Hyatt Hotels Extends Breakout Gains Hyatt Hotels owns, operates, manages and franchises hotels and resorts.
Shares rallied around 7% this past week, hitting new highs and moving further above a 175.54 cup-with-handle buy point, according to IBD MarketSurge. The 5% buy zone ran up to 184.31, so shares are extended. Investors must now wait for a new chart pattern to emerge.
Hyatt stock has a solid 91 IBD Composite Rating, according to IBD Stock Checkup. Despite solid gains from its breakout, the stock has a 78 Relative Strength Rating, lower than desirable.
PriceSmart, Voya Financial Hit New Highs San Diego-headquartered PriceSmart is the largest operator of membership-based warehouse clubs — like Costco Wholesale (COST) and Walmart's (WMT) Sam's Club — in Central America.
In the latest quarter, PriceSmart earnings climbed 12% to $1.32 per share. Revenue climbed 10% to nearly $1.49 billion.
PriceSmart stock is trading above its 5% buy zone from a 165.46 flat-base entry. The buying area topped out at 173.73.
The stock's relative strength line has climbed to its highest level since early April and is approaching new highs. That's a sign of outperformance.
Meanwhile, Voya Financial is breaking out past an 84 buy point from a tight pattern, with a solid gain Friday in the face of weak stock market action. The buy area goes up to 88.20. The stock traded tightly for several weeks, which is constructive action.
Voya is a financial services company, providing workplace retirement plans, employee benefits and institutional asset management. It has a 90 Composite Rating.
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Lancaster Colony (NASDAQ: LANC | LANC Price Prediction) rarely makes headlines, but it has done something remarkable: raised its dividend for 63 consecutive years, cementing its status as a Dividend King. The company behind Marzetti, Sister Schubert’s, New York Bakery, and a growing roster of licensed restaurant brands is now weighing a $400 million acquisition of Bachan’s Japanese Barbecue Sauce. That deal crystallizes the bull and bear debate around this quiet food company.
The Bull Case Lancaster Colony’s financial foundation is hard to argue with. In Q2 FY26 (ended December 31, 2025), the company posted a record gross profit of $137.26 million, with an adjusted gross margin of 26.5%, up 40 basis points year over year. That margin expansion follows a 20-basis-point improvement in Q1 FY26, signaling a durable, not episodic, trend.
The licensing engine is accelerating. Texas Roadhouse dinner rolls are generating between $1 million and $1.5 million per week in scanner sales at Walmart alone, with broader distribution beginning in August. CEO David Ciesinski described the repeat purchase cycle as “somewhere in the range of like 13 days,” an unusually fast repurchase rate for a frozen category. Sister Schubert’s and Texas Roadhouse dinner rolls combined delivered 15.9% growth and a 440-basis-point market share gain to 60.8%.
The balance sheet is a fortress. Lancaster Colony holds $201.58 million in cash against total liabilities of just $296.03 million. The most recent quarterly dividend rose to $1.00 per share, up from $0.95 the prior quarter. Ciesinski framed the Bachan’s deal as a strategic fit: “This transaction will reinforce Marzetti’s position as a global leader in sauces by adding a premium brand that is exceptionally well aligned with evolving consumer preferences for global flavors and better-for-you products.”
The Bear Case The risks are real. Retail segment revenue slipped 1.1% in Q2 FY26, with volume down 3.1% in pounds shipped, meaning pricing is masking underlying volume erosion. University of Michigan consumer sentiment stood at just 53.3 in March 2026, deep in pessimistic territory and near recessionary levels below 60. That backdrop aligns with Ciesinski’s own Q3 FY25 warning: “We experienced a more challenging consumer environment…as evidenced by reduced traffic in the foodservice channel and some softening demand in the retail channel.”
The Bachan’s acquisition introduces meaningful integration risk. At $400 million, the deal is large relative to Lancaster Colony’s full-year FY25 revenue of $1.909 billion. Dependence on key licensing partners, including Chick-fil-A and Texas Roadhouse, creates structural renewal risk. Input cost inflation in eggs and tariff-related uncertainty on commodities add further near-term pressure.
The Verdict Lancaster Colony’s 63-year dividend streak reflects genuine operational discipline. Margin expansion is consistent, the licensing portfolio is growing, and the balance sheet is clean. The Bachan’s bet, soft consumer sentiment, and retail volume declines are legitimate concerns investors should weigh carefully before concluding whether the hidden gem label is earned or aspirational.
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News Products Contact Hamburger menu Send a Release ROLLING MEADOWS, Ill., April 29, 2026 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today declared a regular quarterly cash dividend of seventy cents ($0.70) per share on the Common Stock of the Company, payable on June 19, 2026 to Stockholders of Record as of June 5, 2026.
Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
Contact:
Sara Walsh, CFA
(630) 285-3593 - [email protected]
, /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended March 31, 2026. Management will host a webcast conference call to discuss these results on Thursday, April 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to the call, and for printer-friendly formats of this release, the "CFO Commentary" and "Supplemental Quarterly Data," which may also be referenced during the call, please visit ajg.com/IR. These documents contain both GAAP and non-GAAP measures. Investors and other users of this information should read carefully the section entitled "Information Regarding Non-GAAP Measures" beginning on page 8.
Summary of Financial Results - First Quarter
Revenues Before
Reimbursements
Net Earnings (Loss)
EBITDAC
Diluted Net Earnings
(Loss) Per Share
Segment
1st Q 26
1st Q 25
1st Q 26
1st Q 25
1st Q 26
1st Q 25
1st Q 26
1st Q 25
(in millions)
(in millions)
(in millions)
Brokerage, as reported
$ 4,293
$ 3,314
$ 913
$ 816
$ 1,562
$ 1,351
$ 3.51
$ 3.13
Net (gains) on divestitures
(7)
(6)
(5)
(4)
(7)
(6)
(0.02)
(0.02)
Acquisition integration
–
–
65
33
87
44
0.25
0.13
Workforce and lease termination
–
–
20
14
27
18
0.08
0.05
Acquisition related adjustments
–
–
39
25
50
30
0.15
0.09
Amortization of intangible assets
–
–
201
152
–
–
0.77
0.59
Effective income tax rate impact
–
–
–
1
–
–
–
–
Levelized foreign currency translation
–
57
–
13
–
19
–
0.05
Brokerage, as adjusted
4,286
3,365
1,233
1,050
1,719
1,456
4.74
4.02
Risk Management, as reported
428
374
50
41
86
72
0.19
0.16
Acquisition integration
–
–
1
1
1
2
–
–
Workforce and lease termination
–
–
1
3
1
3
–
0.01
Acquisition related adjustments
–
–
4
–
6
–
0.02
–
Amortization of intangible assets
–
–
5
4
–
–
0.02
0.02
Levelized foreign currency translation
–
7
–
1
–
1
–
–
Risk Management, as adjusted
428
381
61
50
94
78
0.23
0.19
Corporate, as reported
(5)
–
(140)
(148)
(91)
(122)
(0.54)
(0.57)
Transaction-related costs
–
–
6
20
7
23
0.02
0.08
Legal & tax related
–
–
1
–
18
–
–
–
Clean energy-related
5
–
3
–
5
–
0.02
–
Corporate, as adjusted
–
–
(130)
(128)
(61)
(99)
(0.50)
(0.49)
Total Company, as reported
$ 4,716
$ 3,688
$ 823
$ 709
$ 1,557
$ 1,301
$ 3.16
$ 2.72
Total Company, as adjusted
$ 4,714
$ 3,746
$ 1,164
$ 972
$ 1,752
$ 1,435
$ 4.47
$ 3.72
Total Brokerage & Risk Management, as reported
$ 4,721
$ 3,688
$ 963
$ 857
$ 1,648
$ 1,423
$ 3.70
$ 3.29
Total Brokerage & Risk Management, as adjusted
$ 4,714
$ 3,746
$ 1,294
$ 1,100
$ 1,813
$ 1,534
$ 4.97
$ 4.21
First quarter 2025 reported and adjusted amounts for the Brokerage Segment include approximately $143 million of incremental interest income, or approximately 41 cents after-tax, earned on the cash proceeds held to fund the AssuredPartners acquisition.
For first quarter 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $431 million, $15 million and $30 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $111 million, $4 million and ($20) million, respectively, relating to these adjustments. A detailed reconciliation is shown on pages 16 and 17.
(1 of 17)
"We had a terrific first quarter!" said J. Patrick Gallagher, Jr., Chairman and CEO. "For our combined brokerage and risk management segments, our two-pronged revenue growth strategy – growing both organically and through acquisitions – delivered revenue growth of 28% in the quarter. Our organic growth of 5% reflected strong client retention, disciplined execution, and the benefit of our diversified platform. Net earnings increased 12%, and adjusted EBITDAC grew 18%, marking our 24th consecutive quarter of double-digit adjusted EBITDAC growth.
"Our results reflect the strength and consistency of our business model across the dynamic insurance and economic environment. We remain focused on organic growth, strategic mergers and acquisitions, investment in productivity and quality, and maintaining our culture. We are also seeing the benefit of deeper collaboration across our P&C brokerage, benefits, and claims teams, supported by practical applications of AI, automation, and digitization that enhance how we serve and advocate for our clients. We believe Gallagher is well positioned to continue delivering strong growth and long‑term value for our shareholders."
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.
Organic Revenues (Non-GAAP)
1st Q 2026
1st Q 2025
Base Commissions and Fees
Commissions and fees, as reported
$ 3,915
$ 2,869
Less commissions and fees from acquisitions, divested operations and other
(937)
(64)
Levelized foreign currency translation
–
52
Organic base commissions and fees
$ 2,978
$ 2,857
Organic change in base commissions and fees
4 %
Supplemental Revenues
Supplemental revenues, as reported
$ 180
$ 114
Less supplemental revenues from acquisitions, divested operations and other
(46)
–
Levelized foreign currency translation
–
2
Organic supplemental revenues
$ 134
$ 116
Organic change in supplemental revenues
16 %
Contingent Revenues
Contingent revenues, as reported
$ 115
$ 93
Less contingent revenues from acquisitions, divested operations and other
(19)
–
Levelized foreign currency translation
–
1
Organic contingent revenues
$ 96
$ 94
Organic change in contingent revenues
2 %
Total reported commissions, fees, supplemental
revenues and contingent revenues
$ 4,210
$ 3,076
Less commissions, fees, supplemental revenues and contingent revenues from acquisitions, divested operations and other
(1,002)
(64)
Levelized foreign currency translation
–
55
Total organic commissions, fees, supplemental revenues and contingent revenues
$ 3,208
$ 3,067
Total organic change
5 %
Acquisition Activity
1st Q 2026
1st Q 2025
Number of acquisitions closed *
8
10
Estimated annualized revenues acquired (in millions)
$ 49
$ 63
*
In the first quarter of 2026 and 2025, Gallagher issued 76,000 shares and 49,000 shares, respectively, of its common stock directly to sellers in connection with tax-free exchange acquisitions.
(2 of 17)
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.
Compensation Expense and Ratios
1st Q 2026
1st Q 2025
Compensation expense, as reported
$ 2,211
$ 1,617
Acquisition integration
(37)
(28)
Workforce and lease termination related charges
(24)
(16)
Acquisition related adjustments
(50)
(30)
Levelized foreign currency translation
–
29
Compensation expense, as adjusted
$ 2,100
$ 1,572
Reported compensation expense ratios using reported revenues on page 1
*
51.5 %
48.8 %
Adjusted compensation expense ratios using adjusted revenues on page 1
**
49.0 %
46.7 %
*
Reported first quarter 2026 compensation expense ratio was 2.7 pts higher than first quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as first quarter 2025 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024. This ratio was also impacted by higher acquisition related adjustments and workforce termination costs, partially offset by savings from headcount controls.
**
Adjusted first quarter 2026 compensation expense ratio was 2.3 pts higher than first quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as first quarter 2025 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024. This ratio also benefited from savings from headcount controls.
Operating Expense and Ratios
1st Q 2026
1st Q 2025
Operating expense, as reported
$ 520
$ 346
Acquisition integration
(50)
(16)
Workforce and lease termination related charges
(3)
(2)
Levelized foreign currency translation
–
9
Operating expense, as adjusted
$ 467
$ 337
Reported operating expense ratios using reported revenues on page 1
*
12.1 %
10.5 %
Adjusted operating expense ratios using adjusted revenues on page 1
**
10.9 %
10.0 %
*
Reported first quarter 2026 operating expense ratio was 1.6 pts higher than first quarter 2025. This ratio was primarily impacted by higher integration and technology costs, partially offset by lower outside consulting fees. This ratio was also impacted by lower interest income revenues in the quarter, as first quarter 2025 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024.
**
Adjusted first quarter 2026 operating expense ratio was 0.9 pts higher than first quarter 2025. This ratio was primarily impacted by increased technology costs, partially offset by lower outside consulting fees. This ratio was also impacted by lower interest income revenues in the quarter, as first quarter 2025 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024.
(3 of 17)
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.
Net Earnings to Adjusted EBITDAC (Non-GAAP)
1st Q 2026
1st Q 2025
Net earnings, as reported
$ 913
$ 816
Provision for income taxes
313
283
Depreciation
49
33
Amortization
271
204
Change in estimated acquisition earnout payables
16
15
EBITDAC
1,562
1,351
Net (gains) on divestitures
(7)
(6)
Acquisition integration
87
44
Workforce and lease termination related charges
27
18
Acquisition related adjustments
50
30
Levelized foreign currency translation
–
19
EBITDAC, as adjusted
$ 1,719
$ 1,456
Net earnings margin, as reported using reported revenues on page 1
*
21.3 %
24.6 %
EBITDAC margin, as adjusted using adjusted revenues on page 1
*
40.1 %
43.3 %
*
First quarter 2025 adjusted EBITDAC includes approximately $143 million of interest income revenues earned on the proceeds received in December 2024 related to the AssuredPartners Financing. The interest income in the prior period, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in first quarter adjusted EBITDAC margin by approximately 3.6%.
Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.
Organic Revenues (Non-GAAP)
1st Q 2026
1st Q 2025
Fees
$ 415
$ 363
International performance bonus fees
5
2
Fees as reported
420
365
Less fees from acquisitions, divestitures and other
(13)
(1)
Levelized foreign currency translation
–
7
Organic fees
407
371
Organic change in fees
10 %
Acquisition Activity
1st Q 2026
1st Q 2025
Number of acquisitions closed
1
1
Estimated annualized revenues acquired (in millions)
$ 10
$ 38
(4 of 17)
Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.
Compensation Expense and Ratios
1st Q 2026
1st Q 2025
Compensation expense, as reported
$ 264
$ 231
Acquisition integration
–
(1)
Workforce and lease termination related charges
(1)
(3)
Acquisition related adjustments
(6)
–
Levelized foreign currency translation
–
5
Compensation expense, as adjusted
$ 257
$ 232
Reported compensation expense ratios using reported revenues (before reimbursements) on page 1
*
61.8 %
61.9 %
Adjusted compensation expense ratios using adjusted revenues (before reimbursements) on page 1
**
60.2 %
61.1 %
*
Reported first quarter 2026 compensation expense ratio was 0.1 pts lower than first quarter 2025. This ratio was primarily impacted by savings related to headcount controls, partially offset by higher acquisition related adjustments and increased incentive compensation.
**
Adjusted first quarter 2026 compensation expense ratio was 0.9 pts lower than first quarter 2025. This ratio was primarily impacted by savings related to headcount controls, partially offset by increased incentive compensation.
Operating Expense and Ratios
1st Q 2026
1st Q 2025
Operating expense, as reported
$ 78
$ 71
Acquisition integration
(1)
(1)
Levelized foreign currency translation
–
1
Operating expense, as adjusted
$ 77
$ 71
Reported operating expense ratios using reported revenues (before reimbursements) on page 1
*
18.4 %
19.0 %
Adjusted operating expense ratios using reported revenues (before reimbursements) on page 1
*
18.1 %
18.5 %
*
Reported first quarter 2026 operating expense ratio was 0.6 pts lower than first quarter 2025. Adjusted first quarter 2026 operating expense ratio was 0.4 pts lower than first quarter 2025. Both ratios were primarily impacted by savings in client-related expenses.
Net Earnings to Adjusted EBITDAC (Non-GAAP)
1st Q 2026
1st Q 2025
Net earnings, as reported
$ 50
$ 41
Provision for income taxes
18
15
Depreciation
10
10
Amortization
7
6
Change in estimated acquisition earnout payables
1
–
EBITDAC
86
72
Acquisition integration
1
2
Workforce and lease termination related charges
1
3
Acquisition related adjustments
6
–
Levelized foreign currency translation
–
1
EBITDAC, as adjusted
$ 94
$ 78
Net earnings margin, as reported using reported revenues (before reimbursements) on page 1
11.7 %
11.0 %
EBITDAC margin, as adjusted using adjusted revenues (before reimbursements) on page 1
21.7 %
20.4 %
(5 of 17)
Corporate Segment Reported GAAP to Adjusted Non-GAAP Reconciliation Information (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.
1st Quarter
2026
2025
Pretax
Loss
Income
Tax
Benefit
Net Earnings
(Loss)
Attributable to
Controlling
Interests
Pretax
Loss
Income
Tax
Benefit
Net Earnings
(Loss)
Attributable to
Controlling
Interests
Components of Corporate Segment, as reported
Interest and banking costs
$ (158)
$ 41
$ (117)
$ (159)
$ 42
$ (117)
Clean energy-related
(7)
2
(5)
(2)
1
(1)
Acquisition costs (1)
(10)
2
(8)
(26)
3
(23)
Corporate (2)
(76)
66
(10)
(95)
88
(7)
Reported 1st quarter
(251)
111
(140)
(282)
134
(148)
Adjustments
Clean energy-related (3)
5
(2)
3
–
–
–
Transaction-related costs (1)
7
(1)
6
23
(3)
20
Legal and tax related (4)
18
(17)
1
–
–
–
Components of Corporate Segment,
Interest and banking costs
(158)
41
(117)
(159)
42
(117)
Clean energy-related
(2)
–
(2)
(2)
1
(1)
Acquisition costs
(3)
1
(2)
(3)
–
(3)
Corporate (2)
(58)
49
(9)
(95)
88
(7)
Adjusted 1st quarter
$ (221)
$ 91
$ (130)
$ (259)
$ 131
$ (128)
(1)
Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees associated with completed, future and terminated acquisitions. Adjustments primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed August 2025 and April 2025, respectively.
(2)
Corporate pretax loss includes a net unrealized foreign exchange remeasurement gain of $6 million in first quarter 2026 and a net unrealized foreign exchange remeasurement loss of $(23) million in first quarter 2025.
(3)
Adjustments in first quarter 2026 include the write-down of a clean energy-related investment.
(4)
Adjustments in first quarter 2026 and 2025 include costs associated with legal and tax matters.
(6 of 17)
Interest, banking costs and debt - At March 31, 2026, Gallagher had $9,550 million of borrowings from public debt, $3,008 million of borrowings from private placements and $285 million of borrowings under its line of credit facility. In addition, Gallagher had $156 million outstanding under a revolving loan facility that provides funding for premium finance receivables, which are fully collateralized by the underlying premiums held by insurance carriers, and as such are excluded from its debt covenant computations, as applicable.
Clean energy-related - For 2026, this consists of operating results related to Gallagher's investments in new clean energy projects, primarily fusion and carbon sequestration projects.
Acquisition costs - Consists mostly of external professional fees and other due diligence costs related to acquisitions. On occasion, Gallagher enters into forward currency hedges for the purchase price of committed, but not yet funded, acquisitions with funding requirements in currencies other than the U.S. dollar. The gains or losses, if any, associated with these hedge transactions are also included in acquisition costs.
Corporate - Consists of overhead allocations mostly related to corporate staff compensation, other corporate level activities, and net unrealized foreign exchange remeasurement. In addition, it includes the tax expense related to the partial taxation of foreign earnings, nondeductible executive compensation and entertainment expenses, the tax benefit from the vesting of employee equity awards, as well as other permanent or discrete tax items not reflected in the provision for income taxes in the Brokerage and Risk Management segments.
Income Taxes - Gallagher allocates the provision for income taxes to its Brokerage and Risk Management segments using the local country statutory rates. Gallagher's consolidated effective tax rate for the quarters ended March 31, 2026 and 2025 were 21.1% and 18.8%, respectively.
AssuredPartners - In fourth quarter 2024 and first quarter 2025, we raised a total of approximately $14 billion of cash via a follow-on common stock offering and senior notes issuance to fund the AssuredPartners acquisition (collectively, the AssuredPartners Financing), which was completed in third quarter 2025 for approximately $14 billion.
Share Repurchases - In the first quarter of 2026, Gallagher repurchased approximately 1.4 million shares of its common stock for approximately $310 million.
Webcast Conference Call - Gallagher will host a webcast conference call on Thursday, April 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to this call, please go to Arthur J. Gallagher & Co. - Events & Presentations (ajg.com). The call will be available for replay at such website for at least 90 days.
About Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
Information Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipates," "believes," "contemplates," "see," "should," "could," "will," "estimates," "expects," "intends," "plans" and variations thereof and similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, anticipated future results or performance of any segment or Gallagher as a whole; acquisition rollover revenues; statements regarding changes in its expenses in the next several quarters; future capital structure changes, including debt levels from time to time; the impact of foreign currency on its results; integration costs; workforce and lease termination costs; amortization of intangibles; depreciation; change in estimated earnout payables; effective tax rate; earnings from continuing operations attributable to noncontrolling interests; the premium rate environment and the state of insurance markets; and the economic environment.
Gallagher's actual results may differ materially from those contemplated by the forward-looking statements. Readers are therefore cautioned against relying on any of the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.
Important factors that could cause actual results to differ materially from those in the forward-looking statements include global economic and geopolitical events, including, among others, fluctuations in interest and inflation rates; protectionism such as tariffs, trade disruptions; a recession or economic downturns; a U.S. government shutdown; political instability, such as global armed conflicts; its actual acquisition opportunities, including closing risks related to pending acquisitions, risks with respect to larger acquisitions such as AssuredPartners, the largest acquisition in our history, including risks related to its ability to successfully integrate operations; and the possibility that its assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize expected benefits; damage to its reputation due to its failure to uphold its culture or negative perceptions or publicity, including as a result of amplifying effects that the Internet and social media may have on such perceptions; reputational issues related to its sustainability-related activities, including potential backlash against such activities, and compliance with increasingly complex climate- and other sustainability-related regulations, such as risks related to "greenwashing" and "greenhushing"; cybersecurity-related risks; its ability to apply technology, data analytics and artificial intelligence effectively and potential increased costs resulting from such activities; risks associated with the use of artificial intelligence in its business operations, including regulatory, data privacy, cybersecurity, errors and omissions, intellectual property and competition risks related to "AI-washing"; heightened competition for talent and increased compensation costs; disasters or other business interruptions, including with respect to its operations in India; risks related to its international operations, such as those related to regulatory, tax, sustainability, sanctions and anti-corruption compliance and increased scrutiny of the use of off-shore centers of excellence such as those we operate in India and elsewhere; changes to data privacy and protection laws and regulations; foreign exchange rates; changes in accounting standards; changes in premium rates and in insurance markets generally, including the impact of large natural or man-made events; tax, environmental or other compliance risks related to its legacy clean energy investments; its inability to receive dividends or other distributions from subsidiaries; and changes in the insurance brokerage industry's competitive landscape.
Please refer to Gallagher's filings with the Securities and Exchange Commission, including Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and its subsequently filed Quarterly Reports on Form 10-Q for a more detailed discussion of these and other factors that could impact its forward-looking statements. Any forward-looking statement made by Gallagher in this press release speaks only as of the date on which it is made. Except as required by applicable law, Gallagher does not undertake to update the information included herein or the corresponding earnings release posted on Gallagher's website.
(7 of 17)
Information Regarding Non-GAAP Measures
In addition to reporting financial results in accordance with GAAP, this press release provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this press release. Gallagher's management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher's results of operations and financial condition or because they provide investors with measures that its chief operating decision maker uses when reviewing Gallagher's performance. See further below for definitions and additional reasons each of these measures is useful to investors. Gallagher's industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in its most recent Proxy Statement, Gallagher makes determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC.
Adjusted Non-GAAP presentation - Gallagher believes that the adjusted non-GAAP presentations of the current and prior period information presented in this earnings release provide stockholders and other interested persons with useful information regarding certain financial metrics of Gallagher that may assist such persons in analyzing Gallagher's operating results as they develop a future earnings outlook for Gallagher. The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period. See pages 16 and 17 for a reconciliation of the adjustments made to income taxes.
(8 of 17)
Adjusted measures - Revenues (for the Brokerage segment), revenues before reimbursements (for the Risk Management segment), net earnings, compensation expense and operating expense, respectively, each adjusted to exclude the following, as applicable:
Net gains (losses) on divestitures, which are primarily net proceeds received related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure. Acquisition integration costs, which include costs related to certain large acquisitions (including the acquisitions of the Willis Towers Watson treaty reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance Group, My Plan Manager, Woodruff Sawyer and AssuredPartners), outside the scope of the usual tuck-in strategy, not expected to occur on an ongoing basis in the future once Gallagher fully assimilates the applicable acquisition. These costs are typically associated with redundant workforce, compensation expense related to amortization of certain retention bonus arrangements, extra lease space, duplicate services and external costs incurred to assimilate the acquisition into its IT related systems. Transaction-related costs, which are associated with completed, future and terminated acquisitions. Costs primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in and August 2025 and April 2025, respectively. These include costs related to regulatory filings, legal and accounting services, insurance and incentive compensation. Workforce related charges, which primarily include severance costs (either accrued or paid) related to employee terminations and other costs associated with redundant workforce. Lease termination related charges, which primarily include costs related to terminations of real estate leases and abandonment of leased space. Acquisition related adjustments principally relate to changes in estimated acquisition earnout payables adjustments and acquisition related compensation charges. In addition, from time to time we may include changes in balance sheet estimates arising from conforming accounting principles, purchase-related true-ups and other balance sheet adjustments made after the closing date. Amortization of intangible assets, which reflects the amortization of customer/expiration lists, non-compete agreements, trade names and other intangible assets acquired through Gallagher's merger and acquisition strategy, the impact to amortization expense of acquisition valuation adjustments to these assets as well as non-cash impairment charges. The impact of foreign currency translation, as applicable. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same period in the prior year. Effective income tax rate impact, which levelizes the prior year for the change in current year tax rates. Clean energy-related, which represents the impact of adjustments in first quarter 2026 related to the write-down of a clean energy-related investment. Legal and tax related, which represents the impact of adjustments in first quarter 2026 and 2025 related to costs associated with legal and tax matters. Adjusted ratios - Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues. Non-GAAP Earnings Measures
EBITDAC and EBITDAC margin - EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables and EBITDAC margin is EBITDAC divided by total revenues (for the Brokerage segment) and revenues before reimbursements (for the Risk Management segment). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance for the overall business and provide a meaningful way to measure its financial performance on an ongoing basis. EBITDAC, as Adjusted and EBITDAC Margin, as Adjusted - Adjusted EBITDAC is EBITDAC adjusted to exclude net gains on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, and the period-over-period impact of foreign currency translation, as applicable, and Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues (defined above). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance and are also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability. EPS, as Adjusted and Net Earnings, as Adjusted - Adjusted net earnings have been adjusted to exclude the after-tax impact of net gains on divestitures, acquisition integration costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, amortization of intangible assets, and effective income tax rate impact, as applicable. Adjusted EPS is Adjusted Net Earnings divided by diluted weighted average shares outstanding. This measure provides a meaningful representation of Gallagher's operating performance (and as such should not be used as a measure of Gallagher's liquidity), and for the overall business is also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability. (9 of 17)
Organic Revenues (a non-GAAP measure) - Organic revenue change measures the year-over-year percentage change in organic revenue. For the Brokerage segment, organic revenue consists of base commission and fee revenues, supplemental revenues and contingent revenues, excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations, which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products, in each year presented. Such revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of Gallagher in both the current and prior period. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation; revenue from certain large life product sales within Gallagher's Executive Life and Benefits practice group (which are typically large singular transactions with a high degree of variability in amount and timing); and revenue attributable to changes in assumptions used to calculate estimated deferred revenues, which impact the quarterly timing of revenues during the annual contract period. For the Risk Management segment, organic revenue consists of fee revenues excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each period presented. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation .
These revenue items are excluded from organic revenues in order to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond, as well as eliminating the impact of the items that have a high degree of variability. Gallagher has historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments. Gallagher also believes that using this non-GAAP measure allows readers of its financial statements to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner.
Reconciliation of Non-GAAP Information Presented to GAAP Measures - This press release includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages 4 and 5), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on page 1), for organic revenue measures (on pages 2 and 4, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 3, 4 and 5 respectively, for the Brokerage and Risk Management segments).
(10 of 17)
Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 1st Quarter March 31,
(Unaudited - in millions except per share, percentage and workforce data)
Brokerage Segment
1st Q Ended
March 31, 2026
1st Q Ended
March 31, 2025
Commissions
$ 3,123
$ 2,249
Fees
792
620
Supplemental revenues
180
114
Contingent revenues
115
93
Interest income, premium finance revenues and other income
83
238
Total revenues
4,293
3,314
Compensation
2,211
1,617
Operating
520
346
Depreciation
49
33
Amortization
271
204
Change in estimated acquisition earnout payables
16
15
Expenses
3,067
2,215
Earnings before income taxes
1,226
1,099
Provision for income taxes
313
283
Net earnings
913
816
Net earnings attributable to noncontrolling interests
1
5
Net earnings attributable to controlling interests
$ 912
$ 811
EBITDAC
Net earnings
$ 913
$ 816
Provision for income taxes
313
283
Depreciation
49
33
Amortization
271
204
Change in estimated acquisition earnout payables
16
15
EBITDAC
$ 1,562
$ 1,351
See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.
(11 of 17)
Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 1st Quarter March 31,
(Unaudited - in millions except per share, percentage and workforce data)
Risk Management Segment
1st Q Ended
March 31, 2026
1st Q Ended
March 31, 2025
Fees
$ 420
$ 365
Interest income and other income
8
9
Revenues before reimbursements
428
374
Reimbursements
42
39
Total revenues
470
413
Compensation
264
231
Operating
78
71
Reimbursements
42
39
Depreciation
10
10
Amortization
7
6
Change in estimated acquisition earnout payables
1
—
Expenses
402
357
Earnings before income taxes
68
56
Provision for income taxes
18
15
Net earnings
50
41
Net earnings attributable to noncontrolling interests
–
–
Net earnings attributable to controlling interests
$ 50
$ 41
EBITDAC
Net earnings
$ 50
$ 41
Provision for income taxes
18
15
Depreciation
10
10
Amortization
7
6
Change in estimated acquisition earnout payables
1
–
EBITDAC
$ 86
$ 72
See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.
(12 of 17)
Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 1st Quarter March 31,
(Unaudited - in millions except share and per share data)
Corporate Segment
1st Q Ended
March 31, 2026
1st Q Ended
March 31, 2025
Other loss
$ (5)
$ –
Total revenues
(5)
–
Compensation
41
49
Operating
45
73
Interest
158
158
Depreciation
2
2
Expenses
246
282
Loss before income taxes
(251)
(282)
Benefit for income taxes
(111)
(134)
Net loss
(140)
(148)
Net loss attributable to noncontrolling interests
–
–
Net loss attributable to controlling interests
$ (140)
$ (148)
EBITDAC
Net loss
$ (140)
$ (148)
Benefit for income taxes
(111)
(134)
Interest
158
158
Depreciation
2
2
EBITDAC
$ (91)
$ (122)
See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.
(13 of 17)
Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 1st Quarter March 31,
(Unaudited - in millions except share and per share data)
Total Company
1st Q Ended
March 31, 2026
1st Q Ended
March 31, 2025
Commissions
$ 3,123
$ 2,249
Fees
1,212
985
Supplemental revenues
180
114
Contingent revenues
115
93
Interest income, premium finance revenues and other income
86
247
Revenues before reimbursements
4,716
3,688
Reimbursements
42
39
Total revenues
4,758
3,727
Compensation
2,516
1,897
Operating
643
490
Reimbursements
42
39
Interest
158
158
Depreciation
61
45
Amortization
278
210
Change in estimated acquisition earnout payables
17
15
Expenses
3,715
2,854
Earnings before income taxes
1,043
873
Provision for income taxes
220
164
Net earnings
823
709
Net earnings attributable to noncontrolling interests
1
5
Net earnings attributable to controlling interests
$ 822
$ 704
Diluted net earnings per share
$ 3.16
$ 2.72
Dividends declared per share
$ 0.70
$ 0.65
EBITDAC
Net earnings
$ 823
$ 709
Provision for income taxes
220
164
Interest
158
158
Depreciation
61
45
Amortization
278
210
Change in estimated acquisition earnout payables
17
15
EBITDAC
$ 1,557
$ 1,301
See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.
(14 of 17)
Arthur J. Gallagher & Co.
Consolidated Balance Sheet
(Unaudited - in millions except per share data)
March 31, 2026
Dec 31, 2025
Cash and cash equivalents
$ 1,413
$ 1,396
Fiduciary assets (includes fiduciary cash of $7,069 in 2026 and $7,142 in 2025)
33,873
26,899
Accounts receivable, net
5,960
5,175
Other current assets
773
886
Total current assets
42,019
34,356
Fixed assets - net
762
789
Deferred income taxes
43
43
Other noncurrent assets
1,568
1,602
Right-of-use assets
585
598
Goodwill
22,958
22,593
Amortizable intangible assets - net
10,366
10,684
Total assets
$ 78,301
$ 70,665
Fiduciary liabilities
$ 33,873
$ 26,899
Accrued compensation and other current liabilities
4,051
4,017
Deferred revenue - current
809
737
Premium financing debt
156
226
Corporate related borrowings - current
640
640
Total current liabilities
30,529
32,519
Corporate related borrowings - noncurrent
12,077
12,104
Deferred revenue - noncurrent
177
155
Lease liabilities - noncurrent
499
515
Other noncurrent liabilities (includes tax credit carryforwards of $655 in 2026 and $713 in 2025)
2,217
2,025
Total liabilities
54,499
47,318
Stockholders' equity:
Common stock - issued and outstanding
257
257
Capital in excess of par value
17,638
17,783
Retained earnings
6,446
5,806
Accumulated other comprehensive loss
(566)
(525)
Total controlling interests stockholders' equity
23,775
23,321
Noncontrolling interests
27
26
Total stockholders' equity
23,802
23,347
Total liabilities and stockholders' equity
$ 78,301
$ 70,665
(15 of 17)
Arthur J. Gallagher & Co.
Other Information
(Unaudited - data is rounded where indicated)
OTHER INFORMATION
1st Q Ended
March 31, 2026
1st Q Ended
March 31, 2025
Basic weighted average shares outstanding (000s)
257,119
254,819
Diluted weighted average shares outstanding (000s)
259,816
259,421
Number of common shares outstanding at end of period (000s)
256,942
256,053
Workforce at end of period (includes acquisitions):
Brokerage
55,607
*
43,120
Risk Management
11,122
10,594
Total Company
72,373
*
57,285
*
The acquisition of AssuredPartners added approximately 10,900 employees in August 2025.
Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited)
(Unaudited - in millions except share and per share data)
Earnings
(Loss)
Before Income
Taxes
Provision
(Benefit)
for Income
Taxes
Net Earnings
(Loss)
Net Earnings
(Loss)
Attributable to
Noncontrolling
Interests
Net Earnings
(Loss)
Attributable to
Controlling
Interests
Diluted Net
Earnings
(Loss)
per Share
1st Q Ended March 31, 2026
Brokerage, as reported
$ 1,226
$ 313
$ 913
$ 1
$ 912
$ 3.51
Net (gains) on divestitures
(7)
(2)
(5)
–
(5)
(0.02)
Acquisition integration
87
22
65
–
65
0.25
Workforce and lease termination
27
7
20
–
20
0.08
Acquisition related adjustments
53
14
39
–
39
0.15
Amortization of intangible assets
271
70
201
–
201
0.77
Brokerage, as adjusted
$ 1,657
$ 424
$ 1,233
$ 1
$ 1,232
$ 4.74
Risk Management, as reported
$ 68
$ 18
$ 50
$ –
$ 50
$ 0.19
Acquisition integration
1
–
1
–
1
–
Workforce and lease termination
1
–
1
–
1
–
Acquisition related adjustments
6
2
4
–
4
0.02
Amortization of intangible assets
7
2
5
–
5
0.02
Risk Management, as adjusted
$ 83
$ 22
$ 61
$ –
$ 61
$ 0.23
Corporate, as reported
$ (251)
$ (111)
$ (140)
$ –
$ (140)
$ (0.54)
Transaction-related costs
7
1
6
–
6
0.02
Legal and tax related
18
17
1
–
1
–
Clean energy-related
5
2
3
–
3
0.02
Corporate, as adjusted
$ (221)
$ (91)
$ (130)
$ –
$ (130)
$ (0.50)
See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.
(16 of 17)
Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued
(Unaudited - in millions except share and per share data)
Earnings
(Loss)
Before Income
Taxes
Provision
(Benefit)
for Income
Taxes
Net Earnings
(Loss)
Net Earnings
(Loss)
Attributable to
Noncontrolling
Interests
Net Earnings
(Loss)
Attributable to
Controlling
Interests
Diluted Net
Earnings
(Loss)
per Share
1st Q Ended March 31, 2025
Brokerage, as reported
$ 1,099
$ 283
$ 816
$ 5
$ 811
$ 3.13
Net (gains) on divestitures
(6)
(2)
(4)
–
(4)
(0.02)
Acquisition integration
44
11
33
–
33
0.13
Workforce and lease termination
18
4
14
–
14
0.05
Acquisition related adjustments
33
8
25
–
25
0.09
Amortization of intangible assets
204
52
152
–
152
0.59
Effective income tax impact
—
(1)
1
–
1
–
Levelized foreign currency translation
17
4
13
–
13
0.05
Brokerage, as adjusted
$ 1,409
$ 359
$ 1,050
$ 5
$ 1,045
$ 4.02
Risk Management, as reported
$ 56
$ 15
$ 41
$ –
$ 41
$ 0.16
Acquisition integration
2
1
1
–
1
–
Workforce and lease termination
3
–
3
–
3
0.01
Amortization of intangible assets
6
2
4
–
4
0.02
Levelized foreign currency translation
1
–
1
–
1
–
Risk Management, as adjusted
$ 68
$ 18
$ 50
$ –
$ 50
$ 0.19
Corporate, as reported
$ (282)
$ (134)
$ (148)
$ –
$ (148)
$ (0.57)
Transaction-related costs
23
3
20
–
20
0.08
Corporate, as adjusted
$ (259)
$ (131)
$ (128)
$ –
$ (128)
$ (0.49)
See "Information Regarding Non-GAAP Measures" on page 8 of 17.
Contact:
Sara Walsh
630-285-3593 or [email protected]
Arthur J. Gallagher (AJG - Free Report) came out with quarterly earnings of $4.47 per share, beating the Zacks Consensus Estimate of $4.4 per share. This compares to earnings of $3.67 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.62%. A quarter ago, it was expected that this insurance and risk-management company would post earnings of $2.35 per share when it actually produced earnings of $2.38, delivering a surprise of +1.28%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Arthur J. Gallagher, which belongs to the Zacks Insurance - Brokerage industry, posted revenues of $4.72 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.43%. This compares to year-ago revenues of $3.68 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Arthur J. Gallagher shares have lost about 18.2% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Arthur J. Gallagher?While Arthur J. Gallagher has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Arthur J. Gallagher was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.95 on $4.04 billion in revenues for the coming quarter and $13.19 on $16.72 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Brokerage is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Accelerant Holdings (ARX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 13.
This company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +433.3%. The consensus EPS estimate for the quarter has been revised 4.6% lower over the last 30 days to the current level.
Accelerant Holdings' revenues are expected to be $247.39 million, up 39% from the year-ago quarter.
For the quarter ended March 2026, Arthur J. Gallagher (AJG - Free Report) reported revenue of $4.72 billion, up 28.1% over the same period last year. EPS came in at $4.47, compared to $3.67 in the year-ago quarter.
The reported revenue represents a surprise of +1.43% over the Zacks Consensus Estimate of $4.65 billion. With the consensus EPS estimate being $4.40, the EPS surprise was +1.62%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arthur J. Gallagher performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Brokerage - Compensation expense ratio: 51.5% versus 50.6% estimated by three analysts on average.Risk Management Segment - Operating expense ratio: 18.4% versus 18.6% estimated by three analysts on average.Risk Management Segment - Compensation expense ratio: 61.8% versus the three-analyst average estimate of 58.5%.Brokerage - Operating expense ratio: 12.1% versus 11.1% estimated by three analysts on average.Revenues- Total Company- Fees: $1.21 billion versus $1.24 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +23.1% change.Revenues- Total Company- Interest income, premium finance revenues and other income: $86 million versus the four-analyst average estimate of $81.96 million. The reported number represents a year-over-year change of -65.3%.Revenues- Brokerage Segment- Supplemental and contingent revenues (Supplemental revenues+Contingent revenues): $295 million versus the three-analyst average estimate of $221.7 million.Revenues- Total Company- Commissions: $3.12 billion versus the three-analyst average estimate of $3.18 billion. The reported number represents a year-over-year change of +38.9%.Revenues- Risk Management Segment- Reimbursements: $42 million compared to the $41.3 million average estimate based on three analysts. The reported number represents a change of +7.7% year over year.Revenues- Risk Management Segment- Revenues before reimbursements: $428 million compared to the $404.06 million average estimate based on three analysts. The reported number represents a change of +14.6% year over year.Revenues- Risk Management Segment- Interest income and other income: $8 million compared to the $8.24 million average estimate based on three analysts. The reported number represents a change of -9.1% year over year.Total revenues- Brokerage: $4.29 billion versus $4.28 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +29.5% change.View all Key Company Metrics for Arthur J. Gallagher here>>>
Shares of Arthur J. Gallagher have returned -2.1% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Arthur J. Gallagher & Co (AJG) Q1 2026 Earnings Call Highlights: Robust Revenue Growth and Strategic M&A Drive Performance Arthur J. Gallagher & Co (AJG) reports a strong first quarter with 28% revenue growth, fueled by strategic mergers and acquisitions and solid organic growth. Summary
Total Revenue Growth: 28% in the first quarter, with organic growth at 5% and M&A contributing 23%.Brokerage Revenue Growth: 30%, with organic growth at 5%.Risk Management Revenue Growth: 14%, with organic growth at 10%.Net Earnings Growth: 12% for combined Brokerage and Risk Management segments.Adjusted EBITA Growth: 18% for combined Brokerage and Risk Management segments.Brokerage Organic Growth: 5%, with supplementals and contingents up nearly 10%.Risk Management Organic Growth: 10%, with M&A adding 2.5 points.Adjusted Revenue, EBITDAC, and EPS: All up 30%.Share Repurchase: Approximately 1.4 million shares for $310 million in the first quarter.Underlying Margin Expansion: 50 basis points in the first quarter.M&A Activity: Nine new tuck-in mergers completed, representing around $60 million of estimated annualized revenue.Cash Taxes Paid: Expected to be around 10% of EBITDAC for the foreseeable future.
Release Date: April 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Arthur J. Gallagher & Co AJG reported a strong first quarter with a 28% revenue growth, driven by 5% organic growth and 23% from mergers and acquisitions.The Brokerage segment saw a 30% increase in revenues, with strong growth across retail PC, wholesale, reinsurance, and benefits.The Risk Management segment, Gallagher Bassett, posted a 14% revenue increase, with 10% organic growth.The company achieved 24 consecutive quarters of double-digit adjusted EBITA growth, with a 12% increase in net earnings and 18% in adjusted EBITA.Arthur J. Gallagher & Co (AJG) completed nine new tuck-in mergers in the first quarter, representing around $60 million of estimated annualized revenue, with a strong pipeline of over 40 term sheets for future mergers. Negative Points The insurance rate environment is contributing less to organic growth compared to previous years, with property rates down 7%.The company faces challenges in the property market, with significant rate pressure in cat-exposed and larger risks.There is a bifurcated market in the US excess and surplus market, with competitive pressures in E&S property.Geopolitical developments, such as the conflict in the Middle East, are impacting specific coverages like marine war and political violence, adding uncertainty to reinsurance pricing.The company anticipates potential comparability issues in upcoming quarters due to prior interest income from funds held for the AssuredPartners acquisition. Q & A Highlights Q: Can you expand on your expectations for higher organic growth in America's retail in the second quarter, given the greater property mix?
A: The 5% growth expectation in America's retail Brokerage segment is influenced by a slightly smaller quarter in Canada last year, which aligns with our current projections.
Q: Has the M&A environment changed recently, and how does it affect your buyback decisions?
A: We haven't repurchased any shares in the second quarter due to a quiet period. M&A multiples are decreasing, and sellers are becoming more rational. We prioritize M&A opportunities that align with our long-term strategy over share repurchases, provided they are at the right multiple.
Q: Does the 4% core commission and fee organic growth in the quarter represent a floor for future growth?
A: Yes, we anticipate a strong year ahead, with consistent growth expectations. The guidance implies a pick-up in the second half, driven by factors like reinsurance demand and successful new business pipelines.
Q: What are your expectations for specialty and US wholesale growth, given the pricing environment?
A: Property will have its biggest impact in the second quarter, but we expect less stress in the second half. We have a good view on property renewals, and the rest of the year should see less property-related pressure.
Q: How do you view the impact of insurance rates on growth, and can you break down the components of organic growth?
A: New business will exceed lost business, with customers opting in for more coverage. We expect a 6% growth year, with rate contributing 1-1.5%, new business around 2.5%, and exposure growth about 1.5%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways AJG Q1 adjusted EPS $4.47 beat the consensus mark by 1.6% as total revenues reached $4.7B.AJG Brokerage revenues rose 29.5% to $4.3B on higher commissions, fees and contingent revenue.AJG declared a $0.70 quarterly dividend, and closed eight acquisitions with ~$49M annualized revenues. Arthur J. Gallagher & Co. (AJG - Free Report) reported first-quarter 2026 adjusted net earnings of $4.47 per share, which beat the Zacks Consensus Estimate by 1.6%. The bottom line increased 21.8% on a year-over-year basis.
Arthur J. Gallagher’s performance was driven by margin expansion in the Risk Management segment, higher commissions, fees, supplemental revenues, and improved EBITDAC.
Operational UpdateTotal revenues of $4.7 billion beat the Zacks Consensus Estimate by 1.4%. The top line also improved 28.1% year over year, driven by higher commissions, fees, supplemental revenues, and contingent revenues.
While commissions rose 38.9% year over year to $3.1 billion, fees increased 27.7% year over year to $792 million.
Arthur J. Gallagher’s total expenses increased 30.2% year over year to $3.7 billion in the reported quarter due to higher compensation, operating, reimbursements, depreciation and amortization.
Earnings before interest, tax, depreciation, and amortization and change in estimated acquisition earnout payables (EBITDAC) grew 19.7% from the prior-year quarter to $1.6 billion.
Segmental ResultsBrokerage: Revenues of $4.3 billion increased 29.5% year over year on higher commissions, fees, supplemental revenues, and contingent revenues. Expenses increased 38.4% from the year-ago quarter to $3.1 billion due to higher compensation, operating, depreciation and amortization. Adjusted EBITDAC climbed 15.6% from the year-ago level to $1.6 billion. EBITDAC margin contracted 320 basis points year over year to 40.1%.
Risk Management: Revenues were up 13.8% year over year to $470 million, owing to higher fees. Expenses rose 12.6% from the prior-year period to $402 million on higher compensation, operating, reimbursements, and amortization. Adjusted EBITDAC improved 19.4% year over year to $86 million. Margin expanded 30 bps to 21.7%.
Corporate: EBITDAC was a negative $91 million compared with a negative $122 million in the year-ago quarter.
Financial UpdateAs of March 31, 2026, total assets were $78.3 billion, up 10.3% from the 2025-end level. At the end of the quarter, cash and cash equivalents of $1.4 billion rose 1.2% from the 2025-end level. As of March 31, 2026, shareholders’ equity rose 1.9% to $23.3 billion from the level on Dec. 31, 2025.
Dividend UpdateThe board of directors declared a quarterly cash dividend of 70 cents per share. The dividend will be paid out on June 19, 2026, to shareholders of record as of June 5.
Acquisition UpdateIn the quarter, Arthur J. Gallagher closed eight acquisitions with estimated annualized revenues of about $49 million.
Zacks RankAJG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other InsurersBrown & Brown, Inc.’s (BRO - Free Report) first-quarter 2026 adjusted earnings of $1.39 per share beat the Zacks Consensus Estimate by 2.2%. The bottom line increased 7.8% year over year. Total revenues of $1.9 billion beat the Zacks Consensus Estimate by 1.4%. The top line improved 35.4% year over year.
Adjusted EBITDAC was $731 million, up 36.6% year over year. The EBITDAC margin improved 40 basis points year over year to 38.5%.
Willis Towers Watson plc (WTW - Free Report) delivered first-quarter 2026 adjusted earnings of $3.72 per share, which beat the Zacks Consensus Estimate by 3.6%. The bottom line grew 19% year over year. Willis Towers posted adjusted consolidated revenues of $2.4 billion, up 8% year over year on a reported basis. Revenues increased 3% on an organic basis and 4% on a constant currency basis. The top line beat the Zacks Consensus Estimate by 1.1%.
Adjusted operating income was $537 million, up 12% year over year. Adjusted operating margin expanded 70 basis points (bps) to 22.3%. Adjusted EBITDA was $589 million, up 11% year over year. Adjusted EBITDA margin was 23.9%, which expanded 50 bps.
Marsh & McLennan Companies, Inc. (MRSH - Free Report) reported first-quarter 2026 adjusted earnings per share of $3.29, which surpassed the Zacks Consensus Estimate by 2.5%. The bottom line advanced 8% year over year. Consolidated revenues of $7.6 billion improved 8% year over year. The figure rose 4% on an underlying basis. The top line beat the consensus mark by 2.9%.
Marsh’s adjusted operating income improved 8% year over year to $2.4 billion. Adjusted operating margin of 31.8% remained stable year over year.
, /PRNewswire/ -- Gallagher, one of the world's largest insurance brokerage and risk management firms, today launched Gallagher Blueprint, a strategic framework that combines AI-driven analytics, Gallagher's proprietary data, and deep niche expertise, to help clients strengthen their risk profile and structure stronger, cost-efficient insurance programs.
Built on Gallagher's proven sales methodology, Gallagher Blueprint aligns a client's insurance strategy, risk management priorities, and budget into a clear, customized action plan to optimize their insurance program.
"Gallagher Blueprint is a gamechanger for our clients," said Pete Doyle, CEO of Gallagher's US retail brokerage. "By combining AI-powered insights with our proprietary data and our specialists' expertise, we ensure clients have the best program available in the market. I often describe it as 'eliminating wonder.' We want to remove any doubt for our clients, ensuring they don't have to wonder if they have the best program in the marketplace – they will know they do."
"Gallagher Blueprint is where technology and human expertise meet," said Steve Rhee, Global Chief Digital Officer at Gallagher.
"AI accelerates analysis so our specialists can focus earlier on insight and strategy tailored to each client's goals, operations, and exposures. The result is faster delivery of a clear Blueprint to improve a client's Risk Profile and secure the strongest possible coverage aligned with their business objectives."
Powered by AI and supported by Gallagher's proprietary data and analytics, Gallagher Blueprint delivers faster, more tailored recommendations through a proprietary Risk Profile Score, a calculated measure of how a client's risk and insurance program compare to best practices and peer benchmarks.
Interpreted and applied by Gallagher specialists, the Risk Profile Score informs renewal strategy, strengthens underwriting conversations, and identifies targeted actions that reduce risk and improve outcomes.
Through this structured Blueprint, clients gain clear, actionable steps to optimize coverage, manage cost, and move forward with confidence that their insurance program is aligned with their risk profile and business goals.
To learn more about Gallagher Blueprint and how it can strengthen your insurance program, visit www.ajg.com/blueprint
About Gallagher
Gallagher (NYSE: AJG) is one of the world's largest insurance brokerage, risk management and consulting firms. As a community insurance broker and trusted local consultant, we help people and businesses move forward with confidence. With more than 70,000 people around the globe, we're connected to the places where we do business and to every community we call home. We manage risk with customized solutions and a full spectrum of services, help foster thriving workforces, and hold ourselves to the highest ethical standards to help clients face every challenge—that is The Gallagher Way. For more, visit www.ajg.com.
, /PRNewswire/ -- Arthur J. Gallagher & Co. today announced that its claims and risk management solutions subsidiary, Gallagher Bassett, has acquired London, UK-based Mays Brown Limited, dba Mays Brown Solicitors. Terms of the transaction were not disclosed.
Mays Brown Solicitors is a boutique law firm specializing in shipping and maritime legal services for a global client base that includes shipowners, operators, charterers, protection and indemnity (P&I) clubs, insurers and shipyards. The Mays Brown Solicitors team, led by Joe Mays, David Wartski and Stephen Grainger, will remain in their current location under the direction of Manan Sagar, head of Gallagher Bassett's Europe, Middle East and Asia operations.
"Mays Brown Solicitors is a highly regarded firm whose niche expertise enhances Gallagher Bassett's marine and legal capabilities," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am very pleased to welcome Joe, David, Stephen and their associates to our growing, global team."
Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
On May 13, 2026, we present a discounted cash flow (DCF) analysis for Arthur J. Gallagher & Co AJG , a company currently facing significant price performance challenges, with a year-to-date decline of 23.5% and a one-year drop of 40.1%. In this analysis, we will explore the intrinsic value of AJG based on both earnings and free cash flow models.
DCF Earnings-based intrinsic value of $301.83 vs current price of $197.40 (margin of safety: 34.6%) DCF FCF-based intrinsic value of $134.52 vs current price (second opinion: modestly overvalued) GF Score™ of 82/100 indicates a reliable DCF input What Is AJG Worth? DCF Earnings-Based Model The DCF earnings-based model for AJG employs a two-stage approach, where we first estimate the company's earnings growth over the next 10 years and then calculate the terminal value for the following 10 years. The assumptions used in this model are critical for determining the intrinsic value.
Parameter Value Current EPS (TTM, excl. non-recurring) $11.50 10-Year Growth Rate 17.4% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project that AJG's EPS will grow at a rate of 17.4% per year for the next 10 years, which is then discounted at a rate of 11%. In the second stage, we assume a terminal growth rate of 4% for the following 10 years, also discounted at 11%. The calculation summary is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 17.4%, discounted at 11% $158.57 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $143.26 Intrinsic Value Growth + Terminal $301.83 Comparing the current price of $197.40 against the intrinsic value of $301.83 indicates that AJG is significantly undervalued, with a margin of safety of 34.6%. It is important to note that GuruFocus uses EPS excluding non-recurring items because research shows stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the AJG DCF Calculator.
What Does the Free Cash Flow DCF Say? In addition to the earnings-based model, we also analyze AJG using a free cash flow (FCF) DCF model. The intrinsic value derived from this model is $134.52. When comparing this with the earnings-based intrinsic value of $301.83, the two models present differing perspectives. The FCF model suggests that AJG is modestly overvalued, with a margin of safety of -46.7%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for AJG is calculated at $321.50, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure that incorporates historical trading multiples, past business growth, and future performance estimates. When we compare all three models, we see a consensus that AJG is undervalued based on the earnings-based DCF and GF Value™, while the FCF model indicates a modest overvaluation. For more details, visit the GF Value™ page.
What Does AJG's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). AJG has a GF Score™ of 82/100, indicating strong fundamentals. Below is a summary of AJG's GF Score™ metrics:
Metric Rating GF Score™ 82/100 Financial Strength 4/10 Profitability 9/10 Growth 10/10 Valuation 4/10 Momentum 2/10 The predictability rank for AJG is 2/5 stars, indicating that the DCF model may be less reliable for this stock. For more information, visit the AJG stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as AJG's 2/5 stars, produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future economic conditions.
What This Means for Investors In conclusion, the analysis of AJG using the DCF earnings model suggests that the stock is significantly undervalued, while the FCF model indicates it is modestly overvalued. The GF Value™ further supports the notion of undervaluation. Overall, the consensus points towards AJG being undervalued based on the earnings-based DCF and GF Value™, while the FCF model presents a contrasting view.
For the full DCF analysis, visit the AJG DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is AJG's intrinsic value based on DCF?
According to the DCF analysis, the earnings-based intrinsic value is $301.83, while the FCF-based intrinsic value is $134.52.
Is AJG overvalued or undervalued?
The consensus from the earnings-based DCF and GF Value™ indicates that AJG is undervalued, while the FCF model suggests it is modestly overvalued.
How reliable is the DCF model for AJG?
The predictability rank of 2/5 suggests that the DCF model may be less reliable for AJG compared to stocks with higher predictability ratings.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
New offering applies AI to simplify benefits, drive smarter decisions and deliver better outcomes for employers and employees
, /PRNewswire/ -- Gallagher today announced the introduction of new AI-enabled benefits capabilities embedded within its Benefits & HR Consulting advisory model, designed to help employers and their employees make more informed benefits decisions. By combining advanced AI with Gallagher's data‑driven consulting approach, Gallagher simplifies the benefits experience for employees while giving employers deeper, actionable insight into benefits utilization, cost drivers and plan performance.
As benefits costs continue to rise and plan designs grow more complex, employees are often forced to make high‑stakes decisions with limited time and fragmented information, while HR teams struggle to provide individualized support at scale. Gallagher's AI-enabled approach addresses this challenge by delivering personalized, conversational guidance to employees on their benefits, while equipping HR and leadership teams with deeper insights into utilization, cost drivers and plan performance, without adding administrative burden.
Advancing the Future of Benefits
As organizations face growing pressure to modernize their benefits experience and demonstrate value from every dollar spent, employers are increasingly focused on moving benefits beyond an administrative obligation and toward a more strategic, employee‑centric experience. Gallagher's delivery of these capabilities to clients represents a meaningful step forward in supporting that shift, helping organizations improve how benefits are understood, used and managed throughout the year.
"Employee benefits are among the most important and most misunderstood investments organizations make," said John Tournet, US CEO of Gallagher's Benefits & HR Consulting Division. "These new capabilities transform benefits from a once‑a‑year, transactional decision into a more informed, ongoing experience that helps employees choose confidently while giving employers smarter insight into how their programs are actually working."
Gallagher's AI-enabled approach improves the benefits experience in several ways:
Personalized, on‑demand guidance for employees that translates complex plan designs into plain language, side‑by‑side comparisons, and cost projections based on real‑world scenarios. Reduced decision fatigue and confusion during enrollment and life events, helping employees feel more confident they are choosing the right coverage for their needs. Actionable insights for employers that reveal benefits utilization trends, high‑cost drivers and opportunities to evolve plan design in alignment with workforce needs. Scalable support for employers without added headcount, easing pressure on HR and benefits teams while improving responsiveness and employee satisfaction. Together, these capabilities help organizations move from reactive benefits education to proactive, data‑driven decision‑making.
Turning Data Into Decisions
These AI capabilities integrate into Gallagher's broader benefits and consulting ecosystem, including our proprietary data and analytics platform, Gallagher Drive, enabling employers to better understand how benefits are being used and where investments can deliver greater value. With enhanced modeling and analytics, employers can assess how changes to plan design, contributions, or programs may influence employee behavior and overall spend over time. The result is a more strategic approach to benefits that supports informed decision‑making while balancing cost stewardship with employee wellbeing.
Built on Trusted Innovation
Gallagher's new benefits AI offering is built on the Avante platform, the leading AI-native solution purpose-built for employee benefits. By integrating Avante's advanced technology within Gallagher's advisory framework, the offering combines sophisticated, secure AI capabilities with Gallagher's deep industry expertise and longstanding, trusted client relationships, delivering intelligence clients can rely on.
"Gallagher has earned its reputation as one of the most trusted advisors in employee benefits by continually evolving to meet what clients need next," said Rohan D'Souza, Avante CEO. "With Avante's AI-enabled offering, Gallagher is setting a new standard for how employers and employees engage with benefits. We're proud to support that vision with technology designed specifically for this space."
"Technology alone doesn't solve benefits complexity," added Tournet. "What matters is how technology is applied. By combining AI with Gallagher's data and advisory approach, we're helping clients unlock insights and enhanced experiences."
ABOUT GALLAGHER
Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
ABOUT AVANTE
Avante is the first AI-native benefits intelligence platform, designed to transform how employers manage benefit costs and employee experiences. By integrating benefits data, AI-powered analytics, and personalized AI agents, Avante empowers organizations to optimize spending, improve outcomes, and create a seamless benefits experience.
CONTACT:
Mary Schwartz, Gallagher
847.378.5893
[email protected]
, /PRNewswire/ -- Arthur J. Gallagher & Co. today announced that its U.S. wholesale brokerage, binding authority and programs division, Risk Placement Services, Inc. (RPS), has acquired King of Prussia, Pennsylvania-based McKee Risk Management, Inc. Terms of the transaction were not disclosed.
McKee Risk Management is a program administrator providing underwriting, policy administration, claims coordination and risk management services with program focuses of construction, public entity and property. Clyde McKee III, Clyde McKee IV and their team will operate under RPS's program administration division.
"McKee Risk Management brings a well-established platform and underwriting expertise that complement RPS's programs offerings," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am delighted to welcome the McKee team to our growing, global family of professionals."
Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
Key Takeaways AJG acquired McKee Risk Management through RPS to expand specialty underwriting services.Gallagher expects stronger fee-based revenue and cross-selling from niche insurance programs. AJG continues acquisition-driven expansion as rivals BRB and AON grow specialty capabilities. Arthur J. Gallagher & Co.(AJG - Free Report) is expanding its specialty insurance capabilities through the acquisition of McKee Risk Management, Inc. via its Risk Placement Services ("RPS") division. McKee specializes in underwriting, policy administration, claims coordination and risk management services, with a focus on construction, public entity and property programs.
Strategically, the acquisition strengthens Gallagher’s program administration and specialty underwriting platform, particularly in niche commercial insurance segments where expertise and customized coverage solutions are increasingly important. McKee’s established underwriting capabilities and long-standing relationships are expected to complement RPS’s existing programs business and broaden its service offerings.
From a financial perspective, the deal could support higher fee-based revenue generation and improve cross-selling opportunities within Gallagher’s wholesale brokerage and risk management operations. Specialty insurance and program administration businesses typically generate attractive margins due to their underwriting expertise and recurring client relationships, making them valuable growth areas for insurance brokers.
The acquisition also aligns with Gallagher’s long-term expansion strategy of growing through targeted acquisitions that enhance geographic reach, specialized expertise and operational scale. With operations spanning around 130 countries, Gallagher continues to strengthen its position in the global insurance brokerage and risk management market through consolidation and capability growth.
What About AJG’s Competitors?
Peers like Brown & Brown, Inc.(BRO - Free Report) and Aon plc (AON - Free Report) are also expanding their specialty insurance and risk management capabilities through acquisitions.
BRO has expanded its specialty insurance and risk management capabilities through acquisitions of retail agencies, MGA platforms and employee benefits businesses. The company’s acquisition strategy focuses on strengthening niche underwriting expertise and broadening its commercial risk solutions platform across targeted markets.
Aon has strengthened its risk management platform through acquisitions focused on cyber risk, analytics and reinsurance advisory capabilities. The company continues investing in technology-enabled risk assessment tools and specialized advisory services to support complex commercial insurance and enterprise risk management needs.
AJG’s Price Performance, Valuation & Estimates
Shares of AJG have dropped 39.6% compared with the industry’s decline of 42.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, AJG trades at a forward price-to- earnings ratio of 14.77X, higher than the industry average of 14.47X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimates for 2026 earnings moved 0.23% north, while the estimate for 2027 earnings moved 0.14% south in the last 30 days.
The consensus estimates for AJG’s 2026 and 2027 revenues indicate a year-over-year increase.
Image Source: Zacks Investment Research
The consensus estimate for earnings per share is currently pegged at $13.22 for 2026, indicating a 23.6% year-over-year increase.
AJG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Insurance Brokerage industry is expected to benefit from better pricing, prudent underwriting, rising demand for insurance products, and global expansion, which, in turn, have been driving revenues. The fast-paced consolidations in this traditionally fragmented industry are expected to benefit Arthur J. Gallagher & Co. (AJG - Free Report) , Aon plc (AON - Free Report) , Brown and Brown, Inc. (BRO - Free Report) , and Willis Towers Watson Public Limited Company (WTW - Free Report) .
Increased digitization should help the industry improve its basis points, scale, and efficiencies.
About the Insurance Brokerage Industry The Zacks Brokerage Insurance industry comprises companies primarily offering insurance and reinsurance products and services. Insurance brokers serve as intermediaries between clients and insurance providers, act on behalf of their clients, and offer advice, keeping in mind clients' interests against brokerage fees. Their business is directly linked to clients’ level of business activity. Some of these companies also provide risk management, third-party administration, and managed healthcare services. Per a report by Mordor Intelligence, the insurance brokerage market is expected to reach $572.47 billion by 2031 from $359.27 billion in 2026 at a CAGR of 9.77% during the forecast period (2026-2031). Accelerated digitalization should help in the smooth functioning of the industry.
3 Trends Shaping the Future of the Insurance Brokerage Industry Increased Demand for Products to Drive Revenues: Rising demand for insurance products is a key revenue driver for the brokerage insurance industry, supported by increasing awareness of risk protection, evolving regulatory requirements and growing economic activity. Businesses and individuals are seeking broader coverage across property, casualty, health, cyber, employee benefits and specialty insurance products to safeguard against financial uncertainties. Higher insurance penetration, rising commercial activity and increased demand for customized risk-management solutions are creating opportunities for brokers to expand their client base and policy volumes.
Brokers are also benefiting from cross-selling opportunities and growing demand for advisory services, positioning the industry for sustained revenue growth over the long term.
Mergers and Acquisitions: Mergers and acquisitions play a significant role in shaping the brokerage insurance industry, enabling companies to expand market presence, diversify product offerings, strengthen distribution capabilities and achieve operational efficiencies. Insurance brokers increasingly pursue acquisitions to broaden geographic reach, gain access to niche markets and enhance expertise across commercial, employee benefits, wealth management and specialty insurance lines. Consolidation also helps firms achieve economies of scale, improve bargaining power with insurers and deepen customer relationships through cross-selling opportunities.
In a fragmented brokerage landscape, strategic M&A remains a key growth driver, allowing companies to boost revenues, strengthen competitive positioning and create long-term shareholder value.
Increased Adoption of Technology: The brokerage insurance industry is increasingly adopting technology to streamline operations, improve customer engagement, enhance underwriting precision and drive profitability. Insurance brokers are leveraging artificial intelligence (AI), machine learning, predictive analytics, cloud computing and automation to optimize policy administration, claims processing and risk assessment. Digital platforms and self-service tools are improving customer experience by enabling faster quotes, seamless policy purchases and personalized insurance solutions. The integration of data analytics and telematics is aiding insurers in better evaluating risk and tailoring pricing strategies.
Moreover, technology-driven efficiencies are reducing operating costs and enabling brokers to strengthen cross-selling and client retention. As customer preferences shift toward digital interactions, brokerage insurers that invest in InsurTech partnerships, cybersecurity, and advanced analytics are better positioned to gain market share and sustain long-term growth.
Zacks Industry Rank Indicates Bleak Prospects The Zacks Insurance - Brokerage industry is housed within the broader Zacks Finance sector. It carries a Zacks Industry Rank #170, which places it in the bottom 30% of more than 244 Zacks industries.
The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, reflects dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts have been losing confidence in this group’s earnings growth potential. The industry’s earnings estimate has declined 24% for 2026 in a year.
Before we present a few securities and exchange stocks worth considering for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms Sector and S&P 500 The Insurance Brokerage industry has underperformed its sector and the Zacks S&P 500 Composite over the past year. The stocks in this industry have lost 42.6% in a year against the Finance sector’s growth of 13.1% and the Zacks S&P 500 composite’s appreciation of 32.5% over the same period.
One Year Price Performance
Current Valuation On the basis of a trailing 12-month price-to-book (P/B), commonly used for valuing insurance stocks, the industry is currently trading at 3X compared with the Zacks S&P 500 Composite’s 8.09X and the sector’s 4.33X.
Over the past five years, the industry has traded as high as 8.56X, as low as 2.86X, and at the median of 6.92X.
Trailing 12-Month Price-to-Book (P/B) RatioTrailing 12-Month Price-to-Book (P/B) Ratio
4 Insurance Brokerage Stocks in Focus We are presenting four stocks currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arthur J. Gallagher: Headquartered in Itasca, IL, Arthur J. Gallagher, with a market capitalization of $53.29 billion, is the world’s largest property/casualty third-party claims administrator and the fourth largest among insurance brokers (based on revenues). AJG is poised to benefit from the growing contribution of its Brokerage and Risk Management segments. This, in turn, is driving organic revenues.
Given the number and size of its non-U.S. acquisitions, this insurer expects an increase in international contribution to total revenues. New business production and retention bode well for consistent growth. AJG expects 6% organic growth in 2026. The guidance suggests moderate acceleration in the second half of 2026, with management citing a strong new business pipeline and improved premiums in reinsurance, retail, bond and specialty businesses as drivers.
Earnings of Arthur J. Gallagher have grown 18.1% in the past five years, better than the industry average of 13.9%. The expected long-term earnings growth rate is 14.9%, better than the industry average of 12.9%. The Zacks Consensus Estimate for 2026 and 2027 earnings indicates an increase of 23.6% and 11.1% year over year, respectively. The consensus estimate for 2026 earnings has moved 0.2% north in the past 30 days. This insurance broker has beaten earnings estimates in two of the last four quarters, while missing in the other two. The stock has lost 38.6% over the past year.
Price and Consensus: AJG
Aon: Dublin, Ireland-based Aon, with a market capitalization of $69.24 billion, offers risk management services, insurance and reinsurance brokerage, human resource consulting and outsourcing services worldwide. Aon benefits from disciplined cost control, restructuring initiatives and focused capital deployment, which are improving efficiency and scalability. Strategic acquisitions, selective divestitures and partnerships have expanded its global footprint and lifted return on capital.
Earnings of Aon have grown 10.5% in the past five years, while the expected long-term earnings growth rate is 9.9%. The Zacks Consensus Estimate for 2026 and 2027 earnings indicates an 11.7% and 11% year-over-year increase, respectively. The consensus estimate for 2026 earnings has moved 0.4% north in the past 30 days. This insurance broker has a solid track record of beating earnings estimates in each of the last four quarters, with an average of 3.11%. The stock has lost 9% over the past year.
Price and Consensus: AON
Brown & Brown: BRO, with a market capitalization of $19.83 billion and headquartered in Daytona Beach, FL, markets and sells insurance products and services primarily in the United States, as well as in London, Bermuda, and the Cayman Islands. Brown & Brown’s impressive growth is driven by organic and inorganic means across its segments. Higher core commissions and fees, profit-sharing contingent commissions, guaranteed supplemental commissions, and investment income should continue to drive the revenues. Growth from all lines of business through a combination of improving new business, solid retention, rate increases, and modest exposure unit expansion will continue to drive the growth momentum going forward.
Earnings of Brown & Brown have grown 19.2% in the past five years, better than the industry average. The expected long-term earnings growth rate is 4.8%. The Zacks Consensus Estimate for 2026 and 2027 earnings indicates a 5.8% and 8.4% year-over-year increase, respectively. BRO has a solid track record of beating earnings estimates in each of the last four quarters, with an average being 6.28%. The stock has lost 47.2% over the past year.
Price and Consensus: BRO
Willis Towers Watson: Based in London, the United Kingdom, Willis Towers Watson, with a market capitalization of $24.38 billion, is a leading global advisory, broking and solutions company. New business wins and renewals, higher levels of retirement work, strong client retention, strong software sales, strategic buyouts and effective capital deployment bode well for growth. Willis Towers’ growth strategy remains centered on sustainable revenue growth, mix improvement and operating margin expansion. Management expects continued annual margin expansion, including about 100 basis points of average annual expansion over the next two years in Risk & Broking and incremental expansion in Health, Wealth & Career.
Earnings for this insurance broker have grown 8.3% in the past five years. The expected long-term earnings growth rate is 11.6%. The Zacks Consensus Estimate for 2026 earnings indicates a year-over-year increase of 14.3%. The consensus estimate for 2026 earnings has moved 0.1% north in the past 30 days. WTW has a solid track record of beating earnings estimates in each of the last four quarters, with an average being 4.10%. The stock has lost 16.4% over the past year.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Arthur J. Gallagher & Co. today announced the acquisition of West Palm Beach, Florida-based Twin Elms, LLC. Terms of the transaction were not disclosed.
Twin Elms is a retail insurance broker specializing in environmental insurance products and services for US clients. Scott Houldin, Karl Touet and their team will remain in their current location under the direction of Bumpy Triche, head of Gallagher's Southeast retail property/casualty brokerage operations.
"Twin Elms is a highly regarded agency whose niche expertise will further enhance our environmental brokerage offerings," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am delighted to welcome Scott, Karl and their associates to Gallagher."
Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
Key Takeaways AJG acquired Twin Elms to enhance environmental insurance and niche brokerage expertise.Gallagher aims to expand customized coverage for environmental and compliance-related risks.AJG continues acquisition-driven growth across specialty insurance markets in nearly 130 countries. Arthur J. Gallagher & Co. (AJG - Free Report) continues to expand its specialty insurance capabilities through the acquisition of Twin Elms, a Florida-based retail insurance broker specializing in environmental insurance products and services. The transaction strengthens Gallagher’s niche brokerage capabilities and further enhances its presence in specialized commercial insurance markets.
Twin Elms focuses on environmental risk solutions for U.S. clients, an area that has been witnessing rising demand amid increasing regulatory scrutiny, climate-related liabilities and evolving corporate risk management requirements. By adding Twin Elms’ expertise, Gallagher is expected to broaden its environmental brokerage offerings while strengthening its ability to provide customized insurance solutions for complex environmental exposures.
Twin Elms brings specialized expertise and an established client base that is expected to complement Gallagher’s Southeast retail property/casualty brokerage operations. The acquired business will continue operating under its existing leadership, supporting continuity in client relationships and underwriting expertise.
Strategically, the acquisition aligns with Gallagher’s broader growth strategy of pursuing targeted deals that enhance specialized brokerage capabilities and strengthen its commercial insurance platform. Environmental insurance remains a high-value segment as businesses increasingly seek protection against environmental liabilities and compliance-related risks.
With operations spanning approximately 130 countries, Gallagher continues to position itself as a leading global brokerage and risk management firm through this strategic expansion. The deal also supports Gallagher’s long-term objective of deepening niche advisory and risk management offerings.
How Are Competitors Faring?Peers like Brown & Brown, Inc.(BRO - Free Report) and Aon plc (AON - Free Report) are also expanding their specialty insurance and risk management capabilities through acquisitions.
BRO has expanded through acquisitions of specialty retail agencies, MGA platforms and program management businesses to deepen expertise in targeted commercial insurance markets. The company continues to focus on niche capabilities that enhance its underwriting reach and broaden specialized client offerings.
AON has pursued acquisitions aimed at strengthening cyber risk, reinsurance, analytics and specialty advisory capabilities. The company is increasingly integrating specialized risk expertise with data-driven consulting solutions to support complex commercial insurance needs.
AJG’s Price Performance, Valuation & EstimatesShares of AJG have dropped 40.5% compared with the industry’s decline of 43.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, AJG trades at a forward price-to-earnings ratio of 14.77X, higher than the industry average of 14.35X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimates for 2026 earnings moved 0.23% north, while the estimate for 2027 earnings moved 0.14% south in the last 30 days.
Image Source: Zacks Investment Research
The consensus estimates for AJG’s 2026 and 2027 revenues indicate a year-over-year increase.
The consensus estimate for earnings per share is currently pegged at $13.22 for 2026, indicating a 23.6% year-over-year increase.
AJG currently carries a Zacks Rank #3(Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways AJG is growing specialty insurance to support revenue diversification and margin expansion.Gallagher acquired Twin Elms and McKee to broaden niche brokerage and underwriting expertise.AJG operates in about 130 countries and targets rising demand for specialized risk solutions. Arthur J. Gallagher & Co. (AJG - Free Report) continues to strengthen its specialty insurance platform through strategic acquisitions. Specialty insurance has become an increasingly important growth engine for AJG, supporting both revenue diversification and margin expansion. As businesses face increasingly complex regulatory requirements, climate-related exposures and emerging operational risks, demand for specialized insurance solutions continues to rise.
Gallagher has benefited from these trends because they are complex, clients often need expert advice and tailored coverage rather than standard insurance products. Expanding its expertise across niche insurance markets allows it to earn higher commissions, deepen client retention and generate recurring revenue through its specialty insurance platform. As these risks continue to grow, demand for Gallagher's specialized brokerage and risk management services is likely to increase as well.
AJG has been steadily investing in specialty markets through acquisitions, talent additions and expansion of its Risk Placement Services platform. AJG recently announced the acquisitions of Twin Elms, a specialist in environmental insurance, and McKee Risk Management, a program administrator focused on construction, public entity and property risks. These transactions are part of a broader strategy to enhance Gallagher's capabilities in high-value specialty segments and support its broader strategy of building scale in expertise-driven insurance markets.
Gallagher's continued investment in specialty insurance capabilities highlights management's focus on long-term growth. With operations spanning approximately 130 countries, the company remains well positioned to benefit from rising demand for specialized insurance and risk management solutions.
How Are Competitors Faring?Peers like Brown & Brown, Inc. (BRO - Free Report) and Aon plc (AON - Free Report) are also expanding their specialty insurance and risk management capabilities through acquisitions.
BRO has expanded through acquisitions of specialty retail agencies, MGA platforms and program management businesses to deepen expertise in targeted commercial insurance markets. The company continues to focus on niche capabilities that enhance its underwriting reach and broaden specialized client offerings.
AON has pursued acquisitions aimed at strengthening cyber risk, reinsurance, analytics and specialty advisory capabilities. The company is increasingly integrating specialized risk expertise with data-driven consulting solutions to support complex commercial insurance needs.
AJG’s Price Performance, Valuation & EstimatesShares of AJG have dropped 42.3% compared with the industry’s decline of 45.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, AJG trades at a forward price-to- earnings ratio of 14.49X, higher than the industry average of 14.01X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimates for 2026 earnings moved 0.23% north, while the estimate for 2027 earnings moved 0.14% south in the last 30 days.
Image Source: Zacks Investment Research
The consensus estimates for AJG’s 2026 and 2027 revenues indicate a year-over-year increase.
The consensus estimate for 2026 earnings per share is currently pegged at $13.26, indicating a 24% year-over-year increase.
AJG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Arthur J. Gallagher & Co. will be hosting its regularly scheduled quarterly management meeting on Wednesday, June 17, from 8:00 a.m. until approximately 10:30 a.m. CT. This quarter's meeting will take place virtually via conference call. During the call, the company's operating and financial leaders will present background information and commentary on the company's business operations and financial outlook, and will take questions from the investment community.
The conference call will be broadcast live through Gallagher's website at www.ajg.com/irmeeting, and a conference call replay will be available at the same link through June 24, 2026. Any information distributed in conjunction with this meeting will be available on June 17 at 7:45 a.m. CT at https://www.ajg.com/June17materials.
Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
Contact:
Sara Walsh
(630) 285-3593/ [email protected]
On June 04, 2026, Arthur J. Gallagher & Co AJG shares rose 4.2% today, closing at $211.00. The stock has traded within a 52-week range of $190.75 to $346.01. This recent uptick comes amidst a challenging year, with a year-to-date decline of 18.2% and a one-year drop of 36.6%.
GF Value™ verdict: Current price of $211.00 is 35.0% below the GF Value™ estimate of $324.62.GF Score™ of 77/100 indicates the stock is rated as Above Average.Notable signal: Insider activity shows that insiders sold $2.4M in shares over the last 3 months, with no buying activity. Is AJG Overvalued or Undervalued? Arthur J. Gallagher & Co AJG appears to be undervalued based on the GF Value™ estimate. With a current price of $211.00, the stock is trading at a significant discount of 35.0% compared to the GF Value™ of $324.62. This margin of safety suggests an opportunity for investors, particularly in light of the potential for future growth. However, it is important to note the GF Valuation label indicating a "Possible Value Trap," which serves as a cautionary note. This label suggests that while the stock seems undervalued, there may be underlying issues justifying the lower price.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. This valuation approach emphasizes the importance of both historical trends and future expectations, allowing for a more comprehensive analysis of the stock's potential value.
How Does AJG's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 34.1x 40.7x Forward P/E 15.9x N/A AJG's current P/E (TTM) of 34.1x is 16% below its 5-year median P/E of 40.7x, indicating that the stock is trading below its historical valuation levels. The forward P/E of 15.9x further supports the notion that the stock is undervalued. This P/E analysis aligns with the GF Value™ verdict, suggesting that AJG could represent a buying opportunity for those who believe in its growth potential.
What Does AJG's GF Score™ Tell Us? Metric Rating GF Score™ 77 Financial Strength 4/10 Profitability 9/10 Growth 10/10 Valuation 4/10 Momentum 1/10 The GF Score™ of 77/100 indicates that AJG is above average compared to other stocks. The strongest areas of the score are in Profitability (9/10) and Growth (10/10), suggesting robust financial health and growth potential. However, the Financial Strength (4/10) and Valuation (4/10) scores indicate areas of concern, particularly regarding the company's financial stability and current valuation metrics. The low Momentum score of 1/10 reflects the stock's recent price performance challenges.
What Are Insiders Doing with AJG Stock? Insider activity has shown a clear trend, with insiders selling $2.4 million worth of shares over the last three months without any buying activity. This pattern could suggest a lack of confidence among insiders regarding the company's short-term prospects or a strategy to capitalize on recent price movements. Such selling may be a red flag for potential investors, indicating that those closest to the company may not see immediate growth or recovery.
What This Means for Investors Based on the GF Value™ assessment, Arthur J. Gallagher & Co AJG is currently undervalued. While there is a significant opportunity presented by the current price relative to its GF Value™, caution is advised due to the potential for it being a value trap and the concerning insider selling.
For the complete analysis, visit the Arthur J. Gallagher & Co AJG stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is AJG's GF Score™?
AJG's GF Score™ is 77/100, indicating that the stock is rated as Above Average compared to its peers, suggesting potential for higher long-term returns.
Is AJG overvalued or undervalued?
AJG is currently undervalued, with a GF Value™ of $324.62 compared to its market price of $211.00, reflecting a margin of 35.0%.
What is AJG's P/E ratio?
AJG's P/E ratio is 34.1x (TTM), which is significantly below its 5-year median P/E of 40.7x, indicating the stock is trading at a lower valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways AJG completed eight acquisitions in Q1 2026 and has about $400M of revenue in its pipeline.Gallagher expects roughly 6% organic growth in 2026 from brokerage, reinsurance and specialty operationsAJG has the capacity to deploy up to $10B for acquisitions while valuations remain a concern. Shares of Arthur J. Gallagher & Co. (AJG - Free Report) have lost 31% in the past year compared with the industry’s decline of 39.6%.
AJG shares have faced pressure as investors reacted to moderating organic growth and softer insurance pricing trends, which have reduced expectations for commission growth. Consequently, investors have reassessed the company's premium valuation. However, continued acquisition activity, growth in the Risk Management segment and a strong capital position should support long-term growth prospects.
Shares of other insurers like Erie Indemnity Company (ERIE - Free Report) , Willis Towers Watson Public Limited Company (WTW - Free Report) and Brown & Brown, Inc. (BRO - Free Report) have lost 36.6%, 12.1% and 44%, respectively, in the said time frame.
1-Year Price Performance: AJG, ERIE, WTW, BRO, Industry & S&P 500
Image Source: Zacks Investment Research
AJG’s Growth Projection EncouragesThe Zacks Consensus Estimate for Arthur J. Gallagher’s 2026 EPS indicates a year-over-year increase of 24.1%. The consensus estimate for revenues is pegged at $16.78 billion, implying a year-over-year improvement of 21.7%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 11.3% and 9.3%, respectively, from the 2026 estimates.
Earnings of AJG grew 18.1% in the last five years, better than the industry average of 13.9%. The long-term earnings growth is expected to be 14.9%.
Optimistic Analyst Sentiment on AJGThree analysts have raised estimates for 2026 and 2027 over the past 30 days, against no downward movement. Thus, the Zacks Consensus Estimate for 2026 and 2027 has moved 0.7% and 0.9% north, respectively, during this time.
Target Price Reflects Potential UpsideBased on short-term price targets offered by 20 analysts, the Zacks average price target is $267.05 per share. The average indicates a potential 21.6% upside from the last closing price.
Image Source: Zacks Investment Research
Factors Impacting AJGArthur J. Gallagher is growing through mergers and acquisitions. Revenue growth rates generally ranged from 5% to 15% for acquisitions completed in 2026. In the first quarter of 2026, AJG completed eight acquisitions with estimated annualized revenues of about $49 million. Looking at the pipeline, AJG has around 40 term sheets signed or being prepared, representing about $400 million of annualized revenues.
AJG's growth is supported by continued performance in its Brokerage and Risk Management segments, which continue to drive organic revenue. The Risk Management business benefits from solid client retention, increased customer activity and higher claim volumes. Additionally, improving renewal premiums across major geographies, healthy new business production and expanding data and analytics capabilities position the company for continued growth. While AJG expects approximately 6% organic growth in 2026, driven by a strong sales pipeline and momentum across reinsurance, retail, bond and specialty insurance operations, organic growth has moderated from the double-digit levels achieved in prior periods.
AJG’s revenues are geographically diversified with strong domestic and international operations. International operations contribute about one-third of revenues. Given the number and size of its non-U.S. acquisitions, AJG expects international contributions to its total revenues to trend upward. Moreover, loss of clients or weakening of macro conditions in any particular country would not have any severe impact on the top line.
A robust capital position over the years reflects its financial flexibility. Banking on its capital position, AJG distributes wealth to shareholders through dividend hikes and share repurchases. In the first quarter of 2026, the dividend was raised by 7.6%, reflecting a three-year CAGR (2020-2025) of 7.6%. AJG’s current cash position, potential borrowing capacity and strong expected free cash flow position it well for its pipeline of M&A opportunities. Over the next two years, AJG expects to have $10 billion to fund M&A, before utilizing any stock.
Risks to WatchArthur J. Gallagher has been experiencing an increase in expenses due to higher compensation, depreciation, amortization and operating expenses which have been eroding margins.
Valuation of Arthur J. Gallagher remains stretched at the current level. Its forward price-to-earnings multiple of 15.58X is higher than the industry average of 14.43X.
Arthur J. Gallagher’s return on equity of 12.8% is lower than the industry average of 18.8%. This shows the company’s inefficiency in managing shareholders’ funds.
ConclusionAJG continues to benefit from solid retention, improving renewal premiums, and inorganic growth. The Risk Management and Brokerage segments should continue to support its operations. A robust capital position over the years reflects its financial flexibility. Its impressive dividend history, optimistic analyst sentiment, and solid growth projections are other positives.
However, given the escalating expenses, moderate organic growth and unfavorable return on capital, it is better to stay cautious about this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Bloomin' Brands, Inc. (NASDAQ: BLMN - Get Free Report) have been assigned an average rating of "Reduce" from the nine brokerages that are presently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating and eight have given a hold rating to the company. The average 1-year price target
TAMPA, Fla.--(BUSINESS WIRE)--Bloomin’ Brands, Inc. (Nasdaq: BLMN) will release results for the fiscal first quarter ended March 29, 2026, on Wednesday, May 6, 2026, at approximately 6:30 AM EDT, which will be followed by a conference call to review its financial results at 8:00 AM EDT the same day.
The call will be webcast live from the Company’s website at http://www.bloominbrands.com under the Investors section. A replay of this webcast will be available on the Company’s website after the call.
About Bloomin’ Brands, Inc.
Bloomin’ Brands, Inc. is one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. The Company’s restaurant portfolio includes Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. The Company owns, operates and franchises more than 1,450 restaurants in 46 states, Guam and 12 countries. For more information, please visit www.bloominbrands.com.
Yum China Holdings (YUMC - Free Report) came out with quarterly earnings of $0.87 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -0.29%. A quarter ago, it was expected that this restaurant operator in China would post earnings of $0.35 per share when it actually produced earnings of $0.4, delivering a surprise of +14.29%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Yum China, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $3.27 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.73%. This compares to year-ago revenues of $2.98 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Yum China shares have lost about 0.8% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for Yum China?While Yum China has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Yum China was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.71 on $3.03 billion in revenues for the coming quarter and $2.91 on $12.71 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Bloomin' Brands (BLMN - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This owner of Outback Steakhouse and other casual dining spots is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of -3.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Bloomin' Brands' revenues are expected to be $1.04 billion, down 0.8% from the year-ago quarter.
The market expects Bloomin' Brands (BLMN - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on May 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis owner of Outback Steakhouse and other casual dining spots is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of -3.4%.
Revenues are expected to be $1.04 billion, down 0.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 7.14% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Bloomin' Brands?For Bloomin' Brands, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.90%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Bloomin' Brands will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Bloomin' Brands would post earnings of $0.25 per share when it actually produced earnings of $0.26, delivering a surprise of +4.00%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Bloomin' Brands doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
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