AI Disruption Fears Overdone, Says Barclays — Upgrades Arthur J. Gallagher and Willis Towers Watson

8 hours ago 1

Joel South

Wed, March 11, 2026 astatine 8:47 AM CDT 7 min read

Arthur J. Gallagher (AJG) posted Q4 2025 gross of $3.59B, beating estimates by 4.83%, and achieved its 20th consecutive 4th of double-digit top-line growth. Willis Towers Watson (WTW) delivered Q4 2025 integrated gross maturation of 6% with adjusted operating borderline expanding 80 ground points to 36.9%. Brown & Brown (BRO) grew full-year 2025 gross 25.44% and generated $1.382B successful escaped currency flow, though Q4 integrated gross declined 2.8%.
Barclays upgraded Arthur J. Gallagher and Willis Towers Watson due to the fact that the marketplace has overreacted to AI disruption fears, viewing artificial quality arsenic a productivity enabler that expands broker margins alternatively than a menace that compresses them.
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Barclays is pushing backmost against the communicative that artificial quality poses an existential menace to security brokers, upgrading 2 of the sector's largest names portion trimming its terms people connected a third. The slope upgraded Arthur J. Gallagher & Co. (NYSE:AJG) to Overweight from Underweight and Willis Towers Watson PLC (NASDAQ:WTW) to Equal Weight from Underweight, portion expert Alex Scott lowered his terms people connected Brown & Brown, Inc. (NYSE:BRO) to $80 from $82, maintaining an Equal Weight rating. The communal thread: the security broker radical has "derated sharply connected fears of AI-driven disruption," and Barclays believes the marketplace has overreacted.

Ticker

Company

Firm

Old → New Rating

New Price Target

One-Line Takeaway

AJG	Arthur J. Gallagher & Co.	Barclays	Underweight → Overweight	$262 (from $247)	Top antiaircraft prime successful the sector; AI fears seen arsenic overdone
WTW	Willis Towers Watson PLC	Barclays	Underweight → Equal Weight	$341 (from $318)	Specialty strategy proving durable; valuation present reflects risks
BRO	Brown & Brown, Inc.	Barclays	Equal Weight (maintained)	$80 (from $82)	Price people trimmed; integrated softness and integration costs weigh

Barclays believes existent stock multiples present "more than discount" slower maturation portion overlooking the durability of the broker concern exemplary and AI's imaginable to enactment productivity and margins. Rather than viewing AI arsenic a disruptive threat, the expert frames it arsenic a "productivity enabler" for the brokers, 1 that could really assistance margins grow alternatively than compress them.

For Arthur J. Gallagher specifically, Barclays calls the banal "one of the champion ways to play defence successful this environment," citing the company's standard and accordant execution. The upgrade to Overweight, a two-notch determination from Underweight, represents a meaningful condemnation shift. The revised terms people of $262, up from $247, implies meaningful upside from the stock's existent trading level.

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