ROLLING MEADOWS, Ill., July 30, 2026 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended June 30, 2026. Management will host a webcast conference call to discuss these results on Thursday, July 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 9.
Summary of Financial Results - Second Quarter | ||||||||||||||||
Revenues Before Reimbursements | Net Earnings (Loss) | EBITDAC | Diluted Net Earnings (Loss) Per Share | |||||||||||||
Segment | 2nd Q 26 | 2nd Q 25 | 2nd Q 26 | 2nd Q 25 | 2nd Q 26 | 2nd Q 25 | 2nd Q 26 | 2nd Q 25 | ||||||||
(in millions) | (in millions) | (in millions) | ||||||||||||||
Brokerage, as reported | $ 3,502 | $ 2,787 | $ 450 | $ 510 | $ 948 | $ 892 | $ 1.74 | $ 1.95 | ||||||||
Net (gains) on divestitures | (8) | (6) | (6) | (5) | (8) | (6) | (0.02) | (0.02) | ||||||||
Acquisition integration | — | — | 84 | 30 | 113 | 41 | 0.33 | 0.12 | ||||||||
Workforce and lease termination | — | — | 30 | 28 | 40 | 37 | 0.11 | 0.11 | ||||||||
Acquisition related adjustments | — | — | 49 | 25 | 70 | 50 | 0.19 | 0.09 | ||||||||
Amortization of intangible assets | — | — | 218 | 130 | — | — | 0.84 | 0.50 | ||||||||
Levelized foreign currency translation | – | 1 | — | (7) | — | (9) | — | (0.03) | ||||||||
Brokerage, as adjusted | 3,494 | 2,782 | 825 | 711 | 1,163 | 1,005 | 3.19 | 2.72 | ||||||||
Risk Management, as reported | 453 | 392 | 57 | 43 | 96 | 75 | 0.22 | 0.16 | ||||||||
Acquisition integration | — | — | 1 | 1 | 1 | 2 | – | 0.01 | ||||||||
Workforce and lease termination | — | — | 1 | 3 | 2 | 4 | 0.01 | 0.01 | ||||||||
Acquisition related adjustments | — | — | 2 | 1 | 2 | 1 | 0.01 | — | ||||||||
Amortization of intangible assets | — | — | 5 | 5 | — | — | 0.02 | 0.02 | ||||||||
Levelized foreign currency translation | — | 5 | — | 1 | — | 1 | — | — | ||||||||
Risk Management, as adjusted | 453 | 397 | 66 | 54 | 101 | 83 | 0.26 | 0.20 | ||||||||
Corporate, as reported | — | — | (183) | (185) | (98) | (111) | (0.71) | (0.71) | ||||||||
Transaction-related costs | — | — | 10 | 24 | 12 | 29 | 0.04 | 0.09 | ||||||||
Legal, tax and benefit plan related | — | — | 16 | — | 21 | — | 0.06 | — | ||||||||
Corporate, as adjusted | — | — | (157) | (161) | (65) | (82) | (0.61) | (0.62) | ||||||||
Total Company, as reported | $ 3,955 | $ 3,179 | $ 324 | $ 368 | $ 946 | $ 856 | $ 1.25 | $ 1.40 | ||||||||
Total Company, as adjusted | $ 3,947 | $ 3,179 | $ 734 | $ 604 | $ 1,199 | $ 1,006 | $ 2.84 | $ 2.30 | ||||||||
Total Brokerage & Risk Management, as reported | $ 3,955 | $ 3,179 | $ 507 | $ 553 | $ 1,044 | $ 967 | $ 1.96 | $ 2.11 | ||||||||
Total Brokerage & Risk Management, as adjusted | $ 3,947 | $ 3,179 | $ 891 | $ 765 | $ 1,264 | $ 1,088 | $ 3.45 | $ 2.92 |
For second quarter 2025, reported and adjusted amounts for the Brokerage Segment include approximately $144 million of incremental interest income, or approximately 42 cents after-tax, earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.
For second quarter 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $505 million, $12 million and $33 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $130 million, $3 million and ($7) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 17.
(1 of 20)
"We delivered an excellent second quarter!" said J. Patrick Gallagher, Jr., Chairman and CEO. "Our combined Brokerage and Risk Management segments delivered revenue growth of 24%, including organic growth of 6%. Our growth reflects the strength and diversity of our model, the continued power of our two-pronged growth strategy, and our culture of client-first execution. Client retention remains strong, new business generation continues to be outstanding and clients continue to seek broader solutions across our platform.
"In an increasingly complex risk environment, client demand for our advice, analytics, market access, specialty expertise and claims advocacy remains robust. Looking ahead, we remain confident in our ability to build on our momentum and continue creating long-term value for our clients, colleagues and shareholders."
Summary of Financial Results - Six-Months ended June 30 | ||||||||||||||||
Revenues Before Reimbursements | Net Earnings (Loss) | EBITDAC | Diluted Net Earnings (Loss) Per Share | |||||||||||||
Segment | 6 Mths 26 | 6 Mths 25 | 6 Mths 26 | 6 Mths 25 | 6 Mths 26 | 6 Mths 25 | 6 Mths 26 | 6 Mths 25 | ||||||||
(in millions) | (in millions) | (in millions) | ||||||||||||||
Brokerage, as reported | $ 7,795 | $ 6,101 | $ 1,363 | $ 1,326 | $ 2,510 | $ 2,243 | $ 5.25 | $ 5.08 | ||||||||
Net (gains) on divestitures | (15) | (12) | (11) | (9) | (15) | (12) | (0.04) | (0.04) | ||||||||
Acquisition integration | — | — | 149 | 63 | 200 | 85 | 0.57 | 0.24 | ||||||||
Workforce and lease termination | — | — | 50 | 42 | 67 | 55 | 0.19 | 0.16 | ||||||||
Acquisition related adjustments | — | — | 88 | 50 | 120 | 80 | 0.34 | 0.19 | ||||||||
Amortization of intangible assets | — | — | 419 | 282 | — | — | 1.62 | 1.09 | ||||||||
Effective income tax rate impact | — | — | — | 1 | — | — | — | — | ||||||||
Levelized foreign currency translation | — | 58 | — | 6 | — | 10 | — | 0.03 | ||||||||
Brokerage, as adjusted | 7,780 | 6,147 | 2,058 | 1,761 | 2,882 | 2,461 | 7.93 | 6.75 | ||||||||
Risk Management, as reported | 881 | 766 | 107 | 84 | 182 | 147 | 0.41 | 0.32 | ||||||||
Acquisition integration | — | — | 2 | 2 | 2 | 4 | 0.01 | 0.01 | ||||||||
Workforce and lease termination | — | — | 2 | 6 | 3 | 7 | 0.01 | 0.02 | ||||||||
Acquisition related adjustments | — | — | 6 | 1 | 8 | 1 | 0.02 | — | ||||||||
Amortization of intangible assets | — | — | 10 | 9 | — | — | 0.04 | 0.04 | ||||||||
Levelized foreign currency translation | — | 12 | — | 2 | — | 2 | — | 0.01 | ||||||||
Risk Management, as adjusted | 881 | 778 | 127 | 104 | 195 | 161 | 0.49 | 0.40 | ||||||||
Corporate, as reported | (5) | — | (323) | (333) | (189) | (233) | (1.25) | (1.28) | ||||||||
Transaction-related costs | — | — | 16 | 44 | 19 | 52 | 0.06 | 0.17 | ||||||||
Legal, tax and benefit plan related | — | — | 17 | — | 39 | — | 0.07 | — | ||||||||
Clean energy-related | 5 | — | 3 | — | 5 | — | 0.01 | — | ||||||||
Corporate, as adjusted | — | — | (287) | (289) | (126) | (181) | (1.11) | (1.11) | ||||||||
Total Company, as reported | $ 8,671 | $ 6,867 | $ 1,147 | $ 1,077 | $ 2,503 | $ 2,157 | $ 4.41 | $ 4.12 | ||||||||
Total Company, as adjusted | $ 8,661 | $ 6,925 | $ 1,898 | $ 1,576 | $ 2,951 | $ 2,441 | $ 7.31 | $ 6.04 | ||||||||
Total Brokerage & Risk Management, as reported | $ 8,676 | $ 6,867 | $ 1,470 | $ 1,410 | $ 2,692 | $ 2,390 | $ 5.66 | $ 5.40 | ||||||||
Total Brokerage & Risk Management, as adjusted | $ 8,661 | $ 6,925 | $ 2,185 | $ 1,865 | $ 3,077 | $ 2,622 | $ 8.42 | $ 7.15 |
For the six-month period ended June 30, 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $936 million, $27 million and $63 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $241 million, $7 million and ($27) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 19.
(2 of 20)
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
Organic Revenues (Non-GAAP) | 2nd Q 26 | 2nd Q 25 | 6 Mths 26 | 6 Mths 25 | ||||
Base Commissions and Fees | ||||||||
Commissions and fees, as reported | $ 3,180 | $ 2,387 | $ 7,095 | $ 5,256 | ||||
Less commissions and fees from acquisitions, divested operations and other | (775) | (80) | (1,712) | (144) | ||||
Levelized foreign currency translation | — | 1 | — | 51 | ||||
Organic base commissions and fees | $ 2,405 | $ 2,306 | $ 5,383 | $ 5,163 | ||||
Organic change in base commissions and fees | 4 % | 4 % | ||||||
Supplemental Revenues | ||||||||
Supplemental revenues, as reported | $ 141 | $ 103 | $ 321 | $ 217 | ||||
Less supplemental revenues from acquisitions, divested operations and other | (17) | — | (63) | — | ||||
Levelized foreign currency translation | — | — | — | 2 | ||||
Organic supplemental revenues | $ 124 | $ 103 | $ 258 | $ 219 | ||||
Organic change in supplemental revenues | 20 % | 18 % | ||||||
Contingent Revenues | ||||||||
Contingent revenues, as reported | $ 91 | $ 73 | $ 206 | $ 166 | ||||
Less contingent revenues from acquisitions, divested operations and other | (24) | — | (43) | — | ||||
Levelized foreign currency translation | — | — | — | 1 | ||||
Organic contingent revenues | $ 67 | $ 73 | $ 163 | $ 167 | ||||
Organic change in contingent revenues | (8 %) | (2 %) | ||||||
Total reported commissions, fees, supplemental revenues and contingent revenues | $ 3,412 | $ 2,563 | $ 7,622 | $ 5,639 | ||||
Less commissions, fees, supplemental revenues and contingent revenues from acquisitions, divested operations and other | (816) | (80) | (1,818) | (144) | ||||
Levelized foreign currency translation | — | 1 | — | 54 | ||||
Total organic commissions, fees, supplemental revenues and contingent revenues | $ 2,596 | $ 2,482 | $ 5,804 | $ 5,549 | ||||
Total organic change | 5 % | 5 % | ||||||
Acquisition Activity | 2nd Q 26 | 2nd Q 25 | 6 Mths 26 | 6 Mths 25 | ||||
Number of acquisitions closed * | 6 | 9 | 14 | 19 | ||||
Estimated annualized revenues acquired (in millions) | $ 58 | $ 291 | $ 107 | $ 354 |
* | In the second quarter of 2026 and 2025, no shares of Gallagher common stock were issued directly to sellers in connection with tax-free exchange acquisitions. |
(3 of 20)
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
Compensation Expense and Ratios | 2nd Q 26 | 2nd Q 25 | 6 Mths 26 | 6 Mths 25 | ||||||
Compensation expense, as reported | $ 2,017 | $ 1,526 | $ 4,228 | $ 3,143 | ||||||
Acquisition integration | (53) | (20) | (90) | (48) | ||||||
Workforce and lease termination related charges | (29) | (36) | (53) | (52) | ||||||
Acquisition related adjustments | (70) | (50) | (120) | (80) | ||||||
Levelized foreign currency translation | — | ... |