second quarter 2026
Filed Jul 30, 2026Arthur J. Gallagher & Co. Announces Second Quarter 2026 Financial Results
Combined Brokerage and Risk Management revenue growth was 24%, including organic growth of 6%, while total company adjusted net earnings and adjusted diluted earnings per share increased. Reported total company net earnings and diluted earnings per share were below the prior-year period, and Brokerage expense ratios increased amid lower interest income, integration costs and technology costs.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Company revenues before reimbursements, as reportedGAAP | $3,955 million | – | – |
| Total Company revenues before reimbursements, as adjustednon-GAAP | $3,947 million | – | – |
| Total Company net earnings, as reportedGAAP | $324 million | – | – |
| Total Company net earnings, as adjustednon-GAAP | $734 million | – | – |
| Total Company EBITDAC, as reportednon-GAAP | $946 million | – | – |
| Total Company EBITDAC, as adjustednon-GAAP | $1,199 million | – | – |
| Total Company diluted net earnings per share, as reportedGAAP | $1.25 | – | – |
| Total Company diluted net earnings per share, as adjustednon-GAAP | $2.84 | – | – |
| Total Brokerage & Risk Management revenues before reimbursements, as reportedGAAP | $3,955 million | – | 24% |
| Total Brokerage & Risk Management revenues before reimbursements, as adjustednon-GAAP | $3,947 million | – | – |
| Brokerage total organic changenon-GAAP | 5% | – | – |
| Brokerage organic change in base commissions and feesnon-GAAP | 4% | – | – |
| Brokerage organic change in supplemental revenuesnon-GAAP | 20% | – | – |
| Brokerage organic change in contingent revenuesnon-GAAP | (8%) | – | – |
| Brokerage compensation expense, as reportedGAAP | $2,017 million | – | – |
| Brokerage compensation expense, as adjustednon-GAAP | $1,865 million | – | – |
| Brokerage reported compensation expense ratioGAAP | 57.6% | – | 2.8 pts higher |
| Brokerage adjusted compensation expense rationon-GAAP | 53.4% | – | 2.1 pts higher |
| Brokerage operating expense, as reportedGAAP | $537 million | – | – |
| Brokerage operating expense, as adjustednon-GAAP | $466 million | – | – |
| Brokerage reported operating expense ratioGAAP | 15.3% | – | 2.1 pts higher |
| Brokerage adjusted operating expense rationon-GAAP | 13.3% | – | 0.8 pts higher |
| Number of acquisitions closedother | 6 | – | – |
| Estimated annualized revenues acquiredother | $58 million | – | – |
| Six-month Total Company revenues before reimbursements, as reportedGAAP | $8,671 million | – | – |
| Six-month Total Company net earnings, as reportedGAAP | $1,147 million | – | – |
| Six-month Total Company net earnings, as adjustednon-GAAP | $1,898 million | – | – |
| Six-month Total Company EBITDAC, as adjustednon-GAAP | $2,951 million | – | – |
| Six-month Total Company diluted net earnings per share, as reportedGAAP | $4.41 | – | – |
| Six-month Total Company diluted net earnings per share, as adjustednon-GAAP | $7.31 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Brokerage, as reportedOrganic base commissions and fees changed 4%, organic supplemental revenues changed 20%, and organic contingent revenues changed (8%). | $3,502 million | – | – |
| Brokerage, as adjustedTotal organic commissions, fees, supplemental revenues and contingent revenues were $2,596 million, and total organic change was 5%. | $3,494 million | – | – |
| Risk Management, as reportedNo segment revenue growth percentage was reported. | $453 million | – | – |
| Risk Management, as adjustedNo segment revenue growth percentage was reported. | $453 million | – | – |
What drove it
- Combined Brokerage and Risk Management segments delivered revenue growth of 24%, including organic growth of 6%.
- Management cited strong client retention, outstanding new business generation and client demand for broader solutions across the platform.
- Brokerage organic supplemental revenues increased 20%.
- Savings from headcount controls benefited the Brokerage adjusted compensation expense ratio.
- Six Brokerage acquisitions closed, with estimated annualized revenues acquired of $58 million.
Concerns
- Total Company net earnings, as reported, were $324 million compared with $368 million in second quarter 2025, while diluted net earnings per share, as reported, were $1.25 compared with $1.40.
- The Brokerage reported compensation expense ratio was 57.6%, 2.8 pts higher than second quarter 2025.
- The Brokerage reported operating expense ratio was 15.3%, 2.1 pts higher than second quarter 2025.
- Management attributed higher Brokerage expense ratios in part to lower interest income revenues, higher integration costs and higher technology costs.
- Second quarter 2025 Brokerage results included approximately $144 million of incremental interest income, or approximately 42 cents after-tax, associated with the AssuredPartners Financing.
What to watch
- Brokerage total organic change, reported at 5%, and combined Brokerage and Risk Management organic growth, reported at 6%.
- The trajectory of Brokerage compensation and operating expense ratios following higher integration and technology costs.
- Supplemental revenue growth and the decline in organic contingent revenues of (8%).
- Acquisition integration costs and acquisition-related adjustments.
- Whether client retention, new business generation and demand for broader solutions remain strong.
Analysis
Arthur J. Gallagher reported second-quarter Total Company revenues before reimbursements of $3,955 million, compared with $3,179 million in second quarter 2025. Combined Brokerage and Risk Management revenue growth was 24%, including organic growth of 6%. Brokerage reported revenue was $3,502 million and Risk Management reported revenue was $453 million. Within Brokerage, organic base commissions and fees changed 4%, supplemental revenues changed 20%, and contingent revenues changed (8%).
Profitability presented a split between reported and adjusted results. Total Company net earnings, as reported, were $324 million and diluted net earnings per share, as reported, were $1.25, compared with $368 million and $1.40 in second quarter 2025. Total Company net earnings, as adjusted, were $734 million, compared with $604 million, while adjusted diluted net earnings per share were $2.84, compared with $2.30. Total Company adjusted EBITDAC was $1,199 million, compared with $1,006 million.
Brokerage cost ratios moved higher. The reported compensation expense ratio was 57.6%, 2.8 pts higher than second quarter 2025, and the adjusted compensation expense ratio was 53.4%, 2.1 pts higher. The reported operating expense ratio was 15.3%, 2.1 pts higher, and the adjusted operating expense ratio was 13.3%, 0.8 pts higher. The company cited lower interest income revenues, higher integration costs and higher technology costs, while noting that headcount controls provided savings. The prior-year quarter included approximately $144 million of incremental interest income connected to the AssuredPartners Financing.
Acquisition activity was lower than the prior-year quarter, with 6 acquisitions closed and $58 million of estimated annualized revenues acquired, compared with 9 acquisitions and $291 million. For the six months ended June 30, 2026, Total Company revenues before reimbursements, as reported, were $8,671 million; reported net earnings were $1,147 million; and adjusted diluted net earnings per share were $7.31. The release provided no forward financial guidance, leaving organic growth, expense-ratio progression, acquisition integration and contingent revenue trends as the principal reported operating items to monitor.
Management, verbatim
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.
J. Patrick Gallagher, Jr., Chairman and CEO
In an increasingly complex risk environment, client demand for our advice, analytics, market access, specialty expertise and claims advocacy remains robust.
J. Patrick Gallagher, Jr., Chairman and CEO
Not in the filing
stated, not guessed- Forward financial guidance
- Previous-release outlook for comparison
- Gross profit and gross margin
- Operating income
- Consolidated operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt
- Share repurchases
- Dividends
- Consolidated effective tax rate
- Prior-quarter comparisons for reported metrics
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.