Arthur J. Gallagher (AJG) Q1 2026 earnings summary

Executive summary

• Combined brokerage and risk management segments delivered 28% revenue growth year-over-year, with 5% organic growth and strong client retention, driven by acquisitions including AssuredPartners.

• Net earnings attributable to controlling interests rose 12% to $822 million, and adjusted EBITDAC grew 18%, marking 24 consecutive quarters of double-digit adjusted EBITDAC growth.

• Strategic focus remains on organic growth, acquisitions, productivity investments, and leveraging AI and automation.

• Nine acquisitions closed in the quarter, expanding geographic and service reach.

Financial highlights

• Total company revenues before reimbursements rose to $4,716 million from $3,688 million year-over-year.

• Brokerage segment revenues up 30% to $4.29 billion; risk management up 14% to $428 million (before reimbursements).

• Net earnings increased to $823 million from $709 million year-over-year; diluted EPS up 16% to $3.16.

• Adjusted EBITDAC reached $1,752 million, up from $1,435 million year-over-year.

• Repurchased 1.4 million shares for $310 million in Q1.

Outlook and guidance

• Full-year 2026 organic growth outlook reaffirmed at 6%, with Q2 organic growth expected to be similar to Q1 across all businesses.

• Management expects continued strong growth and long-term value creation, supported by organic initiatives and strategic acquisitions.

• Forecasts assume one 25 bps rate cut in September and continued solid economic activity.

• Annualized run-rate synergies from AssuredPartners expected to reach $160 million by end of 2026 and up to $300 million by early 2028.

• Effective tax rate guidance: 24.5%-26.5% for brokerage, 25%-27% for risk management.