Arthur J. Gallagher (AJG) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered 28% total revenue growth, with 5% organic and 23% M&A-driven, notably from AssuredPartners, and strong client retention.

• Net earnings grew 12% and adjusted EBITA/EBITDAC rose 18%, marking 24 consecutive quarters of double-digit adjusted EBITA/EBITDAC growth.

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

• Management reaffirmed confidence in a 6% full-year organic growth outlook for 2026.

Financial highlights

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

• Adjusted revenues, EBITAC/EBITDAC, and EPS all increased 30% year-over-year, excluding prior year interest income on AP funds.

• Net earnings increased to $823 million from $709 million year-over-year.

• Diluted net earnings per share rose to $3.16 from $2.72 year-over-year; adjusted EPS was $4.47 versus $3.72.

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

Outlook and guidance

• Full-year 2026 organic growth outlook remains at 6%.

• Q2 organic growth expected to be similar to Q1 across all business lines.

• Full-year forecast includes 40-60 basis points of underlying margin expansion in brokerage.

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

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