Arthur J. Gallagher (AJG) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered 28% total revenue growth for brokerage and risk management, with 5% organic and 23% M&A-driven growth, notably from AssuredPartners; revenues reached $4.72 billion.

• Net earnings attributable to controlling interests rose 12% to $823 million, and adjusted EBITDAC increased 18%, marking 24 consecutive quarters of double-digit adjusted EBITDAC growth.

• Nine tuck-in mergers completed in Q1, including AssuredPartners, expanding geographic and service reach; M&A pipeline robust with over 40 term sheets for $400M in annualized revenue.

• Strategic focus remains on organic growth, acquisitions, productivity investments, and leveraging AI and automation to enhance client service and operational efficiency.

• Compensation and operating expenses increased due to acquisitions, organic growth support, and technology investments.

Financial highlights

• Adjusted revenues, EBITDAC, and EPS all up 30% year-over-year, excluding prior year interest income on AP funds; total company revenues before reimbursements rose to $4,716 million.

• Brokerage segment posted 30% revenue growth (5% organic), reaching $4.29 billion; risk management up 14% to $428 million (10% organic).

• Net earnings margin for brokerage at 21.3%, risk management at 11.7%.

• Cash provided by operating activities was $957 million, up from $872 million year-over-year.

• Declared $182 million in dividends, an 8% increase per share over prior year.

Outlook and guidance

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

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

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

• Sufficient capital and access to additional capital to meet short- and long-term needs.

• Guidance assumes consistent property price declines as seen in Q1.