Arthur J. Gallagher (AJG) Q2 2026 earnings summary

Executive summary

• Total revenues for the six months ended June 30, 2026, rose 26% year-over-year to $8.76 billion, driven by acquisitions and 5% organic growth in commissions, fees, supplemental, and contingent revenues.

• Q2 2026 delivered 24% total revenue growth and 6% organic growth, with strong performance in both Brokerage and Risk Management segments, supported by robust client retention and new business.

• Achieved 25 consecutive quarters of double-digit adjusted EBITAC growth and solid underlying margin expansion.

• Completed the acquisition of AssuredPartners, the largest in company history, with expected annualized run-rate synergies of $160 million by end of 2026 and $325 million by early 2028.

• Major acquisitions expanded geographic reach and service offerings, with high retention and collaboration.

Financial highlights

• Adjusted revenues, EBITAC/EBITDAC, and EPS each up over 30% for combined segments, excluding prior year investment income noise.

• Six-month revenues increased to $8.76 billion from $6.95 billion year-over-year; three-month revenues were $4.00 billion, up from $3.22 billion.

• Adjusted EBITDAC for the quarter was $1,264 million, up from $1,088 million in Q2 2025; adjusted diluted EPS was $2.84, up from $2.30.

• Brokerage segment Q2 2026 revenues (as adjusted) were $3.49 billion, with an adjusted EBITDAC margin of 33.3%.

• Cash provided by operating activities was $967 million for the six months, more than doubling from $448 million in the prior year.

Outlook and guidance

• Full-year 2026 organic growth outlook reaffirmed at 6% total, 5.5% Brokerage, 8–9% Risk Management.

• Forecasting full-year 2026 underlying margin expansion of 40–60 bps and brokerage segment EBITDAC margin in the range of 32.5% to 35.4%.

• Expecting $10 billion capital deployment capacity over next two years, favoring M&A but open to opportunistic share repurchases.

• AssuredPartners expected to contribute $3.07 billion in revenue and $1.06 billion in adjusted EBITDAC for 2026.

• Cash taxes paid estimated at approximately 10% of EBITDAC in coming years.