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Wall Street expects a year-over-year increase in earnings on higher revenues when Arthur J. Gallagher (AJG - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis insurance and risk-management company is expected to post quarterly earnings of $2.84 per share in its upcoming report, which represents a year-over-year change of +21.9%.

Revenues are expected to be $4.03 billion, up 26.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.45% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Arthur J. Gallagher?For Arthur J. Gallagher, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.38%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Arthur J. Gallagher will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Arthur J. Gallagher would post earnings of $4.4 per share when it actually produced earnings of $4.47, delivering a surprise of +1.59%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Arthur J. Gallagher doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Insurance - Brokerage industry, Aon (AON - Free Report) , is soon expected to post earnings of $3.77 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +8%. Revenues for the quarter are expected to be $4.26 billion, up 2.6% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Aon has remained unchanged. Nevertheless, the company now has an Earnings ESP of +0.24%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Aon will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Arthur J. Gallagher and Co. Acquires W.N. Tuscano Agency, Inc. PR Newswire ROLLING MEADOWS, Ill., July 21, 2026

Key Takeaways AJG acquired Med James to strengthen its Risk Placement Services wholesale insurance platform.AJG expands its specialty insurance capabilities and regional presence through Med James' MGA expertise.The acquisition supports Gallagher's specialty insurance growth and retail broker relationships.  Arthur J. Gallagher & Co. (AJG - Free Report) continues to strengthen its specialty insurance platform through targeted acquisitions, a strategy that has supported the company's long-term growth and expanded its presence across niche insurance markets.

The latest addition is Med James, Inc., a Kansas-based managing general agency (MGA) and wholesale insurance broker serving retail insurance agents.  Pam Donahue and the Med James team will remain at their current location under the direction of Jacey Norberg, VP-North Central Region for RPS.

The acquisition expands the capabilities of Gallagher's Risk Placement Services (“RPS”) division, one of North America’s largest wholesale insurance brokerage, binding authority and program management platforms. Med James' expertise in wholesale brokerage and MGA services is expected to enhance RPS's regional presence while broadening its ability to serve retail agents with specialized insurance solutions.

Managing general agencies play an important role in the specialty insurance market by offering underwriting expertise, product development and access to customized coverage that may not be available through standard insurance markets. Strengthening this business enables Gallagher to expand its specialty product offerings, deepen relationships with retail brokers and generate stable commission-based revenues.

As demand for specialized commercial insurance solutions continues to rise, enhancing its wholesale brokerage and MGA capabilities should further strengthen Gallagher's competitive position.

How Are Competitors Faring?Peers like Brown & Brown, Inc. (BRO - Free Report) and Aon plc (AON - Free Report) are also expanding their specialty insurance and risk management capabilities through acquisitions.

BRO has expanded through acquisitions of specialty retail agencies, MGA platforms and program management businesses to deepen expertise in targeted commercial insurance markets. The company continues to focus on niche capabilities that enhance its underwriting reach and broaden specialized client offerings.

AON has pursued acquisitions aimed at strengthening cyber risk, reinsurance, analytics and specialty advisory capabilities. The company is increasingly integrating specialized risk expertise with data-driven consulting solutions to support complex commercial insurance needs.

AJG’s Price Performance, Valuation & EstimatesShares of AJG have dropped 19.7% compared with the industry’s decline of 27.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, AJG trades at a forward price-to- earnings ratio of 18.01X, higher than the industry average of 16.34X.

Image Source: Zacks Investment Research

The consensus estimate for earnings per share (EPS) for 2026 and 2027 indicates a year-over-year increase of 23.7% and 11.8%, respectively.

The Zacks Consensus Estimates for 2026 earnings moved 0.4% south, while the estimate for 2027 earnings moved 0.1% north in the last 30 days.

Image Source: Zacks Investment Research

The consensus estimates for AJG’s 2026 and 2027 revenues indicate a year-over-year increase.

AJG currently carries a Zacks Rank #3(Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

, /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) will release its second quarter 2026 earnings after the market closes on Thursday, July 30, 2026. A printer-friendly format will be available on the company's website shortly thereafter.

In conjunction with this release, J. Patrick Gallagher, Jr., Chairman and CEO, will host a conference call on Thursday, July 30, 2026 at 5:15 pm ET/4:15 pm CT.

The conference call will be broadcast live through Gallagher's website at www.ajg.com and a conference call replay will be available on the company's website approximately two hours after the broadcast. The replay can be accessed by going to Investor Relations and clicking on Events & Presentations. 

Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

Contact:
Sara Walsh, CFA
(630) 285-3593 - [email protected]

SOURCE Arthur J. Gallagher & Co.

Key Takeaways Arthur J. Gallagher acquired WMB to expand its retail commercial insurance business in Western Canada.AJG adds expertise in construction, commercial real estate, surety, hospitality and mining insurance. The acquisition supports Gallagher's strategy of expanding through targeted specialty insurance acquisitions. Specialty insurance remains a major growth pillar for Arthur J. Gallagher & Co. (AJG - Free Report) , driven by strong demand for customized coverage, deeper client relationships and stable commission-based revenues. The company continues to expand its specialty insurance platform through strategic acquisitions, reinforcing its position in niche commercial insurance markets.

The latest acquisition is Wilson M. Beck Insurance Services Inc. (WMB), a Canada-based retail insurance broker serving commercial clients across Western Canada. The WMB team, led by David Beck, will continue operating from its current locations and will be integrated into Gallagher's retail property and casualty brokerage operations in Canada.

The acquisition strengthens Gallagher's retail brokerage operations in Western Canada while expanding its presence in high-value commercial insurance segments. WMB's specialization in construction, commercial real estate, surety bonding, hospitality and mining will enhance AJG's expertise in these niche markets, which often involve complex risk exposures and customized coverage requirements. WMB’s expertise and client relationships are expected to help Gallagher to attract new commercial customers and drive stable commission-based revenues over the long term.

The transaction also aligns with Gallagher's broader strategy of growing through targeted acquisitions that complement its existing brokerage and consulting businesses. By adding WMB's industry expertise and regional presence, Gallagher is well-positioned to capitalize on the growing demand for specialized commercial insurance solutions while supporting its long-term growth strategy.

How Are Competitors Faring?Peers like Brown & Brown, Inc. (BRO - Free Report) and Aon plc (AON - Free Report) are also expanding their retail brokerage businesses through acquisitions.

BRO has been actively expanding its retail insurance brokerage business through acquisitions across North America. The acquisitions of Accession Risk Management Group, which significantly expanded its retail brokerage, employee benefits and programs businesses, as well as several regional retail agencies. These acquisitions have strengthened BRO's presence in niche commercial insurance markets and broadened its client base.

Aon has been expanding its commercial insurance brokerage platform through targeted acquisitions and strategic investments. The company expanded its middle-market brokerage capabilities by acquiring NFP, enhancing its commercial insurance, employee benefits and advisory offerings.

AJG’s Price Performance, Valuation & EstimatesShares of AJG have dropped 19.2% compared with the industry’s decline of 27%.

Image Source: Zacks Investment Research

From a valuation standpoint, AJG trades at a forward price-to-earnings ratio of 18.14X, higher than the industry average of 16.57X.

Image Source: Zacks Investment Research

The consensus estimate for earnings per share (EPS) for 2026 and 2027 indicates a year-over-year increase of 23.8% and 11.8%, respectively. 

The Zacks Consensus Estimates for 2026 earnings moved 0.3% south, while the estimate for 2027 earnings moved 0.2% north in the last 30 days.

Image Source: Zacks Investment Research

The consensus estimates for AJG’s 2026 and 2027 revenues indicate a year-over-year increase.

AJG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Arthur J. Gallagher (AJG - Free Report) . This company, which is in the Zacks Insurance - Brokerage industry, shows potential for another earnings beat.

When looking at the last two reports, this insurance and risk-management company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 1.43%, on average, in the last two quarters.

For the most recent quarter, Arthur J. Gallagher was expected to post earnings of $4.4 per share, but it reported $4.47 per share instead, representing a surprise of 1.59%. For the previous quarter, the consensus estimate was $2.35 per share, while it actually produced $2.38 per share, a surprise of 1.28%.

Price and EPS Surprise

For Arthur J. Gallagher, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Arthur J. Gallagher currently has an Earnings ESP of +0.17%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Arthur J. Gallagher & Co. today announced the acquisition of Ohio-based Cincinnati Benefit Solutions, LLC. Terms of the transaction were not disclosed.

Cincinnati Benefit Solutions provides employee benefits services for small businesses in Cincinnati and nearby areas. Drew Locaputo and the Cincinnati Benefit Solutions team will remain in their current location under the direction of Brian Lomas, head of Gallagher's Great Lakes region employee benefits consulting and brokerage operations.

"Cincinnati Benefit Solutions expands our small-group benefits consulting capabilities in Ohio and has a culture similar to ours," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am delighted to welcome Drew and his associates to Gallagher."

Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

Investor Relations: Sara Walsh, CFA               Media Relations: Paul Day
630-285-3593 / [email protected]             630-285-5946 / [email protected]

SOURCE Arthur J. Gallagher & Co.

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HomeDividends AnalysisDividend IdeasFinancials 

SummaryArthur J. Gallagher & Co. leverages organic growth and aggressive M&A to drive industry-leading expansion in the fragmented insurance brokerage sector.Q1 2026 results reinforced the thesis: revenue surged 27.7% year-over-year, with 5% organic growth and strong EPS outperformance.AJG trades at a forward PE of 16.36 and a discount to a fair value estimate of $306, supporting a bullish total return outlook.Risks include a softening P&C market and integration challenges from recent acquisitions, but AJG's disciplined execution and low payout ratio underpin dividend growth.Looking for a portfolio of ideas like this one? Members of The Dividend Kings get exclusive access to our subscriber-only portfolios. Learn More »Sitewide Sale 2026: Get 20% Off J Studios/DigitalVision via Getty Images

Co-authored by Kody's Dividends

When it comes to insurance brokerages, there are many options available to you. Interestingly, many of these brokerages offer the exact same policies from the same companies. It comes down to personal preference or

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Kody's Dividends, Justin Law, and Rachel Kaufman are part of the Dividend Kings team.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

, /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended March 31, 2026. Management will host a webcast conference call to discuss these results on Thursday, April 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to the call, and for printer-friendly formats of this release, the "CFO Commentary" and "Supplemental Quarterly Data," which may also be referenced during the call, please visit ajg.com/IR. These documents contain both GAAP and non-GAAP measures. Investors and other users of this information should read carefully the section entitled "Information Regarding Non-GAAP Measures" beginning on page 8.

Summary of Financial Results - First Quarter

Revenues Before

Reimbursements

Net Earnings (Loss)

EBITDAC

Diluted Net Earnings

(Loss) Per Share

Segment

1st Q 26

1st Q 25

1st Q 26

1st Q 25

1st Q 26

1st Q 25

1st Q 26

1st Q 25

(in millions)

(in millions)

(in millions)

Brokerage, as reported

$   4,293

$   3,314

$     913

$     816

$   1,562

$   1,351

$    3.51

$    3.13

Net (gains) on divestitures

(7)

(6)

(5)

(4)

(7)

(6)

(0.02)

(0.02)

Acquisition integration

–

–

65

33

87

44

0.25

0.13

Workforce and lease termination

–

–

20

14

27

18

0.08

0.05

Acquisition related adjustments

–

–

39

25

50

30

0.15

0.09

Amortization of intangible assets

–

–

201

152

–

–

0.77

0.59

Effective income tax rate impact

–

–

–

1

–

–

–

–

Levelized foreign currency translation

–

57

–

13

–

19

–

0.05

Brokerage, as adjusted

4,286

3,365

1,233

1,050

1,719

1,456

4.74

4.02

Risk Management, as reported

428

374

50

41

86

72

0.19

0.16

Acquisition integration

–

–

1

1

1

2

–

–

Workforce and lease termination

–

–

1

3

1

3

–

0.01

Acquisition related adjustments

–

–

4

–

6

–

0.02

–

Amortization of intangible assets

–

–

5

4

–

–

0.02

0.02

Levelized foreign currency translation

–

7

–

1

–

1

–

–

Risk Management, as adjusted

428

381

61

50

94

78

0.23

0.19

Corporate, as reported

(5)

–

(140)

(148)

(91)

(122)

(0.54)

(0.57)

Transaction-related costs

–

–

6

20

7

23

0.02

0.08

Legal & tax related

–

–

1

–

18

–

–

–

Clean energy-related

5

–

3

–

5

–

0.02

–

Corporate, as adjusted

–

–

(130)

(128)

(61)

(99)

(0.50)

(0.49)

Total Company, as reported

$   4,716

$   3,688

$     823

$     709

$   1,557

$   1,301

$    3.16

$    2.72

Total Company, as adjusted

$   4,714

$   3,746

$   1,164

$     972

$   1,752

$   1,435

$    4.47

$    3.72

Total Brokerage & Risk Management, as reported

$   4,721

$   3,688

$     963

$     857

$   1,648

$   1,423

$    3.70

$    3.29

Total Brokerage & Risk Management, as adjusted

$   4,714

$   3,746

$   1,294

$   1,100

$   1,813

$   1,534

$    4.97

$    4.21

First quarter 2025 reported and adjusted amounts for the Brokerage Segment include approximately $143 million of incremental interest income, or approximately 41 cents after-tax, earned on the cash proceeds held to fund the AssuredPartners acquisition.

For first quarter 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $431 million, $15 million and $30 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $111 million, $4 million and ($20) million, respectively, relating to these adjustments. A detailed reconciliation is shown on pages 16 and 17.

(1 of 17)

"We had a terrific first quarter!" said J. Patrick Gallagher, Jr., Chairman and CEO. "For our combined brokerage and risk management segments, our two-pronged revenue growth strategy – growing both organically and through acquisitions – delivered revenue growth of 28% in the quarter. Our organic growth of 5% reflected strong client retention, disciplined execution, and the benefit of our diversified platform. Net earnings increased 12%, and adjusted EBITDAC grew 18%, marking our 24th consecutive quarter of double-digit adjusted EBITDAC growth.

"Our results reflect the strength and consistency of our business model across the dynamic insurance and economic environment. We remain focused on organic growth, strategic mergers and acquisitions, investment in productivity and quality, and maintaining our culture. We are also seeing the benefit of deeper collaboration across our P&C brokerage, benefits, and claims teams, supported by practical applications of AI, automation, and digitization that enhance how we serve and advocate for our clients. We believe Gallagher is well positioned to continue delivering strong growth and long‑term value for our shareholders."

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

Organic Revenues (Non-GAAP)

1st Q 2026

1st Q 2025

Base Commissions and Fees

Commissions and fees, as reported

$      3,915

$         2,869

Less commissions and fees from acquisitions, divested operations and other

(937)

(64)

Levelized foreign currency translation

–

52

Organic base commissions and fees

$      2,978

$         2,857

Organic change in base commissions and fees

4 %

Supplemental Revenues

Supplemental revenues, as reported

$         180

$           114

Less supplemental revenues from acquisitions, divested operations and other

(46)

–

Levelized foreign currency translation

–

2

Organic supplemental revenues

$         134

$           116

Organic change in supplemental revenues

16 %

Contingent Revenues

Contingent revenues, as reported

$         115

$            93

Less contingent revenues from acquisitions, divested operations and other

(19)

–

Levelized foreign currency translation

–

1

Organic contingent revenues

$          96

$            94

Organic change in contingent revenues

2 %

Total reported commissions, fees, supplemental
revenues and contingent revenues

$      4,210

$         3,076

Less commissions, fees, supplemental revenues and contingent revenues from acquisitions, divested operations and other

(1,002)

(64)

Levelized foreign currency translation

–

55

Total organic commissions, fees, supplemental revenues and contingent revenues

$      3,208

$         3,067

Total organic change

5 %

Acquisition Activity

1st Q 2026

1st Q 2025

Number of acquisitions closed *

8

10

Estimated annualized revenues acquired (in millions)

$             49

$             63

*

In the first quarter of 2026 and 2025, Gallagher issued 76,000 shares and 49,000 shares, respectively, of its common stock directly to sellers in connection with tax-free exchange acquisitions.

(2 of 17)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

Compensation Expense and Ratios

1st Q 2026

1st Q 2025

Compensation expense, as reported

$     2,211

$     1,617

Acquisition integration

(37)

(28)

Workforce and lease termination related charges

(24)

(16)

Acquisition related adjustments

(50)

(30)

Levelized foreign currency translation

–

29

Compensation expense, as adjusted

$     2,100

$     1,572

Reported compensation expense ratios using reported revenues on page 1

*

51.5 %

48.8 %

Adjusted compensation expense ratios using adjusted revenues on page 1

**

49.0 %

46.7 %

*

Reported first quarter 2026 compensation expense ratio was 2.7 pts higher than first quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as first quarter 2025 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024. This ratio was also impacted by higher acquisition related adjustments and workforce termination costs, partially offset by savings from headcount controls.

**

Adjusted first quarter 2026 compensation expense ratio was 2.3 pts higher than first quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as first quarter 2025 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024. This ratio also benefited from savings from headcount controls.

Operating Expense and Ratios

1st Q 2026

1st Q 2025

Operating expense, as reported

$       520

$       346

Acquisition integration

(50)

(16)

Workforce and lease termination related charges

(3)

(2)

Levelized foreign currency translation

–

9

Operating expense, as adjusted

$       467

$       337

Reported operating expense ratios using reported revenues on page 1 

*

12.1 %

10.5 %

Adjusted operating expense ratios using adjusted revenues on page 1

**

10.9 %

10.0 %

*

Reported first quarter 2026 operating expense ratio was 1.6 pts higher than first quarter 2025. This ratio was primarily impacted by higher integration and technology costs, partially offset by lower outside consulting fees. This ratio was also impacted by lower interest income revenues in the quarter, as first quarter 2025 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024.

**

Adjusted first quarter 2026 operating expense ratio was 0.9 pts higher than first quarter 2025. This ratio was primarily impacted by increased technology costs, partially offset by lower outside consulting fees. This ratio was also impacted by lower interest income revenues in the quarter, as first quarter 2025 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024.

(3 of 17)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

Net Earnings to Adjusted EBITDAC (Non-GAAP)

1st Q 2026

1st Q 2025

Net earnings, as reported

$       913

$       816

Provision for income taxes

313

283

Depreciation

49

33

Amortization

271

204

Change in estimated acquisition earnout payables

16

15

EBITDAC

1,562

1,351

Net (gains) on divestitures

(7)

(6)

Acquisition integration

87

44

Workforce and lease termination related charges

27

18

Acquisition related adjustments

50

30

Levelized foreign currency translation

–

19

EBITDAC, as adjusted

$     1,719

$     1,456

Net earnings margin, as reported using reported revenues on page 1

*

21.3 %

24.6 %

EBITDAC margin, as adjusted using adjusted revenues on page 1

*

40.1 %

43.3 %

*

First quarter 2025 adjusted EBITDAC includes approximately $143 million of interest income revenues earned on the proceeds received in December 2024 related to the AssuredPartners Financing. The interest income in the prior period, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in first quarter adjusted EBITDAC margin by approximately 3.6%.

Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

Organic Revenues (Non-GAAP)

1st Q 2026

1st Q 2025

Fees

$         415

$           363

International performance bonus fees

5

2

Fees as reported

420

365

Less fees from acquisitions, divestitures and other

(13)

(1)

Levelized foreign currency translation

–

7

Organic fees

407

371

Organic change in fees

10 %

Acquisition Activity

1st Q 2026

1st Q 2025

Number of acquisitions closed

1

1

Estimated annualized revenues acquired (in millions)

$            10

$            38

   (4 of 17)

Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

Compensation Expense and Ratios

1st Q 2026

1st Q 2025

Compensation expense, as reported

$       264

$       231

Acquisition integration

–

(1)

Workforce and lease termination related charges

(1)

(3)

Acquisition related adjustments

(6)

–

Levelized foreign currency translation

–

5

Compensation expense, as adjusted

$       257

$       232

Reported compensation expense ratios using reported revenues (before reimbursements) on page 1

*

61.8 %

61.9 %

Adjusted compensation expense ratios using adjusted revenues (before reimbursements) on page 1

**

60.2 %

61.1 %

*

Reported first quarter 2026 compensation expense ratio was 0.1 pts lower than first quarter 2025. This ratio was primarily impacted by savings related to headcount controls, partially offset by higher acquisition related adjustments and increased incentive compensation.

**

Adjusted first quarter 2026 compensation expense ratio was 0.9 pts lower than first quarter 2025. This ratio was primarily impacted by savings related to headcount controls, partially offset by increased incentive compensation.

Operating Expense and Ratios

1st Q 2026

1st Q 2025

Operating expense, as reported

$         78

$         71

Acquisition integration

(1)

(1)

Levelized foreign currency translation

–

1

Operating expense, as adjusted

$         77

$         71

Reported operating expense ratios using reported revenues (before reimbursements) on page 1

*

18.4 %

19.0 %

Adjusted operating expense ratios using reported revenues (before reimbursements) on page 1

*

18.1 %

18.5 %

*

Reported first quarter 2026 operating expense ratio was 0.6 pts lower than first quarter 2025. Adjusted first quarter 2026 operating expense ratio was 0.4 pts lower than first quarter 2025. Both ratios were primarily impacted by savings in client-related expenses.

Net Earnings to Adjusted EBITDAC (Non-GAAP)

1st Q 2026

1st Q 2025

Net earnings, as reported

$          50

$          41

Provision for income taxes

18

15

Depreciation

10

10

Amortization

7

6

Change in estimated acquisition earnout payables

1

–

EBITDAC

86

72

Acquisition integration

1

2

Workforce and lease termination related charges

1

3

Acquisition related adjustments

6

–

Levelized foreign currency translation

–

1

EBITDAC, as adjusted

$          94

$          78

Net earnings margin, as reported using reported revenues (before reimbursements) on page 1

11.7 %

11.0 %

EBITDAC margin, as adjusted using adjusted revenues (before reimbursements) on page 1

21.7 %

20.4 %

(5 of 17)

Corporate Segment Reported GAAP to Adjusted Non-GAAP Reconciliation Information (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

1st Quarter

2026

2025

Pretax

Loss

Income

Tax

Benefit

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Pretax

Loss

Income

Tax

Benefit

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Components of Corporate Segment, as reported

Interest and banking costs

$   (158)

$       41

$           (117)

$   (159)

$       42

$           (117)

Clean energy-related

(7)

2

(5)

(2)

1

(1)

Acquisition costs (1)

(10)

2

(8)

(26)

3

(23)

Corporate (2)

(76)

66

(10)

(95)

88

(7)

Reported 1st quarter

(251)

111

(140)

(282)

134

(148)

Adjustments

Clean energy-related (3)

5

(2)

3

–

–

–

Transaction-related costs (1)

7

(1)

6

23

(3)

20

Legal and tax related (4)

18

(17)

1

–

–

–

Components of Corporate Segment,

Interest and banking costs

(158)

41

(117)

(159)

42

(117)

Clean energy-related

(2)

–

(2)

(2)

1

(1)

Acquisition costs

(3)

1

(2)

(3)

–

(3)

Corporate (2)

(58)

49

(9)

(95)

88

(7)

Adjusted 1st quarter

$   (221)

$       91

$           (130)

$   (259)

$     131

$           (128)

(1)

Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees associated with completed, future and terminated acquisitions. Adjustments primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed August 2025 and April 2025, respectively.

(2)

Corporate pretax loss includes a net unrealized foreign exchange remeasurement gain of $6 million in first quarter 2026 and a net unrealized foreign exchange remeasurement loss of $(23) million in first quarter 2025.

(3)

Adjustments in first quarter 2026 include the write-down of a clean energy-related investment.

(4)

Adjustments in first quarter 2026 and 2025 include costs associated with legal and tax matters.

(6 of 17)

Interest, banking costs and debt - At March 31, 2026, Gallagher had $9,550 million of borrowings from public debt, $3,008 million of borrowings from private placements and $285 million of borrowings under its line of credit facility. In addition, Gallagher had $156 million outstanding under a revolving loan facility that provides funding for premium finance receivables, which are fully collateralized by the underlying premiums held by insurance carriers, and as such are excluded from its debt covenant computations, as applicable.

Clean energy-related - For 2026, this consists of operating results related to Gallagher's investments in new clean energy projects, primarily fusion and carbon sequestration projects.

Acquisition costs - Consists mostly of external professional fees and other due diligence costs related to acquisitions. On occasion, Gallagher enters into forward currency hedges for the purchase price of committed, but not yet funded, acquisitions with funding requirements in currencies other than the U.S. dollar. The gains or losses, if any, associated with these hedge transactions are also included in acquisition costs.

Corporate - Consists of overhead allocations mostly related to corporate staff compensation, other corporate level activities, and net unrealized foreign exchange remeasurement. In addition, it includes the tax expense related to the partial taxation of foreign earnings, nondeductible executive compensation and entertainment expenses, the tax benefit from the vesting of employee equity awards, as well as other permanent or discrete tax items not reflected in the provision for income taxes in the Brokerage and Risk Management segments.

Income Taxes - Gallagher allocates the provision for income taxes to its Brokerage and Risk Management segments using the local country statutory rates. Gallagher's consolidated effective tax rate for the quarters ended March 31, 2026 and 2025 were 21.1% and 18.8%, respectively.

AssuredPartners - In fourth quarter 2024 and first quarter 2025, we raised a total of approximately $14 billion of cash via a follow-on common stock offering and senior notes issuance to fund the AssuredPartners acquisition (collectively, the AssuredPartners Financing), which was completed in third quarter 2025 for approximately $14 billion. 

Share Repurchases - In the first quarter of 2026, Gallagher repurchased approximately 1.4 million shares of its common stock for approximately $310 million.

Webcast Conference Call - Gallagher will host a webcast conference call on Thursday, April 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to this call, please go to Arthur J. Gallagher & Co. - Events & Presentations (ajg.com). The call will be available for replay at such website for at least 90 days.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

Information Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipates," "believes," "contemplates," "see," "should," "could," "will," "estimates," "expects," "intends," "plans" and variations thereof and similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, anticipated future results or performance of any segment or Gallagher as a whole; acquisition rollover revenues; statements regarding changes in its expenses in the next several quarters; future capital structure changes, including debt levels from time to time; the impact of foreign currency on its results; integration costs; workforce and lease termination costs; amortization of intangibles; depreciation; change in estimated earnout payables; effective tax rate; earnings from continuing operations attributable to noncontrolling interests; the premium rate environment and the state of insurance markets; and the economic environment.

Gallagher's actual results may differ materially from those contemplated by the forward-looking statements. Readers are therefore cautioned against relying on any of the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.

Important factors that could cause actual results to differ materially from those in the forward-looking statements include global economic and geopolitical events, including, among others, fluctuations in interest and inflation rates; protectionism such as tariffs, trade disruptions; a recession or economic downturns; a U.S. government shutdown; political instability, such as global armed conflicts; its actual acquisition opportunities, including closing risks related to pending acquisitions, risks with respect to larger acquisitions such as AssuredPartners, the largest acquisition in our history, including risks related to its ability to successfully integrate operations; and the possibility that its assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize expected benefits; damage to its reputation due to its failure to uphold its culture or negative perceptions or publicity, including as a result of amplifying effects that the Internet and social media may have on such perceptions; reputational issues related to its sustainability-related activities, including potential backlash against such activities, and compliance with increasingly complex climate- and other sustainability-related regulations, such as risks related to "greenwashing" and "greenhushing"; cybersecurity-related risks; its ability to apply technology, data analytics and artificial intelligence effectively and potential increased costs resulting from such activities; risks associated with the use of artificial intelligence in its business operations, including regulatory, data privacy, cybersecurity, errors and omissions, intellectual property and competition risks related to "AI-washing"; heightened competition for talent and increased compensation costs; disasters or other business interruptions, including with respect to its operations in India; risks related to its international operations, such as those related to regulatory, tax, sustainability, sanctions and anti-corruption compliance and increased scrutiny of the use of off-shore centers of excellence such as those we operate in India and elsewhere; changes to data privacy and protection laws and regulations; foreign exchange rates; changes in accounting standards; changes in premium rates and in insurance markets generally, including the impact of large natural or man-made events; tax, environmental or other compliance risks related to its legacy clean energy investments; its inability to receive dividends or other distributions from subsidiaries; and changes in the insurance brokerage industry's competitive landscape.

Please refer to Gallagher's filings with the Securities and Exchange Commission, including Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and its subsequently filed Quarterly Reports on Form 10-Q for a more detailed discussion of these and other factors that could impact its forward-looking statements. Any forward-looking statement made by Gallagher in this press release speaks only as of the date on which it is made. Except as required by applicable law, Gallagher does not undertake to update the information included herein or the corresponding earnings release posted on Gallagher's website.

(7 of 17)

Information Regarding Non-GAAP Measures
In addition to reporting financial results in accordance with GAAP, this press release provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this press release. Gallagher's management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher's results of operations and financial condition or because they provide investors with measures that its chief operating decision maker uses when reviewing Gallagher's performance. See further below for definitions and additional reasons each of these measures is useful to investors. Gallagher's industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in its most recent Proxy Statement, Gallagher makes determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC.

Adjusted Non-GAAP presentation - Gallagher believes that the adjusted non-GAAP presentations of the current and prior period information presented in this earnings release provide stockholders and other interested persons with useful information regarding certain financial metrics of Gallagher that may assist such persons in analyzing Gallagher's operating results as they develop a future earnings outlook for Gallagher. The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period. See pages 16 and 17 for a reconciliation of the adjustments made to income taxes.

(8 of 17)

Adjusted measures - Revenues (for the Brokerage segment), revenues before reimbursements (for the Risk Management segment), net earnings, compensation expense and operating expense, respectively, each adjusted to exclude the following, as applicable:

Net gains (losses) on divestitures, which are primarily net proceeds received related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure. Acquisition integration costs, which include costs related to certain large acquisitions (including the acquisitions of the Willis Towers Watson treaty reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance Group, My Plan Manager, Woodruff Sawyer and AssuredPartners), outside the scope of the usual tuck-in strategy, not expected to occur on an ongoing basis in the future once Gallagher fully assimilates the applicable acquisition. These costs are typically associated with redundant workforce, compensation expense related to amortization of certain retention bonus arrangements, extra lease space, duplicate services and external costs incurred to assimilate the acquisition into its IT related systems. Transaction-related costs, which are associated with completed, future and terminated acquisitions. Costs primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in and August 2025 and April 2025, respectively. These include costs related to regulatory filings, legal and accounting services, insurance and incentive compensation. Workforce related charges, which primarily include severance costs (either accrued or paid) related to employee terminations and other costs associated with redundant workforce. Lease termination related charges, which primarily include costs related to terminations of real estate leases and abandonment of leased space. Acquisition related adjustments principally relate to changes in estimated acquisition earnout payables adjustments and acquisition related compensation charges. In addition, from time to time we may include changes in balance sheet estimates arising from conforming accounting principles, purchase-related true-ups and other balance sheet adjustments made after the closing date. Amortization of intangible assets, which reflects the amortization of customer/expiration lists, non-compete agreements, trade names and other intangible assets acquired through Gallagher's merger and acquisition strategy, the impact to amortization expense of acquisition valuation adjustments to these assets as well as non-cash impairment charges. The impact of foreign currency translation, as applicable. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same period in the prior year. Effective income tax rate impact, which levelizes the prior year for the change in current year tax rates. Clean energy-related, which represents the impact of adjustments in first quarter 2026 related to the write-down of a clean energy-related investment. Legal and tax related, which represents the impact of adjustments in first quarter 2026 and 2025 related to costs associated with legal and tax matters. Adjusted ratios - Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues. Non-GAAP Earnings Measures

EBITDAC and EBITDAC margin - EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables and EBITDAC margin is EBITDAC divided by total revenues (for the Brokerage segment) and revenues before reimbursements (for the Risk Management segment). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance for the overall business and provide a meaningful way to measure its financial performance on an ongoing basis. EBITDAC, as Adjusted and EBITDAC Margin, as Adjusted - Adjusted EBITDAC is EBITDAC adjusted to exclude net gains on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, and the period-over-period impact of foreign currency translation, as applicable, and Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues (defined above). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance and are also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability. EPS, as Adjusted and Net Earnings, as Adjusted - Adjusted net earnings have been adjusted to exclude the after-tax impact of net gains on divestitures, acquisition integration costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, amortization of intangible assets, and effective income tax rate impact, as applicable. Adjusted EPS is Adjusted Net Earnings divided by diluted weighted average shares outstanding. This measure provides a meaningful representation of Gallagher's operating performance (and as such should not be used as a measure of Gallagher's liquidity), and for the overall business is also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability. (9 of 17)

Organic Revenues (a non-GAAP measure) - Organic revenue change measures the year-over-year percentage change in organic revenue. For the Brokerage segment, organic revenue consists of base commission and fee revenues, supplemental revenues and contingent revenues, excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations, which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products, in each year presented. Such revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of Gallagher in both the current and prior period. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation; revenue from certain large life product sales within Gallagher's Executive Life and Benefits practice group (which are typically large singular transactions with a high degree of variability in amount and timing); and revenue attributable to changes in assumptions used to calculate estimated deferred revenues, which impact the quarterly timing of revenues during the annual contract period. For the Risk Management segment, organic revenue consists of fee revenues excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each period presented. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation .

These revenue items are excluded from organic revenues in order to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond, as well as eliminating the impact of the items that have a high degree of variability. Gallagher has historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments. Gallagher also believes that using this non-GAAP measure allows readers of its financial statements to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner.

Reconciliation of Non-GAAP Information Presented to GAAP Measures - This press release includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages 4 and 5), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on page 1), for organic revenue measures (on pages 2 and 4, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 3, 4 and 5 respectively, for the Brokerage and Risk Management segments).

(10 of 17)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 1st Quarter March 31,
(Unaudited - in millions except per share, percentage and workforce data)

Brokerage Segment

1st Q Ended

March 31, 2026

1st Q Ended

March 31, 2025

Commissions

$            3,123

$            2,249

Fees

792

620

Supplemental revenues

180

114

Contingent revenues

115

93

Interest income, premium finance revenues and other income

83

238

Total revenues

4,293

3,314

Compensation

2,211

1,617

Operating

520

346

Depreciation

49

33

Amortization

271

204

Change in estimated acquisition earnout payables

16

15

Expenses

3,067

2,215

Earnings before income taxes

1,226

1,099

Provision for income taxes

313

283

Net earnings

913

816

Net earnings attributable to noncontrolling interests

1

5

Net earnings attributable to controlling interests

$              912

$              811

EBITDAC

Net earnings

$              913

$              816

Provision for income taxes

313

283

Depreciation

49

33

Amortization

271

204

Change in estimated acquisition earnout payables

16

15

EBITDAC

$            1,562

$            1,351

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

(11 of 17)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 1st Quarter March 31,
(Unaudited - in millions except per share, percentage and workforce data)

Risk Management Segment

1st Q Ended

March 31, 2026

1st Q Ended

March 31, 2025

Fees

$              420

$              365

Interest income and other income

8

9

Revenues before reimbursements

428

374

Reimbursements

42

39

Total revenues

470

413

Compensation

264

231

Operating

78

71

Reimbursements

42

39

Depreciation

10

10

Amortization

7

6

Change in estimated acquisition earnout payables

1

—

Expenses

402

357

Earnings before income taxes

68

56

Provision for income taxes

18

15

Net earnings

50

41

Net earnings attributable to noncontrolling interests

–

–

Net earnings attributable to controlling interests

$               50

$               41

EBITDAC

Net earnings

$               50

$               41

Provision for income taxes

18

15

Depreciation

10

10

Amortization

7

6

Change in estimated acquisition earnout payables

1

–

EBITDAC

$               86

$               72

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

(12 of 17)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 1st Quarter March 31,
(Unaudited - in millions except share and per share data)

Corporate Segment

1st Q Ended

March 31, 2026

1st Q Ended

March 31, 2025

Other loss

$                (5)

$                 –

Total revenues

(5)

–

Compensation

41

49

Operating

45

73

Interest

158

158

Depreciation

2

2

Expenses

246

282

Loss before income taxes

(251)

(282)

Benefit for income taxes

(111)

(134)

Net loss

(140)

(148)

Net loss attributable to noncontrolling interests

–

–

Net loss attributable to controlling interests

$             (140)

$             (148)

EBITDAC

Net loss

$             (140)

$             (148)

Benefit for income taxes

(111)

(134)

Interest

158

158

Depreciation

2

2

EBITDAC

$              (91)

$             (122)

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

(13 of 17)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 1st Quarter March 31,
(Unaudited - in millions except share and per share data)

Total Company

1st Q Ended

March 31, 2026

1st Q Ended

March 31, 2025

Commissions

$            3,123

$            2,249

Fees

1,212

985

Supplemental revenues

180

114

Contingent revenues

115

93

Interest income, premium finance revenues and other income

86

247

Revenues before reimbursements

4,716

3,688

Reimbursements

42

39

Total revenues

4,758

3,727

Compensation

2,516

1,897

Operating

643

490

Reimbursements

42

39

Interest

158

158

Depreciation

61

45

Amortization

278

210

Change in estimated acquisition earnout payables

17

15

Expenses

3,715

2,854

Earnings before income taxes

1,043

873

Provision for income taxes

220

164

Net earnings

823

709

Net earnings attributable to noncontrolling interests

1

5

Net earnings attributable to controlling interests

$              822

$              704

Diluted net earnings per share

$             3.16

$             2.72

Dividends declared per share

$             0.70

$             0.65

EBITDAC

Net earnings

$              823

$              709

Provision for income taxes

220

164

Interest

158

158

Depreciation

61

45

Amortization

278

210

Change in estimated acquisition earnout payables

17

15

EBITDAC

$            1,557

$            1,301

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

(14 of 17)

Arthur J. Gallagher & Co.
Consolidated Balance Sheet
(Unaudited - in millions except per share data)

March 31, 2026

Dec 31, 2025

Cash and cash equivalents

$            1,413

$            1,396

Fiduciary assets (includes fiduciary cash of $7,069 in 2026 and $7,142 in 2025)

33,873

26,899

Accounts receivable, net

5,960

5,175

Other current assets

773

886

Total current assets

42,019

34,356

Fixed assets - net

762

789

Deferred income taxes

43

43

Other noncurrent assets

1,568

1,602

Right-of-use assets

585

598

Goodwill

22,958

22,593

Amortizable intangible assets - net

10,366

10,684

Total assets

$          78,301

$          70,665

Fiduciary liabilities

$          33,873

$          26,899

Accrued compensation and other current liabilities

4,051

4,017

Deferred revenue - current

809

737

Premium financing debt

156

226

Corporate related borrowings - current

640

640

Total current liabilities

30,529

32,519

Corporate related borrowings - noncurrent

12,077

12,104

Deferred revenue - noncurrent

177

155

Lease liabilities - noncurrent

499

515

Other noncurrent liabilities (includes tax credit carryforwards of $655 in 2026 and $713 in 2025)

2,217

2,025

Total liabilities

54,499

47,318

Stockholders' equity:

Common stock - issued and outstanding

257

257

Capital in excess of par value

17,638

17,783

Retained earnings

6,446

5,806

Accumulated other comprehensive loss

(566)

(525)

Total controlling interests stockholders' equity

23,775

23,321

Noncontrolling interests

27

26

Total stockholders' equity

23,802

23,347

Total liabilities and stockholders' equity

$          78,301

$          70,665

(15 of 17)

Arthur J. Gallagher & Co.
Other Information
(Unaudited - data is rounded where indicated)

OTHER INFORMATION

1st Q Ended

March 31, 2026

1st Q Ended

March 31, 2025

Basic weighted average shares outstanding (000s)

257,119

254,819

Diluted weighted average shares outstanding (000s)

259,816

259,421

Number of common shares outstanding at end of period (000s)

256,942

256,053

Workforce at end of period (includes acquisitions):

Brokerage

55,607

*

43,120

Risk Management

11,122

10,594

Total Company

72,373

*

57,285

*

The acquisition of AssuredPartners added approximately 10,900 employees in August 2025.

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited)

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

1st Q Ended March 31, 2026

Brokerage, as reported

$         1,226

$       313

$     913

$              1

$           912

$       3.51

Net (gains) on divestitures

(7)

(2)

(5)

–

(5)

(0.02)

Acquisition integration

87

22

65

–

65

0.25

Workforce and lease termination

27

7

20

–

20

0.08

Acquisition related adjustments

53

14

39

–

39

0.15

Amortization of intangible assets

271

70

201

–

201

0.77

Brokerage, as adjusted

$         1,657

$       424

$   1,233

$              1

$         1,232

$       4.74

Risk Management, as reported

$            68

$        18

$      50

$              –

$             50

$       0.19

Acquisition integration

1

–

1

–

1

–

Workforce and lease termination

1

–

1

–

1

–

Acquisition related adjustments

6

2

4

–

4

0.02

Amortization of intangible assets

7

2

5

–

5

0.02

Risk Management, as adjusted

$            83

$        22

$      61

$              –

$             61

$       0.23

Corporate, as reported

$          (251)

$     (111)

$    (140)

$              –

$          (140)

$      (0.54)

Transaction-related costs

7

1

6

–

6

0.02

Legal and tax related

18

17

1

–

1

–

Clean energy-related

5

2

3

–

3

0.02

Corporate, as adjusted

$          (221)

$       (91)

$    (130)

$              –

$          (130)

$      (0.50)

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

(16 of 17)

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

1st Q Ended March 31, 2025

Brokerage, as reported

$     1,099

$     283

$        816

$              5

$          811

$       3.13

Net (gains) on divestitures

(6)

(2)

(4)

–

(4)

(0.02)

Acquisition integration

44

11

33

–

33

0.13

Workforce and lease termination

18

4

14

–

14

0.05

Acquisition related adjustments

33

8

25

–

25

0.09

Amortization of intangible assets

204

52

152

–

152

0.59

Effective income tax impact

—

(1)

1

–

1

–

Levelized foreign currency translation

17

4

13

–

13

0.05

Brokerage, as adjusted

$     1,409

$     359

$      1,050

$              5

$        1,045

$       4.02

Risk Management, as reported

$         56

$       15

$          41

$              –

$            41

$       0.16

Acquisition integration

2

1

1

–

1

–

Workforce and lease termination

3

–

3

–

3

0.01

Amortization of intangible assets

6

2

4

–

4

0.02

Levelized foreign currency translation

1

–

1

–

1

–

Risk Management, as adjusted

$         68

$       18

$          50

$              –

$            50

$       0.19

Corporate, as reported

$      (282)

$    (134)

$       (148)

$              –

$         (148)

$      (0.57)

Transaction-related costs

23

3

20

–

20

0.08

Corporate, as adjusted

$      (259)

$    (131)

$       (128)

$              –

$         (128)

$      (0.49)

See "Information Regarding Non-GAAP Measures" on page 8 of 17.

Contact:
Sara Walsh
630-285-3593 or [email protected]

(17 of 17)

SOURCE Arthur J. Gallagher & Co.

For the quarter ended March 2026, Arthur J. Gallagher (AJG - Free Report) reported revenue of $4.72 billion, up 28.1% over the same period last year. EPS came in at $4.47, compared to $3.67 in the year-ago quarter.

The reported revenue represents a surprise of +1.43% over the Zacks Consensus Estimate of $4.65 billion. With the consensus EPS estimate being $4.40, the EPS surprise was +1.62%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Arthur J. Gallagher performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Brokerage - Compensation expense ratio: 51.5% versus 50.6% estimated by three analysts on average.Risk Management Segment - Operating expense ratio: 18.4% versus 18.6% estimated by three analysts on average.Risk Management Segment - Compensation expense ratio: 61.8% versus the three-analyst average estimate of 58.5%.Brokerage - Operating expense ratio: 12.1% versus 11.1% estimated by three analysts on average.Revenues- Total Company- Fees: $1.21 billion versus $1.24 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +23.1% change.Revenues- Total Company- Interest income, premium finance revenues and other income: $86 million versus the four-analyst average estimate of $81.96 million. The reported number represents a year-over-year change of -65.3%.Revenues- Brokerage Segment- Supplemental and contingent revenues (Supplemental revenues+Contingent revenues): $295 million versus the three-analyst average estimate of $221.7 million.Revenues- Total Company- Commissions: $3.12 billion versus the three-analyst average estimate of $3.18 billion. The reported number represents a year-over-year change of +38.9%.Revenues- Risk Management Segment- Reimbursements: $42 million compared to the $41.3 million average estimate based on three analysts. The reported number represents a change of +7.7% year over year.Revenues- Risk Management Segment- Revenues before reimbursements: $428 million compared to the $404.06 million average estimate based on three analysts. The reported number represents a change of +14.6% year over year.Revenues- Risk Management Segment- Interest income and other income: $8 million compared to the $8.24 million average estimate based on three analysts. The reported number represents a change of -9.1% year over year.Total revenues- Brokerage: $4.29 billion versus $4.28 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +29.5% change.View all Key Company Metrics for Arthur J. Gallagher here>>>

Shares of Arthur J. Gallagher have returned -2.1% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Arthur J. Gallagher & Co (AJG) Q1 2026 Earnings Call Highlights: Robust Revenue Growth and Strategic M&A Drive Performance Arthur J. Gallagher & Co (AJG) reports a strong first quarter with 28% revenue growth, fueled by strategic mergers and acquisitions and solid organic growth. Summary

Total Revenue Growth: 28% in the first quarter, with organic growth at 5% and M&A contributing 23%.Brokerage Revenue Growth: 30%, with organic growth at 5%.Risk Management Revenue Growth: 14%, with organic growth at 10%.Net Earnings Growth: 12% for combined Brokerage and Risk Management segments.Adjusted EBITA Growth: 18% for combined Brokerage and Risk Management segments.Brokerage Organic Growth: 5%, with supplementals and contingents up nearly 10%.Risk Management Organic Growth: 10%, with M&A adding 2.5 points.Adjusted Revenue, EBITDAC, and EPS: All up 30%.Share Repurchase: Approximately 1.4 million shares for $310 million in the first quarter.Underlying Margin Expansion: 50 basis points in the first quarter.M&A Activity: Nine new tuck-in mergers completed, representing around $60 million of estimated annualized revenue.Cash Taxes Paid: Expected to be around 10% of EBITDAC for the foreseeable future.

Release Date: April 30, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points Arthur J. Gallagher & Co AJG reported a strong first quarter with a 28% revenue growth, driven by 5% organic growth and 23% from mergers and acquisitions.The Brokerage segment saw a 30% increase in revenues, with strong growth across retail PC, wholesale, reinsurance, and benefits.The Risk Management segment, Gallagher Bassett, posted a 14% revenue increase, with 10% organic growth.The company achieved 24 consecutive quarters of double-digit adjusted EBITA growth, with a 12% increase in net earnings and 18% in adjusted EBITA.Arthur J. Gallagher & Co (AJG) completed nine new tuck-in mergers in the first quarter, representing around $60 million of estimated annualized revenue, with a strong pipeline of over 40 term sheets for future mergers. Negative Points The insurance rate environment is contributing less to organic growth compared to previous years, with property rates down 7%.The company faces challenges in the property market, with significant rate pressure in cat-exposed and larger risks.There is a bifurcated market in the US excess and surplus market, with competitive pressures in E&S property.Geopolitical developments, such as the conflict in the Middle East, are impacting specific coverages like marine war and political violence, adding uncertainty to reinsurance pricing.The company anticipates potential comparability issues in upcoming quarters due to prior interest income from funds held for the AssuredPartners acquisition. Q & A Highlights Q: Can you expand on your expectations for higher organic growth in America's retail in the second quarter, given the greater property mix?
A: The 5% growth expectation in America's retail Brokerage segment is influenced by a slightly smaller quarter in Canada last year, which aligns with our current projections.

Q: Has the M&A environment changed recently, and how does it affect your buyback decisions?
A: We haven't repurchased any shares in the second quarter due to a quiet period. M&A multiples are decreasing, and sellers are becoming more rational. We prioritize M&A opportunities that align with our long-term strategy over share repurchases, provided they are at the right multiple.

Q: Does the 4% core commission and fee organic growth in the quarter represent a floor for future growth?
A: Yes, we anticipate a strong year ahead, with consistent growth expectations. The guidance implies a pick-up in the second half, driven by factors like reinsurance demand and successful new business pipelines.

Q: What are your expectations for specialty and US wholesale growth, given the pricing environment?
A: Property will have its biggest impact in the second quarter, but we expect less stress in the second half. We have a good view on property renewals, and the rest of the year should see less property-related pressure.

Q: How do you view the impact of insurance rates on growth, and can you break down the components of organic growth?
A: New business will exceed lost business, with customers opting in for more coverage. We expect a 6% growth year, with rate contributing 1-1.5%, new business around 2.5%, and exposure growth about 1.5%.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

, /PRNewswire/ -- Gallagher, one of the world's largest insurance brokerage and risk management firms, today launched Gallagher Blueprint, a strategic framework that combines AI-driven analytics, Gallagher's proprietary data, and deep niche expertise, to help clients strengthen their risk profile and structure stronger, cost-efficient insurance programs.

Built on Gallagher's proven sales methodology, Gallagher Blueprint aligns a client's insurance strategy, risk management priorities, and budget into a clear, customized action plan to optimize their insurance program.

"Gallagher Blueprint is a gamechanger for our clients," said Pete Doyle, CEO of Gallagher's US retail brokerage. "By combining AI-powered insights with our proprietary data and our specialists' expertise, we ensure clients have the best program available in the market. I often describe it as 'eliminating wonder.' We want to remove any doubt for our clients, ensuring they don't have to wonder if they have the best program in the marketplace – they will know they do."

"Gallagher Blueprint is where technology and human expertise meet," said Steve Rhee, Global Chief Digital Officer at Gallagher.

"AI accelerates analysis so our specialists can focus earlier on insight and strategy tailored to each client's goals, operations, and exposures. The result is faster delivery of a clear Blueprint to improve a client's Risk Profile and secure the strongest possible coverage aligned with their business objectives."

Powered by AI and supported by Gallagher's proprietary data and analytics, Gallagher Blueprint delivers faster, more tailored recommendations through a proprietary Risk Profile Score, a calculated measure of how a client's risk and insurance program compare to best practices and peer benchmarks.

Interpreted and applied by Gallagher specialists, the Risk Profile Score informs renewal strategy, strengthens underwriting conversations, and identifies targeted actions that reduce risk and improve outcomes.

Through this structured Blueprint, clients gain clear, actionable steps to optimize coverage, manage cost, and move forward with confidence that their insurance program is aligned with their risk profile and business goals.

To learn more about Gallagher Blueprint and how it can strengthen your insurance program, visit www.ajg.com/blueprint

About Gallagher 
Gallagher (NYSE: AJG) is one of the world's largest insurance brokerage, risk management and consulting firms. As a community insurance broker and trusted local consultant, we help people and businesses move forward with confidence. With more than 70,000 people around the globe, we're connected to the places where we do business and to every community we call home. We manage risk with customized solutions and a full spectrum of services, help foster thriving workforces, and hold ourselves to the highest ethical standards to help clients face every challenge—that is The Gallagher Way. For more, visit www.ajg.com.

SOURCE Gallagher

On May 13, 2026, we present a discounted cash flow (DCF) analysis for Arthur J. Gallagher & Co AJG , a company currently facing significant price performance challenges, with a year-to-date decline of 23.5% and a one-year drop of 40.1%. In this analysis, we will explore the intrinsic value of AJG based on both earnings and free cash flow models.

DCF Earnings-based intrinsic value of $301.83 vs current price of $197.40 (margin of safety: 34.6%) DCF FCF-based intrinsic value of $134.52 vs current price (second opinion: modestly overvalued) GF Score™ of 82/100 indicates a reliable DCF input What Is AJG Worth? DCF Earnings-Based Model The DCF earnings-based model for AJG employs a two-stage approach, where we first estimate the company's earnings growth over the next 10 years and then calculate the terminal value for the following 10 years. The assumptions used in this model are critical for determining the intrinsic value.

Parameter Value Current EPS (TTM, excl. non-recurring) $11.50 10-Year Growth Rate 17.4% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project that AJG's EPS will grow at a rate of 17.4% per year for the next 10 years, which is then discounted at a rate of 11%. In the second stage, we assume a terminal growth rate of 4% for the following 10 years, also discounted at 11%. The calculation summary is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 17.4%, discounted at 11% $158.57 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $143.26 Intrinsic Value Growth + Terminal $301.83 Comparing the current price of $197.40 against the intrinsic value of $301.83 indicates that AJG is significantly undervalued, with a margin of safety of 34.6%. It is important to note that GuruFocus uses EPS excluding non-recurring items because research shows stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the AJG DCF Calculator.

What Does the Free Cash Flow DCF Say? In addition to the earnings-based model, we also analyze AJG using a free cash flow (FCF) DCF model. The intrinsic value derived from this model is $134.52. When comparing this with the earnings-based intrinsic value of $301.83, the two models present differing perspectives. The FCF model suggests that AJG is modestly overvalued, with a margin of safety of -46.7%.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for AJG is calculated at $321.50, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure that incorporates historical trading multiples, past business growth, and future performance estimates. When we compare all three models, we see a consensus that AJG is undervalued based on the earnings-based DCF and GF Value™, while the FCF model indicates a modest overvaluation. For more details, visit the GF Value™ page.

What Does AJG's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). AJG has a GF Score™ of 82/100, indicating strong fundamentals. Below is a summary of AJG's GF Score™ metrics:

Metric Rating GF Score™ 82/100 Financial Strength 4/10 Profitability 9/10 Growth 10/10 Valuation 4/10 Momentum 2/10 The predictability rank for AJG is 2/5 stars, indicating that the DCF model may be less reliable for this stock. For more information, visit the AJG stock page.

Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as AJG's 2/5 stars, produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future economic conditions.

What This Means for Investors In conclusion, the analysis of AJG using the DCF earnings model suggests that the stock is significantly undervalued, while the FCF model indicates it is modestly overvalued. The GF Value™ further supports the notion of undervaluation. Overall, the consensus points towards AJG being undervalued based on the earnings-based DCF and GF Value™, while the FCF model presents a contrasting view.

For the full DCF analysis, visit the AJG DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is AJG's intrinsic value based on DCF?

According to the DCF analysis, the earnings-based intrinsic value is $301.83, while the FCF-based intrinsic value is $134.52.

Is AJG overvalued or undervalued?

The consensus from the earnings-based DCF and GF Value™ indicates that AJG is undervalued, while the FCF model suggests it is modestly overvalued.

How reliable is the DCF model for AJG?

The predictability rank of 2/5 suggests that the DCF model may be less reliable for AJG compared to stocks with higher predictability ratings.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

, /PRNewswire/ -- Arthur J. Gallagher & Co. today announced that its U.S. wholesale brokerage, binding authority and programs division, Risk Placement Services, Inc. (RPS), has acquired King of Prussia, Pennsylvania-based McKee Risk Management, Inc. Terms of the transaction were not disclosed.

McKee Risk Management is a program administrator providing underwriting, policy administration, claims coordination and risk management services with program focuses of construction, public entity and property. Clyde McKee III, Clyde McKee IV and their team will operate under RPS's program administration division.

"McKee Risk Management brings a well-established platform and underwriting expertise that complement RPS's programs offerings," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am delighted to welcome the McKee team to our growing, global family of professionals."

Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

SOURCE Arthur J. Gallagher & Co.

The Zacks Insurance Brokerage industry is expected to benefit from better pricing, prudent underwriting, rising demand for insurance products, and global expansion, which, in turn, have been driving revenues. The fast-paced consolidations in this traditionally fragmented industry are expected to benefit Arthur J. Gallagher & Co. (AJG - Free Report) , Aon plc (AON - Free Report) , Brown and Brown, Inc. (BRO - Free Report) , and Willis Towers Watson Public Limited Company (WTW - Free Report) .

Increased digitization should help the industry improve its basis points, scale, and efficiencies.

About the Insurance Brokerage Industry The Zacks Brokerage Insurance industry comprises companies primarily offering insurance and reinsurance products and services. Insurance brokers serve as intermediaries between clients and insurance providers, act on behalf of their clients, and offer advice, keeping in mind clients' interests against brokerage fees. Their business is directly linked to clients’ level of business activity. Some of these companies also provide risk management, third-party administration, and managed healthcare services. Per a report by Mordor Intelligence, the insurance brokerage market is expected to reach $572.47 billion by 2031 from $359.27 billion in 2026 at a CAGR of 9.77% during the forecast period (2026-2031). Accelerated digitalization should help in the smooth functioning of the industry.

3 Trends Shaping the Future of the Insurance Brokerage Industry Increased Demand for Products to Drive Revenues: Rising demand for insurance products is a key revenue driver for the brokerage insurance industry, supported by increasing awareness of risk protection, evolving regulatory requirements and growing economic activity. Businesses and individuals are seeking broader coverage across property, casualty, health, cyber, employee benefits and specialty insurance products to safeguard against financial uncertainties. Higher insurance penetration, rising commercial activity and increased demand for customized risk-management solutions are creating opportunities for brokers to expand their client base and policy volumes.

Brokers are also benefiting from cross-selling opportunities and growing demand for advisory services, positioning the industry for sustained revenue growth over the long term.

Mergers and Acquisitions: Mergers and acquisitions play a significant role in shaping the brokerage insurance industry, enabling companies to expand market presence, diversify product offerings, strengthen distribution capabilities and achieve operational efficiencies. Insurance brokers increasingly pursue acquisitions to broaden geographic reach, gain access to niche markets and enhance expertise across commercial, employee benefits, wealth management and specialty insurance lines. Consolidation also helps firms achieve economies of scale, improve bargaining power with insurers and deepen customer relationships through cross-selling opportunities.

In a fragmented brokerage landscape, strategic M&A remains a key growth driver, allowing companies to boost revenues, strengthen competitive positioning and create long-term shareholder value.

Increased Adoption of Technology: The brokerage insurance industry is increasingly adopting technology to streamline operations, improve customer engagement, enhance underwriting precision and drive profitability. Insurance brokers are leveraging artificial intelligence (AI), machine learning, predictive analytics, cloud computing and automation to optimize policy administration, claims processing and risk assessment. Digital platforms and self-service tools are improving customer experience by enabling faster quotes, seamless policy purchases and personalized insurance solutions. The integration of data analytics and telematics is aiding insurers in better evaluating risk and tailoring pricing strategies.

Moreover, technology-driven efficiencies are reducing operating costs and enabling brokers to strengthen cross-selling and client retention. As customer preferences shift toward digital interactions, brokerage insurers that invest in InsurTech partnerships, cybersecurity, and advanced analytics are better positioned to gain market share and sustain long-term growth.

Zacks Industry Rank Indicates Bleak Prospects The Zacks Insurance - Brokerage industry is housed within the broader Zacks Finance sector. It carries a Zacks Industry Rank #170, which places it in the bottom 30% of more than 244 Zacks industries.

The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, reflects dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts have been losing confidence in this group’s earnings growth potential. The industry’s earnings estimate has declined 24% for 2026 in a year.

Before we present a few securities and exchange stocks worth considering for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry Underperforms Sector and S&P 500 The Insurance Brokerage industry has underperformed its sector and the Zacks S&P 500 Composite over the past year. The stocks in this industry have lost 42.6% in a year against the Finance sector’s growth of 13.1% and the Zacks S&P 500 composite’s appreciation of 32.5% over the same period. 

One Year Price Performance 

Current Valuation On the basis of a trailing 12-month price-to-book (P/B), commonly used for valuing insurance stocks, the industry is currently trading at 3X compared with the Zacks S&P 500 Composite’s 8.09X and the sector’s 4.33X.

Over the past five years, the industry has traded as high as 8.56X, as low as 2.86X, and at the median of 6.92X.

Trailing 12-Month Price-to-Book (P/B) RatioTrailing 12-Month Price-to-Book (P/B) Ratio

4 Insurance Brokerage Stocks in Focus We are presenting four stocks currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arthur J. Gallagher: Headquartered in Itasca, IL, Arthur J. Gallagher, with a market capitalization of $53.29 billion, is the world’s largest property/casualty third-party claims administrator and the fourth largest among insurance brokers (based on revenues). AJG is poised to benefit from the growing contribution of its Brokerage and Risk Management segments. This, in turn, is driving organic revenues.

Given the number and size of its non-U.S. acquisitions, this insurer expects an increase in international contribution to total revenues. New business production and retention bode well for consistent growth. AJG expects 6% organic growth in 2026. The guidance suggests moderate acceleration in the second half of 2026, with management citing a strong new business pipeline and improved premiums in reinsurance, retail, bond and specialty businesses as drivers.

Earnings of Arthur J. Gallagher have grown 18.1% in the past five years, better than the industry average of 13.9%. The expected long-term earnings growth rate is 14.9%, better than the industry average of 12.9%. The Zacks Consensus Estimate for 2026 and 2027 earnings indicates an increase of 23.6% and 11.1% year over year, respectively. The consensus estimate for 2026 earnings has moved 0.2% north in the past 30 days. This insurance broker has beaten earnings estimates in two of the last four quarters, while missing in the other two. The stock has lost 38.6% over the past year.

Price and Consensus: AJG
 

Aon: Dublin, Ireland-based Aon, with a market capitalization of $69.24 billion, offers risk management services, insurance and reinsurance brokerage, human resource consulting and outsourcing services worldwide. Aon benefits from disciplined cost control, restructuring initiatives and focused capital deployment, which are improving efficiency and scalability. Strategic acquisitions, selective divestitures and partnerships have expanded its global footprint and lifted return on capital.

Earnings of Aon have grown 10.5% in the past five years, while the expected long-term earnings growth rate is 9.9%. The Zacks Consensus Estimate for 2026 and 2027 earnings indicates an 11.7% and 11% year-over-year increase, respectively. The consensus estimate for 2026 earnings has moved 0.4% north in the past 30 days. This insurance broker has a solid track record of beating earnings estimates in each of the last four quarters, with an average of 3.11%. The stock has lost 9% over the past year.

Price and Consensus: AON
 

Brown & Brown: BRO, with a market capitalization of $19.83 billion and headquartered in Daytona Beach, FL, markets and sells insurance products and services primarily in the United States, as well as in London, Bermuda, and the Cayman Islands. Brown & Brown’s impressive growth is driven by organic and inorganic means across its segments. Higher core commissions and fees, profit-sharing contingent commissions, guaranteed supplemental commissions, and investment income should continue to drive the revenues. Growth from all lines of business through a combination of improving new business, solid retention, rate increases, and modest exposure unit expansion will continue to drive the growth momentum going forward.

Earnings of Brown & Brown have grown 19.2% in the past five years, better than the industry average. The expected long-term earnings growth rate is 4.8%. The Zacks Consensus Estimate for 2026 and 2027 earnings indicates a 5.8% and 8.4% year-over-year increase, respectively. BRO has a solid track record of beating earnings estimates in each of the last four quarters, with an average being 6.28%. The stock has lost 47.2% over the past year.

Price and Consensus: BRO

Willis Towers Watson: Based in London, the United Kingdom, Willis Towers Watson, with a market capitalization of $24.38 billion, is a leading global advisory, broking and solutions company. New business wins and renewals, higher levels of retirement work, strong client retention, strong software sales, strategic buyouts and effective capital deployment bode well for growth. Willis Towers’ growth strategy remains centered on sustainable revenue growth, mix improvement and operating margin expansion. Management expects continued annual margin expansion, including about 100 basis points of average annual expansion over the next two years in Risk & Broking and incremental expansion in Health, Wealth & Career.

Earnings for this insurance broker have grown 8.3% in the past five years. The expected long-term earnings growth rate is 11.6%. The Zacks Consensus Estimate for 2026 earnings indicates a year-over-year increase of 14.3%. The consensus estimate for 2026 earnings has moved 0.1% north in the past 30 days. WTW has a solid track record of beating earnings estimates in each of the last four quarters, with an average being 4.10%. The stock has lost 16.4% over the past year.

Price and Consensus: WTW

Key Takeaways AJG acquired Twin Elms to enhance environmental insurance and niche brokerage expertise.Gallagher aims to expand customized coverage for environmental and compliance-related risks.AJG continues acquisition-driven growth across specialty insurance markets in nearly 130 countries. Arthur J. Gallagher & Co. (AJG - Free Report) continues to expand its specialty insurance capabilities through the acquisition of Twin Elms, a Florida-based retail insurance broker specializing in environmental insurance products and services. The transaction strengthens Gallagher’s niche brokerage capabilities and further enhances its presence in specialized commercial insurance markets.

Twin Elms focuses on environmental risk solutions for U.S. clients, an area that has been witnessing rising demand amid increasing regulatory scrutiny, climate-related liabilities and evolving corporate risk management requirements. By adding Twin Elms’ expertise, Gallagher is expected to broaden its environmental brokerage offerings while strengthening its ability to provide customized insurance solutions for complex environmental exposures.

Twin Elms brings specialized expertise and an established client base that is expected to complement Gallagher’s Southeast retail property/casualty brokerage operations. The acquired business will continue operating under its existing leadership, supporting continuity in client relationships and underwriting expertise.

Strategically, the acquisition aligns with Gallagher’s broader growth strategy of pursuing targeted deals that enhance specialized brokerage capabilities and strengthen its commercial insurance platform. Environmental insurance remains a high-value segment as businesses increasingly seek protection against environmental liabilities and compliance-related risks.

With operations spanning approximately 130 countries, Gallagher continues to position itself as a leading global brokerage and risk management firm through this strategic expansion. The deal also supports Gallagher’s long-term objective of deepening niche advisory and risk management offerings.

How Are Competitors Faring?Peers like Brown & Brown, Inc.(BRO - Free Report) and Aon plc (AON - Free Report)  are also expanding their specialty insurance and risk management capabilities through acquisitions.

BRO has expanded through acquisitions of specialty retail agencies, MGA platforms and program management businesses to deepen expertise in targeted commercial insurance markets. The company continues to focus on niche capabilities that enhance its underwriting reach and broaden specialized client offerings.

AON has pursued acquisitions aimed at strengthening cyber risk, reinsurance, analytics and specialty advisory capabilities. The company is increasingly integrating specialized risk expertise with data-driven consulting solutions to support complex commercial insurance needs.

AJG’s Price Performance, Valuation & EstimatesShares of AJG have dropped 40.5% compared with the industry’s decline of 43.7%.

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From a valuation standpoint, AJG trades at a forward price-to-earnings ratio of 14.77X, higher than the industry average of 14.35X.

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The Zacks Consensus Estimates for 2026 earnings moved 0.23% north, while the estimate for 2027 earnings moved 0.14% south in the last 30 days.

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The consensus estimates for AJG’s 2026 and 2027 revenues indicate a year-over-year increase.

The consensus estimate for earnings per share is currently pegged at $13.22 for 2026, indicating a 23.6% year-over-year increase.

AJG currently carries a Zacks Rank #3(Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Arthur J. Gallagher & Co. will be hosting its regularly scheduled quarterly management meeting on Wednesday, June 17, from 8:00 a.m. until approximately 10:30 a.m. CT. This quarter's meeting will take place virtually via conference call.  During the call, the company's operating and financial leaders will present background information and commentary on the company's business operations and financial outlook, and will take questions from the investment community.

The conference call will be broadcast live through Gallagher's website at www.ajg.com/irmeeting, and a conference call replay will be available at the same link through June 24, 2026.  Any information distributed in conjunction with this meeting will be available on June 17 at 7:45 a.m. CT at https://www.ajg.com/June17materials.

Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

Contact:
Sara Walsh
(630) 285-3593/ [email protected]

SOURCE Arthur J. Gallagher & Co.

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Key Takeaways AJG completed eight acquisitions in Q1 2026 and has about $400M of revenue in its pipeline.Gallagher expects roughly 6% organic growth in 2026 from brokerage, reinsurance and specialty operationsAJG has the capacity to deploy up to $10B for acquisitions while valuations remain a concern. Shares of Arthur J. Gallagher & Co. (AJG - Free Report) have lost 31% in the past year compared with the industry’s decline of 39.6%.

AJG shares have faced pressure as investors reacted to moderating organic growth and softer insurance pricing trends, which have reduced expectations for commission growth. Consequently, investors have reassessed the company's premium valuation. However, continued acquisition activity, growth in the Risk Management segment and a strong capital position should support long-term growth prospects.

Shares of other insurers like Erie Indemnity Company (ERIE - Free Report) , Willis Towers Watson Public Limited Company (WTW - Free Report) and Brown & Brown, Inc. (BRO - Free Report) have lost 36.6%, 12.1% and 44%, respectively, in the said time frame.

1-Year Price Performance: AJG, ERIE, WTW, BRO, Industry & S&P 500
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AJG’s Growth Projection EncouragesThe Zacks Consensus Estimate for Arthur J. Gallagher’s 2026 EPS indicates a year-over-year increase of 24.1%. The consensus estimate for revenues is pegged at $16.78 billion, implying a year-over-year improvement of 21.7%.

The consensus estimate for 2027 EPS and revenues indicates an increase of 11.3% and 9.3%, respectively, from the 2026 estimates.

Earnings of AJG grew 18.1% in the last five years, better than the industry average of 13.9%. The long-term earnings growth is expected to be 14.9%.

Optimistic Analyst Sentiment on AJGThree analysts have raised estimates for 2026 and 2027 over the past 30 days, against no downward movement. Thus, the Zacks Consensus Estimate for 2026 and 2027 has moved 0.7% and 0.9% north, respectively, during this time.

Target Price Reflects Potential UpsideBased on short-term price targets offered by 20 analysts, the Zacks average price target is $267.05 per share. The average indicates a potential 21.6% upside from the last closing price.

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Factors Impacting AJGArthur J. Gallagher is growing through mergers and acquisitions. Revenue growth rates generally ranged from 5% to 15% for acquisitions completed in 2026. In the first quarter of 2026, AJG completed eight acquisitions with estimated annualized revenues of about $49 million. Looking at the pipeline, AJG has around 40 term sheets signed or being prepared, representing about $400 million of annualized revenues.

AJG's growth is supported by continued performance in its Brokerage and Risk Management segments, which continue to drive organic revenue. The Risk Management business benefits from solid client retention, increased customer activity and higher claim volumes. Additionally, improving renewal premiums across major geographies, healthy new business production and expanding data and analytics capabilities position the company for continued growth. While AJG expects approximately 6% organic growth in 2026, driven by a strong sales pipeline and momentum across reinsurance, retail, bond and specialty insurance operations, organic growth has moderated from the double-digit levels achieved in prior periods.

AJG’s revenues are geographically diversified with strong domestic and international operations. International operations contribute about one-third of revenues. Given the number and size of its non-U.S. acquisitions, AJG expects international contributions to its total revenues to trend upward. Moreover, loss of clients or weakening of macro conditions in any particular country would not have any severe impact on the top line.

A robust capital position over the years reflects its financial flexibility. Banking on its capital position, AJG distributes wealth to shareholders through dividend hikes and share repurchases. In the first quarter of 2026, the dividend was raised by 7.6%, reflecting a three-year CAGR (2020-2025) of 7.6%. AJG’s current cash position, potential borrowing capacity and strong expected free cash flow position it well for its pipeline of M&A opportunities. Over the next two years, AJG expects to have $10 billion to fund M&A, before utilizing any stock.

Risks to WatchArthur J. Gallagher has been experiencing an increase in expenses due to higher compensation, depreciation, amortization and operating expenses which have been eroding margins.

Valuation of Arthur J. Gallagher remains stretched at the current level. Its forward price-to-earnings multiple of 15.58X is higher than the industry average of 14.43X.

Arthur J. Gallagher’s return on equity of 12.8% is lower than the industry average of 18.8%. This shows the company’s inefficiency in managing shareholders’ funds.

ConclusionAJG continues to benefit from solid retention, improving renewal premiums, and inorganic growth. The Risk Management and Brokerage segments should continue to support its operations. A robust capital position over the years reflects its financial flexibility. Its impressive dividend history, optimistic analyst sentiment, and solid growth projections are other positives.

However, given the escalating expenses, moderate organic growth and unfavorable return on capital, it is better to stay cautious about this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.