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Carderock Capital Management Inc. boosted its stake in Arthur J. Gallagher and Co. (NYSE: AJG) by 28.3% in the undefined quarter, according to its most recent filing with the SEC. The fund owned 20,947 shares of the financial services provider's stock after purchasing an additional 4,617 shares during the period. Carderock Capital Management

Arthur J. Gallagher & Co. (NYSE:AJG – Get Free Report) has been assigned a consensus rating of “Moderate Buy” from the twenty-one brokerages that are presently covering the company, Marketbeat.com reports. Five equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $280.74.

Several research analysts recently weighed in on AJG shares. Wolfe Research downgraded shares of Arthur J. Gallagher & Co. from an “outperform” rating to a “peer perform” rating in a report on Thursday, July 9th. Jefferies Financial Group cut their price target on Arthur J. Gallagher & Co. from $300.00 to $295.00 and set a “buy” rating for the company in a research note on Wednesday, September 30th. Seaport Research Partners raised Arthur J. Gallagher & Co. to a “buy” rating in a report on Wednesday, October 7th. Weiss Ratings restated a “hold (c)” rating on shares of Arthur J. Gallagher & Co. in a research report on Friday, October 9th. Finally, Evercore boosted their price objective on Arthur J. Gallagher & Co. from $295.00 to $307.00 and gave the company an “outperform” rating in a research report on Thursday, October 8th.

Read Our Latest Stock Report on AJG

Arthur J. Gallagher & Co. Stock Performance AJG opened at $259.31 on Wednesday. The firm has a market cap of $66.46 billion, a P/E ratio of 43.00, a PEG ratio of 1.45 and a beta of 0.55. Arthur J. Gallagher & Co. has a 1-year low of $190.75 and a 1-year high of $284.33. The company has a 50 day simple moving average of $246.54 and a two-hundred day simple moving average of $232.85. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.05 and a quick ratio of 1.05. Arthur J. Gallagher & Co. (NYSE:AJG – Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.81 by $0.03. The firm had revenue of $3.95 billion during the quarter, compared to analysts’ expectations of $4.01 billion. Arthur J. Gallagher & Co. had a net margin of 9.96% and a return on equity of 13.28%. The company’s revenue for the quarter was up 24.3% compared to the same quarter last year. During the same period in the prior year, the company posted $2.33 earnings per share. Equities analysts forecast that Arthur J. Gallagher & Co. will post 13.16 earnings per share for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Tuesday, September 8th were paid a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Tuesday, September 8th. Arthur J. Gallagher & Co.’s dividend payout ratio (DPR) is 46.43%.

Insiders Place Their Bets In other Arthur J. Gallagher & Co. news, General Counsel Walter D. Bay sold 12,000 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $270.08, for a total transaction of $3,240,960.00. Following the completion of the sale, the general counsel directly owned 71,292 shares of the company’s stock, valued at $19,254,543.36. This trade represents a 14.41% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Christopher E. Mead sold 3,500 shares of Arthur J. Gallagher & Co. stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $257.02, for a total transaction of $899,570.00. Following the sale, the vice president owned 22,223 shares in the company, valued at approximately $5,711,755.46. The trade was a 13.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 28,500 shares of company stock valued at $7,562,950 in the last 90 days. 1.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Arthur J. Gallagher & Co. Several hedge funds have recently modified their holdings of AJG. Principal Financial Group Inc. lifted its stake in shares of Arthur J. Gallagher & Co. by 14.4% in the 1st quarter. Principal Financial Group Inc. now owns 3,242,088 shares of the financial services provider’s stock valued at $702,182,000 after purchasing an additional 409,145 shares during the last quarter. Gtcr LLC purchased a new position in shares of Arthur J. Gallagher & Co. in the 1st quarter worth approximately $514,112,000. Janus Henderson Group PLC increased its position in shares of Arthur J. Gallagher & Co. by 5.4% during the 1st quarter. Janus Henderson Group PLC now owns 1,970,990 shares of the financial services provider’s stock valued at $426,887,000 after purchasing an additional 101,431 shares during the last quarter. Bank of America Corp DE increased its position in shares of Arthur J. Gallagher & Co. by 23.0% during the 1st quarter. Bank of America Corp DE now owns 1,854,488 shares of the financial services provider’s stock valued at $401,645,000 after purchasing an additional 346,409 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Arthur J. Gallagher & Co. by 0.3% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,453,774 shares of the financial services provider’s stock valued at $333,743,000 after purchasing an additional 3,905 shares during the last quarter. Hedge funds and other institutional investors own 85.53% of the company’s stock.

(Get Free Report)

Arthur J. Gallagher & Co is a global insurance brokerage, risk management and consulting company. The firm helps businesses, public entities and individuals identify, manage and transfer risk through insurance and related services.

Its operations include retail insurance brokerage, employee benefits consulting, wholesale brokerage, reinsurance brokerage, claims administration and risk management consulting. Gallagher places commercial and personal insurance coverage and provides services related to property and casualty risks, health care, benefits, and other specialized insurance needs.

Founded in 1927 by Arthur J.

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, /PRNewswire/ -- Arthur J. Gallagher & Co. today announced the acquisition of Melbourne, Victoria-based Intelligent Communications Experiences. Terms of the transaction were not disclosed.

Intelligent Communications Experiences helps businesses in Australia develop and deliver digital employee communications. The Intelligent Communications Experiences team, led by Chris Cansfield, Steve Mann, Glyn Wallens and Kevin McDougall, will operate under the direction of Graham Campbell, head of Gallagher's employee benefits and HR consulting operations in Australia and New Zealand.

"Intelligent Communications Experiences brings us a talented consulting team and broadens our employee communications capabilities in Australia," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am very pleased to welcome Chris, Steve, Glyn, Kevin and their 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.

Arthur J. Gallagher & Co (AJG) Shares Surge 5.5% -- What GF Score of 87 Tells Investors

On October 15, 2026, Arthur J. Gallagher & Co AJG shares rose 5.5% to a current price of $250.10, reflecting a rebound in the stock's performance. Over the past year, AJG's shares have fluctuated between a 52-week high of $304.57 and a low of $190.75.

GF Value™ verdict: AJG is estimated to be 27.9% undervalued at a fair value of $347.00. GF Score™ of 87/100 indicates a strong overall company performance. Insider activity shows a net selling of $23.5M over the past 12 months, signaling potential concerns among insiders. Is AJG Overvalued or Undervalued? Arthur J. Gallagher & Co AJG is currently trading at $250.10, while the GF Value™ estimates its fair value at $347.00. This presents a significant margin of safety of 27.9%, indicating that the stock is undervalued. GuruFocus' GF Value™ is derived from a combination of historical trading multiples, past business growth, and future performance estimates, providing a comprehensive view of the company's intrinsic value.

Given the current price relative to the GF Value™, AJG presents a compelling opportunity for investors. However, the stock's year-to-date decline of 2.5% and a one-year drop of 14.6% should be taken into account, as they may reflect broader market trends or company-specific challenges. This underscores the need for potential investors to conduct thorough due diligence before making investment decisions.

How Does AJG's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 41.4x 41.9x Forward P/E 16.8x N/A The current P/E ratio of 41.4x is slightly below its 5-year median of 41.9x, suggesting that AJG is trading at a valuation that is consistent with its historical performance. The forward P/E of 16.8x also indicates strong earnings expectations, aligning with the GF Value™ verdict that AJG is undervalued.

What Does AJG's GF Score™ Tell Us? The GF Score™ measures a company's overall financial health and growth potential. AJG's score of 87/100 reflects strong performance across several metrics, with notable strengths in profitability and growth, while showing some weaknesses in financial strength and momentum.

Metric Rating GF Score™ 87/100 Financial Strength 4/10 Profitability 8/10 Growth 10/10 Valuation 8/10 Momentum 4/10 The strongest areas for AJG lie in its Growth rank, which is rated at 10/10, indicating robust growth prospects, and its Profitability rank of 8/10, showcasing strong profit margins. However, the Financial Strength rank of 4/10 and the Momentum rank of 4/10 suggest potential vulnerabilities that could impact the stock's performance moving forward.

What Are Gurus and Insiders Doing with AJG? A total of 14 gurus currently hold shares of AJG, with 11 adding to their positions and 6 trimming their holdings in recent quarters. This indicates a generally positive sentiment among professional investors, highlighting the stock's potential. However, the insider activity reveals a more cautious approach, with insiders buying $1.0M worth of shares but selling $24.5M, resulting in a net selling of $23.5M over the past year.

This pattern of net selling by insiders could imply that those closest to the company are taking profits, which may raise questions about the stock's near-term performance. Investors should consider this insider sentiment as part of their overall analysis.

What This Means for Investors Based on the GF Value™ assessment, Arthur J. Gallagher & Co AJG is currently undervalued, presenting an interesting opportunity for potential investors. However, caution is warranted given the mixed signals from insider activity and the stock's recent performance trends. For more detailed insights, visit the Arthur J. Gallagher & Co (AJG) stock page.

Frequently Asked Questions What is AJG's GF Score™?

AJG has a GF Score™ of 87/100, indicating strong overall performance and growth potential.

Is AJG overvalued or undervalued?

AJG is currently undervalued, with a GF Value™ of $347.00 compared to its current price of $250.10.

What is AJG's P/E ratio?

AJG's P/E ratio (TTM) is 41.4x, which is slightly below its 5-year median of 41.9x, suggesting consistency in valuation.

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].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

, /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) will release its third quarter 2026 earnings after the market closes on Thursday, October 29, 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, October 29, 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 AJG is acquiring Winter & Co to expand Gallagher Bassett's marine claims and risk management capabilities.Winter & Co adds maritime law expertise serving P&I clubs, marine insurers, shipowners and charterers.AJG gains a stronger London and EMEA presence while supporting its acquisition-led Risk Management growth. Arthur J. Gallagher & Co. (AJG - Free Report) is expanding its specialty risk management capabilities by acquiring Winter & Co Solicitors LLP, a London-based maritime law firm. Financial terms were not disclosed.

Winter & Co specializes in maritime law and serves P&I clubs, marine insurers, shipowners and charterers. Its expertise will complement Gallagher Bassett's existing marine claims and risk management operations.

The acquisition falls under Gallagher Bassett, part of AJG's Risk Management segment, which reported 16% revenue growth in the second quarter of 2026, while fees increased to $445 million from $383 million. Management attributed the performance to strong new business and client retention, as customers increasingly seek broader risk-management solutions.

The deal also strengthens Gallagher Bassett’s presence in London and the broader Europe, Middle East and Asia market, allowing AJG to add specialized maritime expertise without having to build the capability internally. This aligns with AJG’s broader strategy of using acquisitions to deepen expertise and expand its service offerings across specialized markets.

Financially, Winter & Co is unlikely to materially affect near-term results given the undisclosed transaction terms and its specialist profile. However, the added capability could expand the services Gallagher Bassett offers to marine clients and create opportunities to generate additional fee revenues from claims, legal and risk management services.

Overall, the acquisition adds another niche capability to AJG’s growing fee-based Risk Management platform, supports its acquisition-led growth strategy, while potentially strengthening client relationships and incremental earnings over time.

What About Its Peers?Marsh McLennan Companies, Inc. (MRSH - Free Report) has strengthened its marine insurance capabilities through specialized acquisitions. In February 2026, Marsh McLennan Agency (MMA) acquired Robinson & Son, a specialist in marine insurance and maritime risks. The deal expands MMA’s expertise in serving complex maritime clients and reflects the broker’s strategy of using targeted acquisitions to add niche capabilities.

Aon plc (AON - Free Report) has strengthened its marine insurance capabilities through targeted acquisitions. In 2022, Aon acquired Germany-based Karl Köllner, a specialist broker with expertise in Marine Hull and Cargo coverage. The deal expanded Aon’s capabilities across the shipping, transport and logistics sectors while strengthening its specialist marine insurance platform.

AJG’s Price PerformanceShares of AJG have dropped 26.5% in a year compared with the industry’s decline of 26.6%.

Image Source: Zacks Investment Research

AJG’s ValuationFrom a valuation standpoint, AJG trades at a forward price-to-earnings ratio of 15.67X, higher than the industry average of 13.95X.

 

Image Source: Zacks Investment Research

AJG’s Growth EstimatesThe consensus estimate for earnings per share (EPS) for 2026 and 2027 indicates a year-over-year increase of 24.2% and 12.2%, respectively.

The Zacks Consensus Estimate for 2026 and 2027 earnings moved 0.1% and 0.1% south, respectively, in the last 30 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate 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. today announced that its claims and risk management solutions subsidiary, Gallagher Bassett, has acquired London, UK-based Winter & Co Solicitors LLP (Winter & Co). Terms of the transaction were not disclosed.

Winter & Co is a specialist maritime law firm serving P&I clubs, marine insurers, shipowners and charterers and has expertise in shipping-related legal matters. Glenn Winter and his team will remain in their current location under the direction of Manan Sagar, head of Gallagher Bassett's Europe, Middle East and Asia operations.

"Winter & Co enhances Gallagher Bassett's growing marine specialty platform, adding further legal expertise to complement its current marine claims and risk management capabilities," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am excited to welcome Glenn and his associates to our growing, global team."

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.

ROLLING MEADOWS, Ill., Oct. 1, 2026 /PRNewswire/ -- Arthur J.

Arthur J. Gallagher & Co. (NYSE:AJG – Get Free Report) has earned an average recommendation of “Moderate Buy” from the nineteen analysts that are currently covering the firm, MarketBeat Ratings reports. Five equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating on the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $288.17.

AJG has been the subject of a number of recent analyst reports. Truist Financial lifted their price target on shares of Arthur J. Gallagher & Co. from $225.00 to $265.00 and gave the company a “hold” rating in a research report on Friday, July 31st. Argus upped their price target on Arthur J. Gallagher & Co. from $267.00 to $300.00 and gave the stock a “buy” rating in a research note on Monday, August 17th. UBS Group lifted their price objective on Arthur J. Gallagher & Co. from $291.00 to $299.00 and gave the company a “buy” rating in a research note on Monday, August 3rd. Jefferies Financial Group raised Arthur J. Gallagher & Co. from a “hold” rating to a “buy” rating and increased their target price for the stock from $235.00 to $265.00 in a research note on Thursday, June 11th. Finally, Citigroup raised their target price on Arthur J. Gallagher & Co. from $250.00 to $285.00 and gave the company a “buy” rating in a report on Tuesday, August 4th.

Read Our Latest Stock Analysis on AJG

Insider Buying and Selling at Arthur J. Gallagher & Co. In other news, General Counsel Walter D. Bay sold 12,000 shares of the company’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $270.08, for a total transaction of $3,240,960.00. Following the sale, the general counsel owned 71,292 shares of the company’s stock, valued at approximately $19,254,543.36. This represents a 14.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Richard C. Cary sold 1,000 shares of the stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $252.86, for a total value of $252,860.00. Following the completion of the sale, the chief accounting officer owned 46,819 shares in the company, valued at approximately $11,838,652.34. The trade was a 2.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 28,500 shares of company stock valued at $7,562,950 in the last 90 days. Corporate insiders own 1.40% of the company’s stock. Hedge Funds Weigh In On Arthur J. Gallagher & Co. Several hedge funds and other institutional investors have recently made changes to their positions in the stock. QRG Capital Management Inc. raised its holdings in Arthur J. Gallagher & Co. by 19.2% in the second quarter. QRG Capital Management Inc. now owns 6,497 shares of the financial services provider’s stock valued at $1,491,000 after acquiring an additional 1,046 shares in the last quarter. Rench Wealth Management Inc. increased its position in shares of Arthur J. Gallagher & Co. by 1.1% in the 2nd quarter. Rench Wealth Management Inc. now owns 52,366 shares of the financial services provider’s stock valued at $12,022,000 after purchasing an additional 594 shares during the last quarter. Sequoia Financial Advisors LLC raised its holdings in shares of Arthur J. Gallagher & Co. by 7.1% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 149,799 shares of the financial services provider’s stock valued at $34,389,000 after purchasing an additional 9,966 shares in the last quarter. Tidal Investments LLC lifted its position in shares of Arthur J. Gallagher & Co. by 303.7% during the 2nd quarter. Tidal Investments LLC now owns 638,601 shares of the financial services provider’s stock worth $146,604,000 after purchasing an additional 480,413 shares during the last quarter. Finally, MCF Advisors LLC grew its stake in shares of Arthur J. Gallagher & Co. by 97.9% during the second quarter. MCF Advisors LLC now owns 558 shares of the financial services provider’s stock worth $128,000 after purchasing an additional 276 shares in the last quarter. Hedge funds and other institutional investors own 85.53% of the company’s stock.

Key Stories Impacting Arthur J. Gallagher & Co. Here are the key news stories impacting Arthur J. Gallagher & Co. this week:

Positive Sentiment: Morgan Stanley lowered its price target modestly to $285 from $290 while maintaining an Overweight rating, signaling that it still sees meaningful upside for AJG despite the adjustment. Morgan Stanley Adjusts PT on Arthur J. Gallagher & Co. to $285 From $290, Maintains Overweight Rating Positive Sentiment: Royal Bank of Canada also cut its target, to $290 from $310, but retained an Outperform rating. The target remains substantially above the recent trading level, reinforcing the view that AJG may be undervalued. RBC price target update Positive Sentiment: Commentary continues to describe AJG as trading below estimated fair value, which may attract value-oriented investors and support the stock if expected earnings growth remains intact. Is Arthur J. Gallagher Still Trading Below Fair Value? Positive Sentiment: AJG is expanding its Iberia deal-insurance team, suggesting continued investment in specialty insurance capabilities and potential long-term growth in international markets. Arthur J. Gallagher Expands Iberia Deal Insurance Team Neutral Sentiment: Recent analyst reports covering AJG and other financial companies add to market discussion but do not indicate a clear new change to the company’s outlook. Analyst insights on AJG and Affirm Analyst insights on AJG and Robinhood Neutral Sentiment: Management commentary and related transcripts focused on business strategy, insurance-market conditions and the financial outlook, offering context but no clearly identified catalyst in the available headlines. AJG business strategies and outlook transcript Negative Sentiment: AJG was reported lower in premarket trading, indicating near-term selling pressure and investor caution before the later recovery. Arthur J. Gallagher stock falls before the bell Negative Sentiment: The repeated price-target reductions—from both Morgan Stanley and RBC—could weigh on sentiment even though both firms maintained bullish ratings. Arthur J. Gallagher & Co. Trading Up 1.7% AJG stock opened at $231.04 on Friday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.50. The business’s 50-day moving average is $251.82 and its 200 day moving average is $229.84. The stock has a market cap of $59.22 billion, a price-to-earnings ratio of 38.32, a PEG ratio of 1.38 and a beta of 0.50. Arthur J. Gallagher & Co. has a 12-month low of $190.75 and a 12-month high of $313.55.

Arthur J. Gallagher & Co. (NYSE:AJG – Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The financial services provider reported $2.84 EPS for the quarter, beating the consensus estimate of $2.81 by $0.03. The firm had revenue of $3.95 billion during the quarter, compared to analysts’ expectations of $4.01 billion. Arthur J. Gallagher & Co. had a return on equity of 13.28% and a net margin of 9.96%.The business’s revenue for the quarter was up 24.3% on a year-over-year basis. During the same quarter last year, the firm earned $2.33 earnings per share. On average, sell-side analysts anticipate that Arthur J. Gallagher & Co. will post 13.28 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Tuesday, September 8th were issued a $0.70 dividend. The ex-dividend date was Tuesday, September 8th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.2%. Arthur J. Gallagher & Co.’s payout ratio is 46.43%.

Arthur J. Gallagher & Co. Company Profile (Get Free Report)

Arthur J. Gallagher & Co is a global insurance brokerage, risk management and consulting company. The company helps businesses, institutions and individuals identify, manage and transfer risk through insurance and related services.

Its operations include retail insurance brokerage, employee benefits consulting, risk management, claims administration, actuarial services, captive insurance and wholesale brokerage. Gallagher arranges commercial property and casualty coverage, personal insurance, specialty insurance and employee benefit programs, while also providing services designed to help clients manage workplace, liability and other operational risks.

Founded in 1927 by Arthur J.

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Arthur J. Gallagher & Co. (AJG) Discusses Business Strategies, Insurance Market Conditions, and Financial Outlook September 23, 2026 4:00 PM EDT

Company Participants

J. Gallagher - Chairman & CEO
Michael Pesch - Chief Executive Officer of Global Brokerage of Americas
Patrick Gallagher - Executive VP & COO
Thomas Gallagher - President
William Ziebell - Chief Executive Officer of Employee Benefits Consulting & Brokerage
Scott Hudson - President & CEO of Risk Management Services
Douglas Howell - Corporate VP & CFO
Sara Walsh - Treasurer, VP of Corporate Finance & Investor Relations

Conference Call Participants

Charles Peters - Raymond James & Associates, Inc., Research Division
Elyse Greenspan - Wells Fargo Securities, LLC, Research Division
Tracy Benguigui - Wolfe Research, LLC
Mark Hughes - Truist Securities, Inc., Research Division
Michael Zaremski - BMO Capital Markets Equity Research
Katie Sakys - Autonomous Research US LP
David Motemaden - Evercore ISI Institutional Equities, Research Division
Jian Huang - Morgan Stanley, Research Division
Meyer Shields - Keefe, Bruyette, & Woods, Inc., Research Division

Presentation

Operator

Good afternoon, and welcome to Arthur J. Gallagher & Company's quarterly investor meeting with management. [Operator Instructions] Today's call is being recorded. If you have any objections, you may disconnect at this time.

Some of the comments made during this conference call, including answers given in response to questions, may constitute forward-looking statements within the meaning of the securities laws. The company does not assume any obligation to update information or forward-looking statements provided on this call. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

Please refer to the information concerning forward-looking statements and Risk Factors sections contained in the company's most recent 10-K, 10-Q and 8-K filings for more details on such risks and uncertainties. In addition, for reconciliations of non-GAAP measures discussed on this call as well as other information regarding these measures, please refer to

Key Takeaways AJG acquired Innovise to expand its commercial insurance brokerage and surety capabilities.Innovise serves construction, energy, real estate and manufacturing clients, broadening Gallagher's reach.AJG's Brokerage and Risk Management segments grew 24% in Q2, including 6% organic growth. Arthur J. Gallagher & Co. (AJG - Free Report) is strengthening its commercial insurance brokerage operations by acquiring McMillan Insurance & Bonding, doing business as Innovise Business Consultants. The acquired business specializes in commercial insurance brokerage and surety, serving clients across construction, energy, real estate and manufacturing.

The deal could support AJG’s growth by expanding its presence in specialized commercial insurance markets. Innovise’s expertise in surety and industry-specific risks can help Gallagher address more complex coverage needs and deepen relationships with commercial clients.

The acquisition also provides opportunities to cross-sell Gallagher’s broader insurance, risk management and consulting solutions to Innovise’s client base. This could create additional revenue opportunities while deepening Gallagher’s relationships with commercial clients.

The move aligns with Gallagher’s acquisition-driven expansion strategy. Acquisitions remain a second important pillar of AJG's two-pronged growth strategy alongside organic growth. The company has consistently used acquisitions to broaden its geographic reach, add specialized capabilities and complement organic growth. In the second quarter, the company’s Brokerage and Risk Management segments delivered 24% revenue growth, including 6% organic growth, showing the contribution of both acquisitions and underlying business expansion.

Expanding across specialized industries could further diversify Gallagher’s commercial client base and strengthen its brokerage platform. However, successful integration and cross-selling will be important to supporting Gallagher’s brokerage growth.

What About Its Peers?Marsh & McLennan Companies, Inc. (MRSH - Free Report) continues to expand its brokerage capabilities through acquisitions. In August 2026, Marsh McLennan Agency agreed to acquire Accel Holdings, adding commercial and personal insurance, employee benefits and agribusiness capabilities. Its diversified platform provides exposure to both insurance and advisory services.

Brown & Brown, Inc. (BRO - Free Report) is also expanding through acquisitions. In February 2026, it acquired American Adventure Insurance, adding dealership-focused insurance and F&I capabilities. In September 2026, BRO acquired MacKay Corporate Insurance Brokers, strengthening its commercial insurance capabilities across construction, property, professional services, charities and oil & gas.

AJG’s Price PerformanceShares of AJG have dropped 18.6% in a year compared with the industry’s decline of 18%.

Image Source: Zacks Investment Research

AJG’s ValuationFrom a valuation standpoint, AJG trades at a forward price-to-earnings ratio of 16.72X, higher than the industry average of 15.08X.

Image Source: Zacks Investment Research

AJG’s Growth EstimatesThe consensus estimate for earnings per share (EPS) for 2026 and 2027 indicates a year-over-year increase of 24.2% and 12.2%, respectively.

The Zacks Consensus Estimates for 2026 and 2027 earnings moved 0.1% and 0.1% north, respectively, in the last 30 days.

Image Source: Zacks Investment Research

The Zacks 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.

Corient Private Wealth LP grew its stake in Arthur J. Gallagher & Co. (NYSE:AJG – Free Report) by 3.1% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 96,002 shares of the financial services provider’s stock after purchasing an additional 2,856 shares during the period. Corient Private Wealth LP’s holdings in Arthur J. Gallagher & Co. were worth $22,039,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the company. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Arthur J. Gallagher & Co. during the second quarter valued at $3,587,000. California State Teachers Retirement System lifted its holdings in shares of Arthur J. Gallagher & Co. by 23,248.0% during the 2nd quarter. California State Teachers Retirement System now owns 86,171,395 shares of the financial services provider’s stock valued at $19,782,367,000 after acquiring an additional 85,802,321 shares in the last quarter. Wedmont Private Capital boosted its position in shares of Arthur J. Gallagher & Co. by 94.4% in the second quarter. Wedmont Private Capital now owns 6,696 shares of the financial services provider’s stock worth $1,695,000 after buying an additional 3,251 shares during the period. HB Wealth Management LLC boosted its holdings in Arthur J. Gallagher & Co. by 25.4% in the 2nd quarter. HB Wealth Management LLC now owns 12,157 shares of the financial services provider’s stock worth $2,791,000 after acquiring an additional 2,465 shares during the period. Finally, Saudi Central Bank grew its holdings in Arthur J. Gallagher & Co. by 89.9% during the 2nd quarter. Saudi Central Bank now owns 17,997 shares of the financial services provider’s stock valued at $4,132,000 after purchasing an additional 8,518 shares in the last quarter. 85.53% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Arthur J. Gallagher & Co. In other news, VP Scott Hudson sold 12,000 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $264.13, for a total transaction of $3,169,560.00. Following the completion of the transaction, the vice president owned 90,262 shares of the company’s stock, valued at approximately $23,840,902.06. This represents a 11.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Christopher Mead sold 3,500 shares of the company’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $257.02, for a total value of $899,570.00. Following the completion of the transaction, the vice president directly owned 22,223 shares of the company’s stock, valued at approximately $5,711,755.46. This trade represents a 13.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 27,500 shares of company stock worth $7,310,090 in the last ninety days. 1.40% of the stock is currently owned by insiders.

AJG opened at $253.64 on Tuesday. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.05 and a quick ratio of 1.05. The company has a market capitalization of $65.01 billion, a PE ratio of 42.06, a price-to-earnings-growth ratio of 1.46 and a beta of 0.50. The business has a 50-day moving average of $255.07 and a 200-day moving average of $229.22. Arthur J. Gallagher & Co. has a fifty-two week low of $190.75 and a fifty-two week high of $313.55. Arthur J. Gallagher & Co. (NYSE:AJG – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The financial services provider reported $2.84 earnings per share for the quarter, beating analysts’ consensus estimates of $2.81 by $0.03. Arthur J. Gallagher & Co. had a return on equity of 13.28% and a net margin of 9.96%.The business had revenue of $3.95 billion for the quarter, compared to the consensus estimate of $4.01 billion. During the same period last year, the business earned $2.33 EPS. The firm’s revenue was up 24.3% compared to the same quarter last year. Equities research analysts forecast that Arthur J. Gallagher & Co. will post 13.28 EPS for the current fiscal year.

Arthur J. Gallagher & Co. Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Tuesday, September 8th will be given a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Tuesday, September 8th. Arthur J. Gallagher & Co.’s payout ratio is currently 46.43%.

Wall Street Analysts Forecast Growth A number of analysts recently issued reports on the stock. Wells Fargo & Company dropped their price target on shares of Arthur J. Gallagher & Co. from $299.00 to $296.00 and set an “overweight” rating for the company in a research note on Monday, August 3rd. Cantor Fitzgerald raised their price target on Arthur J. Gallagher & Co. from $285.00 to $300.00 and gave the stock a “neutral” rating in a report on Thursday, July 9th. Weiss Ratings upgraded shares of Arthur J. Gallagher & Co. from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, July 13th. Truist Financial lifted their price objective on shares of Arthur J. Gallagher & Co. from $225.00 to $265.00 and gave the company a “hold” rating in a research note on Friday, July 31st. Finally, Citigroup boosted their target price on Arthur J. Gallagher & Co. from $250.00 to $285.00 and gave the stock a “buy” rating in a report on Tuesday, August 4th. Fourteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $290.28.

View Our Latest Research Report on AJG

Arthur J. Gallagher & Co. Company Profile (Free Report)

Arthur J. Gallagher & Co is a global insurance brokerage, risk management and consulting company. The company helps businesses, institutions and individuals identify, manage and transfer risk through insurance and related services.

Its operations include retail insurance brokerage, employee benefits consulting, risk management, claims administration, actuarial services, captive insurance and wholesale brokerage. Gallagher arranges commercial property and casualty coverage, personal insurance, specialty insurance and employee benefit programs, while also providing services designed to help clients manage workplace, liability and other operational risks.

Founded in 1927 by Arthur J.

Further Reading Five stocks we like better than Arthur J. Gallagher & Co. Analysts Are Punting Their Calls Into the Next Quarter After Adobe’s Mixed Earnings Institutional Money Is Pouring Into These 2 Altcoin ETFs The End of Big Tech Buybacks? Only One Hyperscaler Is Still Repurchasing Shares 3 Dividend Kings to Buy While They’re Still Beaten Down Want to see what other hedge funds are holding AJG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Arthur J. Gallagher & Co. (NYSE:AJG – Free Report).

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Gallagher's 2026 US Talent Benchmarks report highlights how turnover, workforce capacity constraints and AI-driven change are shaping organizational effectiveness

, /PRNewswire/ -- Workforce challenges remain top of mind as employers pursue growth with constrained teams, elevated turnover and increasing pressure to adapt to new technologies, according to Gallagher's 2026 US Workforce Trends Report – Talent Benchmarks. Based on responses from more than 3,700 US employers, the report examines the trends influencing employee engagement, retention and organizational effectiveness.

Among the report's most notable findings:

Retention has become a business challenge, not just an HR concern. Nearly two-thirds (63%) of employers reported annual turnover rates of 10% or higher in 2025. 61% of employers anticipate revenue growth by 2027, while only 50% expect workforce headcount to increase; a gap that highlights growing workforce capacity pressures. More than half (57%) of employers conducted an employee engagement survey in 2024 or later, yet many are still working to turn employee feedback into meaningful action. AI use in HR is expected to expand, with 73% of employers likely to increase adoption by 2028. Even as AI adoption grows, trust remains a challenge. Nearly one-third (29%) of employers cite concerns about eroding employee trust as a barrier to adoption. "The data show that many organizations are navigating a difficult balancing act," said John Tournet, US CEO of Gallagher's Benefits & HR Consulting Division. "Business leaders are pursuing growth while managing cost pressures, workforce capacity constraints and retention challenges. Organizations that succeed will be the ones that focus on the fundamentals: helping managers lead effectively, creating realistic workloads and ensuring employees understand how their work contributes to organizational goals."

Employers are preparing for a future in which AI plays a larger role in how work is performed and decisions are made. While 71% of employers have either fully operationalized AI or implemented it in parts of the business, the findings suggest successful adoption will require clear communication, strong governance and practical support for employees and managers.

"As AI becomes more integrated into day-to-day work, organizations are recognizing that technology alone isn't enough," added Tournet. "The focus is increasingly shifting from implementation to helping employees and managers use AI with confidence, strengthen decision-making and support more effective ways of working."

Additional findings from the report include:

Retaining talent ranks as a top HR priority for 57% of employers and a top operational priority for 39%, reflecting the growing business impact of workforce turnover. Manager effectiveness remains one of the strongest drivers of employee engagement, with organizations focusing on clearer goal-setting, transparent communication and more timely feedback. Nearly three-quarters of organizations that have implemented AI are measuring return on investment, though employers expect it will take an average of 28 months for AI returns to outweigh implementation costs. Data privacy and security remain the top AI concern, cited by 72% of employers, while only 45% have conducted ethical impact assessments related to AI use. ABOUT THE REPORT
Gallagher's 2026 US Workforce Trends Report – Talent Benchmarks reflects survey responses from 3,717 US employers collected from January through March 2026 and provides benchmarking data and insights across employee engagement, AI and organizational effectiveness.

ABOUT 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.

CONTACT:
Mary Schwartz, Gallagher
847.378.5893
[email protected]

SOURCE Gallagher

Key Takeaways AJG's Risk Management revenue grew 16%, including 12% organic growth, in Q2 2026.Gallagher Bassett's growth is driven by new business and retention, with just 1% from higher rates.Gallagher Blueprint uses AI, proprietary data and expertise to strengthen risk-management solutions. Arthur J. Gallagher & Co. (AJG - Free Report) is experiencing an important shift in its organic growth mix, with its Risk Management business expanding faster than its core brokerage operations.

Gallagher Bassett, AJG’s Risk Management Business, reported 16% revenue growth in the second quarter of 2026, including 12% organic growth. This is well ahead of the 5% organic growth in the Brokerage business. Management attributed the performance to strong new business and client retention, while clients continued to seek broader risk-management solutions.

Risk Management growth is less dependent on insurance pricing. AJG said only about 1% of organic growth comes from higher insurance rates, while new business, client retention and business activity are driving more of the growth. This makes Gallagher Bassett’s 12% organic growth notable, especially as insurance rates slow.

Gallagher Bassett provides claims management, workers’ compensation solutions, risk consulting, loss-control services and data-driven analytics, allowing AJG to generate revenue from a broader range of risk-management needs beyond traditional insurance brokerage.

AJG is also using technology to deepen this offering. Its Gallagher Blueprint combines AI-driven analytics, proprietary data and specialist expertise to help businesses assess risks and structure insurance programs.

With Risk Management growing at more than twice the organic rate of Brokerage, its rising contribution could help AJG sustain revenue growth even if insurance pricing becomes a smaller growth driver.

What About Its Peers?Willis Towers Watson Public Limited Company (WTW - Free Report) delivered strong momentum in its Risk & Broking business in the second quarter of 2026, with revenues rising 11% year over year to $1.16 billion and organic growth of 7%. Growth was supported by new business, strong client retention and double-digit growth across several specialty businesses.

Aon plc (AON - Free Report) ’s Commercial Risk Solutions also posted 5% organic growth in the second quarter of 2026, driven by net new business and strong retention. Aon is also expanding its risk-management capabilities through analytics, claims management, cyber solutions, actuarial services and risk consulting.

AJG’s Price PerformanceShares of Arthur J. Gallagher have declined 12.2% in a year compared with the industry’s fall of 14.7%.

Image Source: Zacks Investment Research

AJG’s OvervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-earnings multiple of 18.26, higher than the industry average of 16.18. It currently has a Value Score of D.

 

Image Source: Zacks Investment Research

Estimate Movement for AJGThe Zacks Consensus Estimate for AJG’s 2026 earnings per share (EPS) indicates a year-over-year increase of 24.2%.

The consensus estimate for revenues is pegged at $13.3 billion, implying a year-over-year improvement of 20.4%.

The consensus estimate for 2027 EPS and revenues indicates an increase of 12.2% and 8.7%, respectively, from the corresponding 2026 estimates.

The Zacks Consensus Estimate for 2026 and 2027 earnings have moved 0.1% and 0.3% north, respectively, over the last 30 days.

Image Source: Zacks Investment Research

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

Alley Investment Management Company LLC cut its stake in Arthur J. Gallagher & Co. (NYSE:AJG – Free Report) by 55.6% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 9,809 shares of the financial services provider’s stock after selling 12,286 shares during the period. Alley Investment Management Company LLC’s holdings in Arthur J. Gallagher & Co. were worth $2,252,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also bought and sold shares of AJG. Dearborn Partners LLC increased its holdings in Arthur J. Gallagher & Co. by 6.3% in the 4th quarter. Dearborn Partners LLC now owns 133,936 shares of the financial services provider’s stock worth $34,661,000 after buying an additional 7,946 shares during the period. Gtcr LLC purchased a new position in shares of Arthur J. Gallagher & Co. during the first quarter worth $514,112,000. SBI Okasan Asset Management Co.Ltd. acquired a new position in Arthur J. Gallagher & Co. during the fourth quarter valued at $1,371,000. Evelyn Partners Investment Management Services Ltd acquired a new stake in Arthur J. Gallagher & Co. during the 1st quarter worth about $5,848,000. Finally, Van Hulzen Asset Management LLC lifted its holdings in shares of Arthur J. Gallagher & Co. by 7.9% in the 4th quarter. Van Hulzen Asset Management LLC now owns 95,470 shares of the financial services provider’s stock valued at $24,707,000 after buying an additional 7,025 shares during the period. Institutional investors and hedge funds own 85.53% of the company’s stock.

Wall Street Analyst Weigh In Several research analysts recently weighed in on the company. Truist Financial lifted their price target on Arthur J. Gallagher & Co. from $225.00 to $265.00 and gave the company a “hold” rating in a research report on Friday, July 31st. Barclays raised their price objective on shares of Arthur J. Gallagher & Co. from $275.00 to $292.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 7th. Wolfe Research cut shares of Arthur J. Gallagher & Co. from an “outperform” rating to a “peer perform” rating in a research note on Thursday, July 9th. Morgan Stanley increased their price target on shares of Arthur J. Gallagher & Co. from $270.00 to $290.00 and gave the stock an “overweight” rating in a report on Wednesday, August 19th. Finally, Weiss Ratings raised shares of Arthur J. Gallagher & Co. from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, July 13th. Fourteen analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Arthur J. Gallagher & Co. presently has an average rating of “Moderate Buy” and an average price target of $290.28.

View Our Latest Stock Report on Arthur J. Gallagher & Co. Arthur J. Gallagher & Co. Price Performance Arthur J. Gallagher & Co. stock opened at $266.50 on Friday. The stock has a market capitalization of $68.30 billion, a P/E ratio of 44.20, a P/E/G ratio of 1.60 and a beta of 0.50. The company’s fifty day moving average price is $253.45 and its 200 day moving average price is $227.42. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.05 and a current ratio of 1.05. Arthur J. Gallagher & Co. has a 1 year low of $190.75 and a 1 year high of $313.55.

Arthur J. Gallagher & Co. (NYSE:AJG – Get Free Report) last announced its earnings results on Thursday, July 30th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.81 by $0.03. The business had revenue of $3.95 billion for the quarter, compared to analyst estimates of $4.01 billion. Arthur J. Gallagher & Co. had a net margin of 9.96% and a return on equity of 13.28%. The company’s revenue for the quarter was up 24.3% compared to the same quarter last year. During the same quarter last year, the business earned $2.33 earnings per share. As a group, equities research analysts anticipate that Arthur J. Gallagher & Co. will post 13.28 earnings per share for the current fiscal year.

Arthur J. Gallagher & Co. Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Tuesday, September 8th will be issued a dividend of $0.70 per share. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.1%. Arthur J. Gallagher & Co.’s dividend payout ratio is presently 46.43%.

Insider Activity at Arthur J. Gallagher & Co. In other news, General Counsel Walter Bay sold 12,000 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $270.08, for a total value of $3,240,960.00. Following the transaction, the general counsel owned 71,292 shares in the company, valued at $19,254,543.36. This trade represents a 14.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Christopher Mead sold 3,500 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $257.02, for a total value of $899,570.00. Following the sale, the vice president owned 22,223 shares of the company’s stock, valued at $5,711,755.46. The trade was a 13.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 1.40% of the company’s stock.

(Free Report)

Arthur J. Gallagher & Co is a global insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois. Founded in 1927 by Arthur J. Gallagher, the company has grown from a regional broker into an international professional services organization that arranges insurance, provides consulting and designs risk-transfer solutions for commercial, industrial, public sector and individual clients.

The company’s core activities include property and casualty insurance brokerage, employee benefits consulting and administration, and a range of risk management services.

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Key Takeaways AJG expects 6% total-company organic growth in 2026, led by new business and client retention. New business, exposure growth and diverse offerings support organic growth across Gallagher's businesses. AJG posted its 25th straight quarter of double-digit adjusted EBITDAC growth amid margin expansion. Arthur J. Gallagher & Co. (AJG - Free Report) appears well positioned to sustain around 6% organic growth and continue expanding underlying margins even as insurance pricing moderates. However, the mix of growth is likely to shift away from rate-driven growth toward new business, client retention, exposure growth, productivity and acquisitions.

AJG witnessed another solid quarter of organic growth across each business and geography. AJG projects a total company organic outlook of 6%, brokerage at 5.5% and risk management at 9% for 2026. AJG expects 2026 will be another year of excellent organic growth.
For the combined Brokerage and Risk Management segments, growing both organically and through acquisitions delivered total revenue growth of 24% in the second quarter of 2026. Organic growth was 6%, reflecting continued strength across each of the businesses.

The bigger drivers of Organic growth remain new business, strong client retention, exposure growth and the diversity of the model across P/C, benefits, reinsurance and claims. AJG is also gaining from activity across construction, infrastructure, energy and data centers. These areas create new, more complex client needs, requiring more advice, broader capabilities and deeper expertise, which play directly into Arthur J. Gallagher's advisory strengths.

Arthur J. Gallagher recorded its 25th consecutive quarter of double-digit adjusted EBITDAC growth, while management highlighted continued underlying margin expansion. Productivity and quality improvement are among AJG's four long-term strategic pillars. 
The acquisition of AssuredPartners is now nearly a year into integration, with management reporting strong retention and good collaboration between teams. As integration progresses, cost synergies and greater scale could support margins.

What About Its Peers?Brown & Brown, Inc. (BRO - Free Report) experienced a moderation in organic growth in the second quarter of 2026, reflecting a softer insurance pricing environment and weakness in its Specialty Distribution business. Organic revenues declined 0.7% year over year, while organic revenues, including contingent commissions, increased 0.7%. Despite the near-term pressure, BRO expects organic growth to improve in the second half of 2026, with management targeting 1.5-2.5% growth in Retail and 2-4% in Specialty Distribution, excluding contingents.

Willis Towers Watson Public Limited Company (WTW - Free Report) delivered 5% organic revenue growth in the second quarter of 2026, supported by broad-based momentum across its businesses. WTW achieved this growth despite a competitive insurance pricing environment, with rates declining across most lines. The company's specialization, recurring revenue streams, new-business wins and strong client retention should help sustain mid-single-digit organic growth, while operating leverage and expense discipline provide further support for profitability.

AJG’s Price PerformanceShares of Arthur J. Gallagher have gained 1.9% year to date against the industry’s decline of 1.2%.

Image Source: Zacks Investment Research

AJG’s OvervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-earnings multiple of 18.43, higher than the industry average of 16.83.

Image Source: Zacks Investment Research

Estimate Movement for AJGThe Zacks Consensus Estimate for AJG’s third-quarter 2026 and fourth-quarter 2026 EPS has moved up 1.3% and 0.3%, respectively, in the past 30 days. The same for full-year 2026 and 2027 EPS has moved up 0.3% and 0.5%, respectively, in the past 30 days.

The consensus estimate for AJG’s 2026 and 2027 EPS and revenues indicates year-over-year increases.

Image Source: Zacks Investment Research

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

Gallagher's 2026 US Benefits Benchmarks report highlights how employers are using stronger governance, analytics and vendor oversight to manage rising healthcare costs

, /PRNewswire/ -- According to Gallagher's 2026 Workforce Trends Report – Benefits Benchmarks, US employers are taking a more disciplined approach to benefits management as rising healthcare costs, mounting regulatory complexity and pressure to maximize benefit investments intensify.  Based on responses from more than 3,700 US organizations, the report finds that employers are placing greater emphasis on governance, vendor accountability and data-informed decision making as they work to balance affordability, employee needs and long-term sustainability.

Medical cost pressure remains a dominant challenge. More than one-third of employers (36%) report health plan premium increases of 10% or more at their most recent renewal, even after implementing plan changes. Premium growth, combined with claims volatility and rising medical service costs, particularly hospital pricing and variation in site of care, is putting pressure on traditional cost-containment strategies. In response, organizations are taking a more proactive approach to managing plans, evaluating funding strategies, monitoring vendor performance and identifying opportunities to improve outcomes.

"At a time when cost pressure is persistent and difficult to forecast, employers can't rely on periodic plan changes alone," said John Tournet, US CEO of Gallagher's Benefits & HR Consulting Division. "They're adopting a more disciplined approach built on stronger data, closer oversight and ongoing evaluation of plan performance. We're also seeing growing interest in tools and technologies, including AI-enabled capabilities, that can help employers uncover trends, identify emerging risks and make more informed decisions."

Pharmacy benefits have become one of the most closely scrutinized areas of healthcare spending. Nearly one in two employers (49%) identify the rising cost of specialty drugs as a top healthcare cost challenge, reflecting the growing impact of high-cost therapies, including GLP-1 medications. Rather than shifting more costs to employees, organizations are focusing on greater transparency in pharmacy benefit manager (PBM) relationships, more disciplined pricing review and targeted utilization management.

As organizations look for ways to extend workforce support without significantly increasing costs, voluntary benefits are taking on a larger role within total rewards strategies. Employers most often cite offering a more comprehensive benefits package (72%), addressing coverage gaps (66%) and enhancing financial protection for employees (49%) among the reasons for providing voluntary benefits. Interest is also growing in supplemental offerings such as employee perks or discount programs (51%, up 7 points from 2023), identity theft protection (42%, up 8 points) and pet insurance (36%, up 13 points), highlighting a broader focus on financial and lifestyle support. As benefit portfolios become more diverse, employers are increasingly leveraging digital decision-support tools to help employees better understand and navigate their options.

With employer investments in wellbeing continuing to evolve, participation remains a key measure of program effectiveness. Nearly one in four employers (23%) report that fewer than 20% of eligible employees participate in wellbeing initiatives. This gap is prompting a shift away from stand-alone programs toward more integrated approaches that connect health, financial wellbeing and the day-to-day employee experience. Employers are focusing on making benefits easier to access, understand and use throughout the year rather than only during enrollment periods.

"Technology is changing how employees interact with benefits just as much as it's changing how employers manage them," Tournet added. "Whether it's better communication, simpler navigation or digital tools that help support more relevant guidance, the goal is the same: helping employees make confident decisions while improving the overall benefits experience."

Across these areas, a common theme is emerging: benefits strategy is becoming less about adding new programs and more about executing existing ones with greater precision. Reflecting this shift, more than a third of employers (37%) report leveraging analytics to inform workforce planning and decision-making, underscoring the importance of data in benefits management.

In an environment of rising costs and growing complexity, employers are placing greater emphasis on how they manage, measure and optimize their benefit investments. Data-driven decision-making is playing a growing role in helping organizations evaluate outcomes and deliver meaningful value for both employers and their employees.

ABOUT THE REPORT
Gallagher's 2026 US Workforce Trends Report – Benefits Benchmarks reflects survey responses from 3,717 US organizations collected from January through March 2026 and provides benchmarking data and insights across medical, pharmacy and voluntary benefits, wellbeing initiatives and absence management.

ABOUT 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.

CONTACT:  
Mary Schwartz, Gallagher
847.378.5893
[email protected]

SOURCE Gallagher

Key Takeaways Arthur J. Gallagher matched Q2 earnings estimates as acquisitions and solid organic growth lifted revenues. AJG's Brokerage and Risk Management segments delivered strong organic growth. AJG repurchased shares, raised its dividend and cited strong client retention and new business momentum. Arthur J. Gallagher & Co. (AJG - Free Report) reported second-quarter 2026 adjusted earnings of $2.84 per share, in line with the Zacks Consensus Estimate. The bottom line increased 23.5% year over year.

Revenues before reimbursements of $3.95 billion missed the consensus estimate by 2%. Still, the top line rose 24.4% year over year, supported by acquired revenues and solid organic growth. Combined Brokerage and Risk Management organic revenues increased 6%.

AJG's Revenue Mix Shows Broad GrowthCommissions climbed 35.1% year over year to $2.44 billion, while fees advanced 23% to $1.18 billion. Supplemental revenues increased 36.9% to $141 million, and contingent revenues improved 24.7% to $91 million.

These gains were partly offset by a 57.9% decline in interest income, premium finance revenues and other income to $98 million. The prior-year quarter benefited from interest earned on cash raised for the AssuredPartners acquisition.

Gallagher's Brokerage Results Stay StrongBrokerage revenues rose 25.7% year over year to $3.50 billion. Organic commissions, fees, supplemental revenues and contingent revenues increased 5%, reflecting 4% growth in organic base commissions and fees and a 20% increase in organic supplemental revenues.

Organic contingent revenues declined 8%. During the quarter, the segment completed six acquisitions with estimated annualized revenues of $58 million compared with nine acquisitions and $291 million of annualized revenues acquired a year earlier.

Adjusted Brokerage EBITDAC increased 15.7% to $1.16 billion. EBITDAC represents earnings before interest, taxes, depreciation, amortization and changes in estimated acquisition earnout payables.

The adjusted EBITDAC margin contracted 280 basis points to 33.3%. The comparison was pressured by lower interest income, AssuredPartners seasonality and the inclusion of acquired businesses.

AJG's Risk Management Gains MomentumRisk Management revenues before reimbursements increased 15.6% year over year to $453 million. Reported fees rose to $445 million from $383 million, while organic fees advanced 12%.

The segment completed one acquisition with estimated annualized revenues of $5 million. In the year-ago period, Risk Management did not close an acquisition.

Adjusted EBITDAC improved 21.7% to $101 million. The adjusted margin expanded 140 basis points to 22.3%, benefiting from stronger fee growth and lower compensation and operating expense ratios.

The adjusted compensation expense ratio declined 160 basis points to 59.6%, helped by headcount controls. The adjusted operating expense ratio edged down 10 basis points to 18.1%, aided by savings in client-related expenses.

Gallagher's Cost Pressure Reported ProfitTotal expenses increased 30.6% year over year to $3.59 billion. Compensation expenses rose 29.2% to $2.33 billion, while operating expenses increased 30.8% to $679 million.

Amortization surged 67.2% to $301 million, reflecting the impact of acquired intangible assets. Interest expense increased 6.3% to $168 million.

Reported net earnings fell 12% to $324 million, while diluted GAAP earnings declined to $1.25 per share from $1.40. Total-company EBITDAC nevertheless increased 10.5% to $946 million.

The effective tax rate declined to 21.7% from 22.3%. Corporate EBITDAC improved to a negative $98 million from a negative $111 million in the prior-year quarter.

AJG's Balance Sheet Supports Capital ReturnsArthur J. Gallagher ended the quarter with total assets of $81.81 billion, up 15.8% from year-end 2025. Cash and cash equivalents were $1.39 billion, while total stockholders’ equity increased 1.7% to $23.75 billion.

Corporate-related borrowings totaled $13.48 billion, including $1.52 billion classified as current. Gallagher also had $134 million of premium financing debt.

During the quarter, AJG repurchased shares for around $170 million. The company declared dividends of 70 cents per share, up from 65 cents in the year-ago quarter.

Management highlighted strong client retention, new business generation and continued demand for advice, analytics, specialty expertise and claims advocacy amid a complex risk environment.

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

Performance of Other Brokerage InsurersBrown & Brown, Inc.’s (BRO - Free Report) second-quarter 2026 adjusted earnings of $1.07 per share missed the Zacks Consensus Estimate by 0.9%. The bottom line increased 3.9% year over year. Revenues of $1.67 billion missed the consensus mark by 2.9% but increased 30.4% year over year. Acquisition activity supported the top line, while organic revenues declined 0.7%.

Commissions and fees rose 32.4% to $1.65 billion, while investment and other income declined to $22 million from $36 million. Adjusted EBITDAC margin contracted 100 basis points to 35.7%. Adjusted net income attributable to the company increased 18.4% to $361 million.

Willis Towers Watson Public Limited Company (WTW - Free Report) reported second-quarter 2026 adjusted earnings of $3.35 per share, beating the Zacks Consensus Estimate of $3.13 by 7%. Earnings increased 17% year over year. Revenues rose 9% to $2.46 billion and surpassed the consensus estimate of $2.42 billion by 1.7%.

Organic revenues grew 5%. Reported revenues increased from $2.26 billion in the prior-year quarter. Excluding foreign-currency movements, revenues advanced 8%. Acquisitions and divestitures contributed 3 percentage points to the quarterly change. Adjusted EBITDA increased 13% year over year to $529 million. The related margin widened 70 basis points to 21.5%, reflecting improved operating leverage and stronger adjusted profitability.

Aon plc (AON - Free Report) reported second-quarter 2026 adjusted earnings of $3.81 per share, which surpassed the Zacks Consensus Estimate by 1.1%. The bottom line advanced 9% year over year.

Total revenues of $4.2 billion grew 2% year over year.  The top line missed the consensus mark by 0.4%. Organic revenue growth was 5%. Total operating expenses inched up 1% year over year to $3.3 billion. Adjusted operating income amounted to $1.2 billion, up 5% year over year and in line with our estimate.

Arthur J. Gallagher & Co. (AJG) Q2 2026 Earnings Call July 30, 2026 5:15 PM EDT

Company Participants

J. Gallagher - Chairman & CEO
Douglas Howell - Corporate VP & CFO

Conference Call Participants

Michael Zaremski - BMO Capital Markets Equity Research
Elyse Greenspan - Wells Fargo Securities, LLC, Research Division
Charles Peters - Raymond James & Associates, Inc., Research Division
Dean Criscitiello - Wolfe Research, LLC
David Motemaden - Evercore ISI Institutional Equities, Research Division
Andrew Andersen - Jefferies LLC, Research Division
Yaron Kinar - Mizuho Securities USA LLC, Research Division
Mark Hughes - Truist Securities, Inc., Research Division
Meyer Shields - Keefe, Bruyette, & Woods, Inc., Research Division
Andrew Kligerman - TD Cowen, Research Division

Presentation

Operator

Good afternoon, and welcome to Arthur J. Gallagher & Company's Second Quarter 2026 Earnings Conference Call.

[Operator Instructions]

Today's call is being recorded. If you have any objections, you may disconnect at this time.

Some of the comments made during this conference call, including answers given in response to questions, may constitute forward-looking statements within the meaning of the securities laws. The company does not assume any obligation to update information or forward-looking statements provided on this call. These forward-looking statements are subject to risks and uncertainties that can cause actual results to differ materially. Please refer to the information concerning forward-looking statements and Risk Factors sections contained in the company's most recent 10-K, 10-Q and 8-K filings for more details on such risks and uncertainties.

In addition, for reconciliations of the non-GAAP measures discussed on this call as well as other information regarding these measures, please refer to the earnings release and other materials in the Investor Relations section of the company's website.

It is now my pleasure to introduce J. Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher & Company. Mr. Gallagher, you may begin.

Arthur J. Gallagher (AJG - Free Report) came out with quarterly earnings of $2.84 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $2.33 per share a year ago. These figures are adjusted for non-recurring items.

A quarter ago, it was expected that this insurance and risk-management company 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 surpassed consensus EPS estimates two times.

Arthur J. Gallagher, which belongs to the Zacks Insurance - Brokerage industry, posted revenues of $3.96 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.96%. This compares to year-ago revenues of $3.18 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Arthur J. Gallagher shares have added about 3.9% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Arthur J. Gallagher?While Arthur J. Gallagher has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Arthur J. Gallagher was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.99 on $3.98 billion in revenues for the coming quarter and $13.22 on $16.69 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Brokerage is currently in the bottom 35% of the 250 plus Zacks industries. 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.

eHealth (EHTH - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.

This provider of internet-based heath insurance agency services is expected to post quarterly loss of $0.52 per share in its upcoming report, which represents a year-over-year change of +46.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

eHealth's revenues are expected to be $31.98 million, down 47.4% from the year-ago quarter.

, /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended June 30, 2026. Management will host a webcast conference call to discuss these results on Thursday, July 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 9.

Summary of Financial Results - Second Quarter

Revenues Before

Reimbursements

Net Earnings (Loss)

EBITDAC

Diluted Net Earnings

(Loss) Per Share

Segment

2nd Q 26

2nd Q 25

2nd Q 26

2nd Q 25

2nd Q 26

2nd Q 25

2nd Q 26

2nd Q 25

(in millions)

(in millions)

(in millions)

Brokerage, as reported

$  3,502

$  2,787

$    450

$    510

$    948

$    892

$    1.74

$    1.95

Net (gains) on divestitures

(8)

(6)

(6)

(5)

(8)

(6)

(0.02)

(0.02)

Acquisition integration

—

—

84

30

113

41

0.33

0.12

Workforce and lease termination

—

—

30

28

40

37

0.11

0.11

Acquisition related adjustments

—

—

49

25

70

50

0.19

0.09

Amortization of intangible assets

—

—

218

130

—

—

0.84

0.50

Levelized foreign currency translation

–

1

—

(7)

—

(9)

—

(0.03)

Brokerage, as adjusted

3,494

2,782

825

711

1,163

1,005

3.19

2.72

Risk Management, as reported

453

392

57

43

96

75

0.22

0.16

Acquisition integration

—

—

1

1

1

2

–

0.01

Workforce and lease termination

—

—

1

3

2

4

0.01

0.01

Acquisition related adjustments

—

—

2

1

2

1

0.01

—

Amortization of intangible assets

—

—

5

5

—

—

0.02

0.02

Levelized foreign currency translation

—

5

—

1

—

1

—

—

Risk Management, as adjusted

453

397

66

54

101

83

0.26

0.20

Corporate, as reported

—

—

(183)

(185)

(98)

(111)

(0.71)

(0.71)

Transaction-related costs

—

—

10

24

12

29

0.04

0.09

Legal, tax and benefit plan related

—

—

16

—

21

—

0.06

—

Corporate, as adjusted

—

—

(157)

(161)

(65)

(82)

(0.61)

(0.62)

Total Company, as reported

$  3,955

$  3,179

$    324

$    368

$     946

$     856

$    1.25

$    1.40

Total Company, as adjusted

$  3,947

$  3,179

$    734

$    604

$  1,199

$  1,006

$    2.84

$    2.30

Total Brokerage & Risk Management, as reported

$  3,955

$  3,179

$    507

$    553

$  1,044

$     967

$    1.96

$    2.11

Total Brokerage & Risk Management, as adjusted

$  3,947

$  3,179

$    891

$    765

$  1,264

$  1,088

$    3.45

$    2.92

For second quarter 2025, reported and adjusted amounts for the Brokerage Segment include approximately $144 million of incremental interest income, or approximately 42 cents after-tax, earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.

For second quarter 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $505 million, $12 million and $33 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $130 million, $3 million and ($7) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 17.

(1 of 20)

"We delivered an excellent second quarter!" said J. Patrick Gallagher, Jr., Chairman and CEO. "Our combined Brokerage and Risk Management segments delivered revenue growth of 24%, including organic growth of 6%. Our growth reflects the strength and diversity of our model, the continued power of our two-pronged growth strategy, and our culture of client-first execution. Client retention remains strong, new business generation continues to be outstanding and clients continue to seek broader solutions across our platform.

"In an increasingly complex risk environment, client demand for our advice, analytics, market access, specialty expertise and claims advocacy remains robust. Looking ahead, we remain confident in our ability to build on our momentum and continue creating long-term value for our clients, colleagues and shareholders."

Summary of Financial Results - Six-Months ended June 30

Revenues Before

Reimbursements

Net Earnings (Loss)

EBITDAC

Diluted Net Earnings

(Loss) Per Share

Segment

6 Mths 26

6 Mths 25

6 Mths 26

6 Mths 25

6 Mths 26

6 Mths 25

6 Mths 26

6 Mths 25

(in millions)

(in millions)

(in millions)

Brokerage, as reported

$  7,795

$  6,101

$  1,363

$  1,326

$  2,510

$  2,243

$    5.25

$    5.08

Net (gains) on divestitures

(15)

(12)

(11)

(9)

(15)

(12)

(0.04)

(0.04)

Acquisition integration

—

—

149

63

200

85

0.57

0.24

Workforce and lease termination

—

—

50

42

67

55

0.19

0.16

Acquisition related adjustments

—

—

88

50

120

80

0.34

0.19

Amortization of intangible assets

—

—

419

282

—

—

1.62

1.09

Effective income tax rate impact

—

—

—

1

—

—

—

—

Levelized foreign currency translation

—

58

—

6

—

10

—

0.03

Brokerage, as adjusted

7,780

6,147

2,058

1,761

2,882

2,461

7.93

6.75

Risk Management, as reported

881

766

107

84

182

147

0.41

0.32

Acquisition integration

—

—

2

2

2

4

0.01

0.01

Workforce and lease termination

—

—

2

6

3

7

0.01

0.02

Acquisition related adjustments

—

—

6

1

8

1

0.02

—

Amortization of intangible assets

—

—

10

9

—

—

0.04

0.04

Levelized foreign currency translation

—

12

—

2

—

2

—

0.01

Risk Management, as adjusted

881

778

127

104

195

161

0.49

0.40

Corporate, as reported

(5)

—

(323)

(333)

(189)

(233)

(1.25)

(1.28)

Transaction-related costs

—

—

16

44

19

52

0.06

0.17

Legal, tax and benefit plan related

—

—

17

—

39

—

0.07

—

Clean energy-related

5

—

3

—

5

—

0.01

—

Corporate, as adjusted

—

—

(287)

(289)

(126)

(181)

(1.11)

(1.11)

Total Company, as reported

$  8,671

$  6,867

$  1,147

$  1,077

$  2,503

$  2,157

$    4.41

$    4.12

Total Company, as adjusted

$  8,661

$  6,925

$  1,898

$  1,576

$  2,951

$  2,441

$    7.31

$    6.04

Total Brokerage & Risk Management, as reported

$  8,676

$  6,867

$  1,470

$  1,410

$  2,692

$  2,390

$    5.66

$    5.40

Total Brokerage & Risk Management, as adjusted

$  8,661

$  6,925

$  2,185

$  1,865

$  3,077

$  2,622

$    8.42

$    7.15

For the six-month period ended June 30, 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $936 million, $27 million and $63 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $241 million, $7 million and ($27) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 19.

(2 of 20)

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

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Organic Revenues (Non-GAAP)

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Base Commissions and Fees

Commissions and fees, as reported

$      3,180

$         2,387

$      7,095

$         5,256

Less commissions and fees from acquisitions, divested operations and other

(775)

(80)

(1,712)

(144)

Levelized foreign currency translation

—

1

—

51

Organic base commissions and fees

$      2,405

$         2,306

$      5,383

$         5,163

Organic change in base commissions and fees

4 %

4 %

Supplemental Revenues

Supplemental revenues, as reported

$        141

$           103

$        321

$           217

Less supplemental revenues from acquisitions, divested operations and other

(17)

—

(63)

—

Levelized foreign currency translation

—

—

—

2

Organic supplemental revenues

$        124

$           103

$        258

$           219

Organic change in supplemental revenues

20 %

18 %

Contingent Revenues

Contingent revenues, as reported

$          91

$            73

$        206

$           166

Less contingent revenues from acquisitions, divested operations and other

(24)

—

(43)

—

Levelized foreign currency translation

—

—

—

1

Organic contingent revenues

$          67

$            73

$        163

$           167

Organic change in contingent revenues

(8 %)

(2 %)

Total reported commissions, fees, supplemental revenues and contingent revenues

$      3,412

$         2,563

$      7,622

$         5,639

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

(816)

(80)

(1,818)

(144)

Levelized foreign currency translation

—

1

—

54

Total organic commissions, fees, supplemental revenues and contingent revenues

$      2,596

$         2,482

$      5,804

$         5,549

Total organic change

5 %

5 %

Acquisition Activity

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Number of acquisitions closed *

6

9

14

19

Estimated annualized revenues acquired (in millions)

$           58

$         291

$         107

$         354

*

In the second quarter of 2026 and 2025, no shares of Gallagher common stock were issued directly to sellers in connection with tax-free exchange acquisitions.

(3 of 20)

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

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Compensation Expense and Ratios

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Compensation expense, as reported

$     2,017

$     1,526

$     4,228

$     3,143

Acquisition integration

(53)

(20)

(90)

(48)

Workforce and lease termination related charges

(29)

(36)

(53)

(52)

Acquisition related adjustments

(70)

(50)

(120)

(80)

Levelized foreign currency translation

—

8

—

37

Compensation expense, as adjusted

$     1,865

$     1,428

$     3,965

$     3,000

Reported compensation expense ratios using reported revenues on pages 1 and 2

*

57.6 %

54.8 %

54.2 %

51.5 %

Adjusted compensation expense ratios using adjusted revenues on pages 1 and 2

**

53.4 %

51.3 %

51.0 %

48.8 %

*

Reported second quarter 2026 compensation expense ratio was 2.8 pts higher than second quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This ratio was also impacted by higher integration costs, partially offset by lower workforce termination costs and savings from headcount controls.

**

Adjusted second quarter 2026 compensation expense ratio was 2.1 pts higher than second quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This ratio also benefited from savings from headcount controls.

Operating Expense and Ratios

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Operating expense, as reported

$       537

$       369

$     1,057

$       715

Acquisition integration

(60)

(21)

(110)

(37)

Workforce and lease termination related charges

(11)

(1)

(14)

(3)

Levelized foreign currency translation

—

2

—

11

Operating expense, as adjusted

$       466

$       349

$       933

$       686

Reported operating expense ratios using reported revenues on pages 1 and 2

*

15.3 %

13.2 %

13.6 %

11.7 %

Adjusted operating expense ratios using adjusted revenues on pages 1 and 2

**

13.3 %

12.5 %

12.0 %

11.2 %

*

Reported second quarter 2026 operating expense ratio was 2.1 pts higher than second quarter 2025. This ratio was primarily impacted by higher integration and technology costs. This ratio was also impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024.

**

Adjusted second quarter 2026 operating expense ratio was 0.8 pts higher than second quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This ratio was also impacted by higher technology costs.

(4 of 20)

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

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Net Earnings to Adjusted EBITDAC (Non-GAAP)

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Net earnings, as reported

$       450

$       510

$     1,363

$     1,326

Provision for income taxes

154

176

467

459

Depreciation

45

38

94

71

Amortization

294

174

565

378

Change in estimated acquisition earnout payables

5

(6)

21

9

EBITDAC

948

892

2,510

2,243

Net (gains) on divestitures

(8)

(6)

(15)

(12)

Acquisition integration

113

41

200

85

Workforce and lease termination related charges

40

37

67

55

Acquisition related adjustments

70

50

120

80

Levelized foreign currency translation

—

(9)

—

10

EBITDAC, as adjusted

$     1,163

$     1,005

$     2,882

$     2,461

Net earnings margin, as reported using reported revenues on pages 1 and 2

12.9 %

18.3 %

17.5 %

21.7 %

EBITDAC margin, as adjusted using adjusted revenues on pages 1 and 2

*

33.3 %

36.1 %

**

37.0 %

40.0 %

*

Second quarter 2025 adjusted EBITDAC includes approximately $144 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024. 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 second quarter adjusted EBITDAC margin by approximately 3.9%.

**

Adjusted EBITDAC for the six-month period ended June 30, 2025 includes approximately $287 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024. The interest income in the prior year, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in adjusted EBITDAC margin for the six-month period ended June 30, by approximately 3.4%.

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

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Organic Revenues (Non-GAAP)

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Fees

$        438

$           382

$        853

$           745

International performance bonus fees

7

1

12

3

Fees as reported

445

383

865

748

Less fees from acquisitions, divestitures and other

(11)

(1)

(24)

(2)

Levelized foreign currency translation

—

5

—

12

Organic fees

$        434

$           387

$        841

$           758

Organic change in fees

12 %

11 %

Acquisition Activity

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Number of acquisitions closed

1

—

2

1

Estimated annualized revenues acquired (in millions)

$              5

$            —

$            15

$            38

 (5 of 20)

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

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Compensation Expense and Ratios

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Compensation expense, as reported

$       274

$       244

$       538

$       475

Acquisition integration

—

(1)

—

(2)

Workforce and lease termination related charges

(2)

(3)

(3)

(6)

Acquisition related adjustments

(2)

(1)

(8)

(1)

Levelized foreign currency translation

—

4

—

9

Compensation expense, as adjusted

$       270

$       243

$       527

$       475

Reported compensation expense ratios using reported revenues
  (before reimbursements) on pages 1 and 2

*

60.5 %

62.2 %

61.1 %

62.0 %

Adjusted compensation expense ratios using adjusted revenues
  (before reimbursements) on pages 1 and 2

*

59.6 %

61.2 %

59.8 %

61.1 %

*

Reported and adjusted second quarter 2026 compensation expense ratios were 1.7 pts and 1.6 pts lower, respectively,  than second quarter 2025. Both ratios were primarily impacted by savings related to headcount controls.

Operating Expense and Ratios

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Operating expense, as reported

$         83

$         73

$       161

$       144

Acquisition integration

(1)

(1)

(2)

(2)

Workforce and lease termination related charges

—

(1)

—

(1)

Levelized foreign currency translation

—

—

—

1

Operating expense, as adjusted

$         82

$         71

$       159

$       142

Reported operating expense ratios using reported revenues
  (before reimbursements) on pages 1 and 2

*

18.3 %

18.6 %

18.3 %

18.8 %

Adjusted operating expense ratios using adjusted revenues
  (before reimbursements) on pages 1 and 2

*

18.1 %

18.2 %

18.1 %

18.2 %

*

Reported and adjusted second quarter 2026 operating expense ratios were 0.3 pts and 0.1 pts lower, respectively, than second quarter 2025. Both ratios were primarily impacted by savings in client-related expenses.

Net Earnings to Adjusted EBITDAC (Non-GAAP)

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Net earnings, as reported

$         57

$     43

$       107

$         84

Provision for income taxes

21

15

39

30

Depreciation

10

10

20

20

Amortization

7

6

14

12

Change in estimated acquisition earnout payables

1

1

2

1

EBITDAC

96

75

182

147

Acquisition integration

1

2

2

4

Workforce and lease termination related charges

2

4

3

7

Acquisition related adjustments

2

1

8

1

Levelized foreign currency translation

—

1

—

2

EBITDAC, as adjusted

$       101

$     83

$       195

$       161

Net earnings margin, as reported using reported revenues
  (before reimbursements) on pages 1 and 2

12.6 %

11.0 %

12.2 %

11.0 %

EBITDAC margin, as adjusted using adjusted revenues
  (before reimbursements) on pages 1 and 2

22.3 %

20.9 %

22.1 %

20.7 %

(6 of 20)

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

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

2nd 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

$         (169)

$    44

$        (125)

$         (159)

$    41

$        (118)

Clean energy-related

(2)

1

(1)

(2)

—

(2)

Acquisition costs (1)

(18)

3

(15)

(34)

6

(28)

Corporate (2)

(79)

37

(42)

(76)

39

(37)

Reported 2nd quarter

(268)

85

(183)

(271)

86

(185)

Adjustments

Transaction-related costs (1)

12

(2)

10

29

(5)

24

Legal and tax related (4)

13

(3)

10

—

—

—

Benefit plan related (5)

8

(2)

6

—

—

—

Components of Corporate Segment, as adjusted

Interest and banking costs

(169)

44

(125)

(159)

41

(118)

Clean energy-related

(2)

1

(1)

(2)

—

(2)

Acquisition costs

(6)

1

(5)

(5)

1

(4)

Corporate (2)

(58)

32

(26)

(76)

39

(37)

Adjusted 2nd quarter

$         (235)

$    78

$        (157)

$         (242)

$    81

$        (161)

Six Months

Components of Corporate Segment, as reported

Interest and banking costs

$         (327)

$    85

$        (242)

$         (318)

$    83

$        (235)

Clean energy-related

(9)

3

(6)

(4)

1

(3)

Acquisition costs (1)

(28)

5

(23)

(60)

9

(51)

Corporate (2)

(155)

103

(52)

(171)

127

(44)

Reported six months

(519)

196

(323)

(553)

220

(333)

Adjustments

Clean energy-related (3)

5

(2)

3

—

—

—

Transaction-related costs (1)

19

(3)

16

52

(8)

44

Legal and tax related (4)

31

(20)

11

—

—

—

Benefit plan related (5)

8

(2)

6

—

—

—

Components of Corporate Segment, as adjusted

Interest and banking costs

(327)

85

(242)

(318)

83

(235)

Clean energy-related

(4)

1

(3)

(4)

1

(3)

Acquisition costs

(9)

2

(7)

(8)

1

(7)

Corporate (2)

(116)

81

(35)

(171)

127

(44)

Adjusted six months 

$         (456)

$  169

$        (287)

$         (501)

$  212

$        (289)

(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 in August 2025 and April 2025, respectively.

(2)

Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(25) million in second quarter 2025. There was no net impact of unrealized foreign exchange remeasurement in second quarter 2026. Corporate pretax loss includes a net unrealized foreign exchange remeasurement gain of $6 million in the six-month period ended June 30, 2026 and a net unrealized foreign exchange remeasurement loss of $(48) million in the six-month period ended June 30, 2025.

(3)

Adjustments in the six-month period ended June 30, 2026 include the write-down of a clean energy-related investment.

(4)

Adjustments in second quarter 2026 and the six-month period ended June 30, 2026 include costs associated with legal and tax matters.

(5)

Adjustments in second quarter 2026 and the six-month period ended June 30, 2026 include costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.

(7 of 20)

Interest, banking costs and debt - At June 30, 2026, Gallagher had $9,550 million of borrowings from public debt, $2,683 million of borrowings from private placements and $1,365 million of borrowings under its line of credit facility. In addition, Gallagher had $134 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 rates for the quarters ended June 30, 2026 and 2025 were 21.7% and 22.3%, 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 second quarter of 2026, Gallagher repurchased approximately 0.9 million shares of its common stock for approximately $170 million.

Webcast Conference Call - Gallagher will host a webcast conference call on Thursday, July 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.

(8 of 20)

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 and trade disruptions; a recession or economic downturn; 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 its 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 of such acquisitions; 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 to its business 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; 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.

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.

(9 of 20)

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 17, 18, 19 and 20 for a reconciliation of the adjustments made to income taxes.

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 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 levelized 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 second quarter 2026 related to costs associated with legal and tax matters. Benefit plan related, which represents the impact of adjustments in second quarter 2026 related to costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes. Adjusted ratios - Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues.

(10 of 20)

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 for the Corporate segment, the clean energy related adjustments described above) 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. 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 5 and 6), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on pages 1 and 2), for organic revenue measures (on pages 3 and 5, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 4, 5 and 6 respectively, for the Brokerage and Risk Management segments).

(11 of 20)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except per share, percentage and workforce data)

Brokerage Segment

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Commissions

$         2,442

$         1,808

$         5,565

$         4,057

Fees

738

579

1,530

1,199

Supplemental revenues

141

103

321

217

Contingent revenues

91

73

206

166

Interest income, premium finance revenues and other income

90

224

173

462

Total revenues

3,502

2,787

7,795

6,101

Compensation

2,017

1,526

4,228

3,143

Operating

537

369

1,057

715

Depreciation

45

38

94

71

Amortization

294

174

565

378

Change in estimated acquisition earnout payables

5

(6)

21

9

Expenses

2,898

2,101

5,965

4,316

Earnings before income taxes

604

686

1,830

1,785

Provision for income taxes

154

176

467

459

Net earnings

450

510

1,363

1,326

Net earnings attributable to noncontrolling interests

—

—

1

5

Net earnings attributable to controlling interests

$           450

$           510

$         1,362

$         1,321

EBITDAC

Net earnings

$           450

$           510

$         1,363

$         1,326

Provision for income taxes

154

176

467

459

Depreciation

45

38

94

71

Amortization

294

174

565

378

Change in estimated acquisition earnout payables

5

(6)

21

9

EBITDAC

$           948

$           892

$         2,510

$         2,243

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(12 of 20)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except per share, percentage and workforce data)

Risk Management Segment

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Fees

$           445

$           383

$           865

$           748

Interest income and other income

8

9

16

18

Revenues before reimbursements

453

392

881

766

Reimbursements

48

43

90

82

Total revenues

501

435

971

848

Compensation

274

244

538

475

Operating

83

73

161

144

Reimbursements

48

43

90

82

Depreciation

10

10

20

20

Amortization

7

6

14

12

Change in estimated acquisition earnout payables

1

1

2

1

Expenses

423

377

825

734

Earnings before income taxes

78

58

146

114

Provision for income taxes

21

15

39

30

Net earnings

57

43

107

84

Net earnings attributable to noncontrolling interests

—

—

—

—

Net earnings attributable to controlling interests

$            57

$            43

$           107

$            84

EBITDAC

Net earnings

$            57

$            43

$           107

$            84

Provision for income taxes

21

15

39

30

Depreciation

10

10

20

20

Amortization

7

6

14

12

Change in estimated acquisition earnout payables

1

1

2

1

EBITDAC

$            96

$            75

$           182

$           147

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(13 of 20)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except share and per share data)

Corporate Segment

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Other loss

$            —

$             —

$             (5)

$             —

Total revenues

—

—

(5)

—

Compensation

39

34

80

83

Operating

59

77

104

150

Interest

168

158

326

316

Depreciation

2

2

4

4

Expenses

268

271

514

553

Loss before income taxes

(268)

(271)

(519)

(553)

Benefit for income taxes

(85)

(86)

(196)

(220)

Net loss

(183)

(185)

(323)

(333)

Net loss attributable to noncontrolling interests

—

—

—

—

Net loss attributable to controlling interests

$          (183)

$          (185)

$          (323)

$          (333)

EBITDAC

Net loss

$          (183)

$          (185)

$          (323)

$          (333)

Benefit for income taxes

(85)

(86)

(196)

(220)

Interest

168

158

326

316

Depreciation

2

2

4

4

EBITDAC

$           (98)

$          (111)

$          (189)

$          (233)

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(14 of 20)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except share and per share data)

Total Company

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Commissions

$         2,442

$         1,808

$         5,565

$         4,057

Fees

1,183

962

2,395

1,947

Supplemental revenues

141

103

321

217

Contingent revenues

91

73

206

166

Interest income, premium finance revenues and other income

98

233

184

480

Revenues before reimbursements

3,955

3,179

8,671

6,867

Reimbursements

48

43

90

82

Total revenues

4,003

3,222

8,761

6,949

Compensation

2,330

1,804

4,846

3,701

Operating

679

519

1,322

1,009

Reimbursements

48

43

90

82

Interest

168

158

326

316

Depreciation

57

50

118

95

Amortization

301

180

579

390

Change in estimated acquisition earnout payables

6

(5)

23

10

Expenses

3,589

2,749

7,304

5,603

Earnings before income taxes

414

473

1,457

1,346

Provision for income taxes

90

105

310

269

Net earnings

324

368

1,147

1,077

Net earnings attributable to noncontrolling interests

—

—

1

5

Net earnings attributable to controlling interests

$           324

$           368

$         1,146

$         1,072

Diluted net earnings per share

$          1.25

$          1.40

$          4.41

$          4.12

Dividends declared per share

$          0.70

$          0.65

$          1.40

$          1.30

EBITDAC

Net earnings

$           324

$           368

$         1,147

$         1,077

Provision for income taxes

90

105

310

269

Interest

168

158

326

316

Depreciation

57

50

118

95

Amortization

301

180

579

390

Change in estimated acquisition earnout payables

6

(5)

23

10

EBITDAC

$           946

$           856

$         2,503

$         2,157

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(15 of 20)

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

June 30, 2026

Dec 31, 2025

Cash and cash equivalents

$            1,386

$            1,396

Fiduciary assets (includes fiduciary cash of $7,947 in 2026 and $7,142 in 2025)

37,183

26,899

Accounts receivable, net

6,076

5,175

Other current assets

807

886

Total current assets

45,452

34,356

Fixed assets - net

765

789

Deferred income taxes

43

43

Other noncurrent assets

1,732

1,602

Right-of-use assets

578

598

Goodwill

23,026

22,593

Amortizable intangible assets - net

10,212

10,684

Total assets

$          81,808

$          70,665

Fiduciary liabilities

$          37,183

$          26,899

Accrued compensation and other current liabilities

3,548

4,017

Deferred revenue - current

788

737

Premium financing debt

134

226

Corporate related borrowings - current

1,520

640

Total current liabilities

43,173

32,519

Corporate related borrowings - noncurrent

11,955

12,104

Deferred revenue - noncurrent

177

155

Lease liabilities - noncurrent

497

515

Other noncurrent liabilities (includes tax credit carryforwards of $628 in 2026 and $713 in 2025)

2,259

2,025

Total liabilities

58,061

47,318

Stockholders' equity:

Common stock - issued and outstanding

256

257

Capital in excess of par value

17,567

17,783

Retained earnings

6,588

5,806

Accumulated other comprehensive loss

(694)

(525)

Total controlling interests stockholders' equity

23,717

23,321

Noncontrolling interests

30

26

Total stockholders' equity

23,747

23,347

Total liabilities and stockholders' equity

$          81,808

$          70,665

(16 of 20)

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

OTHER INFORMATION

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Basic weighted average shares outstanding (000s)

256,649

256,260

256,884

255,540

Diluted weighted average shares outstanding (000s)

258,685

260,435

259,260

259,929

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

256,341

256,363

Workforce at end of period (includes acquisitions):

Brokerage

56,202

*

44,909

Risk Management

11,254

10,584

Total Company

73,329

*

59,291

*

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

2nd Q Ended June 30, 2026

Brokerage, as reported

$          604

$      154

$     450

$             —

$           450

$       1.74

Net (gains) on divestitures

(8)

(2)

(6)

—

(6)

(0.02)

Acquisition integration

113

29

84

—

84

0.33

Workforce and lease termination

40

10

30

—

30

0.11

Acquisition related adjustments

66

17

49

—

49

0.19

Amortization of intangible assets

294

76

218

—

218

0.84

Brokerage, as adjusted

$        1,109

$      284

$     825

$             —

$           825

$       3.19

Risk Management, as reported

$            78

$        21

$      57

$             —

$            57

$       0.22

Acquisition integration

1

—

1

—

1

–

Workforce and lease termination

2

1

1

—

1

0.01

Acquisition related adjustments

2

—

2

—

2

0.01

Amortization of intangible assets

7

2

5

—

5

0.02

Risk Management, as adjusted

$            90

$        24

$      66

$             —

$            66

$       0.26

Corporate, as reported

$         (268)

$       (85)

$    (183)

$             —

$          (183)

$      (0.71)

Transaction-related costs

12

2

10

—

10

0.04

Legal, tax and benefit plan related

21

5

16

—

16

0.06

Corporate, as adjusted

$         (235)

$       (78)

$    (157)

$             —

$          (157)

$      (0.61)

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(17 of 20)

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

2nd Q Ended June 30, 2025

Brokerage, as reported

$       686

$     176

$        510

$             —

$          510

$       1.95

Net (gains) on divestitures

(6)

(1)

(5)

—

(5)

(0.02)

Acquisition integration

41

11

30

—

30

0.12

Workforce and lease termination

37

9

28

—

28

0.11

Acquisition related adjustments

33

8

25

—

25

0.09

Amortization of intangible assets

174

44

130

—

130

0.50

Levelized foreign currency translation

(10)

(3)

(7)

—

(7)

(0.03)

Brokerage, as adjusted

$       955

$     244

$        711

$             —

$          711

$       2.72

Risk Management, as reported

$        58

$       15

$         43

$             —

$            43

$       0.16

Acquisition integration

2

1

1

—

1

0.01

Workforce and lease termination

4

1

3

—

3

0.01

Acquisition related adjustments

1

–

1

—

1

—

Amortization of intangible assets

6

1

5

—

5

0.02

Levelized foreign currency translation

1

—

1

—

1

—

Risk Management, as adjusted

$        72

$       18

$         54

$              –

$            54

$       0.20

Corporate, as reported

$      (271)

$     (86)

$       (185)

$             —

$         (185)

$      (0.71)

Transaction-related costs

29

5

24

—

24

0.09

Corporate, as adjusted

$      (242)

$     (81)

$       (161)

$              –

$         (161)

$      (0.62)

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(18 of 20)

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

6 Mths Ended June 30, 2026

Brokerage, as reported

$     1,830

$     467

$      1,363

$              1

$        1,362

$       5.25

Net (gains) on divestitures

(15)

(4)

(11)

—

(11)

(0.04)

Acquisition integration

200

51

149

—

149

0.57

Workforce and lease termination

67

17

50

—

50

0.19

Acquisition related adjustments

119

31

88

—

88

0.34

Amortization of intangible assets

565

146

419

—

419

1.62

Brokerage, as adjusted

$     2,766

$     708

$      2,058

$              1

$        2,057

$       7.93

Risk Management, as reported

$       146

$       39

$        107

$             —

$          107

$       0.41

Acquisition integration

2

—

2

—

2

0.01

Workforce and lease termination

3

1

2

—

2

0.01

Acquisition related adjustments

8

2

6

—

6

0.02

Amortization of intangible assets

14

4

10

—

10

0.04

Risk Management, as adjusted

$       173

$       46

$        127

$             —

$          127

$       0.49

Corporate, as reported

$      (519)

$    (196)

$       (323)

$             —

$         (323)

$      (1.25)

Transaction-related costs

19

3

16

—

16

0.06

Legal, tax and benefit plan related

39

22

17

—

17

0.07

Clean energy-related

5

2

3

—

3

0.01

Corporate, as adjusted

$      (456)

$    (169)

$       (287)

$             —

$         (287)

$      (1.11)

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(19 of 20)

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

6 Mths Ended June 30, 2025

Brokerage, as reported

$     1,785

$     459

$      1,326

$              5

$        1,321

$       5.08

Net (gains) on divestitures

(12)

(3)

(9)

—

(9)

(0.04)

Acquisition integration

85

22

63

—

63

0.24

Workforce and lease termination

55

13

42

—

42

0.16

Acquisition related adjustments

66

16

50

—

50

0.19

Amortization of intangible assets

378

96

282

—

282

1.09

Effective income tax impact

—

(1)

1

—

1

—

Levelized foreign currency translation

7

1

6

—

6

0.03

Brokerage, as adjusted

$     2,364

$     603

$      1,761

$              5

$        1,756

$       6.75

Risk Management, as reported

$       114

$       30

$         84

$             —

$            84

$       0.32

Acquisition integration

4

2

2

—

2

0.01

Workforce and lease termination

7

1

6

—

6

0.02

Acquisition related adjustments

1

—

1

—

1

—

Amortization of intangible assets

12

3

9

—

9

0.04

Levelized foreign currency translation

2

—

2

—

2

0.01

Risk Management, as adjusted

$       140

$       36

$        104

$             —

$          104

$       0.40

Corporate, as reported

$      (553)

$    (220)

$       (333)

$             —

$         (333)

$      (1.28)

Transaction-related costs

52

8

44

—

44

0.17

Corporate, as adjusted

$      (501)

$    (212)

$       (289)

$             —

$         (289)

$      (1.11)

See "Information Regarding Non-GAAP Measures" on page 9 of 20.

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

(20 of 20)

SOURCE Arthur J. Gallagher & Co.

, /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) announces with deep sadness the passing of David Johnson, Lead Independent Director of the Company's Board of Directors.

"For more than two decades, Dave helped guide Gallagher with wisdom, integrity, and a steadfast commitment to our values," said J. Patrick Gallagher, Jr., Chairman and CEO. "As Lead Independent Director, he brought sound judgment and perspective to our Board, and his many years of dedicated service will leave a lasting mark on Gallagher. On behalf of our Board of Directors and colleagues around the world, we extend our heartfelt condolences to Dave's family and loved ones."

In light of Mr. Johnson's death, the Board elected to reduce its size to eight (8) members. The independent directors have elected Ralph Nicoletti to serve as Lead Independent Director, effective immediately. Mr. Nicoletti was first elected to the Board in 2016 and has served as Chair of the Audit Committee since 2019.

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.

Key Takeaways AJG is expected to post higher Q2 revenues and earnings on strong brokerage and risk management performance. Higher commissions, fees and AssuredPartners contributions are likely to drive revenue growth. Rising compensation, interest and acquisition-related expenses may weigh on margins. Arthur J. Gallagher & Co. (AJG - Free Report) is expected to register an improvement in its top and bottom lines when it reports second-quarter 2026 results on July 30, after the closing bell.

The Zacks Consensus Estimate for AJG’s second-quarter revenues is pegged at $4.03 billion, indicating 26.9% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $2.84 per share. The Zacks Consensus Estimate for AJG’s second-quarter earnings suggests a 21.9% year-over-year increase.

What the Zacks Model Unveils for AJGOur proven model does not predict an earnings beat for Arthur J. Gallagher this time around.  A stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). That’s not the case here, as you can see below.

Earnings ESP: Arthur J. Gallagher has an Earnings ESP of -1.38%. This is because the Most Accurate Estimate of $2.80 per share is pegged lower than the Zacks Consensus Estimate of 2.84 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: AJG carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Shape Q2 Results of AJGImproved performance across both the Brokerage and Risk Management segments is expected to support Arthur J. Gallagher's second-quarter results. Strong new business generation, healthy client retention, higher renewal premiums and continued organic growth across its operations are likely to have benefited the second-quarter performance.

The Zacks Consensus Estimate for fees is pegged at $1.2 billion, indicating an increase of 24.2% from the prior-year period’s reported number. The consensus mark for commissions is pinned at $2.56 billion, implying 41.9% growth from the prior-year period’s reported number.

The Risk Management segment is expected to have benefited from strong client retention, robust new business generation and increased customer activity, supporting fee revenues.

The Brokerage segment is likely to have benefited from continued high client retention, increased new business, rising renewal premiums, and improved interest income from both owned and fiduciary funds.

Higher commissions and fees, growth in supplemental and contingent revenues, stronger investment income, and contributions from strategic acquisitions, particularly the AssuredPartners acquisition, are expected to have boosted overall revenues in the to-be-reported quarter. Additionally, the ongoing realization of acquisition synergies, productivity initiatives, and AI- and technology-driven operating efficiencies are likely to have enhanced operating margins.

Total expenses are anticipated to have risen, primarily driven by higher compensation costs, reimbursements, interest expenses, amortization, and adjustments to estimated acquisition earnout liabilities.

Stocks to ConsiderHere are some insurance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +3.82% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.23 per share, indicating a year-over-year decrease of 1.8%.

AXS’ earnings beat estimates in each of the last four reported quarters.

The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.59% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $5.61 per share, indicating a year-over-year decrease of 5.5%.

ALL’s earnings beat estimates in each of the last four reported quarters.

Aon plc (AON - Free Report) has an Earnings ESP of +0.24% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.77 per share, indicating a year-over-year increase of 8%.

AON’s earnings beat estimates in each of the last four reported quarters.

, /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 Greensburg, Pennsylvania-based W.N. Tuscano Agency, Inc. (Tuscano). Terms of the transaction were not disclosed.

Tuscano is a managing general agency (MGA) and wholesale insurance broker for independent agents in western Pennsylvania. The Tuscano team, led by Robin Tuscano, will remain in their current location under the direction of Steve Levin, Northeast Region leader for RPS.

"Tuscano is a highly regarded agency that complements our market expertise and further expands our wholesale capabilities in Pennsylvania," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am delighted to welcome Robin and his associates to our growing, global team."

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.

On July 16, 2026, Arthur J. Gallagher and Co (AJG) shares rose 3.3% today, closing at $255.93. The stock has traded between $190.75 and $316.71 over the past year