Arthur J. Gallagher & Co. (AJG) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Jan 28, 2027 — estimated from last year’s reporting date.

Consensus is $2.81 EPS for Dec 2026 across 8 estimates, ranging $2.68 to $2.89.

AJG Sep 2026

Reported Oct 29, 2026 · after the close

: 0.33%
: +2.93%

: $3.01
: $3.00
: —
: —

Highlights

Adjusted EPS was $3.00, one cent below the $3.01 consensus; GAAP diluted EPS was $1.55, up from $1.04 a year ago and $1.25 in Q2.
Earnings growth accelerated: GAAP net earnings rose 49% year over year to $406 million and 25% sequentially from $324 million. Adjusted net earnings were $782 million, up 30% from $604 million.
Revenue before reimbursements was $3.93 billion, up 18% from $3.33 billion a year ago and slightly below the $4.00 billion reported for Q2.
Organic growth was 5% across Brokerage and Risk Management, against 18% total revenue growth; Brokerage organic growth was 5% and Risk Management organic growth was 10%.
Margins continued to expand: combined adjusted EBITDAC grew 25% to $1.33 billion. Brokerage adjusted EBITDAC margin increased 200 basis points to 35.3%, and Risk Management’s rose 90 basis points to 22.8%.
AssuredPartners contributed to margin gains as integration progressed: management cited 310 basis points of Brokerage margin lift, including 90 basis points from synergies, and remained on track for $160 million of annualized synergies by year-end 2026 and $325 million by early 2028.
Market conditions were mixed but manageable: property renewal premiums declined 6%, versus a 10% decline in Q2, while casualty premiums rose 4%; management estimated insurance rates contributed about 1 percentage point to organic growth.
Capital and M&A remained active: Gallagher repurchased about $100 million of shares in Q3, had more than 30 acquisition term sheets signed or in preparation representing about $300 million of annualized revenue, and estimated over $12 billion of acquisition capacity over the next two years.

Analysis

Gallagher delivered a strong Q3, with adjusted EPS of $3.00 just below the $3.01 consensus, while GAAP diluted EPS was $1.55. Revenue before reimbursements reached $3.93 billion, up 18% year over year, and GAAP net earnings increased 49% to $406 million. Against Q2, revenue was slightly lower than $4.00 billion, but net earnings rose 25% from $324 million and diluted EPS increased from $1.25. The comparison with last year also reflects a $76 million contribution from interest income on AssuredPartners acquisition financing in Q3 2025: excluding that prior-year income, management said combined Brokerage and Risk Management adjusted revenue grew 20%, adjusted EBITDAC 34% and adjusted EPS 37%.

The print was defined by resilient organic growth, continued margin expansion and the AssuredPartners integration. Brokerage and Risk Management organic growth was 5% and 10%, respectively, with combined organic growth of 5% despite softer property pricing. Combined adjusted EBITDAC rose 25% to $1.33 billion, marking the company’s 26th consecutive quarter of double-digit adjusted EBITDAC growth. Gallagher said AssuredPartners added 310 basis points to Brokerage margin, including 90 basis points from synergies, and reaffirmed its synergy targets. Management maintained its approximately 6% full-year 2026 organic growth outlook for the combined segments and described early 2027 growth prospects as strong.

Earnings and margins

Reported results included $3.93 billion in revenue before reimbursements, versus $3.33 billion in Q3 2025; GAAP net earnings were $406 million versus $273 million, and GAAP diluted EPS was $1.55 versus $1.04. The $3.00 adjusted EPS figure was one cent below consensus.
Adjusted performance was $782 million of net earnings and $3.00 per diluted share, compared with $604 million and $2.31 a year earlier. Combined Brokerage and Risk Management adjusted EBITDAC was $1.33 billion, up 25%, on adjusted revenue of $3.92 billion, up 17%.
Prior-year financing effect matters to the growth read-through: Q3 2025 included about $76 million of interest income on funds raised for AssuredPartners. Excluding that, management said combined adjusted revenue grew 20%, adjusted EBITDAC 34% and adjusted EPS 37%.
Brokerage profitability improved: adjusted EBITDAC was $1.22 billion, up 25%, with a 35.3% margin, 200 basis points higher year over year. Management attributed 60 basis points of expansion to underlying operations and 310 basis points to AssuredPartners, including 90 basis points from synergies; the latter components include the effect of a full quarter of AssuredPartners versus a partial prior-year quarter.

Organic growth and pricing

Underlying growth was 5% organically across Brokerage and Risk Management. Management cited strong retention, new business and positive client exposure growth; it estimated insurance pricing contributed about 1 percentage point to organic growth.
Brokerage mix supported growth in a competitive pricing environment: organic base commissions and fees rose 4%, supplemental revenues rose 14%, and contingent revenues were flat. Management highlighted growth across retail property and casualty, wholesale and reinsurance.
Property pricing remained soft: renewal premiums declined 6%, compared with a 10% decline in Q2. Management cautioned that the sequential improvement mainly reflected renewal mix and seasonality, not a change in the underlying market. Casualty renewal premiums increased 4%, professional lines 2%, workers’ compensation 1%, and package and personal lines 3% each.
Outlook remained constructive: Gallagher maintained an approximately 6% full-year 2026 organic growth outlook for Brokerage and Risk Management. Management expects Brokerage organic growth around 5% in Q4 and said early planning points to a strong 2027, with AssuredPartners expected to reduce reported Brokerage organic growth by about 40–50 basis points.

AssuredPartners integration

Integration and contribution continued to progress more than a year after the acquisition. AssuredPartners generated $285 million of adjusted EBITDAC in Q3, in line with management’s September estimate; back-office systems were integrated and running, and close to half of its revenues were expected to be on Gallagher’s designated agency management system by year-end.
Synergy targets remained $160 million of annualized run-rate savings by year-end 2026 and $325 million by early 2028. Management said the increase to the $325 million target is primarily expense-related, while improving AssuredPartners’ organic growth through Gallagher’s tools and capabilities could provide additional upside beyond the synergy assumptions.
Margin trajectory includes both acquisition mix and realized efficiencies. Management said 220 basis points of Brokerage margin lift reflected AssuredPartners before synergies, including 180 basis points from having a full quarter in Q3 2026 versus a partial quarter a year earlier; another 90 basis points came from synergies.

Risk Management

Organic growth at Gallagher Bassett was 10%, driving 14% reported revenue growth. Management pointed to strong new business and client retention; the segment’s organic fees increased 10%.
Profitability continued to improve: adjusted EBITDAC rose 17% to $104 million and adjusted EBITDAC margin expanded 90 basis points to 22.8%. Lower compensation costs and continued operating efficiencies supported results, while technology investment weighed modestly on the adjusted operating expense ratio.
Outlook remained strong: management expected full-year 2026 organic growth of about 9% and an adjusted EBITDAC margin above 22% in Q4 and for the year. Its early view was that Gallagher Bassett’s momentum could continue into 2027.

M&A and capital

Tuck-in acquisitions continued: Gallagher closed five in Q3, representing about $100 million of estimated annualized revenue. Management described more than 30 term sheets signed or being prepared, representing roughly $300 million of annualized revenue, while acknowledging that industry M&A activity was slowing and emphasizing discipline on fit and price.
Acquisition capacity was estimated at more than $12 billion over the next two years, supported by cash flow, cash on hand, future investment-grade borrowings and about $3.4 billion of future tax savings from credits and tax-deductible intangible amortization.
Balance sheet and shareholder returns included $9.55 billion of public debt, $2.68 billion of private-placement borrowings and $630 million drawn under the line of credit at quarter-end. Gallagher repurchased about 0.4 million shares for $100 million in Q3 and 2.7 million shares for $580 million year to date.

Arthur J. Gallagher & Co.

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