Arthur J. Gallagher & Co.
AJG · NYSE
Next quarter
Reports Oct 29, 2026.
Consensus is $3.04 EPS for Sep 2026 across 7 estimates, ranging $2.95 to $3.14.
AJG Jun 2026
- 0.00%
- -2.75%
- $2.84
- $2.84
- —
- $4.00B
Reported results
- $4.00B
- $324.00M
- $1.25
Highlights
- Second-quarter revenue was $4.00 billion, compared with $3.22 billion in Q2 FY2025; net income was $0.32 billion versus $0.37 billion.
- Pro forma total revenue was $4,009 million for the three months ended June 30, 2026, versus $3,251 million a year earlier, while pro forma net earnings attributable to controlling interests were $324 million versus $369 million.
- At June 30, 2026, deferred revenue totaled $965 million, including $757 million in brokerage and $208 million in risk management; remaining performance obligations were also $965 million.
- Acquisitions completed during the first six months had a total recorded purchase price of $664 million, including $364 million of goodwill and $331 million of expiration lists; their annualized revenues totaled approximately $122 million.
- Corporate and other debt totaled $13,732 million at June 30, 2026, including $9,550 million of senior notes and $1,365 million under the credit agreement. No margin, capital-expenditure or operating guidance was provided in the supplied material.
Analysis
No consensus figures are available, so the quarter cannot be assessed against expectations. Reported revenue was $4.00 billion, up from $3.22 billion in Q2 FY2025, while net income declined to $0.32 billion from $0.37 billion. The supplied filing does not provide quarterly revenue, operating profit or margin figures for brokerage, risk management or corporate, so it does not establish which segment carried or dragged results. Pro forma figures show revenue of $4,009 million versus $3,251 million a year earlier, but pro forma net earnings attributable to controlling interests fell to $324 million from $369 million. Acquisitions made during the first six months contributed $27 million of revenue but produced a combined net pretax loss of $14 million and an EBITDAC loss of $2 million. Brokerage also recorded $21 million of amortizable-asset impairment expense in the quarter.
Guidance
Management guidance was not provided in the supplied filing. The material gives no forward revenue, earnings, margin, capital-expenditure, acquisition or segment outlook ranges, and therefore there is no current guide to compare with a prior guide. The filing cautions that quarterly results are not necessarily indicative of subsequent quarters or the full year. It reports $965 million of remaining performance obligations at June 30, 2026, with $765 million expected to be recognized during the remaining six months of 2026, but this is a disclosure of contracted obligations rather than management guidance. No assumptions or explicit forecast caveats beyond the filing’s standard qualification were supplied.
What drove it
- Brokerage backlog — Brokerage accounted for $757 million of deferred revenue and $665 million of the $765 million of remaining performance obligations scheduled for recognition in the remaining six months of 2026.
- Risk management — Risk management had $208 million of deferred revenue at June 30, 2026, including $100 million of remaining performance obligations expected to be recognized during the remaining six months of 2026.
- Acquisition activity — The company completed 16 acquisitions during the first six months for a total recorded purchase price of $664 million, with annualized acquired revenues of approximately $122 million.
- Acquisition contribution — The 2026 acquisitions contributed $27 million of revenue for the six-month period but generated a combined net pretax loss of $14 million and an EBITDAC loss of $2 million.
- Corporate debt — Corporate and other debt was $13,732 million at June 30, 2026, compared with $13,099 million at December 31, 2025.
Watch items
- Net income fell to $0.32 billion from $0.37 billion in Q2 FY2025 despite higher revenue.
- The brokerage segment recorded $21 million of amortizable-asset impairment expense during the quarter, following $22 million during the first six months.
- The 2026 acquisitions generated a combined net pretax loss of $14 million and EBITDAC loss of $2 million during the first six months, creating near-term integration and profitability pressure.
- Corporate and other debt increased to $13,732 million from $13,099 million at December 31, 2025, while $514 million of acquisition earnout obligations was recorded at fair value.
