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Arthur J. Gallagher (NYSE: AJG) posts 24% Q2 2026 revenue growth

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Arthur J. Gallagher & Co. reported strong top‑line growth for the quarter ended June 30, 2026. Total company revenues before reimbursements rose to $3,955 million from $3,179 million, while net earnings attributable to controlling interests were $324 million versus $368 million and diluted EPS was $1.25 versus $1.40. On an adjusted basis, net earnings increased to $734 million from $604 million and diluted EPS to $2.84 from $2.30. Across the Brokerage and Risk Management segments, revenue grew 24%, including 6% organic growth.

Brokerage revenues climbed to $3,502 million from $2,787 million, with total organic commissions, fees and related revenues up 5%, though reported net earnings declined to $450 million from $510 million as compensation and operating expense ratios increased, influenced by lower interest income and higher integration and technology costs. Risk Management revenues before reimbursements rose to $453 million from $392 million, with organic fees up 12% and adjusted EBITDAC margin improving to 22.3% from 20.9%.

For the six‑month period, total company revenues before reimbursements were $8,671 million versus $6,867 million, and adjusted diluted EPS rose to $7.31 from $6.04. At June 30, 2026, borrowings included $9,550 million of public debt, $2,683 million of private placements and $1,365 million under the line of credit, and the company had repurchased approximately 0.9 million shares for about $170 million in the quarter.

Positive

  • Adjusted earnings and EPS grew strongly, with total company adjusted net earnings rising to $734 million from $604 million and adjusted diluted EPS increasing to $2.84 from $2.30 in second quarter 2026.
  • Robust revenue expansion, as total revenues before reimbursements reached $3,955 million from $3,179 million and combined Brokerage and Risk Management revenue grew 24%, including 6% organic growth in the quarter.

Negative

  • GAAP profitability declined year over year, with total company net earnings attributable to controlling interests falling to $324 million from $368 million and diluted EPS decreasing to $1.25 from $1.40 in second quarter 2026.
  • Higher cost ratios in Brokerage, where the reported compensation expense ratio rose to 57.6% from 54.8% and the operating expense ratio to 15.3% from 13.2%, driven primarily by lower interest income and higher integration and technology costs described by the company.

Filing Explained

Q2 tax-free exchange acquisitions involved no direct common-stock issuance to sellers, while $134 million of premium-finance debt is collateralized.

This Form 8-K records the company’s completed second-quarter results and related Regulation FD materials; the filing also identifies $134 million of premium-finance debt that is fully collateralized and excluded from applicable debt-covenant calculations.

The release presents adjusted earnings and operating measures as non-GAAP information, intended to supplement—not replace—the reported GAAP results.

For the second-quarter tax-free exchange acquisitions, the company states that no shares of common stock were issued directly to sellers, so those disclosed acquisitions did not add shares through that stated mechanism.

The CFO Commentary made available with the filing includes estimates relating to 2026 and other future results; those estimates remain accompanying forward-looking material rather than completed quarterly results.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 revenues before reimbursements $3,955 million Total company, quarter ended June 30, 2026 versus $3,179 million in Q2 2025
Q2 2026 GAAP diluted EPS $1.25 Total company diluted net earnings per share versus $1.40 in Q2 2025
Q2 2026 adjusted diluted EPS $2.84 Diluted net earnings per share, as adjusted, versus $2.30 in Q2 2025
Six‑month 2026 revenues before reimbursements $8,671 million Total company for six months ended June 30, 2026 versus $6,867 million in 2025
Debt borrowings at June 30, 2026 $9,550M public; $2,683M private; $1,365M credit facility Borrowings outstanding in public debt, private placements and line of credit
Q2 2026 share repurchases 0.9 million shares for approximately $170 million Common stock repurchased during the second quarter of 2026
Combined segment revenue growth 24% revenue growth with 6% organic Brokerage and Risk Management segments in second quarter 2026
EBITDAC financial
"EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables"
EBITDAC is a version of operating profit that adds back interest, taxes, depreciation and amortization, and also removes the financial impact of COVID-19-related costs or disruptions. Investors use it to see what a company’s recurring earnings might look like without pandemic-driven one-time losses or unusual expenses, much like wiping mud off a car to judge its normal paint condition rather than its temporary dirty state.
organic revenue financial
"Organic revenue change measures the year-over-year percentage change in organic revenue"
Organic revenue is the sales a company generates from its regular business activities after stripping out extra effects like revenue added or lost from buying or selling other businesses and from currency swings. Think of it as measuring how much a store’s own customers increased spending, not growth from opening new stores or temporary price moves; investors use it to judge the true strength and sustainability of a company’s core demand.
AssuredPartners Financing financial
"interest income earned on the cash proceeds associated with the AssuredPartners Financing in December 2024"
Q2 2026 revenues before reimbursements $3,955 million up from $3,179 million in second quarter 2025
Q2 2026 net earnings attributable to controlling interests $324 million down from $368 million in second quarter 2025
Q2 2026 adjusted diluted EPS $2.84 up from $2.30 in second quarter 2025
Combined Brokerage and Risk Management revenue growth 24% revenue growth includes 6% organic growth in the second quarter of 2026
Guidance

Management’s CFO Commentary discusses estimates relating to 2026 and other future results.

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FAQ

What were Arthur J. Gallagher (AJG)'s Q2 2026 revenues and earnings?
Arthur J. Gallagher reported Q2 2026 revenues before reimbursements of $3,955 million and net earnings attributable to controlling interests of $324 million. Diluted EPS was $1.25, while adjusted diluted EPS, excluding specified items, was $2.84 for the quarter.

How did AJG's Q2 2026 results compare with Q2 2025?
Revenues before reimbursements increased to $3,955 million from $3,179 million, while net earnings attributable to controlling interests declined to $324 million from $368 million. Adjusted diluted EPS rose to $2.84 from $2.30, and combined Brokerage and Risk Management revenue grew 24% with 6% organic growth.

How did AJG's Brokerage and Risk Management segments perform in Q2 2026?
Brokerage revenues increased to $3,502 million from $2,787 million, with total organic commissions, fees and related revenues up 5%. Risk Management revenues before reimbursements rose to $453 million from $392 million, with organic fees up 12% and adjusted EBITDAC margin improving to 22.3% from 20.9%.

What were Arthur J. Gallagher (AJG)'s first-half 2026 results?
For the six months ended June 30, 2026, revenues before reimbursements were $8,671 million versus $6,867 million a year earlier. Net earnings attributable to controlling interests were $1,146 million, GAAP diluted EPS was $4.41, and adjusted diluted EPS increased to $7.31 from $6.04.

What is AJG's debt position as of June 30, 2026?
At June 30, 2026, Arthur J. Gallagher had $9,550 million of public debt, $2,683 million of private placement borrowings and $1,365 million outstanding under its line of credit. It also had $134 million of premium‑finance related debt collateralized by underlying insurance premiums.

Did Arthur J. Gallagher (AJG) repurchase shares in Q2 2026?
Yes. In second quarter 2026, Arthur J. Gallagher repurchased approximately 0.9 million shares of its common stock for about $170 million. These repurchases reduced diluted weighted average shares to 258.7 million compared with 260.4 million in Q2 2025.

What guidance or forward-looking information did AJG provide with this 8-K?
Alongside the earnings materials, AJG’s CFO Commentary includes estimates relating to 2026 and other future results. The company also discussed forward‑looking statements on items such as acquisition integration, expense trends, tax rates, market conditions and the economic environment.
0000354190false00003541902026-07-302026-07-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________
Form 8-K
__________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
July 30, 2026
Date of Report: (Date of earliest event reported)
__________________________
ARTHUR J. GALLAGHER & CO.
(Exact name of registrant as specified in its charter)
__________________________
Delaware1-0976136-2151613
(State or other jurisdiction of
incorporation or organization)		(Commission
File Number)		(I.R.S. Employer
Identification Number)
2850 Golf Road, Rolling Meadows, Illinois 60008, (630) 773-3800
(Address, including zip code and telephone number, including area code, of registrant’s principal executive offices)
Not Applicable
(Former name or former address, if changed since last report)
__________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
Symbol(s)		Name of each exchange
on which registered
Common Stock, $1.00 par valueAJGNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.   Results of Operations and Financial Condition
On July 30, 2026, Arthur J. Gallagher & Co. (the Company) issued a press release setting forth the Company’s financial results for the quarter ended June 30, 2026 (the Earnings Release). A copy of the Earnings Release is attached hereto as Exhibit 99.1.
Item 7.01.   Regulation FD Disclosure
In connection with the filing of the Earnings Release, the Company made materials entitled “Supplemental Quarterly Data” and “CFO Commentary” available through the investor relations page of its website. The CFO Commentary includes certain estimates relating to 2026 and other future results.
Item 9.01.   Financial Statements and Exhibits
99.1
Press release, dated July 30, 2026, issued by Arthur J. Gallagher & Co.
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ARTHUR J. GALLAGHER & CO.
Date: July 30, 2026By:
/s/ Douglas K. Howell
Douglas K. Howell
Vice President and Chief Financial Officer

Exhibit 99.1
image.jpg
NEWS RELEASE
ARTHUR J. GALLAGHER & CO. ANNOUNCES
SECOND QUARTER 2026 FINANCIAL RESULTS
ROLLING MEADOWS, IL, July 30, 2026 — 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 262nd Q 252nd Q 262nd Q 252nd Q 262nd Q 252nd Q 262nd 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.
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“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 266 Mths 256 Mths 266 Mths 256 Mths 266 Mths 256 Mths 266 Mths 25
(in millions)
(in millions)
(in millions)
Brokerage, as reported
$7,795 $6,101 $1,363 $1,326 $2,510 $948 $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-related5 — 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 262nd Q 256 Mths 266 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 262nd Q 256 Mths 266 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 Ratios2nd Q 262nd Q 256 Mths 266 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 262nd Q 256 Mths 266 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 262nd Q 256 Mths 266 Mths 25
Net earnings, as reported$450 $510 $1,363 $1,326 
Provision for income taxes154 176 467 459 
Depreciation45 38 94 71 
Amortization294 174 565 378 
Change in estimated acquisition earnout payables5 (6)21 9 
EBITDAC948 892 2,510 2,243 
Net (gains) on divestitures(8)(6)(15)(12)
Acquisition integration113 41 200 85 
Workforce and lease termination related charges40 37 67 55 
Acquisition related adjustments70 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 262nd Q 256 Mths 266 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 262nd Q 256 Mths 266 Mths 25
Number of acquisitions closed
1 — 2 1 
Estimated annualized revenues acquired (in millions)
$5 $— $15 $38 
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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 262nd Q 256 Mths 266 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 262nd Q 256 Mths 266 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 262nd Q 256 Mths 266 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 
$161 
Net earnings margin, as reported using reported revenues (before reimbursements) on pages 1 and 2
12.6%
11.0%
12.2%
11.0%
EBITDAC margin, as adjusted using adjusted revenues (before reimbursements) on pages 1 and 2
22.3%
20.9%
22.1%
20.7%
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Corporate Segment Reported GAAP to Adjusted Non-GAAP Reconciliation Information (dollars in millions):
See “Information Regarding Non-GAAP Measures” beginning on page 9 of 20.
2nd Quarter
20262025
Pretax
Loss		Income
Tax
Benefit		Net Earnings
(Loss)
Attributable to
Controlling
Interests		Pretax
Loss		Income
Tax
Benefit		Net Earnings
(Loss)
Attributable to
Controlling
Interests
Components of Corporate Segment, as reported
Interest and banking costs$(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
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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.

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.
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.
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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.
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:
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•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.
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
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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).
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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 Segment2nd 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 
Fees738 579 1,530 1,199 
Supplemental revenues141 103 321 217 
Contingent revenues91 73 206 166 
Interest income, premium finance revenues and other income90 224 173 462 
Total revenues3,502 2,787 7,795 6,101 
Compensation2,017 1,526 4,228 3,143 
Operating537 369 1,057 715 
Depreciation45 38 94 71 
Amortization294 174 565 378 
Change in estimated acquisition earnout payables5 (6)21 9 
Expenses2,898 2,101 5,965 4,316 
Earnings before income taxes604 686 1,830 1,785 
Provision for income taxes154 176 467 459 
Net earnings450 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 taxes154 176 467 459 
Depreciation45 38 94 71 
Amortization294 174 565 378 
Change in estimated acquisition earnout payables5 (6)21 9 
EBITDAC$948 $892 $2,510 $2,243 
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
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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 Segment2nd 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 income8 9 16 18 
Revenues before reimbursements453 392 881 766 
Reimbursements48 43 90 82 
Total revenues501 435 971 848 
Compensation274 244 538 475 
Operating83 73 161 144 
Reimbursements48 43 90 82 
Depreciation10 10 20 20 
Amortization7 6 14 12 
Change in estimated acquisition earnout payables1 1 2 1 
Expenses423 377 825 734 
Earnings before income taxes78 58 146 114 
Provision for income taxes21 15 39 30 
Net earnings57 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 taxes21 15 39 30 
Depreciation10 10 20 20 
Amortization7 6 14 12 
Change in estimated acquisition earnout payables1 1 2 1 
EBITDAC$96 $75 $182 $147 
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

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Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except share and per share data)
Corporate Segment2nd 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)— 
Compensation39 34 80 83 
Operating59 77 104 150 
Interest168 158 326 316 
Depreciation2 2 4 4 
Expenses268 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)
Interest168 158 326 316 
Depreciation2 2 4 4 
EBITDAC$(98)$(111)$(189)$(233)
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
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Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except share and per share data)
Total Company2nd 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 
Fees1,183 962 2,395 1,947 
Supplemental revenues141 103 321 217 
Contingent revenues91 73 206 166 
Interest income, premium finance revenues and other income98 233 184 480 
Revenues before reimbursements3,955 3,179 8,671 6,867 
Reimbursements48 43 90 82 
Total revenues4,003 3,222 8,761 6,949 
Compensation2,330 1,804 4,846 3,701 
Operating679 519 1,322 1,009 
Reimbursements48 43 90 82 
Interest168 158 326 316 
Depreciation57 50 118 95 
Amortization301 180 579 390 
Change in estimated acquisition earnout payables6 (5)23 10 
Expenses3,589 2,749 7,304 5,603 
Earnings before income taxes414 473 1,457 1,346 
Provision for income taxes90 105 310 269 
Net earnings324 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 taxes90 105 310 269 
Interest168 158 326 316 
Depreciation57 50 118 95 
Amortization301 180 579 390 
Change in estimated acquisition earnout payables6 (5)23 10 
EBITDAC$946 $856 $2,503 $2,157 
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
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Arthur J. Gallagher & Co.
Consolidated Balance Sheet
(Unaudited - in millions except per share data)
June 30, 2026Dec 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, net6,076 5,175 
Other current assets807 886 
Total current assets45,452 34,356 
Fixed assets - net765 789 
Deferred income taxes43 43 
Other noncurrent assets1,732 1,602 
Right-of-use assets578 598 
Goodwill23,026 22,593 
Amortizable intangible assets - net10,212 10,684 
Total assets$81,808 $70,665 
Fiduciary liabilities$37,183 $26,899 
Accrued compensation and other current liabilities3,548 4,017 
Deferred revenue - current788 737 
Premium financing debt134 226 
Corporate related borrowings - current1,520 640 
Total current liabilities43,173 32,519 
Corporate related borrowings - noncurrent11,955 12,104 
Deferred revenue - noncurrent177 155 
Lease liabilities - noncurrent497 515 
Other noncurrent liabilities (includes tax credit carryforwards of $628 in 2026 and $713 in 2025)2,259 2,025 
Total liabilities58,061 47,318 
Stockholders' equity:
Common stock - issued and outstanding256 257 
Capital in excess of par value17,567 17,783 
Retained earnings6,588 5,806 
Accumulated other comprehensive loss(694)(525)
Total controlling interests stockholders' equity23,717 23,321 
Noncontrolling interests30 26 
Total stockholders' equity23,747 23,347 
Total liabilities and stockholders' equity$81,808 $70,665 
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Arthur J. Gallagher & Co.
Other Information
(Unaudited - data is rounded where indicated)
OTHER INFORMATION2nd 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):
Brokerage56,202 *44,909 
Risk Management11,254 10,584 
Total Company73,329 *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 integration113 29 84 — 84 0.33 
Workforce and lease termination40 10 30 — 30 0.11 
Acquisition related adjustments66 17 49 — 49 0.19 
Amortization of intangible assets294 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 integration1 — 1 — 1 – 
Workforce and lease termination2 1 1 — 1 0.01 
Acquisition related adjustments2 — 2 — 2 0.01 
Amortization of intangible assets7 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 costs12 2 10 — 10 0.04 
Legal, tax and benefit plan related21 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 integration41 11 30 — 30 0.12 
Workforce and lease termination37 9 28 — 28 0.11 
Acquisition related adjustments33 8 25 — 25 0.09 
Amortization of intangible assets174 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 integration2 1 1 — 1 0.01 
Workforce and lease termination4 1 3 — 3 0.01 
Acquisition related adjustments1 – 1 — 1 — 
Amortization of intangible assets6 1 5 — 5 0.02 
Levelized foreign currency translation1 — 1 — 1 — 
Risk Management, as adjusted$72 $18 $54 $– $54 $0.20 
Corporate, as reported$(271)$(86)$(185)$— $(185)$(0.71)
Transaction-related costs29 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 integration200 51 149 — 149 0.57 
Workforce and lease termination67 17 50 — 50 0.19 
Acquisition related adjustments119 31 88 — 88 0.34 
Amortization of intangible assets565 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 integration2 — 2 — 2 0.01 
Workforce and lease termination3 1 2 — 2 0.01 
Acquisition related adjustments8 2 6 — 6 0.02 
Amortization of intangible assets14 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 costs19 3 16 — 16 0.06 
Legal, tax and benefit plan related39 22 17 — 17 0.07 
Clean energy-related5 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 sara_walsh@ajg.com
20 of 20

Source: View Original Filing on SEC EDGAR

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