EX-99.1 2 a2ndquarter2026earningsrel.htm EX-99.1 Document Exhibit 99.1 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 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  $ 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-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 7 of 20 period ended June 30, 2026 and a net unrealized foreign exchan