Arthur J. Gallagher & Co. Announces Second Quarter 2026 Financial Results

ROLLING MEADOWS, Ill., July 30, 2026 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended June 30, 2026. Management will host a webcast conference call to discuss these results on Thursday, July 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to the call, and for printer-friendly formats of this release, the "CFO Commentary" and "Supplemental Quarterly Data," which may also be referenced during the call, please visit ajg.com/IR. These documents contain both GAAP and non-GAAP measures. Investors and other users of this information should read carefully the section entitled "Information Regarding Non-GAAP Measures" beginning on page 9.

Summary of Financial Results - Second Quarter

Revenues Before

Reimbursements

Net Earnings (Loss)

EBITDAC

Diluted Net Earnings

(Loss) Per Share

Segment

2nd Q 26

2nd Q 25

2nd Q 26

2nd Q 25

2nd Q 26

2nd Q 25

2nd Q 26

2nd Q 25

(in millions)

Brokerage, as reported

$ 3,502

$ 2,787

$ 450

$ 510

$ 948

$ 892

$ 1.74

$ 1.95

Net (gains) on divestitures

(8)

(6)

(5)

(8)

(6)

(0.02)

Acquisition integration

—

113

0.33

0.12

Workforce and lease termination

—

0.11

Acquisition related adjustments

—

0.19

0.09

Amortization of intangible assets

—

218

130

—

0.84

0.50

Levelized foreign currency translation

–

—

(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

0.22

0.16

Acquisition integration

—

–

0.01

Workforce and lease termination

—

0.01

Acquisition related adjustments

—

0.01

—

Amortization of intangible assets

—

0.02

Levelized foreign currency translation

—

Risk Management, as adjusted

453

397

101

0.26

0.20

Corporate, as reported

—

(183)

(185)

(98)

(111)

(0.71)

Transaction-related costs

—

0.04

0.09

Legal, tax and benefit plan related

—

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 26

6 Mths 25

6 Mths 26

6 Mths 25

6 Mths 26

6 Mths 25

6 Mths 26

6 Mths 25

(in millions)

Brokerage, as reported

$ 7,795

$ 6,101

$ 1,363

$ 1,326

$ 2,510

$ 2,243

$ 5.25

$ 5.08

Net (gains) on divestitures

(15)

(12)

(11)

(9)

(15)

(12)

(0.04)

Acquisition integration

—

149

200

0.57

0.24

Workforce and lease termination

—

0.19

0.16

Acquisition related adjustments

—

120

0.34

0.19

Amortization of intangible assets

—

419

282

—

1.62

1.09

Effective income tax rate impact

—

Levelized foreign currency translation

—

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

182

147

0.41

0.32

Acquisition integration

—

0.01

Workforce and lease termination

—

0.01

0.02

Acquisition related adjustments

—

0.02

—

Amortization of intangible assets

—

0.04

Levelized foreign currency translation

—

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

—

0.06

0.17

Legal, tax and benefit plan related

—

0.07

—

Clean energy-related

—

0.01

—

Corporate, as adjusted

—

(287)

(289)

(126)

(181)

(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.

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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

—

Organic base commissions and fees

$ 2,405

$ 2,306

$ 5,383

$ 5,163

Organic change in base commissions and fees

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

—

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

—

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

—

Total organic commissions, fees, supplemental revenues and contingent revenues

$ 2,596

$ 2,482

$ 5,804

$ 5,549

Total organic change

5 %

Acquisition Activity

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Number of acquisitions closed *

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.

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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

—

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

—

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.

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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

Amortization

294

174

565

378

Change in estimated acquisition earnout payables

(6)

EBITDAC

948

892

2,510

2,243

Net (gains) on divestitures

(8)

(6)

(15)

(12)

Acquisition integration

113

200

Workforce and lease termination related charges

Acquisition related adjustments

120

Levelized foreign currency translation

—

(9)

—

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

Fees as reported

445

383

865

748

Less fees from acquisitions, divestitures and other

(11)

(1)

(24)

(2)

Levelized foreign currency translation

—

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

—

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 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)

(6)

Acquisition related adjustments

(2)

(1)

(8)

(1)

Levelized foreign currency translation

—

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)

(2)

Workforce and lease termination related charges

—

(1)

—

(1)

Levelized foreign currency translation

—

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

Depreciation

Amortization

Change in estimated acquisition earnout payables

EBITDAC

182

147

Acquisition integration

Workforce and lease termination related charges

Acquisition related adjustments

Levelized foreign currency translation

—

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

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)

(2)

—

(2)

Acquisition costs (1)

(18)

(15)

(34)

(28)

Corporate (2)

(79)

(42)

(76)

(37)

Reported 2nd quarter

(268)

(183)

(271)

(185)

Adjustments

Transaction-related costs (1)

(2)

(5)

Legal and tax related (4)

(3)

—

Benefit plan related (5)

(2)

—

Components of Corporate Segment, as adjusted

Interest and banking costs

(169)

(125)

(159)

(118)

Clean energy-related

(2)

(1)

(2)

—

(2)

Acquisition costs

(6)

(5)

(4)

Corporate (2)

(58)

(26)

(76)

(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)

(6)

(4)

(3)

Acquisition costs (1)

(28)

(23)

(60)

(51)

Corporate (2)

(155)

103

(52)

(171)

127

(44)

Reported six months

(519)

196

(323)

(553)

220

(333)

Adjustments

Clean energy-related (3)

(2)

—

Transaction-related costs (1)

(3)

(8)

Legal and tax related (4)

(20)

—

Benefit plan related (5)

(2)

—

Components of Corporate Segment, as adjusted

Interest and banking costs

(327)

(242)

(318)

(235)

Clean energy-related

(4)

(3)

(4)

(3)

Acquisition costs

(9)

(7)

(8)

(7)

Corporate (2)

(116)

(35)

(171)

127

(44)

Adjusted six months

$ (456)

$ 169

$ (287)

$ (501)

$ 212

$ (289)

(1)

Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees associated with completed, future and terminated acquisitions. Adjustments primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively.

(2)

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

(3)

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

(4)

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

(5)

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

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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.

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Information Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipates," "believes," "contemplates," "see," "should," "could," "will," "estimates," "expects," "intends," "plans" and variations thereof and similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, anticipated future results or performance of any segment or Gallagher as a whole; acquisition rollover revenues; statements regarding changes in its expenses in the next several quarters; future capital structure changes, including debt levels from time to time; the impact of foreign currency on its results; integration costs; workforce and lease termination costs; amortization of intangibles; depreciation; change in estimated earnout payables; effective tax rate; earnings from continuing operations attributable to noncontrolling interests; the premium rate environment and the state of insurance markets; and the economic environment.

Gallagher's actual results may differ materially from those contemplated by the forward-looking statements. Readers are therefore cautioned against relying on any of the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.

Important factors that could cause actual results to differ materially from those in the forward-looking statements include global economic and geopolitical events, including, among others, fluctuations in interest and inflation rates; protectionism such as tariffs and trade disruptions; a recession or economic downturn; a U.S. government shutdown; political instability, such as global armed conflicts; its actual acquisition opportunities, including closing risks related to pending acquisitions; risks with respect to larger acquisitions such as AssuredPartners, the largest acquisition in its history, including risks related to its ability to successfully integrate operations and the possibility that its assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize expected benefits of such acquisitions; damage to its reputation due to its failure to uphold its culture or negative perceptions or publicity, including as a result of amplifying effects that the Internet and social media may have on such perceptions; reputational issues related to its sustainability-related activities, including potential backlash against such activities, and compliance with increasingly complex climate- and other sustainability-related regulations, such as risks related to "greenwashing" and "greenhushing"; cybersecurity-related risks; its ability to apply technology, data analytics and artificial intelligence effectively to its business and potential increased costs resulting from such activities; risks associated with the use of artificial intelligence in its business operations, including regulatory, data privacy, cybersecurity, errors and omissions, intellectual property and competition risks; risks related to "AI-washing"; heightened competition for talent and increased compensation costs; disasters or other business interruptions, including with respect to its operations in India; risks related to its international operations, such as those related to regulatory, tax, sustainability, sanctions and anti-corruption compliance and increased scrutiny of the use of off-shore centers of excellence such as those we operate in India and elsewhere; changes to data privacy and protection laws and regulations; foreign exchange rates; changes in accounting standards; changes in premium rates and in insurance markets generally, including the impact of large natural or man-made events; tax, environmental or other compliance risks related to its legacy clean energy investments; its inability to receive dividends or other distributions from subsidiaries; and changes in the insurance brokerage industry's competitive landscape.

Please refer to Gallagher's filings with the Securities and Exchange Commission, including Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and its subsequently filed Quarterly Reports on Form 10-Q for a more detailed discussion of these and other factors that could impact its forward-looking statements. Any forward-looking statement made by Gallagher in this press release speaks only as of the date on which it is made. Except as required by applicable law, Gallagher does not undertake to update the information included herein or the corresponding earnings release posted on Gallagher's website.

Information Regarding Non-GAAP Measures

In addition to reporting financial results in accordance with GAAP, this press release provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this press release. Gallagher's management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher's results of operations and financial condition or because they provide investors with measures that its chief operating decision maker uses when reviewing Gallagher's performance. See further below for definitions and additional reasons each of these measures is useful to investors. Gallagher's industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in its most recent Proxy Statement, Gallagher makes determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC.

(9 of 20)

Adjusted Non-GAAP presentation - Gallagher believes that the adjusted non-GAAP presentations of the current and prior period information presented in this earnings release provide stockholders and other interested persons with useful information regarding certain financial metrics of Gallagher that may assist such persons in analyzing Gallagher's operating results as they develop a future earnings outlook for Gallagher. The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period. See pages 17, 18, 19 and 20 for a reconciliation of the adjustments made to income taxes.

Adjusted measures - Revenues (for the Brokerage segment), revenues before reimbursements (for the Risk Management segment), net earnings, compensation expense and operating expense, respectively, each adjusted to exclude the following, as applicable:

Adjusted ratios - Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues.

(10 of 20)

Non-GAAP Earnings Measures

Organic Revenues (a non-GAAP measure) - Organic revenue change measures the year-over-year percentage change in organic revenue. For the Brokerage segment, organic revenue consists of base commission and fee revenues, supplemental revenues and contingent revenues, excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations, which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products, in each year presented. Such revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of Gallagher in both the current and prior period. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation; revenue from certain large life product sales within Gallagher's Executive Life and Benefits practice group (which are typically large singular transactions with a high degree of variability in amount and timing); and revenue attributable to changes in assumptions used to calculate estimated deferred revenues, which impact the quarterly timing of revenues during the annual contract period. For the Risk Management segment, organic revenue consists of fee revenues excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each period presented. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation.

These revenue items are excluded from organic revenues in order to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond, as well as eliminating the impact of the items that have a high degree of variability. Gallagher has historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments. Gallagher also believes that using this non-GAAP measure allows readers of its financial statements to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner.

Reconciliation of Non-GAAP Information Presented to GAAP Measures - This press release includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages 5 and 6), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on pages 1 and 2), for organic revenue measures (on pages 3 and 5, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 4, 5 and 6 respectively, for the Brokerage and Risk Management segments).

(11 of 20)

Arthur J. Gallagher & Co.

Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,

(Unaudited - in millions except per share, percentage and workforce data)

Brokerage Segment

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Commissions

$ 2,442

$ 1,808

$ 5,565

$ 4,057

Fees

738

579

1,530

1,199

Supplemental revenues

141

103

321

217

Contingent revenues

206

166

Interest income, premium finance revenues and other income

224

173

462

Total revenues

3,502

2,787

7,795

6,101

Compensation

2,017

1,526

4,228

3,143

Operating

537

369

1,057

715

Depreciation

Amortization

294

174

565

378

Change in estimated acquisition earnout payables

(6)

Expenses

2,898

2,101

5,965

4,316

Earnings before income taxes

604

686

1,830

1,785

Provision for income taxes

154

176

467

459

Net earnings

450

510

1,363

1,326

Net earnings attributable to noncontrolling interests

—

Net earnings attributable to controlling interests

$ 450

$ 510

$ 1,362

$ 1,321

EBITDAC

Net earnings

$ 450

$ 510

$ 1,363

$ 1,326

Provision for income taxes

154

176

467

459

Depreciation

Amortization

294

174

565

378

Change in estimated acquisition earnout payables

(6)

EBITDAC

$ 948

$ 892

$ 2,510

$ 2,243

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

(12 of 20)

Arthur J. Gallagher & Co.

Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,

(Unaudited - in millions except per share, percentage and workforce data)

Risk Management Segment

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Fees

$ 445

$ 383

$ 865

$ 748

Interest income and other income

Revenues before reimbursements

453

392

881

766

Reimbursements

Total revenues

501

435

971

848

Compensation

274

244

538

475

Operating

161

144

Reimbursements

Depreciation

Amortization

Change in estimated acquisition earnout payables

Expenses

423

377

825

734

Earnings before income taxes

146

114

Provision for income taxes

Net earnings

107

Net earnings attributable to noncontrolling interests

—

Net earnings attributable to controlling interests

$ 57

$ 43

$ 107

$ 84

EBITDAC

Net earnings

$ 57

$ 43

$ 107

$ 84

Provision for income taxes

Depreciation

Amortization

Change in estimated acquisition earnout payables

EBITDAC

$ 96

$ 75

$ 182

$ 147

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

(13 of 20)

Arthur J. Gallagher & Co.

Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,

(Unaudited - in millions except share and per share data)

Corporate Segment

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Other loss

$ —

$ (5)

$ —

Total revenues

—

(5)

—

Compensation

Operating

104

150

Interest

168

158

326

316

Depreciation

Expenses

268

271

514

553

Loss before income taxes

(268)

(271)

(519)

(553)

Benefit for income taxes

(85)

(86)

(196)

(220)

Net loss

(183)

(185)

(323)

(333)

Net loss attributable to noncontrolling interests

—

Net loss attributable to controlling interests

$ (183)

$ (185)

$ (323)

$ (333)

EBITDAC

Net loss

$ (183)

$ (185)

$ (323)

$ (333)

Benefit for income taxes

(85)

(86)

(196)

(220)

Interest

168

158

326

316

Depreciation

EBITDAC

$ (98)

$ (111)

$ (189)

$ (233)

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

(14 of 20)

Arthur J. Gallagher & Co.

Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,

(Unaudited - in millions except share and per share data)

Total Company

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Commissions

$ 2,442

$ 1,808

$ 5,565

$ 4,057

Fees

1,183

962

2,395

1,947

Supplemental revenues

141

103

321

217

Contingent revenues

206

166

Interest income, premium finance revenues and other income

233

184

480

Revenues before reimbursements

3,955

3,179

8,671

6,867

Reimbursements

Total revenues

4,003

3,222

8,761

6,949

Compensation

2,330

1,804

4,846

3,701

Operating

679

519

1,322

1,009

Reimbursements

Interest

168

158

326

316

Depreciation

118

Amortization

301

180

579

390

Change in estimated acquisition earnout payables

(5)

Expenses

3,589

2,749

7,304

5,603

Earnings before income taxes

414

473

1,457

1,346

Provision for income taxes

105

310

269

Net earnings

324

368

1,147

1,077

Net earnings attributable to noncontrolling interests

—

Net earnings attributable to controlling interests

$ 324

$ 368

$ 1,146

$ 1,072

Diluted net earnings per share

$ 1.25

$ 1.40

$ 4.41

$ 4.12

Dividends declared per share

$ 0.70

$ 0.65

$ 1.40

$ 1.30

EBITDAC

Net earnings

$ 324

$ 368

$ 1,147

$ 1,077

Provision for income taxes

105

310

269

Interest

168

158

326

316

Depreciation

118

Amortization

301

180

579

390

Change in estimated acquisition earnout payables

(5)

EBITDAC

$ 946

$ 856

$ 2,503

$ 2,157

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

(15 of 20)

Arthur J. Gallagher & Co.

Consolidated Balance Sheet

(Unaudited - in millions except per share data)

June 30, 2026

Dec 31, 2025

Cash and cash equivalents

$ 1,386

$ 1,396

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

37,183

26,899

Accounts receivable, net

6,076

5,175

Other current assets

807

886

Total current assets

45,452

34,356

Fixed assets - net

765

789

Deferred income taxes

Other noncurrent assets

1,732

1,602

Right-of-use assets

578

598

Goodwill

23,026

22,593

Amortizable intangible assets - net

10,212

10,684

Total assets

$ 81,808

$ 70,665

Fiduciary liabilities

$ 37,183

$ 26,899

Accrued compensation and other current liabilities

3,548

4,017

Deferred revenue - current

788

737

Premium financing debt

134

226

Corporate related borrowings - current

1,520

640

Total current liabilities

43,173

32,519

Corporate related borrowings - noncurrent

11,955

12,104

Deferred revenue - noncurrent

177

155

Lease liabilities - noncurrent

497

515

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

2,259

2,025

Total liabilities

58,061

47,318

Stockholders' equity:

Common stock - issued and outstanding

256

257

Capital in excess of par value

17,567

17,783

Retained earnings

6,588

5,806

Accumulated other comprehensive loss

(694)

(525)

Total controlling interests stockholders' equity

23,717

23,321

Noncontrolling interests

Total stockholders' equity

23,747

23,347

Total liabilities and stockholders' equity

$ 81,808

$ 70,665

(16 of 20)

Arthur J. Gallagher & Co.

Other Information

(Unaudited - data is rounded where indicated)

OTHER INFORMATION

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Basic weighted average shares outstanding (000s)

256,649

256,260

256,884

255,540

Diluted weighted average shares outstanding (000s)

258,685

260,435

259,260

259,929

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

256,341

256,363

Workforce at end of period (includes acquisitions):

Brokerage

56,202

44,909

Risk Management

11,254

10,584

Total Company

73,329

59,291

The acquisition of AssuredPartners added approximately 10,900 employees in August 2025.

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited)

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

2nd Q Ended June 30, 2026

Brokerage, as reported

$ 604

$ 154

$ 450

$ —

$ 450

$ 1.74

Net (gains) on divestitures

(8)

(2)

(6)

—

(6)

(0.02)

Acquisition integration

113

—

0.33

Workforce and lease termination

—

0.11

Acquisition related adjustments

—

0.19

Amortization of intangible assets

294

218

—

218

0.84

Brokerage, as adjusted

$ 1,109

$ 284

$ 825

$ —

$ 825

$ 3.19

Risk Management, as reported

$ 78

$ 21

$ 57

$ —

$ 57

$ 0.22

Acquisition integration

—

–

Workforce and lease termination

—

0.01

Acquisition related adjustments

—

0.01

Amortization of intangible assets

—

0.02

Risk Management, as adjusted

$ 90

$ 24

$ 66

$ —

$ 66

$ 0.26

Corporate, as reported

$ (268)

$ (85)

$ (183)

$ —

$ (183)

$ (0.71)

Transaction-related costs

—

0.04

Legal, tax and benefit plan related

—

0.06

Corporate, as adjusted

$ (235)

$ (78)

$ (157)

$ —

$ (157)

$ (0.61)

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

(17 of 20)

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

2nd Q Ended June 30, 2025

Brokerage, as reported

$ 686

$ 176

$ 510

$ —

$ 510

$ 1.95

Net (gains) on divestitures

(6)

(1)

(5)

—

(5)

(0.02)

Acquisition integration

—

0.12

Workforce and lease termination

—

0.11

Acquisition related adjustments

—

0.09

Amortization of intangible assets

174

130

—

130

0.50

Levelized foreign currency translation

(10)

(3)

(7)

—

(7)

(0.03)

Brokerage, as adjusted

$ 955

$ 244

$ 711

$ —

$ 711

$ 2.72

Risk Management, as reported

$ 58

$ 15

$ 43

$ —

$ 43

$ 0.16

Acquisition integration

—

0.01

Workforce and lease termination

—

0.01

Acquisition related adjustments

–

—

Amortization of intangible assets

—

0.02

Levelized foreign currency translation

—

Risk Management, as adjusted

$ 72

$ 18

$ 54

$ –

$ 54

$ 0.20

Corporate, as reported

$ (271)

$ (86)

$ (185)

$ —

$ (185)

$ (0.71)

Transaction-related costs

—

0.09

Corporate, as adjusted

$ (242)

$ (81)

$ (161)

$ –

$ (161)

$ (0.62)

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

(18 of 20)

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

6 Mths Ended June 30, 2026

Brokerage, as reported

$ 1,830

$ 467

$ 1,363

$ 1

$ 1,362

$ 5.25

Net (gains) on divestitures

(15)

(4)

(11)

—

(11)

(0.04)

Acquisition integration

200

149

—

149

0.57

Workforce and lease termination

—

0.19

Acquisition related adjustments

119

—

0.34

Amortization of intangible assets

565

146

419

—

419

1.62

Brokerage, as adjusted

$ 2,766

$ 708

$ 2,058

$ 1

$ 2,057

$ 7.93

Risk Management, as reported

$ 146

$ 39

$ 107

$ —

$ 107

$ 0.41

Acquisition integration

—

0.01

Workforce and lease termination

—

0.01

Acquisition related adjustments

—

0.02

Amortization of intangible assets

—

0.04

Risk Management, as adjusted

$ 173

$ 46

$ 127

$ —

$ 127

$ 0.49

Corporate, as reported

$ (519)

$ (196)

$ (323)

$ —

$ (323)

$ (1.25)

Transaction-related costs

—

0.06

Legal, tax and benefit plan related

—

0.07

Clean energy-related

—

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

—

0.24

Workforce and lease termination

—

0.16

Acquisition related adjustments

—

0.19

Amortization of intangible assets

378

282

—

282

1.09

Effective income tax impact

—

(1)

—

Levelized foreign currency translation

—

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

—

0.01

Workforce and lease termination

—

0.02

Acquisition related adjustments

—

Amortization of intangible assets

—

0.04

Levelized foreign currency translation

—

0.01

Risk Management, as adjusted

$ 140

$ 36

$ 104

$ —

$ 104

$ 0.40

Corporate, as reported

$ (553)

$ (220)

$ (333)

$ —

$ (333)

$ (1.28)

Transaction-related costs

—

0.17

Corporate, as adjusted

$ (501)

$ (212)

$ (289)

$ —

$ (289)

$ (1.11)

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

Contact:

Sara Walsh

630-285-3593 or [email protected]

(20 of 20)

SOURCE Arthur J. Gallagher & Co.