Arthur J. Gallagher & Co. (NYSE: AJG) reported first‑quarter 2026 revenue of $4.76 billion, up 28% year‑over‑year, and adjusted earnings per share of $4.47, beating consensus estimates of $4.43. Revenue before reimbursements was $4.716 billion, slightly below the analyst consensus of $4.781 billion, while the EPS beat was $0.04 or 0.9% above expectations.
The 28% revenue growth was driven by a 5% organic increase in the combined brokerage and risk‑management segments and a 23% contribution from acquisitions, largely from the AssuredPartners deal. Brokerage revenue rose to $4.293 billion from $3.314 billion a year earlier, while risk‑management revenue grew to $428 million from $374 million. Organic growth in brokerage was 5% and in risk management 10%.
Adjusted EBITDAC grew 18% to $2.15 billion, marking the 24th consecutive quarter of double‑digit growth, and operating margin expanded 70 basis points to 22.3%. The margin lift was supported by disciplined cost controls and technology investments, offsetting integration spending from the AssuredPartners acquisition.
J. Patrick Gallagher, Jr., Chairman and CEO, said, "We had a terrific first quarter! For our combined brokerage and risk management segments, our two‑pronged revenue growth strategy – growing both organically and through acquisitions – delivered revenue growth of 28% in the quarter. Organic growth was 5%, and M&A contributed 23%, driven by strong results from AssuredPartners." He added, "Our organic growth of 5% reflected strong client retention, disciplined execution, and the benefit of our diversified platform. Net earnings increased 12%, and adjusted EBITDAC grew 18%, marking our 24th consecutive quarter of double‑digit adjusted EBITDAC growth." The CEO also noted, "This gives us confidence in the durability of our results and provides further confidence in our 2026 full‑year organic growth outlook of 6%."
Investors responded positively to the EPS beat, while the slight revenue miss tempered enthusiasm. The company reiterated its full‑year 2026 organic growth target of 6% and maintained guidance for adjusted operating income and free cash flow, signaling confidence in its execution strategy.
Headwinds include moderating property pricing, but the company offset these with strength in casualty, benefits, and reinsurance lines. The AssuredPartners integration continues to progress, with a revised synergy target of $300 million by early 2028, and the company has added 40 term sheets to its M&A pipeline, underscoring its commitment to growth through strategic acquisitions.
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