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

ROLLING MEADOWS, Ill., April 30, 2026 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended March 31, 2026. Management will host a webcast conference call to discuss these results on Thursday, April 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 8.

Summary of Financial Results - First Quarter

Revenues Before

Reimbursements

Net Earnings (Loss)

EBITDAC

Diluted Net Earnings

(Loss) Per Share

Segment

1st Q 26

1st Q 25

1st Q 26

1st Q 25

1st Q 26

1st Q 25

1st Q 26

1st Q 25

(in millions)

Brokerage, as reported

$ 4,293

$ 3,314

$ 913

$ 816

$ 1,562

$ 1,351

$ 3.51

$ 3.13

Net (gains) on divestitures

(7)

(6)

(5)

(4)

(7)

(6)

(0.02)

Acquisition integration

–

0.25

0.13

Workforce and lease termination

–

0.08

0.05

Acquisition related adjustments

–

0.15

0.09

Amortization of intangible assets

–

201

152

–

0.77

0.59

Effective income tax rate impact

–

Levelized foreign currency translation

–

0.05

Brokerage, as adjusted

4,286

3,365

1,233

1,050

1,719

1,456

4.74

4.02

Risk Management, as reported

428

374

0.19

0.16

Acquisition integration

–

Workforce and lease termination

–

0.01

Acquisition related adjustments

–

0.02

–

Amortization of intangible assets

–

0.02

Levelized foreign currency translation

–

Risk Management, as adjusted

428

381

0.23

0.19

Corporate, as reported

(5)

–

(140)

(148)

(91)

(122)

(0.54)

(0.57)

Transaction-related costs

–

0.02

0.08

Legal & tax related

–

Clean energy-related

–

0.02

–

Corporate, as adjusted

–

(130)

(128)

(61)

(99)

(0.50)

(0.49)

Total Company, as reported

$ 4,716

$ 3,688

$ 823

$ 709

$ 1,557

$ 1,301

$ 3.16

$ 2.72

Total Company, as adjusted

$ 4,714

$ 3,746

$ 1,164

$ 972

$ 1,752

$ 1,435

$ 4.47

$ 3.72

Total Brokerage & Risk Management, as reported

$ 4,721

$ 3,688

$ 963

$ 857

$ 1,648

$ 1,423

$ 3.70

$ 3.29

Total Brokerage & Risk Management, as adjusted

$ 4,714

$ 3,746

$ 1,294

$ 1,100

$ 1,813

$ 1,534

$ 4.97

$ 4.21

First quarter 2025 reported and adjusted amounts for the Brokerage Segment include approximately $143 million of incremental interest income, or approximately 41 cents after-tax, earned on the cash proceeds held to fund the AssuredPartners acquisition.

For first quarter 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $431 million, $15 million and $30 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $111 million, $4 million and ($20) million, respectively, relating to these adjustments. A detailed reconciliation is shown on pages 16 and 17.

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"We had a terrific first quarter!" said J. Patrick Gallagher, Jr., Chairman and CEO. "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. 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.

"Our results reflect the strength and consistency of our business model across the dynamic insurance and economic environment. We remain focused on organic growth, strategic mergers and acquisitions, investment in productivity and quality, and maintaining our culture. We are also seeing the benefit of deeper collaboration across our P&C brokerage, benefits, and claims teams, supported by practical applications of AI, automation, and digitization that enhance how we serve and advocate for our clients. We believe Gallagher is well positioned to continue delivering strong growth and long‑term value for our shareholders."

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

Organic Revenues (Non-GAAP)

1st Q 2026

1st Q 2025

Base Commissions and Fees

Commissions and fees, as reported

$ 3,915

$ 2,869

Less commissions and fees from acquisitions, divested operations and other

(937)

(64)

Levelized foreign currency translation

–

Organic base commissions and fees

$ 2,978

$ 2,857

Organic change in base commissions and fees

4 %

Supplemental Revenues

Supplemental revenues, as reported

$ 180

$ 114

Less supplemental revenues from acquisitions, divested operations and other

(46)

–

Levelized foreign currency translation

–

Organic supplemental revenues

$ 134

$ 116

Organic change in supplemental revenues

16 %

Contingent Revenues

Contingent revenues, as reported

$ 115

$ 93

Less contingent revenues from acquisitions, divested operations and other

(19)

–

Levelized foreign currency translation

–

Organic contingent revenues

$ 96

$ 94

Organic change in contingent revenues

2 %

Total reported commissions, fees, supplemental

revenues and contingent revenues

$ 4,210

$ 3,076

Less commissions, fees, supplemental revenues and contingent revenues from acquisitions, divested operations and other

(1,002)

(64)

Levelized foreign currency translation

–

Total organic commissions, fees, supplemental revenues and contingent revenues

$ 3,208

$ 3,067

Total organic change

5 %

Acquisition Activity

1st Q 2026

1st Q 2025

Number of acquisitions closed *

Estimated annualized revenues acquired (in millions)

$ 49

$ 63

In the first quarter of 2026 and 2025, Gallagher issued 76,000 shares and 49,000 shares, respectively, of its common stock 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 8 of 17.

Compensation Expense and Ratios

1st Q 2026

1st Q 2025

Compensation expense, as reported

$ 2,211

$ 1,617

Acquisition integration

(37)

(28)

Workforce and lease termination related charges

(24)

(16)

Acquisition related adjustments

(50)

(30)

Levelized foreign currency translation

–

Compensation expense, as adjusted

$ 2,100

$ 1,572

Reported compensation expense ratios using reported revenues on page 1

51.5 %

48.8 %

Adjusted compensation expense ratios using adjusted revenues on page 1

49.0 %

46.7 %

Reported first quarter 2026 compensation expense ratio was 2.7 pts higher than first quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as first quarter 2025 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024. This ratio was also impacted by higher acquisition related adjustments and workforce termination costs, partially offset by savings from headcount controls.

Adjusted first quarter 2026 compensation expense ratio was 2.3 pts higher than first quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as first quarter 2025 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024. This ratio also benefited from savings from headcount controls.

Operating Expense and Ratios

1st Q 2026

1st Q 2025

Operating expense, as reported

$ 520

$ 346

Acquisition integration

(50)

(16)

Workforce and lease termination related charges

(3)

(2)

Levelized foreign currency translation

–

Operating expense, as adjusted

$ 467

$ 337

Reported operating expense ratios using reported revenues on page 1

12.1 %

10.5 %

Adjusted operating expense ratios using adjusted revenues on page 1

10.9 %

10.0 %

Reported first quarter 2026 operating expense ratio was 1.6 pts higher than first quarter 2025. This ratio was primarily impacted by higher integration and technology costs, partially offset by lower outside consulting fees. This ratio was also impacted by lower interest income revenues in the quarter, as first quarter 2025 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024.

Adjusted first quarter 2026 operating expense ratio was 0.9 pts higher than first quarter 2025. This ratio was primarily impacted by increased technology costs, partially offset by lower outside consulting fees. This ratio was also impacted by lower interest income revenues in the quarter, as first quarter 2025 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024.

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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 8 of 17.

Net Earnings to Adjusted EBITDAC (Non-GAAP)

1st Q 2026

1st Q 2025

Net earnings, as reported

$ 913

$ 816

Provision for income taxes

313

283

Depreciation

Amortization

271

204

Change in estimated acquisition earnout payables

EBITDAC

1,562

1,351

Net (gains) on divestitures

(7)

(6)

Acquisition integration

Workforce and lease termination related charges

Acquisition related adjustments

Levelized foreign currency translation

–

EBITDAC, as adjusted

$ 1,719

$ 1,456

Net earnings margin, as reported using reported revenues on page 1

21.3 %

24.6 %

EBITDAC margin, as adjusted using adjusted revenues on page 1

40.1 %

43.3 %

First quarter 2025 adjusted EBITDAC includes approximately $143 million of interest income revenues earned on the proceeds received in December 2024 related to the AssuredPartners Financing. 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 first quarter adjusted EBITDAC margin by approximately 3.6%.

Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

Organic Revenues (Non-GAAP)

1st Q 2026

1st Q 2025

Fees

$ 415

$ 363

International performance bonus fees

Fees as reported

420

365

Less fees from acquisitions, divestitures and other

(13)

(1)

Levelized foreign currency translation

–

Organic fees

407

371

Organic change in fees

10 %

Acquisition Activity

1st Q 2026

1st Q 2025

Number of acquisitions closed

Estimated annualized revenues acquired (in millions)

$ 10

$ 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 8 of 17.

Compensation Expense and Ratios

1st Q 2026

1st Q 2025

Compensation expense, as reported

$ 264

$ 231

Acquisition integration

–

(1)

Workforce and lease termination related charges

(1)

(3)

Acquisition related adjustments

(6)

–

Levelized foreign currency translation

–

Compensation expense, as adjusted

$ 257

$ 232

Reported compensation expense ratios using reported revenues (before reimbursements) on page 1

61.8 %

61.9 %

Adjusted compensation expense ratios using adjusted revenues (before reimbursements) on page 1

60.2 %

61.1 %

Reported first quarter 2026 compensation expense ratio was 0.1 pts lower than first quarter 2025. This ratio was primarily impacted by savings related to headcount controls, partially offset by higher acquisition related adjustments and increased incentive compensation.

Adjusted first quarter 2026 compensation expense ratio was 0.9 pts lower than first quarter 2025. This ratio was primarily impacted by savings related to headcount controls, partially offset by increased incentive compensation.

Operating Expense and Ratios

1st Q 2026

1st Q 2025

Operating expense, as reported

$ 78

$ 71

Acquisition integration

(1)

Levelized foreign currency translation

–

Operating expense, as adjusted

$ 77

$ 71

Reported operating expense ratios using reported revenues (before reimbursements) on page 1

18.4 %

19.0 %

Adjusted operating expense ratios using reported revenues (before reimbursements) on page 1

18.1 %

18.5 %

Reported first quarter 2026 operating expense ratio was 0.6 pts lower than first quarter 2025. Adjusted first quarter 2026 operating expense ratio was 0.4 pts lower than first quarter 2025. Both ratios were primarily impacted by savings in client-related expenses.

Net Earnings to Adjusted EBITDAC (Non-GAAP)

1st Q 2026

1st Q 2025

Net earnings, as reported

$ 50

$ 41

Provision for income taxes

Depreciation

Amortization

Change in estimated acquisition earnout payables

–

EBITDAC

Acquisition integration

Workforce and lease termination related charges

Acquisition related adjustments

–

Levelized foreign currency translation

–

EBITDAC, as adjusted

$ 94

$ 78

Net earnings margin, as reported using reported revenues (before reimbursements) on page 1

11.7 %

11.0 %

EBITDAC margin, as adjusted using adjusted revenues (before reimbursements) on page 1

21.7 %

20.4 %

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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 8 of 17.

1st 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

$ (158)

$ 41

$ (117)

$ (159)

$ 42

$ (117)

Clean energy-related

(7)

(5)

(2)

(1)

Acquisition costs (1)

(10)

(8)

(26)

(23)

Corporate (2)

(76)

(10)

(95)

(7)

Reported 1st quarter

(251)

111

(140)

(282)

134

(148)

Adjustments

Clean energy-related (3)

(2)

–

Transaction-related costs (1)

(1)

(3)

Legal and tax related (4)

(17)

–

Components of Corporate Segment,

Interest and banking costs

(158)

(117)

(159)

(117)

Clean energy-related

(2)

–

(2)

(1)

Acquisition costs

(3)

(2)

(3)

–

(3)

Corporate (2)

(58)

(9)

(95)

(7)

Adjusted 1st quarter

$ (221)

$ 91

$ (130)

$ (259)

$ 131

$ (128)

(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 August 2025 and April 2025, respectively.

(2)

Corporate pretax loss includes a net unrealized foreign exchange remeasurement gain of $6 million in first quarter 2026 and a net unrealized foreign exchange remeasurement loss of $(23) million in first quarter 2025.

(3)

Adjustments in first quarter 2026 include the write-down of a clean energy-related investment.

(4)

Adjustments in first quarter 2026 and 2025 include costs associated with legal and tax matters.

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Interest, banking costs and debt - At March 31, 2026, Gallagher had $9,550 million of borrowings from public debt, $3,008 million of borrowings from private placements and $285 million of borrowings under its line of credit facility. In addition, Gallagher had $156 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 rate for the quarters ended March 31, 2026 and 2025 were 21.1% and 18.8%, 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 first quarter of 2026, Gallagher repurchased approximately 1.4 million shares of its common stock for approximately $310 million.

Webcast Conference Call - Gallagher will host a webcast conference call on Thursday, April 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.

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, trade disruptions; a recession or economic downturns; 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 our 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; 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 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 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.

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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 16 and 17 for a reconciliation of the adjustments made to income taxes.

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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:

Non-GAAP Earnings Measures

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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 4 and 5), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on page 1), for organic revenue measures (on pages 2 and 4, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 3, 4 and 5 respectively, for the Brokerage and Risk Management segments).

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Arthur J. Gallagher & Co.

Reported Statement of Earnings and EBITDAC - 1st Quarter March 31,

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

Brokerage Segment

1st Q Ended

March 31, 2026

1st Q Ended

March 31, 2025

Commissions

$ 3,123

$ 2,249

Fees

792

620

Supplemental revenues

180

114

Contingent revenues

115

Interest income, premium finance revenues and other income

238

Total revenues

4,293

3,314

Compensation

2,211

1,617

Operating

520

346

Depreciation

Amortization

271

204

Change in estimated acquisition earnout payables

Expenses

3,067

2,215

Earnings before income taxes

1,226

1,099

Provision for income taxes

313

283

Net earnings

913

816

Net earnings attributable to noncontrolling interests

Net earnings attributable to controlling interests

$ 912

$ 811

EBITDAC

Net earnings

$ 913

$ 816

Provision for income taxes

313

283

Depreciation

Amortization

271

204

Change in estimated acquisition earnout payables

EBITDAC

$ 1,562

$ 1,351

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

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Arthur J. Gallagher & Co.

Reported Statement of Earnings and EBITDAC - 1st Quarter March 31,

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

Risk Management Segment

1st Q Ended

March 31, 2026

1st Q Ended

March 31, 2025

Fees

$ 420

$ 365

Interest income and other income

Revenues before reimbursements

428

374

Reimbursements

Total revenues

470

413

Compensation

264

231

Operating

Reimbursements

Depreciation

Amortization

Change in estimated acquisition earnout payables

—

Expenses

402

357

Earnings before income taxes

Provision for income taxes

Net earnings

Net earnings attributable to noncontrolling interests

–

Net earnings attributable to controlling interests

$ 50

$ 41

EBITDAC

Net earnings

$ 50

$ 41

Provision for income taxes

Depreciation

Amortization

Change in estimated acquisition earnout payables

–

EBITDAC

$ 86

$ 72

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

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Arthur J. Gallagher & Co.

Reported Statement of Earnings and EBITDAC - 1st Quarter March 31,

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

Corporate Segment

1st Q Ended

March 31, 2026

1st Q Ended

March 31, 2025

Other loss

$ (5)

$ –

Total revenues

(5)

–

Compensation

Operating

Interest

158

Depreciation

Expenses

246

282

Loss before income taxes

(251)

(282)

Benefit for income taxes

(111)

(134)

Net loss

(140)

(148)

Net loss attributable to noncontrolling interests

–

Net loss attributable to controlling interests

$ (140)

$ (148)

EBITDAC

Net loss

$ (140)

$ (148)

Benefit for income taxes

(111)

(134)

Interest

158

Depreciation

EBITDAC

$ (91)

$ (122)

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

(13 of 17)

Arthur J. Gallagher & Co.

Reported Statement of Earnings and EBITDAC - 1st Quarter March 31,

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

Total Company

1st Q Ended

March 31, 2026

1st Q Ended

March 31, 2025

Commissions

$ 3,123

$ 2,249

Fees

1,212

985

Supplemental revenues

180

114

Contingent revenues

115

Interest income, premium finance revenues and other income

247

Revenues before reimbursements

4,716

3,688

Reimbursements

Total revenues

4,758

3,727

Compensation

2,516

1,897

Operating

643

490

Reimbursements

Interest

158

Depreciation

Amortization

278

210

Change in estimated acquisition earnout payables

Expenses

3,715

2,854

Earnings before income taxes

1,043

873

Provision for income taxes

220

164

Net earnings

823

709

Net earnings attributable to noncontrolling interests

Net earnings attributable to controlling interests

$ 822

$ 704

Diluted net earnings per share

$ 3.16

$ 2.72

Dividends declared per share

$ 0.70

$ 0.65

EBITDAC

Net earnings

$ 823

$ 709

Provision for income taxes

220

164

Interest

158

Depreciation

Amortization

278

210

Change in estimated acquisition earnout payables

EBITDAC

$ 1,557

$ 1,301

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

(14 of 17)

Arthur J. Gallagher & Co.

Consolidated Balance Sheet

(Unaudited - in millions except per share data)

March 31, 2026

Dec 31, 2025

Cash and cash equivalents

$ 1,413

$ 1,396

Fiduciary assets (includes fiduciary cash of $7,069 in 2026 and $7,142 in 2025)

33,873

26,899

Accounts receivable, net

5,960

5,175

Other current assets

773

886

Total current assets

42,019

34,356

Fixed assets - net

762

789

Deferred income taxes

Other noncurrent assets

1,568

1,602

Right-of-use assets

585

598

Goodwill

22,958

22,593

Amortizable intangible assets - net

10,366

10,684

Total assets

$ 78,301

$ 70,665

Fiduciary liabilities

$ 33,873

$ 26,899

Accrued compensation and other current liabilities

4,051

4,017

Deferred revenue - current

809

737

Premium financing debt

156

226

Corporate related borrowings - current

640

Total current liabilities

30,529

32,519

Corporate related borrowings - noncurrent

12,077

12,104

Deferred revenue - noncurrent

177

155

Lease liabilities - noncurrent

499

515

Other noncurrent liabilities (includes tax credit carryforwards of $655 in 2026 and $713 in 2025)

2,217

2,025

Total liabilities

54,499

47,318

Stockholders' equity:

Common stock - issued and outstanding

257

Capital in excess of par value

17,638

17,783

Retained earnings

6,446

5,806

Accumulated other comprehensive loss

(566)

(525)

Total controlling interests stockholders' equity

23,775

23,321

Noncontrolling interests

Total stockholders' equity

23,802

23,347

Total liabilities and stockholders' equity

$ 78,301

$ 70,665

(15 of 17)

Arthur J. Gallagher & Co.

Other Information

(Unaudited - data is rounded where indicated)

OTHER INFORMATION

1st Q Ended

March 31, 2026

1st Q Ended

March 31, 2025

Basic weighted average shares outstanding (000s)

257,119

254,819

Diluted weighted average shares outstanding (000s)

259,816

259,421

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

256,942

256,053

Workforce at end of period (includes acquisitions):

Brokerage

55,607

43,120

Risk Management

11,122

10,594

Total Company

72,373

57,285

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

1st Q Ended March 31, 2026

Brokerage, as reported

$ 1,226

$ 313

$ 913

$ 1

$ 912

$ 3.51

Net (gains) on divestitures

(7)

(2)

(5)

–

(5)

(0.02)

Acquisition integration

–

0.25

Workforce and lease termination

–

0.08

Acquisition related adjustments

–

0.15

Amortization of intangible assets

271

201

–

201

0.77

Brokerage, as adjusted

$ 1,657

$ 424

$ 1,233

$ 1

$ 1,232

$ 4.74

Risk Management, as reported

$ 68

$ 18

$ 50

$ –

$ 50

$ 0.19

Acquisition integration

–

Workforce and lease termination

–

Acquisition related adjustments

–

0.02

Amortization of intangible assets

–

0.02

Risk Management, as adjusted

$ 83

$ 22

$ 61

$ –

$ 61

$ 0.23

Corporate, as reported

$ (251)

$ (111)

$ (140)

$ –

$ (140)

$ (0.54)

Transaction-related costs

–

0.02

Legal and tax related

–

Clean energy-related

–

0.02

Corporate, as adjusted

$ (221)

$ (91)

$ (130)

$ –

$ (130)

$ (0.50)

See "Information Regarding Non-GAAP Measures" beginning on page 8 of 17.

(16 of 17)

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

1st Q Ended March 31, 2025

Brokerage, as reported

$ 1,099

$ 283

$ 816

$ 5

$ 811

$ 3.13

Net (gains) on divestitures

(6)

(2)

(4)

–

(4)

(0.02)

Acquisition integration

–

0.13

Workforce and lease termination

–

0.05

Acquisition related adjustments

–

0.09

Amortization of intangible assets

204

152

–

152

0.59

Effective income tax impact

—

(1)

–

Levelized foreign currency translation

–

0.05

Brokerage, as adjusted

$ 1,409

$ 359

$ 1,050

$ 5

$ 1,045

$ 4.02

Risk Management, as reported

$ 56

$ 15

$ 41

$ –

$ 41

$ 0.16

Acquisition integration

–

Workforce and lease termination

–

0.01

Amortization of intangible assets

–

0.02

Levelized foreign currency translation

–

Risk Management, as adjusted

$ 68

$ 18

$ 50

$ –

$ 50

$ 0.19

Corporate, as reported

$ (282)

$ (134)

$ (148)

$ –

$ (148)

$ (0.57)

Transaction-related costs

–

0.08

Corporate, as adjusted

$ (259)

$ (131)

$ (128)

$ –

$ (128)

$ (0.49)

See "Information Regarding Non-GAAP Measures" on page 8 of 17.

Contact:

Sara Walsh

630-285-3593 or [email protected]

(17 of 17)

SOURCE Arthur J. Gallagher & Co.