Gallagher Q3 2026 Earnings: Revenue Rises 18% with 5% Organic Growth

Arthur J. Gallagher & Co. (NYSE: AJG) reported Q3 2026 revenue before reimbursements of $3.93 billion, up 18% from $3.33 billion, while GAAP diluted EPS rose to $1.55 from $1.04. Total-company net earnings increased to $406 million, and adjusted EBITDAC for the Brokerage and Risk Management segments grew 25% as acquisition contributions and cost savings outweighed lower interest income.

Core Earnings Results

Revenue growth was led by Brokerage, including the roll-in of AssuredPartners and other acquisitions. Organic growth was more moderate, with the combined Brokerage and Risk Management businesses reporting 5% organic growth.

Profit growth remained positive on both a GAAP and adjusted basis. The large difference between GAAP and adjusted earnings primarily reflected acquisition integration costs, intangible-asset amortization, workforce and lease charges, and other acquisition-related adjustments.

Adjusted figures are non-GAAP measures that exclude specified acquisition, restructuring, amortization, divestiture and other items.

Business and Segment Performance

Brokerage revenue increased 19% to $3.47 billion from $2.92 billion. Organic commissions, fees, supplemental revenue and contingent revenue grew 5%, including 4% growth in organic base commissions and fees and 14% growth in organic supplemental revenue. Organic contingent revenue was unchanged.

The difference between reported and organic growth shows the importance of acquisitions to the quarter. AssuredPartners closed in August 2025, so its roll-in contributed to the year-over-year comparison. Gallagher also completed five acquisitions during Q3 2026 with an estimated $102 million in annualized revenue.

Risk Management revenue before reimbursements increased 14% to $457 million. Organic fees grew 10%, while adjusted EBITDAC rose 17% to $104 million. Its adjusted EBITDAC margin increased to 22.8% from 21.9%.

Acquisition Costs Keep GAAP Earnings Below Adjusted Results

Gallagher reported adjusted net earnings of $782 million, almost twice its $406 million in GAAP net earnings. The difference was concentrated in Brokerage, which recorded $477 million of pretax adjustments during the quarter.

Those Brokerage adjustments included $284 million of intangible-asset amortization, $103 million of acquisition integration costs, $68 million of acquisition-related adjustments and $35 million of workforce and lease termination charges, partially offset by a $13 million divestiture gain. Risk Management and Corporate contributed another $26 million of net pretax adjustments.

The gap is important because acquisitions are supporting reported revenue growth while also generating integration costs and additional amortization. Adjusted results provide a view excluding those items, but GAAP earnings capture their current financial impact.

Profitability and Balance Sheet

Brokerage adjusted EBITDAC increased 25% to $1.22 billion, and its adjusted EBITDAC margin expanded to 35.3% from 33.3%. The adjusted compensation expense ratio fell to 51.3% from 53.0%, while the adjusted operating expense ratio declined to 13.4% from 13.7%. Gallagher attributed the improvement primarily to the AssuredPartners roll-in and compensation and operating expense savings from synergies.

These savings more than offset lower interest-related revenue. Brokerage interest income, premium-finance revenue and other income declined to $104 million from $157 million. The prior-year quarter included approximately $76 million of incremental interest income earned on cash raised to finance the AssuredPartners acquisition.

Cash and cash equivalents were $1.21 billion at September 30, 2026, compared with $1.40 billion at the end of 2025. Gallagher had $9.55 billion of public debt, $2.68 billion of private-placement borrowings and $630 million outstanding under its line of credit. Corporate interest and banking costs increased to $169 million from $162 million.

The company repurchased approximately 0.4 million shares for about $100 million during the quarter. Repurchases for the first nine months of 2026 totaled approximately 2.7 million shares for $580 million.

Management Commentary

Chairman and CEO J. Patrick Gallagher Jr. attributed the quarter to client retention, new business, growth in clients’ operations and acquisitions. Management also emphasized the benefits of its combined organic and acquisition-led strategy, noting that adjusted EBITDAC for Brokerage and Risk Management has now posted double-digit growth for 26 consecutive quarters.

Recent Insider Transactions

The supplied insider data shows 19 purchases totaling 93,800 shares and five sales totaling 31,500 shares over the last six months, resulting in net purchases of 62,300 shares. The detailed records also include gifts, stock awards and derivative conversions, which have different economic implications from open-market purchases or sales.

These transactions should be assessed individually; the data alone does not establish insiders’ views about Gallagher’s future performance.

Risks for Investors to Watch

• Dependence on acquisition-led growth: Reported revenue grew 18%, compared with 5% organic growth for the combined operating segments. Future growth therefore remains sensitive to acquisition contributions and successful integration.
• Integration costs and earnings comparability: Acquisition-related adjustments created a substantial gap between GAAP and adjusted earnings. Continued integration and amortization expenses could keep reported profitability below adjusted measures.
• Lower interest-related revenue: Brokerage interest income, premium-finance revenue and other income fell by $53 million year over year as the temporary benefit from AssuredPartners financing cash disappeared.
• Debt and interest costs: Gallagher carried substantial public, private-placement and line-of-credit borrowings, while quarterly corporate interest and banking costs increased to $169 million.
• Risk Management technology spending: Additional technology investments raised the segment’s adjusted operating expense ratio to 18.6% from 18.4%, partially offsetting compensation savings.

Summary

Gallagher’s Q3 2026 results combined acquisition-driven revenue growth with positive organic expansion and higher margins. AssuredPartners and other acquisitions widened the gap between reported and organic growth, but related cost savings helped both major operating segments improve adjusted profitability. Investors should monitor integration costs, the durability of organic growth, lower interest-related revenue and the balance between acquisition benefits and Gallagher’s debt and interest burden.