Arthur J Gallagher & Stock Earnings Reports

Arthur J. Gallagher reported a very strong Q1 2026: combined Brokerage and Risk Management revenue grew 28% (5% organic, 23% M&A), driven largely by AssuredPartners; adjusted revenues, EBITDAC and EPS were up ~30%. Brokerage revenue rose 30% (organic 5%) with strength across retail P/C, wholesale, reinsurance and benefits. Gallagher Bassett (Risk Management) grew revenue 14% (organic 10%) with strong new business and retention and 130 bps EBITDAC margin improvement. The company reiterated its 2026 full‑year organic growth outlook of ~6% and highlighted 24 consecutive quarters of double‑digit adjusted EBITDAC growth. Management emphasized that property pricing is moderating (Q1 property renewal premium change down ~7%), while casualty, benefits, reinsurance and GB are broadly healthy; clients are buying more coverage as prices decline and exposures continue to expand. Gallagher reiterated its four strategic pillars: grow organically, grow through M&A (9 tuck‑ins in Q1; ~40 term sheets ~ $400M annualized revenue pipeline; AssuredPartners integration tracking to plan), improve productivity/quality (AI, digitization, automation deployed to augment advisers), and sustain culture. CFO noted underlying margin expansion consistent with prior guidance, significant interest‑income comparability noise from funds held to buy AssuredPartners (affecting past-year comps), $310M of share buybacks in Q1, and a multi‑year synergy target for AssuredPartners ($160M run rate by end of ’26, up to $300M by early ’28). Management said they may have nearly $10 billion of capacity to fund M&A over the next two years before using equity and remain opportunistic with share repurchases given perceived undervaluation.