Arthur J Gallagher & Stock Earnings Reports

Arthur J. Gallagher & Co. reported a strong Q2 2026 driven by both organic growth and M&A. Combined brokerage and risk management revenues rose 24% year-over-year with 6% organic growth; brokerage organic was ~5% and Gallagher Bassett (risk management) organic ~12%. The company recorded 25 consecutive quarters of double-digit adjusted EBITAC growth and underlying margin expansion, with risk management adjusted EBITAC margin up 140 bps to 22.3% and guidance calling for adjusted EBITAC margins north of 22% for Q3 and full year 2026. AssuredPartners integration is proceeding well (retention strong), with 7 tuck-ins closed in Q2 (~$63M annualized revenue) and a pipeline of >30 term sheets (~$500M annualized). Management expects AssuredPartners synergies of $160M run-rate by end of 2026 and up to $325M by early 2028. The firm repurchased ~850k shares (~$170M) in Q2, bringing year-to-date buybacks to ~$480M, and cites ~ $10B of deployable capital over the next two years for M&A and opportunistic repurchases. Management emphasized continued strength in new business, client retention, and diversified drivers of growth (including construction, infrastructure, energy, data centers); property pricing is moderating while casualty and specialty lines remain firmer. Gallagher Bassett highlighted AI/data investments to improve claims outcomes and operating efficiency. CFO noted comparability noise from prior-year investment income tied to funds held for the AssuredPartners acquisition and reiterated the company’s 2026 organic growth outlook (6% total company; brokerage ~5.5%; risk management ~9%). Management expects cash taxes to be roughly ~10% of EBITA due to tax credits and deductibility of intangible amortization. Overall tone: confident execution, ongoing margin improvement opportunities (including AI/digitization), disciplined M&A strategy and significant capacity to deploy capital.