Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Arthur J. Gallagher & Co. delivered strong Q1 2026 results with revenue surging 27.7% YoY to $4.76B and net income rising 16.8% to $822M, driven by continued organic growth and acquisition activity.
Revenue
$4.76B
+27.66% YoY
EPS (Diluted)
$3.16
+16.18% YoY
Source: SEC XBRL
Arthur J. Gallagher & Co (AJG) reported Q1 FY2026 revenue of $4.76B, up 27.7% year over year. Operating cash flow was $957M, up 9.7% year over year. AJG's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.84 | 2.84 | Miss -0.0% |
| Mar 2026This filing | 4.47 | 4.47 | Miss -0.0% |
| Dec 2025 | 2.38 | 2.37 | Beat +0.3% |
| Sep 2025 | 2.32 | 2.57 | Miss -9.7% |
Adjusted (non-GAAP) EPS of $4.47 versus the $4.47 analyst consensus — a -0.0% miss for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $3.16.
Compiled by AI from this SEC filing
Total revenue increased 27.7% YoY from $3.73B to $4.76B in Q1 2026, reflecting AJG's consistent strategy of bolt-on acquisitions in the insurance brokerage space combined with organic premium growth across its property & casualty and benefits segments.
Source: 10-Q Financial Data (Income Statement)
Net income grew 16.8% YoY to $822M while diluted EPS rose 16.2% to $3.16, slightly lagging revenue growth of 27.7%, suggesting some margin dilution likely from integration costs associated with recent acquisitions or higher operating expenses.
Source: 10-Q Financial Data (Income Statement)
Operating cash flow increased 9.7% YoY to $957M in Q1 2026, demonstrating the company's strong cash generation capability and supporting its ongoing acquisition-led growth strategy and capital return programs.
Source: 10-Q Financial Data (Cash Flow Statement)
AJG repurchased $310M in shares during Q1 2026, compared to zero buybacks in Q1 2025, signaling management's confidence in the company's valuation and commitment to returning capital to shareholders alongside its acquisition strategy.
Source: 10-Q Financial Data (Cash Flow Statement)
Total assets grew 5.7% YoY to $78.3B while stockholders' equity increased 6.5% to $23.8B, with long-term debt modestly declining 2.8% to $12.1B, indicating disciplined leverage management even as the company continues to expand its footprint.
Source: 10-Q Financial Data (Balance Sheet)
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
AJG's growth strategy is heavily dependent on successfully integrating acquired businesses. With revenue growing 27.7% but net margin at 17.3%, integration costs and cultural alignment challenges could pressure profitability. Failure to realize synergies from recent deals could impair earnings growth.
Source: 10-Q Financial Data (Income Statement & Balance Sheet)
The company carries a debt-to-equity ratio of 2.29, reflecting significant financial leverage. While long-term debt declined slightly to $12.1B, the overall liability base of $54.5B relative to $23.8B in equity leaves limited buffer against adverse market conditions or rising interest rates.
Source: 10-Q Financial Data (Balance Sheet)
AJG's current ratio stands at just 1.06, meaning current assets of $42.0B only marginally exceed current liabilities of $39.5B. This tight liquidity position, combined with a 21.4% YoY decline in current assets, warrants monitoring for any short-term funding pressures.
Source: 10-Q Financial Data (Balance Sheet)
Net margin of 17.3% and ROE of only 3.46% suggest that while AJG generates substantial revenue, profitability relative to equity is modest. Rising compensation costs, technology investments, and acquisition-related expenses could further compress margins if revenue growth moderates.
Source: 10-Q Financial Data (Key Ratios)
Financing cash flow swung dramatically from +$1.11B in Q1 2025 to -$723M in Q1 2026, a 165.3% change, reflecting the shift from net debt issuance to net capital returns including $310M in buybacks. This limits financial flexibility for future large-scale acquisitions without new debt issuance.
Source: 10-Q Financial Data (Cash Flow Statement)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.76 $B | 3.73 $B | +27.66% |
Net Income $M | 822.00 $M | 704.00 $M | +16.76% |
EPS (Basic) $ | 3.20 $ | 2.76 $ | +15.94% |
EPS (Diluted) $ | 3.16 $ | 2.72 $ | +16.18% |
Answers draw on this SEC filing and the data on this page
Arthur J. Gallagher posted a 24% revenue jump in Q2 FY2026 fueled by acquisitions and organic growth, but GAAP net income fell 12% due to integration costs, while adjusted EPS surged 23%.
AJG (Arthur J. Gallagher) delivered 20.7% revenue growth to $13.94B in FY2025, driven by significant acquisition activity, though net income rose only 2.1% to $1.49B and EPS declined 11.7% due to higher share count and integration costs.
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