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’s Q2 FY2026 was defined by continued strong revenue growth from its acquisition-driven strategy, with organic gains adding to the top line. However, the significant costs of integrating large deals—particularly AssuredPartners and Woodruff Sawyer—depressed GAAP profitability, as amortization and workforce charges surged. The period also faced a tough comparison against last year’s temporary $144 million boost from interest income on the AssuredPartners financing proceeds. On an adjusted basis, which strips out these integration expenses, diluted earnings per share rose 23% to $2.84, underscoring the underlying health of the franchise. The tension between reported and adjusted results will persist as the company works through acquisition integration and seeks to rebuild margins.
Revenue
$4B
+24.24% YoY
EPS (Diluted)
$1.25
-10.71% YoY
Source: SEC XBRL
Arthur J. Gallagher & Co (AJG) reported Q2 FY2026 revenue of $4B, up 24.2% year over year. AJG's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 2.84 | 2.84 | Miss -0.0% |
| Mar 2026 | 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 $2.84 versus the $2.84 analyst consensus — a -0.0% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.25.
3 reported segments · SEC XBRL
Segment revenue totals $4B, which is the $4B of consolidated revenue on the income statement. The profit column adds up to the consolidated figure as well.
Profit above is reported as net income, the measure AJG itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Base commissions and fees in the brokerage segment grew 33% on a reported basis, but organic growth was 4%, driven by strong customer retention, new business, and continued renewal premium increases. Total organic commissions, fees, supplemental and contingent revenues rose 5%.
Source: 10-Q Item 2 MD&A
In Q2 2025, the brokerage segment benefited from approximately $144 million of incremental interest income earned on cash proceeds from the AssuredPartners financing. The absence of this temporary income in Q2 2026 significantly dampened profit comparisons and adjusted EBITDAC margin comparisons.
Source: 10-Q Item 2 MD&A
Gallagher closed 6 acquisitions in Q2 2026 with estimated annualized revenues of $58 million, compared to 9 acquisitions and $291 million in annualized revenues in Q2 2025. This reflects a more moderate pace of deal-making this year.
Source: 10-Q Item 2 MD&A
Brokerage segment GAAP net earnings margin fell 545 basis points to 12.9% due to higher amortization of intangible assets ($294 million), acquisition integration costs ($113 million), and workforce/lease termination charges ($40 million). Adjusted EBITDAC margin also declined 284 basis points to 33.3%.
Source: 10-Q Item 2 MD&A
The brokerage segment’s effective income tax rate held steady at 26% for both the three- and six-month periods, consistent with the company’s expected range of 24.5% to 26.5%.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
The acquisitions of AssuredPartners and Woodruff Sawyer are substantially larger than Gallagher’s typical tuck-in deals, introducing complex integration challenges, elevated costs (e.g., $113 million in integration costs this quarter), and potential management distraction that could impair operational performance.
Source: 10-Q Financial Statements and MD&A
Current assets fell 21.4% year-over-year, and the current ratio is a narrow 1.05, indicating potential strain on short-term liquidity. This reflects cash used for acquisitions and may limit financial flexibility.
Source: 10-Q Balance Sheet (XBRL)
Debt-to-equity stands at 2.45, and with long-term debt of $11.96 billion, the company is highly leveraged. Rising interest rates could increase borrowing costs, and a decline in interest income (down $134 million year-over-year) highlights sensitivity to rate changes.
Source: 10-Q Balance Sheet (XBRL) and MD&A
Organic revenue growth is modest at 4–5%, and the number and size of acquisitions have decreased from last year (14 deals with $107 million in annualized revenues year-to-date vs. 19 deals/$354 million in 2025). A slowdown in M&A could materially reduce future revenue growth.
Source: 10-Q MD&A
The CIAB survey indicates U.S. commercial property/casualty rates declined 1.2% in Q1 2026, following decelerating increases throughout 2025. A sustained soft market could compress commission revenue and margins.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.00 $B | 3.22 $B | +24.24% |
Net Income $M | 324.00 $M | 368.00 $M | -11.96% |
EPS (Basic) $ | 1.26 $ | 1.43 $ | -11.89% |
EPS (Diluted) $ | 1.25 $ | 1.40 $ | -10.71% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
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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