Arthur J. Gallagher & Co. reported a sharp rise in first-quarter 2026 revenue and earnings, supported by its AssuredPartners acquisition, steady organic growth and continued margin expansion in brokerage and risk management.
For the quarter ended 31 March 2026, total company revenues before reimbursements increased to $4.72 billion from $3.69 billion a year earlier.
Reported net earnings rose to $823 million from $709 million, while adjusted net earnings climbed to $1.16 billion from $972 million. Reported diluted earnings per share were $3.16, compared with $2.72 a year ago; adjusted diluted EPS increased to $4.47 from $3.72.
Gallagher’s combined Brokerage and Risk Management segments generated reported revenues before reimbursements of $4.72 billion, up from $3.69 billion a year earlier. Adjusted EBITDAC for the two segments increased to $1.81 billion from $1.53 billion, and adjusted diluted EPS for these operations rose to $4.97 from $4.21, marking the firm’s 24th consecutive quarter of double‑digit adjusted EBITDAC growth.
“We had a terrific first quarter,” said J. Patrick Gallagher Jr, chairman and CEO. “Our results reflect the strength and consistency of our business model across the dynamic insurance and economic environment. We remain focused on organic growth, strategic mergers and acquisitions, investment in productivity and quality, and maintaining our culture. We are also seeing the benefit of deeper collaboration across our P&C brokerage, benefits and claims teams, supported by practical applications of AI, automation and digitisation that enhance how we serve and advocate for our clients. We believe Gallagher is well positioned to continue delivering strong growth and long‑term value for our shareholders.”
In the Brokerage segment, reported revenues before reimbursements rose to $4.29 billion from $3.31 billion, with reported net earnings increasing to $913 million from $816 million a year earlier.
Organic performance remained positive in a broadly softening commercial insurance market. Organic base commissions and fees grew 4% year on year. Global commercial insurance prices fell around 3% in the first quarter of 2025, the third straight quarter of rate declines after several years of increases.
The Brokerage segment also closed eight acquisitions in the quarter, adding an estimated $49 million of annualised revenue, compared with 10 deals and $63 million a year earlier, continuing its “tuck‑in” acquisition strategy.
In the Risk Management segment, reported revenues before reimbursements increased to $428 million from $374 million, with reported net earnings of $50 million versus $41 million. Organic fees grew 10% to $407 million from $371 million, pointing to ongoing demand for outsourced claims and risk control services.
Gallagher’s performance is broadly in line with, and in some areas ahead of, other large global brokers.
Marsh McLennan’s Risk & Insurance Services segment, which includes Marsh and Guy Carpenter, reported mid‑single‑digit underlying revenue growth for the comparable period, supported by modest new business and retention gains in a softening rate environment. Aon’s Commercial Risk Solutions division also delivered mid‑single‑digit organic revenue growth, with softer pricing in many lines offset by exposure growth and new business.
Brown & Brown, whose model most closely resembles Gallagher’s among the large US‑listed peers, posted mid‑single‑digit organic growth in the first quarter of 2026 and continues to supplement that with acquisitions.
Gallagher’s 5% organic growth is in the same range as Marsh, Aon and Brown & Brown, indicating it is keeping pace with the global broker cohort on an underlying basis. Its headline 28% total revenue increase, however, is well above peers, whose total revenue growth has generally been in the high single to low double digits. That gap reflects the scale of the AssuredPartners deal layered on top of ongoing tuck‑in acquisitions.
On profitability, Gallagher’s 24th consecutive quarter of double‑digit adjusted EBITDAC growth stands out, although comparison is complicated by one‑off items such as the prior‑year interest income on AssuredPartners financing proceeds and current‑year integration costs.
Marsh and Aon have been expanding margins in their broking businesses from already high levels, while Brown & Brown continues to report strong EBITDA margins for a predominantly US mid‑market platform. Gallagher’s adjusted brokerage EBITDAC margin, though pressured year on year by those factors, remains competitive and is expected by analysts to benefit as AssuredPartners synergies are realised.
The quarter was the first to fully reflect Gallagher’s ownership of AssuredPartners, following completion of the roughly $13.5 billion all‑cash transaction in August 2025. AssuredPartners added an estimated $2.4 billion of annual revenue and more than 9,000 employees at closing, significantly expanding Gallagher’s US mid‑market and specialty footprint and helping cement its position among the world’s largest brokers by revenue.
First‑quarter 2025 results were boosted by interest income on AssuredPartners financing proceeds held before closing. With that benefit now gone and integration spending elevated, some margin metrics are under pressure even as earnings and cash flow increase in absolute terms. How quickly Gallagher realises cost and revenue synergies, and how well it retains key producers and clients, will be important for its medium‑term margin profile relative to Marsh McLennan, Aon, WTW and Brown & Brown.
For the wider market, the deal highlighted the consolidation trend in broking, with large platforms using scale, data and multi‑line capabilities to negotiate with carriers and deliver integrated P&C, benefits and risk management solutions, particularly to mid‑market and upper‑mid‑market accounts.
