Arthur J. Gallagher & Co. reported revenue before reimbursements of $3.955 billion for the quarter ended June 30, 2026, up 24% from $3.179 billion a year earlier, as the global insurance brokerage's combined Brokerage and Risk Management segments grew 6% on an organic basis.
Adjusted net earnings rose 22% to $734 million, or $2.84 per diluted share, while reported net earnings fell to $324 million from $368 million, largely reflecting higher amortization tied to recent acquisitions.
"We delivered an excellent second quarter," said J. Patrick Gallagher Jr., chairman and CEO. Gallagher said client retention remained strong, new business generation continued to be outstanding, and clients kept seeking broader solutions across the platform, adding that the company remains confident in building on its momentum for clients, colleagues and shareholders.
The Brokerage segment's organic revenue grew 5% in the quarter, matching its pace in the first quarter of 2026, with base commissions and fees up 4% organically and supplemental revenues up 20%. Acquisition activity slowed sharply compared with a year earlier: Gallagher closed six acquisitions in the quarter, adding an estimated $58 million in annualized revenue, down from nine acquisitions and $291 million a year earlier, when the company was still building toward its acquisition of AssuredPartners, the largest deal in its history.
That AssuredPartners deal, funded through roughly $14 billion raised via a stock offering and senior notes issuance and completed in the third quarter of 2025, continues to shape year-over-year comparisons. Brokerage segment interest income fell sharply in the quarter because the prior-year period had included about $144 million in interest earned on cash proceeds held ahead of that acquisition, a headwind the company said weighed on its adjusted EBITDAC margin by roughly 3.9 percentage points.
Gallagher's smaller Risk Management segment, which includes claims and consulting services, posted stronger organic growth than Brokerage, with fees up 12% on an organic basis compared with 4% growth in Brokerage's base commissions and fees. Segment revenue rose 16% to $453 million, and adjusted EBITDAC margin improved to 22.3% from 20.9% a year earlier.
Gallagher's 6% combined organic growth compares favorably with rivals reporting the same second quarter. Marsh, the world's largest broker, posted 5% underlying revenue growth company-wide in its second quarter, with its risk and insurance services segment growing 3% on an underlying basis. Aon reported 5% organic revenue growth for the quarter, while WTW posted 5% organic growth overall, with its risk and broking segment - the unit most comparable to Gallagher's Brokerage business - growing 7% organically, up from 3% in the first quarter.
Gallagher's own first-quarter organic growth had come in at 5% combined, meaning the second-quarter figure represents a modest acceleration even as the pace of new acquisitions cools.
Gallagher's Corporate segment adjustments in the quarter included $16 million in combined legal, tax and benefit plan-related costs, of which $10 million related to legal and tax matters and $6 million related to the termination of the company's US defined benefit pension plan and other benefit plan changes, alongside a further $10 million in ongoing transaction-related costs from the AssuredPartners and Woodruff Sawyer acquisitions.
The company's effective tax rate eased slightly to 21.7% from 22.3% a year earlier.
Gallagher also repurchased about 900,000 shares for approximately $170 million during the quarter and raised its quarterly dividend to $0.70 per share from $0.65. Total headcount reached 73,329 at quarter-end, up from 59,291 a year earlier, an increase driven mainly by the roughly 10,900 employees added through the AssuredPartners acquisition in August 2025.
Total assets stood at $81.8 billion as of June 30, 2026, up from $70.7 billion at the end of 2025, reflecting both the acquisition and continued growth in fiduciary assets held on behalf of clients.
