21:58:56 EDT Thu 30 Jul 2026
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Arthur J. Gallagher & Co. Announces Second Quarter 2026 Financial Results

2026-07-30 16:15 ET - News Release

Arthur J. Gallagher & Co. Announces Second Quarter 2026 Financial Results

PR Newswire

ROLLING MEADOWS, Ill., July 30, 2026 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended June 30, 2026. Management will host a webcast conference call to discuss these results on Thursday, July 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to the call, and for printer-friendly formats of this release, the "CFO Commentary" and "Supplemental Quarterly Data," which may also be referenced during the call, please visit ajg.com/IR. These documents contain both GAAP and non-GAAP measures. Investors and other users of this information should read carefully the section entitled "Information Regarding Non-GAAP Measures" beginning on page 9.

                                                            
        
       Summary of Financial Results - Second Quarter




                                                                       Revenues Before                                     Net Earnings (Loss)                            EBITDAC                    Diluted Net
                                                                                                                                                                                                                   Earnings

                                                                        Reimbursements                                                                                                             (Loss) Per Share



 
          Segment                                          2nd Q 26                        2nd Q 25                         2nd Q 26               2nd Q 25    2nd Q 26           2nd Q 25      2nd Q 26                 2nd Q 25


                                                                        (in millions)                                                   (in millions)                  (in millions)



 
          Brokerage, as reported                             $3,502                           $2,787                              $450                    $510         $948                $892          $1.74                     $1.95



 Net (gains) on divestitures                                      (8)                             (6)                              (6)                    (5)         (8)                (6)        (0.02)                   (0.02)



 Acquisition integration                                                                                                            84                      30          113                  41           0.33                      0.12



 Workforce and lease termination                                                                                                    30                      28           40                  37           0.11                      0.11



 Acquisition related adjustments                                                                                                    49                      25           70                  50           0.19                      0.09



 Amortization of intangible assets                                                                                                 218                     130                                          0.84                      0.50



 Levelized foreign currency translation                             -                               1                                                      (7)                            (9)                                 (0.03)



 
          Brokerage, as adjusted                              3,494                            2,782                               825                     711        1,163               1,005           3.19                      2.72



 
          Risk Management, as reported                          453                              392                                57                      43           96                  75           0.22                      0.16



 Acquisition integration                                                                                                             1                       1            1                   2              -                     0.01



 Workforce and lease termination                                                                                                     1                       3            2                   4           0.01                      0.01



 Acquisition related adjustments                                                                                                     2                       1            2                   1           0.01



 Amortization of intangible assets                                                                                                   5                       5                                          0.02                      0.02



 Levelized foreign currency translation                                                             5                                                        1                               1



 
          Risk Management, as adjusted                          453                              397                                66                      54          101                  83           0.26                      0.20



 
          Corporate, as reported                                                                                               (183)                  (185)        (98)              (111)        (0.71)                   (0.71)



 Transaction-related costs                                                                                                          10                      24           12                  29           0.04                      0.09



 Legal, tax and benefit plan related                                                                                                16                                  21                              0.06



 
          Corporate, as adjusted                                                                                               (157)                  (161)        (65)               (82)        (0.61)                   (0.62)



 
          Total Company, as reported                         $3,955                           $3,179                              $324                    $368         $946                $856          $1.25                     $1.40



 
          Total Company, as adjusted                         $3,947                           $3,179                              $734                    $604       $1,199              $1,006          $2.84                     $2.30



 
          Total Brokerage & Risk Management, as reported     $3,955                           $3,179                              $507                    $553       $1,044                $967          $1.96                     $2.11



 
          Total Brokerage & Risk Management, as adjusted     $3,947                           $3,179                              $891                    $765       $1,264              $1,088          $3.45                     $2.92

For second quarter 2025, reported and adjusted amounts for the Brokerage Segment include approximately $144 million of incremental interest income, or approximately 42 cents after-tax, earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.

For second quarter 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $505 million, $12 million and $33 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $130 million, $3 million and ($7) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 17.

(1 of 20)

"We delivered an excellent second quarter!" said J. Patrick Gallagher, Jr., Chairman and CEO. "Our combined Brokerage and Risk Management segments delivered revenue growth of 24%, including organic growth of 6%. Our growth reflects the strength and diversity of our model, the continued power of our two-pronged growth strategy, and our culture of client-first execution. Client retention remains strong, new business generation continues to be outstanding and clients continue to seek broader solutions across our platform.

"In an increasingly complex risk environment, client demand for our advice, analytics, market access, specialty expertise and claims advocacy remains robust. Looking ahead, we remain confident in our ability to build on our momentum and continue creating long-term value for our clients, colleagues and shareholders."

                                                                   
     
            Summary of Financial Results - Six-Months ended June 30




                                                                        Revenues Before                                                           Net Earnings (Loss)                         EBITDAC                    Diluted Net Earnings

                                                                         Reimbursements                                                                                                                                    (Loss) Per Share



 
            Segment                                        6 Mths 26                          6 Mths 25                               6 Mths 26                    6 Mths 25    6 Mths 26             6 Mths 25      6 Mths 26             6 Mths 25


                                                                         (in millions)                                                               (in millions)                         (in millions)



 
            Brokerage, as reported                            $7,795                              $6,101                                   $1,363                        $1,326        $2,510                 $2,243           $5.25                  $5.08



 Net (gains) on divestitures                                      (15)                               (12)                                    (11)                          (9)         (15)                  (12)         (0.04)                (0.04)



 Acquisition integration                                                                                                                      149                            63           200                     85            0.57                   0.24



 Workforce and lease termination                                                                                                               50                            42            67                     55            0.19                   0.16



 Acquisition related adjustments                                                                                                               88                            50           120                     80            0.34                   0.19



 Amortization of intangible assets                                                                                                            419                           282                                               1.62                   1.09



 Effective income tax rate impact                                                                                                                                            1



 Levelized foreign currency translation                                                                58                                                                     6                                  10                                  0.03



 
            Brokerage, as adjusted                             7,780                               6,147                                    2,058                         1,761         2,882                  2,461            7.93                   6.75



 
            Risk Management, as reported                         881                                 766                                      107                            84           182                    147            0.41                   0.32



 Acquisition integration                                                                                                                        2                             2             2                      4            0.01                   0.01



 Workforce and lease termination                                                                                                                2                             6             3                      7            0.01                   0.02



 Acquisition related adjustments                                                                                                                6                             1             8                      1            0.02



 Amortization of intangible assets                                                                                                             10                             9                                               0.04                   0.04



 Levelized foreign currency translation                                                                12                                                                     2                                   2                                  0.01



 
            Risk Management, as adjusted                         881                                 778                                      127                           104           195                    161            0.49                   0.40



 
            Corporate, as reported                               (5)                                                                      (323)                        (333)        (189)                 (233)         (1.25)                (1.28)



 Transaction-related costs                                                                                                                     16                            44            19                     52            0.06                   0.17



 Legal, tax and benefit plan related                                                                                                           17                                         39                                  0.07



 Clean energy-related                                                5                                                                           3                                          5                                  0.01



 
            Corporate, as adjusted                                                                                                        (287)                        (289)        (126)                 (181)         (1.11)                (1.11)



 
            Total Company, as reported                        $8,671                              $6,867                                   $1,147                        $1,077        $2,503                 $2,157           $4.41                  $4.12



 
            Total Company, as adjusted                        $8,661                              $6,925                                   $1,898                        $1,576        $2,951                 $2,441           $7.31                  $6.04



 
            Total Brokerage & Risk Management, as reported    $8,676                              $6,867                                   $1,470                        $1,410        $2,692                 $2,390           $5.66                  $5.40



 
            Total Brokerage & Risk Management, as adjusted    $8,661                              $6,925                                   $2,185                        $1,865        $3,077                 $2,622           $8.42                  $7.15

For the six-month period ended June 30, 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $936 million, $27 million and $63 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $241 million, $7 million and ($27) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 19.

(2 of 20)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.


   
            Organic Revenues (Non-GAAP)                                                                               2nd Q 26 2nd Q 25  6 Mths 26   6 Mths 25



   
            
              Base Commissions and Fees

---


   
            Commissions and fees, as reported                                                                           $3,180    $2,387      $7,095       $5,256



   Less commissions and fees from acquisitions, divested operations and other                                                (775)     (80)    (1,712)       (144)



   Levelized foreign currency translation                                                                                                 1                      51



   
            Organic base commissions and fees                                                                           $2,405    $2,306      $5,383       $5,163



   Organic change in base commissions and fees                                                                                 4 %                 4 %



   
            
              Supplemental Revenues

---


   
            Supplemental revenues, as reported                                                                            $141      $103        $321         $217



   Less supplemental revenues from acquisitions, divested operations and other                                                (17)                (63)



   Levelized foreign currency translation                                                                                                                        2



   
            Organic supplemental revenues                                                                                 $124      $103        $258         $219



   Organic change in supplemental revenues                                                                                    20 %                18 %



   
            
              Contingent Revenues

---


   
            Contingent revenues, as reported                                                                               $91       $73        $206         $166



   Less contingent revenues from acquisitions, divested operations and other                                                  (24)                (43)



   Levelized foreign currency translation                                                                                                                        1



   
            Organic contingent revenues                                                                                    $67       $73        $163         $167



   Organic change in contingent revenues                                                                                     (8 %)               (2 %)



   
            Total reported commissions, fees, supplemental 
            revenues and contingent revenues                $3,412    $2,563      $7,622       $5,639



   Less commissions, fees, supplemental revenues and contingent revenues from acquisitions, divested operations and other    (816)     (80)    (1,818)       (144)



   Levelized foreign currency translation                                                                                                 1                      54



   
            Total organic commissions, fees, supplemental revenues and contingent revenues                              $2,596    $2,482      $5,804       $5,549



   
            Total organic change                                                                                           5 %                 5 %





   
            Acquisition Activity                                                                                      2nd Q 26 2nd Q 25  6 Mths 26   6 Mths 25



   Number of acquisitions closed *                                                                                               6         9          14           19



   Estimated annualized revenues acquired (in millions)                                                                        $58      $291        $107         $354



 * In the second quarter of 2026 and 2025, no shares of Gallagher common stock were issued directly to sellers in connection with
    tax-free exchange acquisitions.

(3 of 20)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.




 
            Compensation Expense and Ratios                                     2nd Q 26 2nd Q 25  6 Mths 26   6 Mths 25



 
            Compensation expense, as reported                                     $2,017    $1,526      $4,228       $3,143



 Acquisition integration                                                              (53)     (20)       (90)        (48)



 Workforce and lease termination related charges                                      (29)     (36)       (53)        (52)



 Acquisition related adjustments                                                      (70)     (50)      (120)        (80)



 Levelized foreign currency translation                                                           8                      37



 
            Compensation expense, as adjusted                                     $1,865    $1,428      $3,965       $3,000



 Reported compensation expense ratios using reported revenues on pages 1 and 2 *    57.6 %   54.8 %     54.2 %      51.5 %



 Adjusted compensation expense ratios using adjusted revenues on pages 1 and 2 **   53.4 %   51.3 %     51.0 %      48.8 %



 *  Reported second quarter 2026 compensation expense ratio was 2.8 pts higher than second quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter
     2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This ratio was also impacted by higher integration costs, partially offset by lower
     workforce termination costs and savings from headcount controls.


 ** Adjusted second quarter 2026 compensation expense ratio was 2.1 pts higher than second quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter
     2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This ratio also benefited from savings from headcount controls.


 
            Operating Expense and Ratios                                     2nd Q 26 2nd Q 25  6 Mths 26   6 Mths 25



 
            Operating expense, as reported                                       $537      $369      $1,057         $715



 Acquisition integration                                                           (60)     (21)      (110)        (37)



 Workforce and lease termination related charges                                   (11)      (1)       (14)         (3)



 Levelized foreign currency translation                                                        2                      11



 
            Operating expense, as adjusted                                       $466      $349        $933         $686



 Reported operating expense ratios using reported revenues on pages 1 and 2 *    15.3 %   13.2 %     13.6 %      11.7 %



 Adjusted operating expense ratios using adjusted revenues on pages 1 and 2 **   13.3 %   12.5 %     12.0 %      11.2 %



 *  Reported second quarter 2026 operating expense ratio was 2.1 pts higher than second quarter 2025. This ratio was primarily impacted by higher integration and technology costs. This ratio was also impacted
     by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024.


 ** Adjusted second quarter 2026 operating expense ratio was 0.8 pts higher than second quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025
     included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This ratio was also impacted by higher technology costs.

(4 of 20)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.


 
            Net Earnings to Adjusted EBITDAC (Non-GAAP)                    2nd Q 26 2nd Q 25     6 Mths 26   6 Mths 25



 
            Net earnings, as reported                                          $450      $510         $1,363       $1,326



 Provision for income taxes                                                       154       176            467          459



 Depreciation                                                                      45        38             94           71



 Amortization                                                                     294       174            565          378



 Change in estimated acquisition earnout payables                                   5       (6)            21            9



 EBITDAC                                                                          948       892          2,510        2,243



 Net (gains) on divestitures                                                      (8)      (6)          (15)        (12)



 Acquisition integration                                                          113        41            200           85



 Workforce and lease termination related charges                                   40        37             67           55



 Acquisition related adjustments                                                   70        50            120           80



 Levelized foreign currency translation                                                    (9)                        10



 
            EBITDAC, as adjusted                                             $1,163    $1,005         $2,882       $2,461



 Net earnings margin, as reported using reported revenues on pages 1 and 2     12.9 %   18.3 %        17.5 %      21.7 %



 EBITDAC margin, as adjusted using adjusted revenues on pages 1 and 2      *   33.3 %   36.1 %  **    37.0 %      40.0 %



 *  Second quarter 2025 adjusted EBITDAC includes approximately $144 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024. The
     interest income in the prior period, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in second quarter adjusted
     EBITDAC margin by approximately 3.9%.


 ** Adjusted EBITDAC for the six-month period ended June 30, 2025 includes approximately $287 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in
     December 2024. The interest income in the prior year, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in adjusted
     EBITDAC margin for the six-month period ended June 30, by approximately 3.4%.

Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.


 
            Organic Revenues (Non-GAAP)             2nd Q 26     2nd Q 25  6 Mths 26   6 Mths 25



 Fees                                                     $438          $382        $853         $745



 International performance bonus fees                        7             1          12            3



 
            Fees as reported                             445           383         865          748



 Less fees from acquisitions, divestitures and other      (11)          (1)       (24)         (2)



 Levelized foreign currency translation                                   5                      12



 
            Organic fees                                $434          $387        $841         $758



 
            Organic change in fees                      12 %                    11 %





 
            Acquisition Activity                    2nd Q 26     2nd Q 25  6 Mths 26   6 Mths 25



 Number of acquisitions closed                               1                        2            1



 Estimated annualized revenues acquired (in millions)       $5 
 $         -        $15          $38

(5 of 20)

Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.


          
            Compensation Expense and Ratios                   2nd Q 26 2nd Q 25  6 Mths 26   6 Mths 25



          
            Compensation expense, as reported                     $274      $244        $538         $475



          Acquisition integration                                                      (1)                    (2)



          Workforce and lease termination related charges                     (2)      (3)        (3)         (6)



          Acquisition related adjustments                                     (2)      (1)        (8)         (1)



          Levelized foreign currency translation                                         4                       9



          
            Compensation expense, as adjusted                     $270      $243        $527         $475



          Reported compensation expense ratios using reported revenues *   60.5 %   62.2 %     61.1 %      62.0 %
  (before reimbursements) on pages 1 and 2



          Adjusted compensation expense ratios using adjusted revenues *   59.6 %   61.2 %     59.8 %      61.1 %
  (before reimbursements) on pages 1 and 2



 * Reported and adjusted second quarter 2026 compensation expense ratios were 1.7 pts and 1.6 pts lower, respectively, than second quarter 2025. Both ratios were primarily
    impacted by savings related to headcount controls.


          
            Operating Expense and Ratios                   2nd Q 26 2nd Q 25  6 Mths 26   6 Mths 25



          
            Operating expense, as reported                      $83       $73        $161         $144



          Acquisition integration                                          (1)      (1)        (2)         (2)



          Workforce and lease termination related charges                           (1)                    (1)



          Levelized foreign currency translation                                                             1



          
            Operating expense, as adjusted                      $82       $71        $159         $142



          Reported operating expense ratios using reported revenues *   18.3 %   18.6 %     18.3 %      18.8 %
  (before reimbursements) on pages 1 and 2



          Adjusted operating expense ratios using adjusted revenues *   18.1 %   18.2 %     18.1 %      18.2 %
  (before reimbursements) on pages 1 and 2



 * Reported and adjusted second quarter 2026 operating expense ratios were 0.3 pts and 0.1 pts lower, respectively, than second quarter 2025. Both ratios were primarily
    impacted by savings in client-related expenses.


          
            Net Earnings to Adjusted EBITDAC (Non-GAAP) 2nd Q 26 2nd Q 25  6 Mths 26   6 Mths 25



          
            Net earnings, as reported                        $57       $43        $107          $84



          Provision for income taxes                                     21        15          39           30



          Depreciation                                                   10        10          20           20



          Amortization                                                    7         6          14           12



          Change in estimated acquisition earnout payables                1         1           2            1



          EBITDAC                                                        96        75         182          147



          Acquisition integration                                         1         2           2            4



          Workforce and lease termination related charges                 2         4           3            7



          Acquisition related adjustments                                 2         1           8            1



          Levelized foreign currency translation                                   1                       2



          
            EBITDAC, as adjusted                            $101       $83        $195         $161



          Net earnings margin, as reported using reported revenues   12.6 %   11.0 %     12.2 %      11.0 %
  (before reimbursements) on pages 1 and 2



          EBITDAC margin, as adjusted using adjusted revenues        22.3 %   20.9 %     22.1 %      20.7 %
  (before reimbursements) on pages 1 and 2

(6 of 20)

Corporate Segment Reported GAAP to Adjusted Non-GAAP Reconciliation Information (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.


 
            2nd Quarter                                                2026                                                    2025


                 Pretax                                     Income              Net Earnings            Pretax            Income          Net Earnings

                 Loss                                         Tax               (Loss)             Loss               Tax              (Loss)

                                                            Benefit             Attributable                              Benefit         Attributable
                                                                                 to                                                    to

                                                                                Controlling                                              Controlling

                                                                                Interests                                                Interests



 
            Components of Corporate Segment, as reported



 Interest and banking costs                                 $(169)  $44      $(125)         $(159)             $41                      $(118)



 Clean energy-related                                          (2)    1         (1)            (2)                                        (2)



 Acquisition costs (1)                                        (18)    3        (15)           (34)               6                        (28)



 Corporate (2)                                                (79)   37        (42)           (76)              39                        (37)



 
            Reported 2nd quarter                           (268)   85       (183)          (271)              86                       (185)



 
            Adjustments



 Transaction-related costs (1)                                  12   (2)         10              29              (5)                         24



 Legal and tax related (4)                                      13   (3)         10



 Benefit plan related (5)                                        8   (2)          6



 
            Components of Corporate Segment, as adjusted



 Interest and banking costs                                  (169)   44       (125)          (159)              41                       (118)



 Clean energy-related                                          (2)    1         (1)            (2)                                        (2)



 Acquisition costs                                             (6)    1         (5)            (5)               1                         (4)



 Corporate (2)                                                (58)   32        (26)           (76)              39                        (37)



 
            Adjusted 2nd quarter                          $(235)  $78      $(157)         $(242)             $81                      $(161)





 
            Six Months



 
            Components of Corporate Segment, as reported



 Interest and banking costs                                 $(327)  $85      $(242)         $(318)             $83                      $(235)



 Clean energy-related                                          (9)    3         (6)            (4)               1                         (3)



 Acquisition costs (1)                                        (28)    5        (23)           (60)               9                        (51)



 Corporate (2)                                               (155)  103        (52)          (171)             127                        (44)



 
            Reported six months                            (519)  196       (323)          (553)             220                       (333)



 
            Adjustments



 Clean energy-related (3)                                        5   (2)          3



 Transaction-related costs (1)                                  19   (3)         16              52              (8)                         44



 Legal and tax related (4)                                      31  (20)         11



 Benefit plan related (5)                                        8   (2)          6



 
            Components of Corporate Segment, as adjusted



 Interest and banking costs                                  (327)   85       (242)          (318)              83                       (235)



 Clean energy-related                                          (4)    1         (3)            (4)               1                         (3)



 Acquisition costs                                             (9)    2         (7)            (8)               1                         (7)



 Corporate (2)                                               (116)   81        (35)          (171)             127                        (44)



 
            Adjusted six months                           $(456) $169      $(287)         $(501)            $212                      $(289)




 (1)   Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees associated with completed, future and terminated acquisitions.
          Adjustments primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively.



 (2)   Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(25) million in second quarter 2025. There was no net impact of unrealized foreign exchange remeasurement in second
          quarter 2026. Corporate pretax loss includes a net unrealized foreign exchange remeasurement gain of $6 million in the six-month period ended June 30, 2026 and a net unrealized foreign exchange
          remeasurement loss of $(48) million in the six-month period ended June 30, 2025.



 (3) 
 Adjustments in the six-month period ended June 30, 2026 include the write-down of a clean energy-related investment.



 (4) 
 Adjustments in second quarter 2026 and the six-month period ended June 30, 2026 include costs associated with legal and tax matters.



 (5)   Adjustments in second quarter 2026 and the six-month period ended June 30, 2026 include costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.

(7 of 20)

Interest, banking costs and debt - At June 30, 2026, Gallagher had $9,550 million of borrowings from public debt, $2,683 million of borrowings from private placements and $1,365 million of borrowings under its line of credit facility. In addition, Gallagher had $134 million outstanding under a revolving loan facility that provides funding for premium finance receivables, which are fully collateralized by the underlying premiums held by insurance carriers, and as such are excluded from its debt covenant computations, as applicable.

Clean energy-related - For 2026, this consists of operating results related to Gallagher's investments in new clean energy projects, primarily fusion and carbon sequestration projects.

Acquisition costs - Consists mostly of external professional fees and other due diligence costs related to acquisitions. On occasion, Gallagher enters into forward currency hedges for the purchase price of committed, but not yet funded, acquisitions with funding requirements in currencies other than the U.S. dollar. The gains or losses, if any, associated with these hedge transactions are also included in acquisition costs.

Corporate - Consists of overhead allocations mostly related to corporate staff compensation, other corporate level activities, and net unrealized foreign exchange remeasurement. In addition, it includes the tax expense related to the partial taxation of foreign earnings, nondeductible executive compensation and entertainment expenses, the tax benefit from the vesting of employee equity awards, as well as other permanent or discrete tax items not reflected in the provision for income taxes in the Brokerage and Risk Management segments.

Income Taxes - Gallagher allocates the provision for income taxes to its Brokerage and Risk Management segments using the local country statutory rates. Gallagher's consolidated effective tax rates for the quarters ended June 30, 2026 and 2025 were 21.7% and 22.3%, respectively.

AssuredPartners - In fourth quarter 2024 and first quarter 2025, we raised a total of approximately $14 billion of cash via a follow-on common stock offering and senior notes issuance to fund the AssuredPartners acquisition (collectively, the AssuredPartners Financing), which was completed in third quarter 2025 for approximately $14 billion.

Share Repurchases - In the second quarter of 2026, Gallagher repurchased approximately 0.9 million shares of its common stock for approximately $170 million.

Webcast Conference Call - Gallagher will host a webcast conference call on Thursday, July 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to this call, please go to Arthur J. Gallagher & Co. - Events & Presentations (ajg.com). The call will be available for replay at such website for at least 90 days.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

(8 of 20)

Information Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipates," "believes," "contemplates," "see," "should," "could," "will," "estimates," "expects," "intends," "plans" and variations thereof and similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, anticipated future results or performance of any segment or Gallagher as a whole; acquisition rollover revenues; statements regarding changes in its expenses in the next several quarters; future capital structure changes, including debt levels from time to time; the impact of foreign currency on its results; integration costs; workforce and lease termination costs; amortization of intangibles; depreciation; change in estimated earnout payables; effective tax rate; earnings from continuing operations attributable to noncontrolling interests; the premium rate environment and the state of insurance markets; and the economic environment.

Gallagher's actual results may differ materially from those contemplated by the forward-looking statements. Readers are therefore cautioned against relying on any of the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.

Important factors that could cause actual results to differ materially from those in the forward-looking statements include global economic and geopolitical events, including, among others, fluctuations in interest and inflation rates; protectionism such as tariffs and trade disruptions; a recession or economic downturn; a U.S. government shutdown; political instability, such as global armed conflicts; its actual acquisition opportunities, including closing risks related to pending acquisitions; risks with respect to larger acquisitions such as AssuredPartners, the largest acquisition in its history, including risks related to its ability to successfully integrate operations and the possibility that its assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize expected benefits of such acquisitions; damage to its reputation due to its failure to uphold its culture or negative perceptions or publicity, including as a result of amplifying effects that the Internet and social media may have on such perceptions; reputational issues related to its sustainability-related activities, including potential backlash against such activities, and compliance with increasingly complex climate- and other sustainability-related regulations, such as risks related to "greenwashing" and "greenhushing"; cybersecurity-related risks; its ability to apply technology, data analytics and artificial intelligence effectively to its business and potential increased costs resulting from such activities; risks associated with the use of artificial intelligence in its business operations, including regulatory, data privacy, cybersecurity, errors and omissions, intellectual property and competition risks; risks related to "AI-washing"; heightened competition for talent and increased compensation costs; disasters or other business interruptions, including with respect to its operations in India; risks related to its international operations, such as those related to regulatory, tax, sustainability, sanctions and anti-corruption compliance and increased scrutiny of the use of off-shore centers of excellence such as those we operate in India and elsewhere; changes to data privacy and protection laws and regulations; foreign exchange rates; changes in accounting standards; changes in premium rates and in insurance markets generally, including the impact of large natural or man-made events; tax, environmental or other compliance risks related to its legacy clean energy investments; its inability to receive dividends or other distributions from subsidiaries; and changes in the insurance brokerage industry's competitive landscape.

Please refer to Gallagher's filings with the Securities and Exchange Commission, including Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and its subsequently filed Quarterly Reports on Form 10-Q for a more detailed discussion of these and other factors that could impact its forward-looking statements. Any forward-looking statement made by Gallagher in this press release speaks only as of the date on which it is made. Except as required by applicable law, Gallagher does not undertake to update the information included herein or the corresponding earnings release posted on Gallagher's website.

Information Regarding Non-GAAP Measures

In addition to reporting financial results in accordance with GAAP, this press release provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this press release. Gallagher's management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher's results of operations and financial condition or because they provide investors with measures that its chief operating decision maker uses when reviewing Gallagher's performance. See further below for definitions and additional reasons each of these measures is useful to investors. Gallagher's industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in its most recent Proxy Statement, Gallagher makes determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC.

(9 of 20)

Adjusted Non-GAAP presentation - Gallagher believes that the adjusted non-GAAP presentations of the current and prior period information presented in this earnings release provide stockholders and other interested persons with useful information regarding certain financial metrics of Gallagher that may assist such persons in analyzing Gallagher's operating results as they develop a future earnings outlook for Gallagher. The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period. See pages 17, 18, 19 and 20 for a reconciliation of the adjustments made to income taxes.

Adjusted measures - Revenues (for the Brokerage segment), revenues before reimbursements (for the Risk Management segment), net earnings, compensation expense and operating expense, respectively, each adjusted to exclude the following, as applicable:

  • Net gains (losses) on divestitures, which are primarily net proceeds received related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure.
  • Acquisition integration costs, which include costs related to certain large acquisitions (including the acquisitions of the Willis Towers Watson treaty reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance Group, My Plan Manager, Woodruff Sawyer and AssuredPartners), outside the scope of the usual tuck-in strategy, not expected to occur on an ongoing basis in the future once Gallagher fully assimilates the applicable acquisition. These costs are typically associated with redundant workforce, compensation expense related to amortization of certain retention bonus arrangements, extra lease space, duplicate services and external costs incurred to assimilate the acquisition into its IT related systems.
  • Transaction-related costs, which are associated with completed, future and terminated acquisitions. Costs primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively. These include costs related to regulatory filings, legal and accounting services, insurance and incentive compensation.
  • Workforce related charges, which primarily include severance costs (either accrued or paid) related to employee terminations and other costs associated with redundant workforce.
  • Lease termination related charges, which primarily include costs related to terminations of real estate leases and abandonment of leased space.
  • Acquisition related adjustments principally relate to changes in estimated acquisition earnout payables adjustments and acquisition related compensation charges. In addition, from time to time we may include changes in balance sheet estimates arising from conforming accounting principles, purchase-related true-ups and other balance sheet adjustments made after the closing date.
  • Amortization of intangible assets, which reflects the amortization of customer/expiration lists, non-compete agreements, trade names and other intangible assets acquired through Gallagher's merger and acquisition strategy, the impact to amortization expense of acquisition valuation adjustments to these assets as well as non-cash impairment charges.
  • The impact of foreign currency translation, as applicable. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same period in the prior year.
  • Effective income tax rate impact, which levelized the prior year for the change in current year tax rates.
  • Clean energy-related, which represents the impact of adjustments in first quarter 2026 related to the write-down of a clean energy-related investment.
  • Legal and tax related, which represents the impact of adjustments in second quarter 2026 related to costs associated with legal and tax matters.
  • Benefit plan related, which represents the impact of adjustments in second quarter 2026 related to costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.

Adjusted ratios - Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues.

(10 of 20)

Non-GAAP Earnings Measures

  • EBITDAC and EBITDAC margin - EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables and EBITDAC margin is EBITDAC divided by total revenues (for the Brokerage segment) and revenues before reimbursements (for the Risk Management segment). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance for the overall business and provide a meaningful way to measure its financial performance on an ongoing basis.
  • EBITDAC, as Adjusted and EBITDAC Margin, as Adjusted - Adjusted EBITDAC is EBITDAC adjusted to exclude net gains on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, and the period-over-period impact of foreign currency translation, as applicable, (and for the Corporate segment, the clean energy related adjustments described above) and Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues (defined above). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance and are also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability.
  • EPS, as Adjusted and Net Earnings, as Adjusted - Adjusted net earnings have been adjusted to exclude the after-tax impact of net gains on divestitures, acquisition integration costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, amortization of intangible assets, and effective income tax rate impact, as applicable. Adjusted EPS is Adjusted Net Earnings divided by diluted weighted average shares outstanding. This measure provides a meaningful representation of Gallagher's operating performance (and as such should not be used as a measure of Gallagher's liquidity), and for the overall business is also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability.

Organic Revenues (a non-GAAP measure) - Organic revenue change measures the year-over-year percentage change in organic revenue. For the Brokerage segment, organic revenue consists of base commission and fee revenues, supplemental revenues and contingent revenues, excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations, which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products, in each year presented. Such revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of Gallagher in both the current and prior period. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation; revenue from certain large life product sales within Gallagher's Executive Life and Benefits practice group (which are typically large singular transactions with a high degree of variability in amount and timing); and revenue attributable to changes in assumptions used to calculate estimated deferred revenues, which impact the quarterly timing of revenues during the annual contract period. For the Risk Management segment, organic revenue consists of fee revenues excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each period presented. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation.

These revenue items are excluded from organic revenues in order to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond, as well as eliminating the impact of the items that have a high degree of variability. Gallagher has historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments. Gallagher also believes that using this non-GAAP measure allows readers of its financial statements to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner.

Reconciliation of Non-GAAP Information Presented to GAAP Measures - This press release includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages 5 and 6), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on pages 1 and 2), for organic revenue measures (on pages 3 and 5, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 4, 5 and 6 respectively, for the Brokerage and Risk Management segments).

(11 of 20)

                                                                               
          Arthur J. Gallagher & Co.
                                                                 Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
                                                             (Unaudited - in millions except per share, percentage and workforce data)





 
            Brokerage Segment                                                                                                 2nd Q Ended 2nd Q Ended  6 Mths Ended   6 Mths Ended

                                                                                                                                   June 30,    June 30,     June 30,       June 30,
                                                                                                                                     2026         2025           2026            2025



 Commissions                                                                                                                         $2,442       $1,808         $5,565          $4,057



 Fees                                                                                                                                   738          579          1,530           1,199



 Supplemental revenues                                                                                                                  141          103            321             217



 Contingent revenues                                                                                                                     91           73            206             166



 Interest income, premium finance revenues and other income                                                                              90          224            173             462



 Total revenues                                                                                                                       3,502        2,787          7,795           6,101



 Compensation                                                                                                                         2,017        1,526          4,228           3,143



 Operating                                                                                                                              537          369          1,057             715



 Depreciation                                                                                                                            45           38             94              71



 Amortization                                                                                                                           294          174            565             378



 Change in estimated acquisition earnout payables                                                                                         5          (6)            21               9



 Expenses                                                                                                                             2,898        2,101          5,965           4,316



 Earnings before income taxes                                                                                                           604          686          1,830           1,785



 Provision for income taxes                                                                                                             154          176            467             459



 Net earnings                                                                                                                           450          510          1,363           1,326



 Net earnings attributable to noncontrolling interests                                                                                    -                         1               5



 Net earnings attributable to controlling interests                                                                                    $450         $510         $1,362          $1,321





 
            EBITDAC



 Net earnings                                                                                                                          $450         $510         $1,363          $1,326



 Provision for income taxes                                                                                                             154          176            467             459



 Depreciation                                                                                                                            45           38             94              71



 Amortization                                                                                                                           294          174            565             378



 Change in estimated acquisition earnout payables                                                                                         5          (6)            21               9



 
            EBITDAC                                                                                                                  $948         $892         $2,510          $2,243



 See "Information Regarding Non-GAAP Measures" beginning on page
  9 of 20.

(12 of 20)

                                                                          
          Arthur J. Gallagher & Co.
                                                            Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
                                                        (Unaudited - in millions except per share, percentage and workforce data)





 
            Risk Management Segment                                                                            2nd Q Ended     2nd Q Ended  6 Mths Ended   6 Mths Ended

                                                                                                                    June 30,        June 30,     June 30,       June 30,
                                                                                                                      2026             2025           2026            2025



 Fees                                                                                                                   $445             $383           $865            $748



 Interest income and other income                                                                                          8                9             16              18



 Revenues before reimbursements                                                                                          453              392            881             766



 Reimbursements                                                                                                           48               43             90              82



 Total revenues                                                                                                          501              435            971             848



 Compensation                                                                                                            274              244            538             475



 Operating                                                                                                                83               73            161             144



 Reimbursements                                                                                                           48               43             90              82



 Depreciation                                                                                                             10               10             20              20



 Amortization                                                                                                              7                6             14              12



 Change in estimated acquisition earnout payables                                                                          1                1              2               1



 Expenses                                                                                                                423              377            825             734



 Earnings before income taxes                                                                                             78               58            146             114



 Provision for income taxes                                                                                               21               15             39              30



 Net earnings                                                                                                             57               43            107              84



 Net earnings attributable to noncontrolling interests                                                                     -



 Net earnings attributable to controlling interests                                                                      $57              $43           $107             $84





 
            EBITDAC



 Net earnings                                                                                                            $57              $43           $107             $84



 Provision for income taxes                                                                                               21               15             39              30



 Depreciation                                                                                                             10               10             20              20



 Amortization                                                                                                              7                6             14              12



 Change in estimated acquisition earnout payables                                                                          1                1              2               1



 
            EBITDAC                                                                                                    $96              $75           $182            $147



 See "Information Regarding Non-GAAP Measures" beginning on page
  9 of 20.

(13 of 20)

                                                                   
          Arthur J. Gallagher & Co.
                                                    Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
                                                        (Unaudited - in millions except share and per share data)





 
            Corporate Segment                                                                      2nd Q Ended         2nd Q Ended  6 Mths Ended       6 Mths Ended

                                                                                                        June 30,            June 30,     June 30,           June 30,
                                                                                                          2026                 2025           2026                2025



 Other loss                                                                            
          $            -     
 $           -          $(5)   
 $            -



 Total revenues                                                                                                -                               (5)



 Compensation                                                                                                 39                   34             80                  83



 Operating                                                                                                    59                   77            104                 150



 Interest                                                                                                    168                  158            326                 316



 Depreciation                                                                                                  2                    2              4                   4



 Expenses                                                                                                    268                  271            514                 553



 Loss before income taxes                                                                                  (268)               (271)         (519)              (553)



 Benefit for income taxes                                                                                   (85)                (86)         (196)              (220)



 Net loss                                                                                                  (183)               (185)         (323)              (333)



 Net loss attributable to noncontrolling interests                                                             -



 Net loss attributable to controlling interests                                                           $(183)              $(185)        $(323)             $(333)



 
            EBITDAC



 Net loss                                                                                                 $(183)              $(185)        $(323)             $(333)



 Benefit for income taxes                                                                                   (85)                (86)         (196)              (220)



 Interest                                                                                                    168                  158            326                 316



 Depreciation                                                                                                  2                    2              4                   4



 
            EBITDAC                                                                                      $(98)              $(111)        $(189)             $(233)



 See "Information Regarding Non-GAAP Measures" beginning on page
  9 of 20.

(14 of 20)

                                                                           
          Arthur J. Gallagher & Co.
                                                             Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
                                                                 (Unaudited - in millions except share and per share data)





 
            Total Company                                                                                                 2nd Q Ended 2nd Q Ended  6 Mths Ended   6 Mths Ended

                                                                                                                               June 30,    June 30,     June 30,       June 30,
                                                                                                                                 2026         2025           2026            2025



 Commissions                                                                                                                     $2,442       $1,808         $5,565          $4,057



 Fees                                                                                                                             1,183          962          2,395           1,947



 Supplemental revenues                                                                                                              141          103            321             217



 Contingent revenues                                                                                                                 91           73            206             166



 Interest income, premium finance revenues and other income                                                                          98          233            184             480



 Revenues before reimbursements                                                                                                   3,955        3,179          8,671           6,867



 Reimbursements                                                                                                                      48           43             90              82



 Total revenues                                                                                                                   4,003        3,222          8,761           6,949



 Compensation                                                                                                                     2,330        1,804          4,846           3,701



 Operating                                                                                                                          679          519          1,322           1,009



 Reimbursements                                                                                                                      48           43             90              82



 Interest                                                                                                                           168          158            326             316



 Depreciation                                                                                                                        57           50            118              95



 Amortization                                                                                                                       301          180            579             390



 Change in estimated acquisition earnout payables                                                                                     6          (5)            23              10



 Expenses                                                                                                                         3,589        2,749          7,304           5,603



 Earnings before income taxes                                                                                                       414          473          1,457           1,346



 Provision for income taxes                                                                                                          90          105            310             269



 Net earnings                                                                                                                       324          368          1,147           1,077



 Net earnings attributable to noncontrolling interests                                                                                -                         1               5



 Net earnings attributable to controlling interests                                                                                $324         $368         $1,146          $1,072



 Diluted net earnings per share                                                                                                   $1.25        $1.40          $4.41           $4.12



 Dividends declared per share                                                                                                     $0.70        $0.65          $1.40           $1.30



 
            EBITDAC



 Net earnings                                                                                                                      $324         $368         $1,147          $1,077



 Provision for income taxes                                                                                                          90          105            310             269



 Interest                                                                                                                           168          158            326             316



 Depreciation                                                                                                                        57           50            118              95



 Amortization                                                                                                                       301          180            579             390



 Change in estimated acquisition earnout payables                                                                                     6          (5)            23              10



 
            EBITDAC                                                                                                              $946         $856         $2,503          $2,157



 See "Information Regarding Non-GAAP Measures" beginning on page
  9 of 20.

(15 of 20)

                                                                                        
          Arthur J. Gallagher & Co.
                                                                                             Consolidated Balance Sheet
                                                                                   (Unaudited - in millions except per share data)




                                                                                                                                   June 30, 2026 Dec 31, 2025



 Cash and cash equivalents                                                                                                               $1,386        $1,396



 Fiduciary assets (includes fiduciary cash of $7,947 in 2026 and $7,142 in 2025)                                                         37,183        26,899



 Accounts receivable, net                                                                                                                 6,076         5,175



 Other current assets                                                                                                                       807           886



 Total current assets                                                                                                                    45,452        34,356



 Fixed assets - net                                                                                                                         765           789



 Deferred income taxes                                                                                                                       43            43



 Other noncurrent assets                                                                                                                  1,732         1,602



 Right-of-use assets                                                                                                                        578           598



 Goodwill                                                                                                                                23,026        22,593



 Amortizable intangible assets - net                                                                                                     10,212        10,684



 Total assets                                                                                                                           $81,808       $70,665





 Fiduciary liabilities                                                                                                                  $37,183       $26,899



 Accrued compensation and other current liabilities                                                                                       3,548         4,017



 Deferred revenue - current                                                                                                                 788           737



 Premium financing debt                                                                                                                     134           226



 Corporate related borrowings - current                                                                                                   1,520           640



 Total current liabilities                                                                                                               43,173        32,519



 Corporate related borrowings - noncurrent                                                                                               11,955        12,104



 Deferred revenue - noncurrent                                                                                                              177           155



 Lease liabilities - noncurrent                                                                                                             497           515



 Other noncurrent liabilities (includes tax credit carryforwards of $628 in 2026 and $713 in 2025)                                        2,259         2,025



 Total liabilities                                                                                                                       58,061        47,318





 Stockholders' equity:



 Common stock - issued and outstanding                                                                                                      256           257



 Capital in excess of par value                                                                                                          17,567        17,783



 Retained earnings                                                                                                                        6,588         5,806



 Accumulated other comprehensive loss                                                                                                     (694)        (525)



 Total controlling interests stockholders' equity                                                                                        23,717        23,321



 Noncontrolling interests                                                                                                                    30            26



 Total stockholders' equity                                                                                                              23,747        23,347



 Total liabilities and stockholders' equity                                                                                             $81,808       $70,665

(16 of 20)

                                                                  
          Arthur J. Gallagher & Co.
                                                                            Other Information
                                                              (Unaudited - data is rounded where indicated)





 
            OTHER INFORMATION                                                                            2nd Q Ended 2nd Q Ended  6 Mths Ended     6 Mths Ended

                                                                                                              June 30,    June 30,     June 30,         June 30,
                                                                                                                2026         2025           2026              2025



 Basic weighted average shares outstanding (000s)                                                              256,649      256,260        256,884           255,540



 Diluted weighted average shares outstanding (000s)                                                            258,685      260,435        259,260           259,929



 Number of common shares outstanding at end of period (000s)                                                                           256,341           256,363



 Workforce at end of period (includes acquisitions):



 Brokerage                                                                                                                              56,202     *      44,909



 Risk Management                                                                                                                        11,254            10,584



 Total Company                                                                                                                          73,329     *      59,291

 * The acquisition of AssuredPartners added approximately 10,900 employees
    in August 2025.


 
            Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited)





 (Unaudited - in millions except share and per share data)




                                                                                             Earnings                Provision   Net Earnings         Net Earnings    Net Earnings     Diluted
                                                                                                                                                                                          Net

                                                                                              (Loss)                 (Benefit)      (Loss)               (Loss)          (Loss)       Earnings

                                                                                          Before Income              for Income                       Attributable    Attributable
                                                                                                                                                            to              to          (Loss)

                                                                                              Taxes                     Taxes                        Noncontrolling   Controlling     per Share

                                                                                                                                                        Interests       Interests



 
            2nd Q Ended June 30, 2026



 
            Brokerage, as reported                                                              $604                     $154           $450   
    $            -            $450         $1.74



 Net (gains) on divestitures                                                                       (8)                     (2)           (6)                                  (6)       (0.02)



 Acquisition integration                                                                           113                       29             84                                    84          0.33



 Workforce and lease termination                                                                    40                       10             30                                    30          0.11



 Acquisition related adjustments                                                                    66                       17             49                                    49          0.19



 Amortization of intangible assets                                                                 294                       76            218                                   218          0.84



 Brokerage, as adjusted                                                                         $1,109                     $284           $825   
    $            -            $825         $3.19





 
            Risk Management, as reported                                                         $78                      $21            $57   
    $            -             $57         $0.22



 Acquisition integration                                                                             1                                      1                                     1             -



 Workforce and lease termination                                                                     2                        1              1                                     1          0.01



 Acquisition related adjustments                                                                     2                                      2                                     2          0.01



 Amortization of intangible assets                                                                   7                        2              5                                     5          0.02



 Risk Management, as adjusted                                                                      $90                      $24            $66   
    $            -             $66         $0.26





 
            Corporate, as reported                                                            $(268)                   $(85)        $(183)   
   $             -         $(183)      $(0.71)



 Transaction-related costs                                                                          12                        2             10                                    10          0.04



 Legal, tax and benefit plan related                                                                21                        5             16                                    16          0.06



 Corporate, as adjusted                                                                         $(235)                   $(78)        $(157)   
   $             -         $(157)      $(0.61)



 See "Information Regarding Non-GAAP Measures" beginning on page
  9 of 20.

(17 of 20)


 
            Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued





 (Unaudited - in millions except share and per share data)




                                                                                                    Earnings                     Provision   Net Earnings            Net Earnings    Net Earnings     Diluted
                                                                                                                                                                                                         Net

                                                                                                     (Loss)                      (Benefit)      (Loss)                  (Loss)          (Loss)       Earnings

                                                                                                 Before Income                   for Income                          Attributable    Attributable
                                                                                                                                                                           to              to          (Loss)

                                                                                                     Taxes                          Taxes                           Noncontrolling   Controlling     per Share

                                                                                                                                                                       Interests       Interests



 
            2nd Q Ended June 30, 2025



 
            Brokerage, as reported                                                                     $686                          $176           $510     
     $            -            $510         $1.95



 Net (gains) on divestitures                                                                              (6)                          (1)           (5)                                     (5)       (0.02)



 Acquisition integration                                                                                   41                            11             30                                       30          0.12



 Workforce and lease termination                                                                           37                             9             28                                       28          0.11



 Acquisition related adjustments                                                                           33                             8             25                                       25          0.09



 Amortization of intangible assets                                                                        174                            44            130                                      130          0.50



 Levelized foreign currency translation                                                                  (10)                          (3)           (7)                                     (7)       (0.03)



 
            Brokerage, as adjusted                                                                     $955                          $244           $711     
     $            -            $711         $2.72





 
            Risk Management, as reported                                                                $58                           $15            $43     
     $            -             $43         $0.16



 Acquisition integration                                                                                    2                             1              1                                        1          0.01



 Workforce and lease termination                                                                            4                             1              3                                        3          0.01



 Acquisition related adjustments                                                                            1                             -             1                                        1



 Amortization of intangible assets                                                                          6                             1              5                                        5          0.02



 Levelized foreign currency translation                                                                     1                                           1                                        1



 
            Risk Management, as adjusted                                                                $72                           $18            $54    
     $             -             $54         $0.20





 
            Corporate, as reported                                                                   $(271)                        $(86)        $(185)    
     $             -         $(185)      $(0.71)



 Transaction-related costs                                                                                 29                             5             24                                       24          0.09



 
            Corporate, as adjusted                                                                   $(242)                        $(81)        $(161)   
     $              -         $(161)      $(0.62)



 See "Information Regarding Non-GAAP Measures" beginning on page
  9 of 20.

(18 of 20)


 
            Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued





 (Unaudited - in millions except share and per share data)




                                                                                             Earnings                            Provision   Net Earnings         Net Earnings     Net Earnings      Diluted
                                                                                                                                                                                                        Net

                                                                                              (Loss)                             (Benefit)      (Loss)               (Loss)           (Loss)        Earnings

                                                                                          Before Income                          for Income                       Attributable     Attributable
                                                                                                                                                                        to               to           (Loss)

                                                                                              Taxes                                 Taxes                        Noncontrolling    Controlling      per Share

                                                                                                                                                                    Interests        Interests



 
            6 Mths Ended June 30, 2026



 
            Brokerage, as reported                                                            $1,830                                 $467         $1,363                     $1           $1,362          $5.25



 Net (gains) on divestitures                                                                      (15)                                 (4)          (11)                                  (11)        (0.04)



 Acquisition integration                                                                           200                                   51            149                                    149           0.57



 Workforce and lease termination                                                                    67                                   17             50                                     50           0.19



 Acquisition related adjustments                                                                   119                                   31             88                                     88           0.34



 Amortization of intangible assets                                                                 565                                  146            419                                    419           1.62



 
            Brokerage, as adjusted                                                            $2,766                                 $708         $2,058                     $1           $2,057          $7.93





 
            Risk Management, as reported                                                        $146                                  $39           $107   
    $             -            $107          $0.41



 Acquisition integration                                                                             2                                                  2                                      2           0.01



 Workforce and lease termination                                                                     3                                    1              2                                      2           0.01



 Acquisition related adjustments                                                                     8                                    2              6                                      6           0.02



 Amortization of intangible assets                                                                  14                                    4             10                                     10           0.04



 
            Risk Management, as adjusted                                                        $173                                  $46           $127   
    $             -            $127          $0.49





 
            Corporate, as reported                                                            $(519)                              $(196)        $(323)   
   $             -          $(323)       $(1.25)



 Transaction-related costs                                                                          19                                    3             16                                     16           0.06



 Legal, tax and benefit plan related                                                                39                                   22             17                                     17           0.07



 Clean energy-related                                                                                5                                    2              3                                      3           0.01



 
            Corporate, as adjusted                                                            $(456)                              $(169)        $(287)   
   $             -          $(287)       $(1.11)



 See "Information Regarding Non-GAAP Measures" beginning on page
  9 of 20.

(19 of 20)


 
            Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued





 (Unaudited - in millions except share and per share data)




                                                                                                    Earnings                     Provision   Net Earnings         Net Earnings     Net Earnings      Diluted
                                                                                                                                                                                                        Net

                                                                                                     (Loss)                      (Benefit)      (Loss)               (Loss)           (Loss)        Earnings

                                                                                                 Before Income                   for Income                       Attributable     Attributable
                                                                                                                                                                        to               to           (Loss)

                                                                                                     Taxes                          Taxes                        Noncontrolling    Controlling      per Share

                                                                                                                                                                    Interests        Interests



 
            6 Mths Ended June 30, 2025



 
            Brokerage, as reported                                                                   $1,785                          $459         $1,326                     $5           $1,321          $5.08



 Net (gains) on divestitures                                                                             (12)                          (3)           (9)                                   (9)        (0.04)



 Acquisition integration                                                                                   85                            22             63                                     63           0.24



 Workforce and lease termination                                                                           55                            13             42                                     42           0.16



 Acquisition related adjustments                                                                           66                            16             50                                     50           0.19



 Amortization of intangible assets                                                                        378                            96            282                                    282           1.09



 Effective income tax impact                                                                                                           (1)             1                                      1



 Levelized foreign currency translation                                                                     7                             1              6                                      6           0.03



 
            Brokerage, as adjusted                                                                   $2,364                          $603         $1,761                     $5           $1,756          $6.75





 
            Risk Management, as reported                                                               $114                           $30            $84   
    $             -             $84          $0.32



 Acquisition integration                                                                                    4                             2              2                                      2           0.01



 Workforce and lease termination                                                                            7                             1              6                                      6           0.02



 Acquisition related adjustments                                                                            1                                           1                                      1



 Amortization of intangible assets                                                                         12                             3              9                                      9           0.04



 Levelized foreign currency translation                                                                     2                                           2                                      2           0.01



 
            Risk Management, as adjusted                                                               $140                           $36           $104   
    $             -            $104          $0.40





 
            Corporate, as reported                                                                   $(553)                       $(220)        $(333)   
   $             -          $(333)       $(1.28)



 Transaction-related costs                                                                                 52                             8             44                                     44           0.17



 
            Corporate, as adjusted                                                                   $(501)                       $(212)        $(289)   
   $             -          $(289)       $(1.11)



             See "Information Regarding Non-GAAP Measures" on page 9
              of 20.

Contact:
Sara Walsh
630-285-3593 or sara_walsh@ajg.com

(20 of 20)

View original content:https://www.prnewswire.com/news-releases/arthur-j-gallagher--co-announces-second-quarter-2026-financial-results-302839454.html

SOURCE Arthur J. Gallagher & Co.

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