How much of the revenue growth came from organic activity versus acquisitions?

Most of the growth was acquisition-driven. Total organic commissions, fees, supplemental revenues and contingent revenues grew 5%, to $3.208 billion from $3.067 billion, while total reported revenue in these categories rose to $4.210 billion from $3.076 billion. Acquisitions, divested operations and other items contributed about $1.0 billion in the quarter, largely from AssuredPartners, which closed in August 2025.

Why did reported margins decline even though earnings grew?

Reported net earnings rose 12% to $913 million in Brokerage, but margins compressed. Management attributed this mainly to $143 million of interest income in Q1 2025 tied to AssuredPartners financing proceeds, which did not recur. Higher integration, technology and acquisition-related costs also pushed expense ratios up. Adjusted EBITDAC margin for Brokerage fell to 40.1% from 43.3%, and management said the interest income comparison and acquisition seasonality accounted for about 3.6 points of the decline.

What is the outlook for 2026?

The 8-K itself does not provide guidance figures. It states that the CFO Commentary, furnished under Regulation FD, includes estimates for 2026 and other future results. Investors should review that document, available on the company's investor relations site, for specific outlook details. The release's forward-looking statements highlight risks such as integration of AssuredPartners, interest and inflation rate changes, competitive pressures, and insurance market conditions.

How is the company's balance sheet and capital allocation positioned?

Corporate-related borrowings were about $12.7 billion at quarter end, with $9.55 billion of public debt, $3.0 billion of private placements and $285 million under the credit line. Cash was $1.4 billion. Gallagher repurchased about $310 million of shares in the quarter and declared dividends of $0.70 per share, up from $0.65. Goodwill and intangibles increased, reflecting acquisition activity, and tangible equity remains a key consideration for investors given the size of acquired intangibles.

Are the non-GAAP adjustments material to the investment case?

Yes, they are substantial. Adjusted diluted EPS of $4.47 exceeds reported EPS of $3.16 by about $1.31, mainly from amortization of intangible assets ($0.77 per share), acquisition integration ($0.25) and acquisition-related adjustments ($0.15). Investors should weigh whether recurring costs such as integration and acquisition-related charges are truly non-recurring, since AssuredPartners-related costs have persisted across several periods.

AJG 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.

Arthur J.

Gallagher & Co. (AJG) reported first quarter 2026 results that showed strong top-line and earnings growth, though much of the headline expansion reflects the AssuredPartners acquisition rather than organic momentum. Total revenues before reimbursements rose to $4.716 billion^a from $3.688 billion (roughly 28% on a combined Brokerage and Risk Management basis), and reported diluted EPS was $3.16 versus $2.72. Adjusted diluted EPS was $4.47 versus $3.72, and adjusted EBITDAC grew about 18% on a combined basis, which management described as the 24th consecutive quarter of double-digit adjusted EBITDAC growth.

Organic revenue growth was 5% for the combined Brokerage and Risk Management segments, with Brokerage organic growth at 5% and Risk Management organic fee growth at 10%. The quality of the earnings comparison deserves some caution. First quarter 2025 included roughly $143 million^b of one-time-like interest income earned on AssuredPartners financing proceeds, which depressed margins year over year.

Brokerage compensation and operating expense ratios both worsened on a reported basis, reflecting lower interest income, integration and technology costs, and higher acquisition-related charges. Amortization of intangibles and interest expense also weighed on GAAP results, and the company's reported effective tax rate rose to 21.1% from 18.8%. Balance sheet changes are significant: total assets grew to $78.3 billion^c and goodwill and intangibles increased, while corporate borrowings remained largely stable at roughly $12.7 billion, and the company repurchased about $310 million of stock during the quarter.

The 8-K also furnished supplemental materials and a CFO Commentary under Regulation FD that include forward-looking estimates for 2026. Investors should note that the release relies heavily on non-GAAP adjusted measures, and that the forward-looking statements carry standard risk factors, including integration risk from AssuredPartners, competitive pressures in brokerage, and macroeconomic and insurance-market conditions.

02—Key points

Key Highlights

Total revenues before reimbursements rose to $4.716 billion from $3.688 billion, a 28% increase on a combined Brokerage and Risk Management basis, driven largely by acquisitions including AssuredPartners.
Organic revenue grew 5% in total, with Brokerage organic commissions, fees and related revenues up 5% and Risk Management organic fees up 10%.
Reported diluted EPS was $3.16 versus $2.72 a year earlier (up about 16%); adjusted diluted EPS was $4.47 versus $3.72 (up about 20%).
Adjusted EBITDAC for the combined segments grew about 18%, marking the 24th consecutive quarter of double-digit adjusted EBITDAC growth, though Q1 2025 included about $143 million of AssuredPartners-related interest income that flatters the prior-year comparison.
Brokerage compensation expense ratio rose to 51.5% (reported) from 48.8%, and the operating expense ratio rose to 12.1% from 10.5%, reflecting lower interest income and higher integration and technology costs.
Total assets increased to $78.3 billion from $70.7 billion, with goodwill rising to $23.0 billion and amortizable intangibles at $10.4 billion; the company repurchased about 1.4 million shares for roughly $310 million.
The company disclosed Corporate-level items including $158 million of quarterly interest and banking costs, and a consolidated effective tax rate of 21.1% versus 18.8% in the prior year.

03—Questions

Frequently Asked Questions

How much of the revenue growth came from organic activity versus acquisitions?
Most of the growth was acquisition-driven. Total organic commissions, fees, supplemental revenues and contingent revenues grew 5%, to $3.208 billion from $3.067 billion, while total reported revenue in these categories rose to $4.210 billion from $3.076 billion. Acquisitions, divested operations and other items contributed about $1.0 billion in the quarter, largely from AssuredPartners, which closed in August 2025.
Why did reported margins decline even though earnings grew?
Reported net earnings rose 12% to $913 million in Brokerage, but margins compressed. Management attributed this mainly to $143 million of interest income in Q1 2025 tied to AssuredPartners financing proceeds, which did not recur. Higher integration, technology and acquisition-related costs also pushed expense ratios up. Adjusted EBITDAC margin for Brokerage fell to 40.1% from 43.3%, and management said the interest income comparison and acquisition seasonality accounted for about 3.6 points of the decline.
What is the outlook for 2026?
The 8-K itself does not provide guidance figures. It states that the CFO Commentary, furnished under Regulation FD, includes estimates for 2026 and other future results. Investors should review that document, available on the company's investor relations site, for specific outlook details. The release's forward-looking statements highlight risks such as integration of AssuredPartners, interest and inflation rate changes, competitive pressures, and insurance market conditions.
How is the company's balance sheet and capital allocation positioned?
Corporate-related borrowings were about $12.7 billion at quarter end, with $9.55 billion of public debt, $3.0 billion of private placements and $285 million under the credit line. Cash was $1.4 billion. Gallagher repurchased about $310 million of shares in the quarter and declared dividends of $0.70 per share, up from $0.65. Goodwill and intangibles increased, reflecting acquisition activity, and tangible equity remains a key consideration for investors given the size of acquired intangibles.
Are the non-GAAP adjustments material to the investment case?
Yes, they are substantial. Adjusted diluted EPS of $4.47 exceeds reported EPS of $3.16 by about $1.31, mainly from amortization of intangible assets ($0.77 per share), acquisition integration ($0.25) and acquisition-related adjustments ($0.15). Investors should weigh whether recurring costs such as integration and acquisition-related charges are truly non-recurring, since AssuredPartners-related costs have persisted across several periods.

04—Continue

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