Arthur J Gallagher & Co (AJG) Q3 2026 Earnings Report
MX:AJG Q3 2026 EPS Results
- Actual EPS
- MXN 56.36
- Consensus EPS
- MXN 56.19
- Beat/Miss
- Beat by +MXN 0.17
- One Year Ago EPS
- MXN 43.59
MX:AJG Q3 2026 Revenue Results
- Actual Revenue
- MXN 74.70B
- Expected Revenue
- MXN 74.86B
- Beat/Miss
- Missed by -MXN 160.06M
- YoY Revenue Growth
- +18.14%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- After Close
- Conference Call
- Thursday, October 29, 2026
Arthur J Gallagher & Co's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was strongly positive overall. Gallagher reported robust revenue, earnings, organic growth and margin expansion; maintained a favorable 2026 outlook; highlighted strong AssuredPartners integration and synergies; and described positive client activity, acquisition opportunities and investments in technology and capabilities. The main challenges were competitive property pricing, delayed benefits projects caused by rising medical and prescription costs, a slower M&A environment, and a modest AssuredPartners-related organic growth headwind.
Management reaffirmed 2026 full year organic growth of approximately 6% for the combined Brokerage and Risk Management segments, with fourth quarter and full year '26 brokerage organic growth of around 5% and a 9% organic year for Risk Management; the 1% rate contribution is expected to be consistent in 2027. For 2027, legacy brokerage organic growth could look a lot like '26, with AP potentially creating a 40 to 50 basis point headwind, while Risk Management also could look a lot like this year; brokerage margin expansion starts around that 4% range, with 50 to 75 basis points of expansion at 5%, plus AP synergies. Fourth quarter and full year '26 Risk Management adjusted EBITDAC margin is expected to be north of 22%, acquisitions closed through yesterday could add about $65 million to brokerage revenue and about $5 million to risk management revenues, AP synergies remain on track for $160 million of annualized run-rate synergies by year-end '26 and $325 million by early 2028, and estimated acquisition capacity is more than $12 billion over the next 2 years.
- Strong Third-Quarter Financial PerformanceCombined Brokerage and Risk Management total revenue grew 18%, organic growth was 5%, net earnings increased 25%, and adjusted EBITDAC increased 25%. This marked the 26th consecutive quarter of double-digit adjusted EBITDAC growth and another quarter of margin expansion.
- Levelized Revenue, Earnings and EPS GrowthAfter removing the $76 million of interest income earned in the third quarter of 2025 on funds held for the AssuredPartners acquisition, adjusted revenue increased 20%, adjusted EBITDAC grew 34%, adjusted EPS grew 37%, and adjusted EBITDAC per share grew 35%. For the first nine months, levelized adjusted revenue grew 27%, adjusted EBITDAC grew 32%, adjusted EPS grew 34%, and adjusted EBITDAC per share grew 33%.
- Brokerage Growth and Margin ExpansionBrokerage revenue increased 19%, including 5% organic growth. Brokerage adjusted EBITDAC margin was 35.3%, representing 200 basis points of headline margin expansion, while underlying brokerage margins expanded 60 basis points.
- Risk Management MomentumGallagher Bassett revenue grew 14%, including 10% organic growth driven by excellent new business and strong client retention. Risk Management adjusted EBITDAC grew 17%, and the adjusted EBITDAC margin increased 90 basis points to 22.8%. The company expects fourth-quarter and full-year 2026 adjusted EBITDAC margin to be north of 22%.
- Positive Organic Growth DriversManagement cited excellent new business, strong client retention, positive exposure growth and diversified capabilities across property and casualty, benefits, reinsurance and claims as the primary drivers of organic growth. Approximately 1 point of current organic growth is tied to insurance rates, with the larger drivers being new business, retention, exposure growth and business diversity.
- Positive Client Activity and Macroeconomic IndicatorsDaily revenue indicators from client audits, endorsements and cancellations remained nicely positive, pointing to solid business activity and steady underlying exposure growth. On a quarter-by-quarter comparison, the company said the indicator was approximately 2x the comparable baseline in the third quarter, following 150% of the baseline in the second quarter.
- Strong Gallagher Bassett InvestmentsInvestments in Gallagher Bassett expanded its capabilities, data and technology, which management said improved advice, service and claim outcomes while strengthening the segment's competitive position. The company reported a good pipeline of opportunities and expects 2027 momentum could continue.
- AssuredPartners Integration and SynergiesMore than a year into the AssuredPartners combination, client retention remained strong and the teams were working well together. All back-office systems were integrated and operating, and close to half of AssuredPartners' revenues are expected to be on the designated agency management system by year-end. AssuredPartners delivered $285 million of adjusted EBITDAC in the quarter, and the company remains on track for $160 million of annualized run-rate synergies by year-end 2026 and $325 million by early 2028.
- Active Acquisition ProgramThe company completed 5 tuck-in acquisitions in the third quarter representing approximately $100 million of estimated annualized revenue. Year-to-date, it completed 21 acquisitions representing approximately $225 million of estimated annualized revenue. More than 30 term sheets were signed or being prepared, representing around $300 million of annualized revenue.
- Significant Acquisition CapacitySupported by $3.4 billion of future tax savings from tax credits and tax-deductible intangible amortization, along with cash on hand, expected free cash flow and future investment-grade borrowings, the company estimated more than $12 billion of acquisition capacity over the next 2 years.
- Productivity, Technology and AI InvestmentsThe company's centers of excellence had grown to 20,000 colleagues. Gallagher is continuing to invest in standardized workflows, data and digital capabilities, AI, automation, technology and offshore centers of excellence to reduce repetitive work, improve quality, strengthen client service and improve efficiency and margins over time.
- Capital ReturnGallagher repurchased approximately 400,000 shares for approximately $100 million during the third quarter, bringing total share repurchases to approximately $580 million through September 30.
- Positive Full-Year and 2027 OutlookManagement maintained its 2026 full-year organic growth outlook of approximately 6% for the combined Brokerage and Risk Management segments. Fourth-quarter and full-year 2026 brokerage organic growth was expected to be around 5%, while Risk Management was expected to deliver a 9% organic growth year. Management said its early view of 2027 was encouraging, with legacy brokerage organic growth potentially similar to 2026 and Gallagher Bassett potentially also resembling 2026.
- Strong New-Business and Cross-Selling CapabilitiesManagement said Gallagher evaluates white space in every account, with more than 80% of that white space typically held by parties other than Gallagher. The company reported that producer hit ratios had improved from the high-20s or low-30s historically to over 40% and toward 50% when its tools are used.
- Durable E&S and Specialty Market PositionGallagher reported no meaningful migration of its renewal book from the E&S market back to admitted carriers. New business submissions to E&S remained broadly consistent with the last couple of years, perhaps 5% lower, and management said E&S continued to provide creative solutions, flexibility and access to expert capital.
- Long-Term Scale and CultureGallagher ended the quarter with 74,000 colleagues serving clients in more than 130 countries. Management highlighted the company's team-first culture, global collaboration and training pipeline, including bringing approximately 600 young people into the business in the prior summer. Gallagher expects to celebrate its 100th anniversary in 2027.
MX:AJG Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 28, 2027 | 2026 (Q4) | 52.25- | 44.71 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 56.1956.36 | 43.59 | 29.31% (+12.77) | |
| Jul 30, 2026 | 2026 (Q2) | 52.8753.35 | 43.77 | 21.89% (+9.58) | |
| Apr 30, 2026 | 2026 (Q1) | 83.2183.98 | 68.95 | 21.80% (+15.03) | |
| Jan 29, 2026 | 2025 (Q4) | 44.1744.71 | 40.02 | 11.74% (+4.70) | |
| Oct 30, 2025 | 2025 (Q3) | 47.7043.59 | 42.46 | 2.65% (+1.13) | |
| Jul 31, 2025 | 2025 (Q2) | 44.2443.77 | 42.46 | 3.10% (+1.32) | |
| May 01, 2025 | 2025 (Q1) | 66.9968.95 | 65.57 | 5.16% (+3.38) | |
| Jan 30, 2025 | 2024 (Q4) | 38.0640.02 | 34.76 | 15.14% (+5.26) | |
| Oct 24, 2024 | 2024 (Q3) | 42.5142.46 | 37.57 | 13.00% (+4.88) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.