Gallagher Third-Quarter Revenue Rises 18% as Adjusted EPS Climbs to $3.00

Arthur J. Gallagher's third-quarter revenue climbed 18% to $3.93 billion and adjusted earnings rose to $3.00 a share from $2.31 a year earlier, as the insurance broker folded in acquired businesses and posted 5% organic growth, according to the earnings release it filed with an 8-K on Thursday.

Reported net earnings rose to $406 million, or $1.55 a share, from $273 million, or $1.04 a share, in the third quarter of 2025. Adjusted net earnings were $782 million, up from $604 million.

"We delivered another excellent quarter!" Chairman and CEO J. Patrick Gallagher Jr. said in the release. He said the combined brokerage and risk management segments grew net earnings 25% and adjusted EBITDAC, which strips out items such as interest, taxes, depreciation, amortization and earnout changes, also 25%, "marking our 26th consecutive quarter of double-digit adjusted EBITDAC growth."

Brokerage does the heavy lifting

The brokerage segment, by far Gallagher's largest, grew reported revenue to $3.47 billion from $2.92 billion. Adjusted EBITDAC in the segment rose to $1.22 billion from $975 million, and its adjusted EBITDAC margin widened to 35.3% from 33.3%. On an adjusted basis, the segment contributed $3.34 a share, up from $2.64.

Organic base commissions and fees grew 4%, while organic supplemental revenue rose 14% and organic contingent revenue was flat, according to the release's reconciliation tables.

Gallagher said the year-earlier quarter included about $76 million of interest income earned on cash raised in December 2024 to finance the AssuredPartners acquisition.

The risk management segment grew revenue to $457 million from $402 million. Its adjusted contribution to earnings rose to 27 cents a share from 22 cents. Together, the two operating segments produced adjusted earnings of $3.61 a share, up from $2.86, before corporate segment costs.

Deals keep coming

Gallagher closed five acquisitions in the quarter with estimated annualized revenue of $102 million, compared with six deals representing about $3.04 billion a year earlier, when AssuredPartners was included. Through nine months it has closed 19 acquisitions with about $209 million of estimated annualized revenue.

Integration spending also rose. Gallagher excluded $103 million of brokerage acquisition integration costs from adjusted EBITDAC in the quarter, up from $66 million a year earlier, along with $35 million of workforce and lease termination charges.

Nine-month picture

For the first nine months, total revenue before reimbursements rose to $12.60 billion from $10.19 billion. Reported earnings were $5.97 a share, up from $5.16, and adjusted earnings rose to $10.32 a share from $8.35.

Gallagher said clients "continue to value our advice, advocacy, analytics and market access" as risks become more complex. "We have a terrific team, a proven strategy and significant opportunities ahead of us," Gallagher said.

Management scheduled a webcast conference call for 5:15 p.m. ET on Thursday to discuss the results.

Sources

1. Arthur J. Gallagher Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001628280-26-068263)

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