Arthur J. Gallagher’s Third-Quarter Earnings Miss Estimates as Interest Income Falls

Key Facts

Arthur J. Gallagher reported third-quarter 2026 results, with revenue of $3.92 billion, 1.3% below Zacks’ estimate. The company’s results showed revenue before reimbursements of $3.930 billion, compared with $3.325 billion in the year-earlier period. Reported net earnings were $406 million, compared with $273 million a year earlier. The chief executive said net earnings and adjusted EBITDAC rose 25% during the quarter.

Reported diluted earnings per share rose to $1.55 from $1.04 in the third quarter of 2025, while adjusted earnings per share were $3.00, compared with $2.31. The chief executive said the quarter marked the 26th consecutive period in which the company achieved double-digit growth in adjusted EBITDAC. Combined revenue in the brokerage and risk management segments increased 18%, including organic growth of 5%. By segment, brokerage revenue rose 19%, including 5% organic growth, while risk management organic growth was 10%. These figures show expansion in operating activity alongside growth in reported earnings.

Interest, premium financing and other income fell to $113 million in the third quarter of 2026 from $167 million a year earlier. But the prior-year comparison included about $76 million of additional interest income in the brokerage segment, related to funds earmarked to finance the acquisition of AssuredPartners. The chief financial officer said excluding that income from the comparative quarter’s figures lifts adjusted revenue growth for the two segments to 20%. On the same adjusted basis, adjusted earnings per share rose 37%, the CFO said. This adjustment puts the decline in interest income in the context of the year-over-year comparison, without changing the revenue miss against Zacks’ estimate.

For the nine months ended Sept. 30, 2026, brokerage revenue before reimbursements was $11.268 billion, compared with $9.023 billion in the corresponding period of 2025. The company repurchased about 0.4 million shares during the third quarter for approximately $100 million. In its outlook, management said it expects brokerage organic growth of about 5% in the fourth quarter and across 2026. It also forecast the risk management segment’s adjusted EBITDAC margin to exceed 22% in both periods. The CFO said acquisitions closed by then could add about $65 million to brokerage revenue and about $5 million to risk management revenue in the fourth quarter.

The results were announced before management’s conference call, scheduled for Oct. 29, 2026, at 5:15 p.m. Eastern time to discuss them. The company’s shares, listed under the ticker AJG, closed at $268.20 that day, according to EL7 data.