Gallagher 2025-26: 23rd Quarter Double-Digit, FY26 Org +5.5%
FY25 revenue $13.94B (+21%); Op income $2.55B (+12%); NI $1.49B (+2%); EPS $5.75 (-12% on share count). Q4 reported revenue +30% / +5% organic / adj EBITDA +30% (23rd consecutive quarter of double-digit growth). Brokerage Q4 organic +5% with 50bp underlying margin expansion. M&A pipeline strong. FY26 guide: brokerage organic +5.5%, risk management +7%, margins 21-22%.
Key takeaways
- 23rd consecutive quarter of double-digit adj EBITDA growth. Q4 +30% adj EBITDA on +30% reported revenue. The cleanest serial double-digit compounder in insurance broking.
- 5% organic growth Q4 holding. Brokerage +5% Q4 organic; Risk Management ~7%. Reported revenue +30% reflects both organic + Buck + AssuredPartners + multiple bolt-on acquisitions annualizing through.
- FY26 brokerage organic +5.5%, RM +7%. Both segments accelerating slightly vs FY25. Combined Total reported organic ~5.5%+ with M&A continuing to add layers on top.
- M&A integration on track. AssuredPartners (~$13B 2024 deal, the largest in AJG history) integration progressing; Buck integration completing. Synergy targets achievable per management.
- Insurance pricing environment supportive. Continued mid-single-digit primary insurance pricing + reinsurance hard cycle benefit.
Business
Arthur J. Gallagher is the third-largest insurance broker globally (after Marsh McLennan + Aon), with three segments:
- Brokerage (~75% of revenue): Commercial property + casualty + specialty + benefits brokerage. Q4 organic growth: Americas retail PC +5%, UK/EMEA +7%, APAC +3%, Specialty/wholesale + US wholesale +7%, Reinsurance +8%, Benefits +1%. Adj EBITDAC margin 32.2% Q4.
- Risk Management (Gallagher Bassett) (~20% of revenue): Third-party claims administration + risk control + advisory. Higher-margin (~21-22%) than brokerage. ~7% organic FY26 guide.
- Other / Corporate (~5% of revenue): Captives + program services + other.
Strategic position: AJG combines brokerage + risk management at scale + Bassett claims platform — differentiated vs pure brokerage peers. AssuredPartners (closed 2024, ~$13B) was the largest acquisition in company history, adding meaningful US middle-market expansion.
FY25 financial performance
| Metric (FY) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue ($B) | 10.07 | 11.55 | 13.94 |
| Gross profit ($B) | 4.25 | 4.88 | 7.63 |
| Op income ($B) | 1.86 | 2.28 | 2.55 |
| Op margin | 18.5% | 19.7% | 18.3% |
| EBITDA ($B) | 2.18 | 3.10 | 3.66 |
| Net income ($B) | 0.97 | 1.46 | 1.49 |
| Diluted EPS ($) | 4.42 | 6.53 | 5.75 |
| FCF ($B) | 1.84 | 2.44 | 1.79 |
| Capex ($M) | -194 | -142 | -145 |
| Total debt ($B) | 8.32 | 13.49 | 14.00 |
| Dividends ($M) | -474 | -525 | -667 |
The earnings print: Revenue +21% reported / +5% organic. Adj EBITDA +18% reflects Buck + AssuredPartners + organic. EPS $5.75 (-12%) on share count expansion from M&A — but adj EPS continues growing.
Total debt $14.0B reflects AssuredPartners deal funding. Dividend +27% YoY (continued raise track).
Capital allocation
- Capex: $-145M FY25 (1.0% of revenue). Capital-light services.
- Dividends: $-667M FY25 (+27% YoY). Strong dividend growth.
- Buybacks: zero FY25 (capital priority on M&A).
- M&A: AssuredPartners + Buck + multiple bolt-ons. Strong M&A pipeline FY26.
- Debt: $14.0B (+$0.5B YoY) post-AssuredPartners.
FY26 outlook (per Q4 2025 call, 2026-01-29)
| FY26 guide | Range / target |
|---|---|
| Brokerage organic growth | ~5.5% |
| Risk Management organic growth | ~7%, margins 21-22% |
| M&A integration | On track |
| M&A pipeline | Strong; continued cadence |
The +5.5% brokerage organic guide is structurally healthy. AssuredPartners + Buck full-year contributions + bolt-ons on top imply reported revenue +mid-teens YoY.
Key risks
- Insurance market cycle: Hard market in P&C + reinsurance currently favorable. Soft market would compress commission revenue.
- AssuredPartners integration: Year 2 of largest-ever acquisition; cost + revenue synergies + customer retention all material.
- Talent retention: Insurance broking is talent-intensive. Compensation + competitor poaching continue.
- Currency: ~30% revenue international; FX exposure.
- M&A execution: Continued strong M&A cadence + integration risk.
- Regulatory: Multiple jurisdictions; PBM-style scrutiny on commission practices.
Bottom line
AJG FY25 is the 23rd consecutive quarter of double-digit growth + AssuredPartners full year. Revenue +21% reported / +5% organic / adj EBITDA +30%. FY26 guide brokerage +5.5% / RM +7% / margins 21-22% RM. M&A pipeline strong + integration on track. The structural read: insurance brokerage scale + risk management differentiation + serial M&A compounder + consistent capital return. Risks are insurance market cycle + integration tail + talent.
Citations
- Arthur J. Gallagher & Co. FY25 Form 10-K (filed February 2026, SEC EDGAR).
- AJG Q4 2025 earnings call, 2026-01-29 — Q4 reported +30% / +5% organic / adj EBITDA +30% (23rd consecutive quarter of double-digit growth), Brokerage Q4 organic detail (Americas retail PC +5%, UK/EMEA +7%, APAC +3%, Wholesale +7%, Reinsurance +8%, Benefits +1%); FY26 brokerage organic ~5.5%, RM ~7% / margins 21-22%, M&A pipeline strong.
- AssuredPartners acquisition (closed 2024, ~$13B); Buck acquisition.
- Internal financial_statements view (consolidated annual + cash flow + capital structure).