Arthur J. Gallagher Reports Q1 Net Income of $822M, Revenue Up 28%
AJG•Arthur J. Gallagher reported first-quarter net income of $822 million, GAAP EPS of $3.16 and adjusted EPS of $4.47, surpassing the $4.40 consensus estimate. Revenue reached $4.76 billion (adjusted $4.72 billion), driven by 28% combined segment growth and 5% organic expansion.
1. Q1 Financial Results
Arthur J. Gallagher reported first-quarter net income of $822 million, GAAP EPS of $3.16 and adjusted EPS of $4.47, both above the $4.40 consensus estimate, on revenue of $4.76 billion (adjusted $4.72 billion).
2. Segment Performance
The Brokerage segment generated $4.29 billion in revenue versus $3.31 billion a year earlier, with adjusted EBITDAC of $1.56 billion, while Risk Management posted $428 million in revenue and $94 million in adjusted EBITDAC, combining for 28% segment growth.
3. Strategic Growth Drivers
Organic revenue rose 5% on strong client retention, while eight acquisitions added $49 million of annualized revenues; adjusted EBITDAC increased 18%, marking 24 consecutive quarters of double-digit growth supported by AI and automation investments.
4. Share Performance
AJG shares have declined 20% year-to-date and 36% over the past 12 months, trading near $206.40 following the results, reflecting sector pressure and profit-taking after recent gains.
