Arthur J. Gallagher & Co. (AJG) Q2 2026: Total Assets +15.8% to $81.8B, GAAP Net Income -12%, Adjusted EPS +23%
Arthur J. Gallagher & Co., the world's third-largest insurance broker by revenue (Business Insurance 2026 Global Rankings), ended Q2 2026 with total assets of $81.8B, up 15.8% in six months. The expansion was driven by the August 2025 close of the AssuredPartners acquisition ($13.8B total consideration) and seasonal growth in fiduciary assets.
The earnings picture splits in two. GAAP Q2 net income fell 12.0% to $324M ($1.25 diluted EPS), while the company's reported adjusted net income rose 21.5% to $734M ($2.84 adjusted EPS, vs. $2.30 a year ago). The gap is attributable almost entirely to acquisition-related amortization — the number that separates this filing from a straightforward growth story. Comprehensive income fell 75.6% to $196M, reflecting a swing from a large foreign currency translation gain in the prior year (+$428M) to a translation loss this year (-$134M). H1 cumulative GAAP net income of $1,147M was up 6.5%.
1. Consolidated Balance Sheet Analysis
1-1. Key Asset Items
| Item | Dec 31, 2025 | Jun 30, 2026 | Change | Notes |
|---|---|---|---|---|
| Cash and cash equivalents | $1,396M | $1,386M | -0.7% | Held steady despite buybacks, dividends, and debt repayment |
| Fiduciary assets | $26,899M | $37,183M | +38.2% | Seasonal Q2 premium renewal concentration |
| Accounts receivable | $5,175M | $6,076M | +17.4% | Renewal-season billings and unbilled brokerage fees |
| PP&E, net | $789M | $765M | -3.0% | Depreciation outpaced $87M of capex |
| Goodwill | $22,594M | $23,027M | +1.9% | Acquisitions +$364M, true-up +$173M, FX -$104M |
| Intangible assets, net | $10,684M | $10,212M | -4.4% | Ongoing amortization of expiration lists |
| Total assets | $70,665M | $81,808M | +15.8% | 45% of assets are pass-through fiduciary |
(All figures from AJG Form 10-Q, consolidated balance sheet as of June 30, 2026)
