Gallagher (AJG) Q2 2026: Revenue +24% but GAAP Net Drops 12%
Gallagher's second quarter looks like a contradiction, and the explanation matters more than either number. Revenue rose 24.2% to $4,003 million while GAAP net earnings fell 12.0% to $324 million and diluted EPS slipped to $1.25 from $1.40. Almost none of that earnings decline is operating deterioration. It is the disappearance of interest income on the cash Gallagher had pre-raised to buy AssuredPartners, plus a step-up in acquisition amortization that will suppress reported profit through the end of the decade.
1. Consolidated Balance Sheet
1-1. Major asset items
| Item | Dec 31, 2025 ($M) | Jun 30, 2026 ($M) | Change % |
|---|---|---|---|
| Cash and cash equivalents | 1,396 | 1,386 | -0.7% |
| Fiduciary assets | 26,899 | 37,183 | +38.2% |
| Accounts receivable, net | 5,175 | 6,076 | +17.4% |
| Fixed assets - net | 789 | 765 | -3.0% |
| Goodwill | 22,593 | 23,026 | +1.9% |
| Amortizable intangible assets - net | 10,684 | 10,212 | -4.4% |
| Total assets | 70,665 | 81,808 | +15.8% |
One caution frames this entire table. AssuredPartners closed on August 18, 2025 for gross consideration of $13.8 billion, so it was already fully consolidated into the December 31, 2025 balance sheet. The six-month movements above are therefore not the acquisition itself — with one important exception noted below.
That distinction explains the largest line. Fiduciary assets — client premiums Gallagher holds in trust between payer and insurer — grew $10,284 million, which is 92% of the entire $11,143 million increase in total assets. This is pass-through money. An identical $37,183 million sits on the liability side as fiduciary liabilities, and the second quarter is when policy renewals cluster. Total assets grew 15.8%; the company's own asset base barely moved.
