AJG · 10-Q · 2026Q2 · Full report
Income Tax Rate Changes
Arthur J. Gallagher & Co. · 2026-08-05 · Importance 15 · Surprise 14 · From source text
Gallagher’s consolidated effective tax rate was 21.7% in the second quarter of 2026, down from 22.3% in the second quarter of 2025. The six-month consolidated effective tax rate increased to 21.3% from 20.0% in the prior-year period. The risk management segment’s effective tax rate increased to 26.9% from 26.6% for the quarter and to 26.7% from 26.5% year to date. Gallagher expects an adjusted risk management tax rate of approximately 25.0% to 27.0% in future periods.
Key facts
- The income tax benefit of stock-based awards that vested or were settled in the six-month periods ended June 30, 2026 and 2025 was $31 million and $85 million, respectively, and is included in the Corporate line. source
- We anticipate reporting an effective tax rate of approximately 24.5% to 26.5% in the brokerage segment and 25.0% to 27.0% in the risk management segment for the foreseeable future. source
- We anticipate reporting an effective tax rate on adjusted results of approximately 25.0% to 27.0% in our risk management segment based on known changes in tax rates in future periods. source
- The brokerage segment effective income tax rates for the three-month periods ended June 30, 2026 and 2025 were 25.6% and 25.7%, respectively; for the six-month periods ended June 30, 2026 and 2025 were 25.5% and 25.7%, respectively. source
- The risk management segment’s effective income tax rates for the three-month periods ended June 30, 2026 and 2025 were 26.9% and 26.6%, respectively. source
- The risk management segment’s effective income tax rates for the six-month periods ended June 30, 2026 and 2025 were 26.7% and 26.5%, respectively. source
- Our consolidated effective tax rate for the three-month period ended June 30, 2026 was 21.7% compared to 22.3% for the same period in 2025. source
- Our consolidated effective tax rate for the six-month period ended June 30, 2026 was 21.3% compared to 20.0% for the same period in 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -1.4% | The income tax benefit of stock-based awards that vested or were settled in the six-month periods ended June 30, 2026 and 2025 was $31… |
| net_income | unclear | probable | — | We anticipate reporting an effective tax rate of approximately 24.5% to 26.5% in the brokerage segment and 25.0% to 27.0% in the risk… |
| net_income | unclear | probable | — | We anticipate reporting an effective tax rate on adjusted results of approximately 25.0% to 27.0% in our risk management segment based on… |