Arthur J. Gallagher (AJG) delivered a largely in-line Q2, with few surprises, and maintained most of its full-year 2026 guidance while modestly raising its outlook for Risk Management organic growth, RBC Capital Markets said in a note Friday.

Management maintained its 2026 consolidated organic growth outlook of about 6%, with higher Risk Management guidance offsetting unchanged Brokerage guidance, which implies Q4 acceleration that could raise the risk of a modest guidance cut later this year, according to the note.

The investment firm adjusted its operating earnings per share estimates, raising its 2026 outlook to $13.50 from $13.4, but reduced its 2027 forecast to $14.68 from $14.95. RBC also lowered its 2027 organic growth estimate to 5.3%, citing tougher comparisons and moderating pricing.

The firm said it expects share repurchases to moderate as the company prioritizes acquisitions, having completed seven transactions representing $63 million in annual revenue and signed about 30 term sheets covering roughly $500 million in annual revenue during the quarter.

RBC Capital Markets maintained its outperform rating on the stock, and raised its price target to $310 from $300.

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