Brown & Brown, Inc. announces third quarter 2026 results
BROWN & BROWN, INC. (BRO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Brown & Brown, Inc. announces third quarter 2026 results, including total revenues of $1.7 billion, an increase of 7.4%; growth of Organic Revenue of 1.2%; growth of Organic Revenue with Contingents of 1.5%; diluted net income per share of $0.67; and Diluted Net Inco
How this was made
The 30-second read
Why it matters
The Q3 earnings release provides fresh guidance on revenue trends and profitability, offering traders a basis for short‑term positioning.
Market read
The earnings data may influence broker‑dealer sentiment toward mid‑cap insurance stocks and affect sector ETFs.
What to watch
Acquisition of Accession added 5,000 teammates, potentially boosting future earnings beyond the current quarter.
Third-quarter total revenues were $1.7 billion, up 7.4%, while Organic Revenue growth was 1.2%, net income attributable to the Company increased 5.7% to $240 million, and Diluted Net Income Per Share - Adjusted increased 1.9% to $1.07.
Reported revenue and net income increased, but organic growth was 1.2%, Income Before Income Taxes Margin declined to 18.6% from 19.4%, and EBITDAC Margin - Adjusted declined to 34.6% from 36.6%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three Months Ended September 30 - Commissions and feesGAAP | $1.7B | – | – |
| Three Months Ended September 30 - Investment and other incomeGAAP | $25M | – | – |
| Three Months Ended September 30 - Total revenuesGAAP | $1.73B | – | 7.4% |
| Three Months Ended September 30 - Organic Revenuenon-GAAP | $1.46B | – | 1.2% |
| Three Months Ended September 30 - Organic Revenue with Contingentsnon-GAAP | $1.54B | – | 1.5% |
| Three Months Ended September 30 - Employee compensation and benefitsGAAP | $857M | – | – |
| Three Months Ended September 30 - Other operating expensesGAAP | $307M | – | – |
| Three Months Ended September 30 - AmortizationGAAP | $110M | – | – |
| Three Months Ended September 30 - DepreciationGAAP | $18M | – | – |
| Three Months Ended September 30 - InterestGAAP | $100M | – | – |
| Three Months Ended September 30 - Change in estimated acquisition earn-out payablesGAAP | $27M | – | – |
| Three Months Ended September 30 - Mark-to-market of escrow liabilityGAAP | −$14M | – | – |
| Three Months Ended September 30 - Total expensesGAAP | $1.41B | – | – |
| Three Months Ended September 30 - Income before income taxesGAAP | $320M | – | 2.9% |
| Three Months Ended September 30 - Income Before Income Taxes MarginGAAP | 18.6% | – | – |
| Three Months Ended September 30 - EBITDACnon-GAAP | $575M | – | – |
| Three Months Ended September 30 - EBITDAC Marginnon-GAAP | 33.3% | – | – |
| Three Months Ended September 30 - EBITDAC - Adjustednon-GAAP | $597M | – | 1.7% |
| Three Months Ended September 30 - EBITDAC Margin - Adjustednon-GAAP | 34.6% | – | – |
| Three Months Ended September 30 - Income taxesGAAP | $79M | – | – |
| Three Months Ended September 30 - Net income attributable to the CompanyGAAP | $240M | – | 5.7% |
| Three Months Ended September 30 - Basic net income per shareGAAP | $0.73 | – | – |
| Three Months Ended September 30 - Diluted net income per shareGAAP | $0.67 | – | (1.5%) |
| Three Months Ended September 30 - Diluted Net Income Per Share - Adjustednon-GAAP | $1.07 | – | 1.9% |
| Nine Months Ended September 30 - Total revenuesGAAP | $5.30B | – | 23.4% |
| Nine Months Ended September 30 - Organic Revenuenon-GAAP | $3.99B | – | 0.3% |
| Nine Months Ended September 30 - Organic Revenue with Contingentsnon-GAAP | $4.2B | – | 1.5% |
| Nine Months Ended September 30 - Income before income taxesGAAP | $1.24B | – | 17.6% |
| Nine Months Ended September 30 - Income Before Income Taxes MarginGAAP | 23.3% | – | – |
| Nine Months Ended September 30 - EBITDACnon-GAAP | $1.92B | – | – |
| Nine Months Ended September 30 - EBITDAC - Adjustednon-GAAP | $1.93B | – | 20.9% |
| Nine Months Ended September 30 - EBITDAC Margin - Adjustednon-GAAP | 36.3% | – | – |
| Nine Months Ended September 30 - Net income attributable to the CompanyGAAP | $954M | – | 20.8% |
| Nine Months Ended September 30 - Diluted net income per shareGAAP | $2.57 | – | flat |
| Nine Months Ended September 30 - Diluted Net Income Per Share - Adjustednon-GAAP | $3.52 | – | 5.7% |
| Nine Months Ended September 30 - Net cash provided by operating activitiesGAAP | $1.14B | – | – |
| Nine Months Ended September 30 - Additions to fixed assetsGAAP | −$77M | – | – |
| Nine Months Ended September 30 - Net cash used in investing activitiesGAAP | −$125M | – | – |
| Nine Months Ended September 30 - Net cash used in financing activitiesGAAP | −$989M | – | – |
Capital returns
- Purchase of treasury stock of $(750) million for the nine months ended September 30, 2026.
- Cash dividends paid of $(169) million for the nine months ended September 30, 2026.
- Repurchase shares to fund tax withholdings for non-cash stock-based compensation of $(30) million for the nine months ended September 30, 2026.
What drove it
- Organic Revenue increased $17 million, or 1.2%, to $1,464 million for the three months ended September 30, 2026.
- Organic Revenue with Contingents increased $23 million, or 1.5%, to $1,543 million for the three months ended September 30, 2026.
- Acquisitions were $(156) million in the three-month reconciliation from core commissions and fees to Organic Revenue.
- J. Powell Brown cited efforts to win more customers in a challenging rate environment.
- The Company stated that its capabilities were broadly enhanced by the addition of approximately 5,000 new teammates from Accession.
Concerns
- Third-quarter Organic Revenue growth was 1.2%, and Organic Revenue with Contingents growth was 1.5%.
- Income Before Income Taxes Margin was 18.6%, compared to 19.4% in the third quarter of the prior year.
- EBITDAC Margin - Adjusted was 34.6%, compared to 36.6% in the third quarter of the prior year.
- Diluted net income per share decreased 1.5% to $0.67.
- Investment and other income was $25 million, compared to $56 million in the third quarter of 2025.
What to watch
- Organic Revenue growth and Organic Revenue with Contingents growth in the challenging rate environment.
- Income Before Income Taxes Margin and EBITDAC Margin - Adjusted following their third-quarter declines.
- The effect of acquisition, integration, amortization and acquisition earn-out items on adjusted and GAAP earnings.
- Long-term debt, which was $7,346 million less unamortized discount and debt issuance costs at September 30, 2026.
- Capital deployment following $750 million of treasury stock purchases and $(41) million of payments for businesses acquired, net of cash acquired, during the nine months ended September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $1,099 million at September 30, 2026, compared to $1,079 million at December 31, 2025.
- Fiduciary cash was $2,442 million at September 30, 2026, compared to $2,471 million at December 31, 2025.
- Current portion of long-term debt was $413 million at September 30, 2026, compared to $719 million at December 31, 2025.
- Long-term debt less unamortized discount and debt issuance costs was $7,346 million at September 30, 2026, compared to $6,894 million at December 31, 2025.
- Net cash provided by operating activities was $1,140 million for the nine months ended September 30, 2026, compared to $1,006 million for the same period in 2025.
- Payments for businesses acquired, net of cash acquired, were $(41) million for the nine months ended September 30, 2026, compared to $(7,659) million for the same period in 2025.
- Cash, cash equivalents and restricted cash inclusive of fiduciary cash at end of period were $3,812 million, compared to $3,724 million.
Analysis
Brown & Brown reported third-quarter total revenues of $1,725 million, compared with $1,606 million in the prior-year quarter. Growth on the Company’s non-GAAP organic measures was more modest: Organic Revenue increased 1.2% to $1,464 million and Organic Revenue with Contingents increased 1.5% to $1,543 million. The reconciliation identifies $(156) million of acquisitions in the three-month bridge from core commissions and fees to Organic Revenue, while management described a challenging rate environment.
Profit growth lagged revenue growth. Income before income taxes increased 2.9% to $320 million, while Income Before Income Taxes Margin declined to 18.6% from 19.4%. EBITDAC - Adjusted increased 1.7% to $597 million, but EBITDAC Margin - Adjusted declined to 34.6% from 36.6%. Employee compensation and benefits were $857 million versus $793 million, other operating expenses were $307 million versus $276 million, and amortization was $110 million versus $93 million.
Net income attributable to the Company increased 5.7% to $240 million. Diluted net income per share declined 1.5% to $0.67, while Diluted Net Income Per Share - Adjusted increased 1.9% to $1.07. The adjusted EPS reconciliation includes $0.09 of Acquisition/Integration Costs and $0.25 of amortization for the third quarter. For the nine months ended September 30, total revenues increased 23.4% to $5,302 million and net income attributable to the Company increased 20.8% to $954 million, but diluted net income per share was flat at $2.57.
Cash flow remained positive, with net cash provided by operating activities of $1,140 million for the nine months ended September 30, 2026, compared with $1,006 million in the prior-year period. The Company used $(750) million to purchase treasury stock, paid $(169) million in cash dividends, and made $(41) million of payments for businesses acquired, net of cash acquired. Cash and cash equivalents were $1,099 million at September 30, 2026, while long-term debt less unamortized discount and debt issuance costs was $7,346 million. The release did not provide forward guidance.
Management, verbatim
The third quarter reflected the incredible efforts of our teammates to win more customers in spite of a challenging rate environment. Our capabilities were broadly enhanced by the addition of approximately 5,000 new teammates from Accession, just over a year ago.
J. Powell Brown, president and chief executive officer
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate and other metrics.
- Previous-release outlook for comparison with reported results.
- Segment revenue, segment profitability and segment organic growth.
- GAAP operating income.
- Gross profit and gross margin.
- Free cash flow.
- A reported tax rate.
- Third-quarter operating cash flow and free cash flow.
- Prior-quarter comparisons for reported metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Brown & Brown is a publicly traded insurance brokerage (NYSE:BRO) that provides property‑casualty and risk management services.
Ticker impact
Brown & Brown reported unaudited Q3 2026 results with revenue up 7.4% to $1.7 B and diluted EPS of $0.67, a slight decline YoY.
likely slight downside as investors weigh revenue growth against flat EPS
Revenue rose modestly while diluted net income per share fell 1.5%; the mixed picture may pressure the stock.
Market effects
Insurance brokerage sector sees modest top‑line growth, but earnings pressure may temper broader sentiment.
U.S. market participants may adjust exposure to mid‑cap insurers following the release.
Limited global impact; primarily relevant to U.S. investors in the insurance distribution space.
Counterpoint
If the market overreacts to flat EPS, a bounce could occur on the back of continued revenue expansion.
Key entities
- CompanyBrown & Brown, Inc.
Insurance brokerage reporting Q3 2026 results.
