Brown & Brown targets $175M run-rate net EBITDAC synergies by end of 2028 as it projects 2027 organic growth of 2%-4% in retail (NYSE:BRO)

Brown & Brown (BRO) reported Q3 earnings, noting market shifts in California and Texas, and pricing pressures in commercial earthquake business. The company expects 2027 growth of 2%-4% for retail and 1%-3% for specialty distribution. Accession acquisition raised synergy targets to $50M for 2026 and $175M by 2028. AI initiatives are expanding across the company, with tools like Claude and COMPASS being deployed. The board increased the dividend by 9%.

Brown & Brown (BRO) reported Q3 2026 revenues of $1.7B, up 7.4% YoY. Organic revenue grew 1.2%, while adjusted EBITDAC margin fell 200 bps to 34.6%. Adjusted EPS rose 2% to $1.07. The company raised its dividend by 9%, marking 33 consecutive years of increases. Retail segment outperformed expectations, while specialty distribution faced headwinds. The company repurchased $750M in shares YTD, including $250M in Q3.

Truist Securities reduced its price target for Brown & Brown (NYSE:BRO) to $85 from $90, citing lower 2026 and 2027 EPS estimates. The firm maintained a Buy rating, basing the target on a 14x multiple of its 2027 EBITDA estimate. BRO's Q3 earnings missed expectations, with revenue at $1.72B and EPS at $1.07, though both showed year-over-year growth. The company's organic growth slowed, and its adjusted EBITDAC margin declined by 200 basis points.

Brown & Brown (BRO) shares fell 4.9% after reporting Q3 2026 revenue of $1.73B, up 7.4% YoY, but with slowing organic growth and margin compression. CEO Powell Brown noted declines in excess-and-surplus property rates and expected further decreases in 2027. The stock is down 13.4% YTD, trading at $67.25, 23.4% below its 52-week high.

Brown & Brown reported Q3 revenue of $1.73B, up 7.4% YoY, with net income rising 5.7% to $240M. Property catastrophe rates fell 15-35%, while casualty rates rose. The company expects further rate declines and modest organic growth in 2027. It completed four acquisitions and increased integration savings targets for Accession Risk Management Group.

Brown & Brown (BRO) reported Q3 2026 revenue of $1.7B, up 7.4% YoY, but missed earnings estimates. Shares fell 4.28%. Organic growth slowed to 1.2%, and margins compressed. The company raised 2026 synergy targets from Accession acquisition to $50M and increased its 2028 run-rate target to $175M. Retail segment grew 2.6% organically, while Specialty Distribution declined 0.8%.