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Brown & Brown
(NYSE:BRO)
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Rating:73Outperform
Price Target:
$73.00
â–²(2.26% Upside)
Action:Reiterated
Date:10/29/26
BRO’s score is driven primarily by strong financial performance (solid profitability, accelerating cash generation, and strong revenue momentum) and a constructive—but mixed—earnings call outlook (synergy progress and improving 2027 growth tempered by near-term margin and Specialty Distribution headwinds). Technicals are currently neutral-to-soft with the stock below key moving averages, and valuation appears reasonable with only a modest dividend yield.
Positive Factors
Strong revenue and profitability
Strong multi-year revenue momentum combined with consistently solid margins indicates that Brown & Brown is converting market activity and client demand into durable earnings. Stable profitability gives the company resources to invest in producers, technology, acquisitions, and customer capabilities while supporting continued growth.
Negative Factors
Specialty Distribution growth and margin pressure
Specialty Distribution is facing competitive pressure from admitted markets, lower prices and terms, and movement of accounts out of E&S channels. Weaker growth and margins can reduce the segment’s contribution to consolidated earnings and challenge the durability of a historically important specialty expansion engine.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and profitability
Strong multi-year revenue momentum combined with consistently solid margins indicates that Brown & Brown is converting market activity and client demand into durable earnings. Stable profitability gives the company resources to invest in producers, technology, acquisitions, and customer capabilities while supporting continued growth.
Read all positive factors
Brown & Brown Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business segment generates, indicating the company's diverse income streams and potential areas for expansion or risk.
Shows how much revenue each business segment generates, indicating the company's diverse income streams and potential areas for expansion or risk.
Data provided by:
The Fly
The FlyBrown & Brown (BRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.50B
Dividend Yield0.97%
Average Volume (3M)2.59M
Price to Earnings (P/E)18.5
Beta (1Y)0.31
Revenue Growth26.10%
EPS Growth8.89%
CountryUS
Employees22,888
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)3.66
Shares Outstanding331,691,830
10 Day Avg. Volume2,840,945
30 Day Avg. Volume2,594,350
Financial Highlights & Ratios
PEG Ratio-10.20
Price to Book (P/B)1.97
Price to Sales (P/S)4.29
P/FCF Ratio17.88
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue3.89
Enterprise Value/Gross Profit6.61
Enterprise Value/Ebitda11.00
Forecast
1Y Price Target
$75.21Price Target Upside5.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)4.49
Revenue Forecast (FY)$6.99B
Brown & Brown Business Overview & Revenue Model
Company Description
Brown & Brown, Inc. operates as an insurance brokerage firm, providing a diverse range of products and services throughout the United States, Bermuda, Canada, Ireland, the United Kingdom, and the Cayman Islands. The company's operations are strate...
How the Company Makes Money
Brown & Brown makes money primarily by distributing insurance products and related services rather than by underwriting insurance risk. Its core revenue stream is commission and fee income earned for placing and servicing insurance policies for cl...
Brown & Brown Earnings Call Summary
Earnings Call Date:Oct 26, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 25, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. The company reported revenue and earnings growth, strong cash generation, improved retail execution, substantial Accession integration progress, higher synergy expectations, rapid AI adoption, and an improving 2027 organic-growth outlook. These positives were tempered by Specialty Distribution's underperformance, declining margins, CAT property and admitted-market pricing headwinds, contingent-commission pressure, integration costs, litigation uncertainty, and cautious customer investment conditions.Positive Updates
Revenue and Earnings Growth
Third-quarter revenue was $1.7 billion, growing 7.4% year over year. Organic revenue increased 1.2%, or 1.5% including organic contingents, and adjusted diluted earnings per share increased 1.9% to $1.07.
Negative Updates
Adjusted EBITDAC Margin Declined
Consolidated adjusted EBITDAC margin decreased 200 basis points to 34.6%. More than half of the decline was driven by approximately $29 million of lower interest income compared with the prior year, when the company was holding cash for the Accession acquisition.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue and Earnings Growth
Third-quarter revenue was $1.7 billion, growing 7.4% year over year. Organic revenue increased 1.2%, or 1.5% including organic contingents, and adjusted diluted earnings per share increased 1.9% to $1.07.
Read all positive updates
Company Guidance
For the fourth quarter, Retail’s organic growth, excluding contingents, is expected to be in the range of 2%-3%, while Specialty Distribution’s is expected to decline 2%-4%, including an incremental negative impact from certain non-recurring and timing-related items of $8 million-$12 million; Specialty Distribution contingent commissions are anticipated to decrease $14 million-$16 million year over year. For 2027, the company is expecting improving organic growth, excluding contingents, with Retail in the range of 2%-4% and Specialty Distribution in the range of 1%-3%, while contingent commissions in Specialty Distribution may face some downward pressure. The company expects fourth-quarter margins to be down compared to last year, cash-flow conversion to return toward 24%-26% of revenues, admitted-market rate changes to remain consistent with the third quarter with the potential for some continued slight moderation, casualty rates to continue increasing, and CAT property rates to remain down; CAT property rates are currently expected to be somewhere between 10% and 20% down in the industry, with the view that it is on the high end of that. Full-year 2026 EBITDAC synergies are expected to be approximately $50 million, run rate net EBITDAC synergies are targeted at $175 million by the end of 2028, and integration costs are expected to be $250 million to $300 million, plus approximately $90 million of pre-funded or debt-like items.Brown & Brown Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.97B | 5.76B | 4.71B | 4.20B | 3.56B | 3.05B |
| Gross Profit | 4.10B | 2.83B | 2.30B | 2.01B | 1.75B | 1.41B |
| EBITDA | 2.46B | 1.98B | 1.73B | 1.55B | 1.21B | 980.70M |
| Net Income | 1.22B | 1.05B | 993.00M | 870.50M | 671.80M | 587.10M |
Balance Sheet | ||||||
| Total Assets | 29.45B | 29.99B | 17.61B | 14.88B | 13.97B | 9.80B |
| Cash, Cash Equivalents and Short-Term Investments | 1.10B | 1.08B | 685.00M | 711.00M | 662.00M | 706.10M |
| Total Debt | 8.10B | 7.92B | 4.06B | 4.02B | 4.18B | 2.25B |
| Total Liabilities | 16.85B | 17.42B | 11.18B | 9.30B | 9.37B | 5.60B |
| Stockholders Equity | 12.58B | 12.55B | 6.44B | 5.58B | 4.61B | 4.20B |
Cash Flow | ||||||
| Free Cash Flow | 1.49B | 1.38B | 1.09B | 941.00M | 829.00M | 763.80M |
| Operating Cash Flow | 1.58B | 1.45B | 1.17B | 1.01B | 881.00M | 808.80M |
| Investing Cash Flow | -338.00M | -7.91B | -898.00M | -587.00M | -1.91B | -396.80M |
| Financing Cash Flow | -1.13B | 7.71B | -64.00M | -187.00M | 1.73B | -210.10M |
Brown & Brown Technical Analysis
Negative
71.39
Price Trends
67.13
Negative
66.85
Negative
66.52
Negative
Market Momentum
1.29
Negative
46.78
Neutral
30.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRO, the sentiment is Negative. The current price of 71.39 is above the 20-day moving average (MA) of 66.22, above the 50-day MA of 67.13, and above the 200-day MA of 66.52, indicating a bearish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 30.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRO.
Brown & Brown Risk Analysis
Brown & Brown disclosed 41 risk factors in its most recent earnings report. Brown & Brown reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brown & Brown Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $11.68B | 29.64 | 24.52% | 2.33% | 3.65% | -7.67% | |
77 Outperform | $68.74B | 43.97 | 6.67% | 1.03% | 26.74% | -9.60% | |
76 Outperform | $68.24B | 17.52 | 40.38% | 0.97% | 3.29% | 46.05% | |
73 Outperform | $22.50B | 18.54 | 9.69% | 0.99% | 26.10% | 8.89% | |
73 Outperform | $29.79B | 19.49 | 19.95% | 1.18% | 4.74% | -22.03% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
BRO
Brown & Brown
67.84
-11.84
-14.86%
AON
Aon
321.64
-3.53
-1.09%
AJG
Arthur J Gallagher & Co
268.20
9.22
3.56%
ERIE
Erie Indemnity Company
250.79
-51.72
-17.10%
WTW
Willis Towers Watson
320.73
7.84
2.51%
Brown & Brown Corporate Events
Executive/Board Changes
Brown & Brown director resigns ahead London mayor role
Neutral
Oct 22, 2026
Brown Brown, Inc.’s board experienced an immediate change on October 21, 2026, when director Bronislaw E. Masojada resigned from the Board and from its Audit and Compensation Committees. His departure was prompted by obligations tied to his...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Brown & Brown Updates 2026 Investor Presentation and Risks
Neutral
Sep 10, 2026
Brown Brown, Inc. disclosed that its management may periodically use a 2026 company overview investor presentation in meetings with institutional investors, analysts and at conferences, while clarifying that the materials are furnished, not filed...
Executive/Board ChangesRegulatory Filings and Compliance
Brown & Brown Executive Vice President Resigns, Signs Transition Pact
Neutral
Aug 10, 2026
On August 10, 2026, Brown Brown, Inc. disclosed that Executive Vice President and former Retail Segment President P. Barrett Brown voluntarily resigned for good reason from his officer roles, effective that same day, and entered into a Transition...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.