Brown & Brown (BTW) Q3 2026 Earnings Report
DE:BTW Q3 2026 EPS Results
- Actual EPS
- EUR 0.96
- Consensus EPS
- EUR 0.97
- Beat/Miss
- Missed by -EUR 0.01
- One Year Ago EPS
- EUR 0.94
DE:BTW Q3 2026 Revenue Results
- Actual Revenue
- EUR 1.54B
- Expected Revenue
- EUR 1.57B
- Beat/Miss
- Missed by -EUR 29.68M
- YoY Revenue Growth
- +7.41%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/26/2026
- Time
- After Close
- Conference Call
- Monday, October 26, 2026
Brown & Brown's next earnings date is estimated for January 25, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
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.
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.
- Revenue and Earnings GrowthThird-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.
- Strong Cash Generation and Share RepurchasesCash flow from operations was $1.1 billion for the first nine months of 2026, an increase of approximately $135 million, or 13%, versus the prior year. The company repurchased $750 million of shares through nine months, including $250 million in the third quarter.
- Dividend Increased for the 33rd Consecutive YearThe board raised the dividend by 9%, representing the 33rd consecutive year of dividend increases. Dividends paid per share increased 10% compared with the third quarter of 2025.
- Retail Segment ImprovementRetail organic growth was 2.6%, or 2.5% including organic contingents. Total retail revenue increased 10.8%, while retail adjusted EBITDAC margin expanded 10 basis points, driven by disciplined expense management, Accession revenue phasing, and synergies. Growth reflected improvement in net new business and good performance in employee benefits and bond practices.
- Contingent Commissions Performed WellTotal contingent commissions grew by over 8% on an organic basis during the quarter. Management said 2026 was a really good year for contingent commissions and expressed satisfaction with the full-year performance.
- Accession Integration and Financial PerformanceMore than 5,000 Accession teammates reached their one-year anniversary. During its first year, Accession generated approximately $1.7 billion of revenue, with EBITDAC margins and accretive diluted earnings per share substantially in line with expectations. Management said cultural alignment, financial performance, producer retention, and integration progress were strong.
- Accession Synergy Expectations IncreasedExpected 2026 EBITDAC synergies from Accession increased from $30 million-$40 million to approximately $50 million. The targeted run-rate net EBITDAC synergies by the end of 2028 increased from $150 million to $175 million, with most of the incremental amount expected to come from expense synergies.
- Major Integration Milestones CompletedThe company aligned leadership structures, operating models, and brands; harmonized teammate benefits and producer compensation; integrated financial and HR systems and controls; consolidated offices and selected businesses; and refined carrier engagement strategies. Management said it believes the hardest part of the integration is behind the company.
- AI Deployment Expanded RapidlyBrown & Brown completed a technology assessment, established AI governance and cybersecurity controls, and created a value management office. Claude was deployed to more than 6,000 teammates in 45 days, with more than 90% actively using the platform. AI is being used across prospecting, submissions, claims analysis, analytics, and data extraction.
- COMPASS and AI RoadmapThe company announced COMPASS, a connected ecosystem combining AI-powered capabilities, proprietary data analytics, and specialized knowledge within retail. By year-end, COMPASS-powered assistance and business-intelligence solutions are expected to reach thousands of teammates, with an expanded suite of customer solutions planned throughout 2027. Management plans to use one-year measurable investment tranches rather than a multi-year, multi-hundred-million-dollar program.
- Producer Hiring and RetentionManagement said it is hiring more producers and intends to continue hiring talented people to support its stated goal of reaching $8 billion of revenue. Producer retention in the legacy Accession business was described as very similar to Brown & Brown's retention, and management said it was very pleased with retention of producers and other teammates.
- Specialty Business Capabilities and Future Growth DriversSpecialty distribution has delivered double-digit organic growth over the past five years and organic growth above 8% over the past 10 years. Management identified reinsurance, MGU, affinity programs, and captive management programs acquired through Accession as businesses with good projections for next year. Brokerage and programs also delivered growth in casualty, professional liability, and public entity lines.
- Policy Growth in CAT-Exposed LinesIn CAT-exposed lines, policies in force increased even though revenue declined because of significant rate decreases. Management also said policy counts are growing in a number of programs and that the company is writing a significant amount of new business in difficult markets.
- Employee Benefits Advisory DemandMedical rates increased 9%-11%, driven by high-cost claimants and surging healthcare costs. These pressures are creating demand for advisory and consulting capabilities related to plan design, employee contributions, self-funded arrangements, and captive solutions.
- European Wholesale InvestmentThe company is investing in North American and international wholesale capabilities, including its London brokerage and program businesses. Management said the London business performed well in the third quarter and expects benefits from these investments to emerge into next year and beyond.
- Positive 2027 Organic Growth OutlookFor 2027, management currently expects organic growth excluding contingents of 2%-4% for Retail and 1%-3% for Specialty Distribution, describing both divisions as having improving organic growth prospects.
DE:BTW Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 25, 2027 | 2026 (Q4) | 0.80- | 0.83 | ― | ― |
| Oct 26, 2026 | 2026 (Q3) | 0.970.96 | 0.94 | 1.90% (+0.02) | |
| Jul 27, 2026 | 2026 (Q2) | 0.970.96 | 0.92 | 3.88% (+0.04) | |
| Apr 27, 2026 | 2026 (Q1) | 1.221.24 | 1.16 | 7.75% (+0.09) | |
| Jan 26, 2026 | 2025 (Q4) | 0.810.83 | 0.77 | 8.14% (+0.06) | |
| Oct 27, 2025 | 2025 (Q3) | 0.850.94 | 0.81 | 15.38% (+0.13) | |
| Jul 28, 2025 | 2025 (Q2) | 0.880.92 | 0.83 | 10.75% (+0.09) | |
| Apr 28, 2025 | 2025 (Q1) | 1.161.16 | 1.02 | 13.16% (+0.13) | |
| Jan 27, 2025 | 2024 (Q4) | 0.690.77 | 0.52 | 48.28% (+0.25) | |
| Oct 28, 2024 | 2024 (Q3) | 0.790.81 | 0.64 | 28.17% (+0.18) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
