EarningsQ3 2026 Earnings Report
MX:BRO Q3 2026 EPS Results
Actual EPS$20.20
Consensus EPS$20.51
Beat/MissMissed by -$0.30
One Year Ago EPS$19.83
MX:BRO Q3 2026 Revenue Results
Actual Revenue$32.57B
Expected Revenue$33.20B
Beat/MissMissed by -$625.91M
YoY Revenue Growth+7.41%
Earnings Announcement Details
QuarterQ3 2026
Date10/26/2026
TimeAfter Close
Conference CallMonday, October 26, 2026
MX:BRO Upcoming Earnings
Brown & Brown's next earnings date is estimated for January 25, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:BRO Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
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.Company Guidance
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.
Strong Cash Generation and Share Repurchases
Cash 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 Year
The 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 Improvement
Retail 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 Well
Total 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 Performance
More 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 Increased
Expected 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 Completed
The 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 Rapidly
Brown & 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 Roadmap
The 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 Retention
Management 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 Drivers
Specialty 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 Lines
In 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 Demand
Medical 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 Investment
The 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 Outlook
For 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.
MX:BRO Earnings History
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.
Beat
Missed