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Wall Street analysts forecast that Brown & Brown (BRO - Free Report) will report quarterly earnings of $1.08 per share in its upcoming release, pointing to a year-over-year increase of 2.9%. It is anticipated that revenues will amount to $1.76 billion, exhibiting an increase of 9.8% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

With that in mind, let's delve into the average projections of some Brown & Brown metrics that are commonly tracked and projected by analysts on Wall Street.

According to the collective judgment of analysts, 'Revenues- Commissions and fees' should come in at $1.74 billion. The estimate suggests a change of +12.6% year over year.

Analysts' assessment points toward 'Revenues- Investment and other income' reaching $23.51 million. The estimate indicates a year-over-year change of -58%.

The consensus estimate for 'Revenues- Commissions and fees- Retail' stands at $994.67 million. The estimate indicates a change of +13.4% from the prior-year quarter.

The combined assessment of analysts suggests that 'Revenues- Commissions and fees- Specialty Distribution' will likely reach $756.71 million. The estimate suggests a change of +12.4% year over year.

It is projected by analysts that the 'Total Revenues- Specialty Distribution' will reach $753.93 million. The estimate indicates a year-over-year change of +10.7%.

Analysts forecast 'Revenues- Investment and other income- Retail' to reach $6.06 million. The estimate indicates a year-over-year change of +1%.

Based on the collective assessment of analysts, 'Revenues- Investment and other income- Specialty Distribution' should arrive at $6.98 million. The estimate suggests a change of -12.8% year over year.

The average prediction of analysts places 'Total Revenues- Retail' at $1.00 billion. The estimate suggests a change of +13.6% year over year.

Analysts expect 'Total Revenues- Other' to come in at $9.20 million. The estimate indicates a year-over-year change of -78.1%.

The collective assessment of analysts points to an estimated 'Total Organic growth' of 1.9%. Compared to the present estimate, the company reported 3.5% in the same quarter last year.

The consensus among analysts is that 'Income before income taxes- Retail' will reach $169.93 million. The estimate compares to the year-ago value of $164.00 million.

Analysts predict that the 'Income before income taxes- Specialty Distribution' will reach $267.86 million. Compared to the current estimate, the company reported $255.00 million in the same quarter of the previous year.

View all Key Company Metrics for Brown & Brown here>>>

Brown & Brown shares have witnessed a change of +13.6% in the past month, in contrast to the Zacks S&P 500 composite's +1% move. With a Zacks Rank #3 (Hold), BRO is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

The market expects Brown & Brown (BRO - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 26. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis insurance company is expected to post quarterly earnings of $1.08 per share in its upcoming report, which represents a year-over-year change of +2.9%.

Revenues are expected to be $1.76 billion, up 9.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.06% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Brown & Brown?For Brown & Brown, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.62%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Brown & Brown will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Brown & Brown would post earnings of $1.08 per share when it actually produced earnings of $1.07, delivering a surprise of -0.93%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Brown & Brown appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways Brown & Brown's commissions and fees rose 32.4% to $1.65 billion in Q2 2026.BRO completed six small acquisitions, while Accession contributed about $410 million to revenues.Operating cash flow rose 13% to about $610 million, while interest expense surged 96.1% to $100 million. Shares of Brown & Brown, Inc. (BRO - Free Report) have plunged 27.1% in the past year compared with the industry’s 15.3% decline.

Soft organic growth, moderating property rates, elevated costs and acquisition-related debt are weighing on the stock. Despite these factors, the company's strong client retention, new business generation and acquisitions remain intact, while recovery depends on improving earnings growth, stronger insurance market conditions and margin stabilization.

Shares of other insurance brokers like Aon plc (AON - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) and Willis Towers Watson Public Limited Company (WTW - Free Report) have declined 14.9%, 15.2% and 3.1%, respectively, over the past year.

1-Year Price Performance - BRO, AON, AJG, WTW & Industry

Image Source: Zacks Investment Research

BRO’s ValuationShares of Brown & Brown are trading at a discount compared with the industry. Its forward 12-month price-to-earnings multiple of 14.12X is lower than the industry average of 15.59X.

Image Source: Zacks Investment Research

Shares of other insurance brokers like AON, AJG and WTW are also trading at a discount.

BRO’s Average Target Price Suggests UpsideBased on short-term price targets offered by 16 analysts, the Zacks average price target is $76.69 per share. The average suggests a potential 12.2% upside from the last closing price.

Image Source: Zacks Investment Research

BRO’s Growth ProjectionThe Zacks Consensus Estimate for Brown & Brown’s 2026 earnings per share (EPS) indicates a year-over-year increase of 5.6%. The consensus estimate for revenues is pegged at $7.04 billion, implying a year-over-year improvement of 19.2%.

The consensus estimate for 2027 EPS and revenues indicates increases of 8.1% and 5.3%, respectively, from the corresponding 2026 estimates.

Earnings have grown 19.2% in the past five years, better than the industry average of 13.9%. The expected long-term earnings growth rate is 72%.

Factors That Benefit BROCommissions and fees, the main component of the top line, benefit from new business, strong retention and sales momentum, supporting recurring revenues and earnings visibility. Commissions and fees increased 32.4% year over year to $1.65 billion in the second quarter of 2026. Strong contingent commissions also supported earnings, increasing $40 million in the second quarter of 2026, including a $24 million contribution from the Accession acquisition.

Brown & Brown’s strategic acquisitions strengthen its product portfolio, expand its reach and support revenue growth. The company completed six small agency acquisitions in the second quarter, while Accession contributed approximately $410 million to revenues. BRO expects $30-$40 million in synergies from Accession in 2026. These initiatives should support earnings as the acquired operations become more closely aligned with Brown & Brown’s broader platform.

Its diversified Retail and Specialty Distribution businesses provide exposure to multiple insurance markets. Management expects organic growth to improve in the second half of 2026, with Retail growth excluding contingents at 1.5-2.5% and Specialty Distribution growth at 2-4%. Favorable casualty pricing and demand for risk-management and employee-benefits services should support growth.

Artificial intelligence and technology investments could provide an additional long-term catalyst. Partnerships with Anthropic, McKinsey and Accenture are expected to accelerate AI adoption across sales, placement, underwriting and support functions.

BRO is also benefiting from strong cash generation and shareholder-friendly capital allocation. Operating cash flow reached approximately $610 million in the first half of 2026, up 13% year over year. The company repurchased approximately $500 million of stock during the first six months. It also helps to hire revenue-producing employees, integration initiatives, technology development, debt reduction and selective acquisitions, supporting the company’s long-term operating capacity.

BRO's HeadwindsBrown & Brown has been experiencing rising expenses due to higher employee compensation and benefits, amortization, other operating expenses and interest expense. These factors are creating pressure on margins despite revenue growth.

As of June 30, 2026, long-term debt rose 1.2% to $7.76 billion, while interest expense surged 96.1% to $100 million, weighing on financial flexibility.

BRO's expanding international operations expose it to foreign currency, regulatory and economic risks across global markets.

ConclusionBRO’s commission growth, new business, strong retention, strategic acquisitions, diversified brokerage platform and balanced capital deployment position the company well for growth. Its strong cash flow, AI and technology investments, favorable estimates and cheap valuation are other positives. However, international expansion risks, rising expenses and high debt levels are the headwinds.

Therefore, it is wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Brown & Brown's commissions and fees surged 32.4% to $1.65 billion in Q2 2026. Accession added about $410 million to Q2 revenues, with $30-$40 million of 2026 synergies expected.Interest expense jumped 96.1% to $100 million as long-term debt reached $7.76 billion. Shares of Brown & Brown, Inc. (BRO - Free Report) are trading at a discount compared with the industry. Its forward 12-month price-to-earnings multiple of 15.04X is lower than the industry average of 16.51X.

Image Source: Zacks Investment Research

The insurer has a market capitalization of $23.96 billion. The average volume of shares traded in the last three months was 2.92 million.

Shares of other insurance brokers like Aon plc (AON - Free Report) and Arthur J. Gallagher & Co. (AJG - Free Report) are trading at a premium, while Willis Towers Watson Public Limited Company (WTW - Free Report) is trading at a discount.

BRO’s Price PerformanceShares of Brown & Brown have gained 27.4% in the past three months compared with the industry’s 22.4% growth.

Shares of other insurance brokers like AON, AJG and WTW have gained 11.8%, 29.3% and 37.5%, respectively, over the past three months.

3-Month Price Performance - BRO, AON, AJG, WTW & Industry
Image Source: Zacks Investment Research

BRO’s Average Target Price Suggests UpsideBased on short-term price targets offered by 16 analysts, the Zacks average price target is $76.44 per share. The average suggests a potential 7.6% upside from the last closing price.

Image Source: Zacks Investment Research

BRO’s Growth ProjectionThe Zacks Consensus Estimate for Brown & Brown’s 2026 earnings per share (EPS) indicates a year-over-year increase of 5.6%. The consensus estimate for revenues is pegged at $7.04 billion, implying a year-over-year improvement of 19.2%.

The consensus estimate for 2027 EPS and revenues indicates increases of 8.1% and 5.3%, respectively, from the corresponding 2026 estimates.

Earnings have grown 19.2% in the past five years, better than the industry average of 13.9%. The expected long-term earnings growth rate is 4.5%.

Muted Analyst Sentiment on BROThe Zacks Consensus Estimate for 2026 and 2027 earnings moved 0.2% and 0.4% south, respectively, in the last 30 days.

Factors That Benefit BROCommissions and fees, the main component of the top line, benefit from increasing new business, strong retention, improving sales momentum and ongoing rate rises across most lines of coverage, supporting recurring revenues and earnings visibility. Commissions and fees increased 32.4% year over year to $1.65 billion in the second quarter of 2026. Additionally, strong contingent commission income supports earnings growth, with contingent commissions increasing $40 million in the second quarter of 2026, including a $24 million contribution from the Accession acquisition.

Brown & Brown’s strategic acquisitions strengthen its product portfolio, expand its reach and support growth. The company completed six small agency acquisitions during the second quarter, while the Accession acquisition contributed approximately $410 million to second-quarter 2026 revenues. BRO expects $30-$40 million in synergies in 2026, with the integration of approximately 5,500 new employees further strengthening its capabilities and cross-selling opportunities.

The company operates across Retail and Specialty Distribution businesses, providing broad exposure to multiple insurance markets. In the second quarter of 2026, Retail revenues increased 35.9% year over year, while Specialty Distribution revenues rose 28.1%. Management expects organic growth to improve in both segments in the second half, with Retail growth excluding contingents at 1.5-2.5% and Specialty Distribution growth at 2-4%. Favorable casualty pricing and strong demand for risk-management and employee-benefits services should support growth.

Artificial intelligence (AI) and technology investments could provide an additional long-term catalyst. Partnerships with Anthropic, McKinsey and Accenture are expected to accelerate AI adoption across sales, placement, underwriting and support functions.

BRO is also benefiting from strong cash generation and shareholder-friendly capital allocation. Operating cash flow reached approximately $610 million in the first half of 2026, up 13% year over year. The company repurchased approximately $500 million of stock during the first six months. It also plans to continue balancing capital deployment among share repurchases, debt reduction, organic investments and selective acquisitions.

BRO's HeadwindsBrown & Brown has been experiencing rising expenses due to higher employee compensation and benefits, amortization, other operating expenses and interest expense. These factors are creating pressure on margins despite revenue growth.

As of June 30, 2026, long-term debt rose 1.2% to $7.76 billion, while interest expense surged 96.1% to $100 million, weighing on financial flexibility.

BRO's expanding international operations expose it to foreign currency, regulatory and economic risks across global markets.

ConclusionBRO’s commission growth, new business, strong retention, strategic buyouts, diversified brokerage platform and balanced capital deployment position the company well for growth. Its robust capital position, AI and technology investments, favorable estimates and cheap valuation are other positives. However, international expansion risks, rising expenses, muted analyst sentiment and debt levels are the headwinds.

Therefore, it is wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DAYTONA BEACH, Fla., July 27, 2026 (GLOBE NEWSWIRE) -- Brown & Brown, Inc. (NYSE:BRO) (the "Company") announced its unaudited financial results for the second quarter of 2026.

For the second quarter ended June 30, 2026, the Company achieved:

Total revenues of $1.7 billion, increasing $391 million, or 30.4%, compared to the second quarter of the prior year, with Organic Revenue decreasing 0.7% and Organic Revenue with Contingents increasing 0.7%.Income before income taxes of $383 million, increasing 23.2%, with Income Before Income Taxes Margin of 22.9%, compared to 24.2% in the second quarter of the prior year.EBITDAC - Adjusted of $598 million, increasing 27.0%, with EBITDAC Margin - Adjusted of 35.7%, compared to 36.7% in the second quarter of the prior year.Net income attributable to the Company of $288 million, increasing $57 million, or 24.7%, compared to the second quarter of the prior year.Diluted net income per share of $0.84, an increase of 7.7%, with Diluted Net Income Per Share - Adjusted increasing to $1.07, or 3.9%, each compared to the second quarter of the prior year. For the six months ended June 30, 2026, the Company achieved:

Total revenues of $3.6 billion, increasing $888 million, or 33.0%, compared to the same period in 2025, with Organic Revenue decreasing 0.3% and Organic Revenue with Contingents increasing 1.6%.Income before income taxes of $915 million, increasing 24.0%, with Income Before Income Taxes Margin of 25.6%, compared to 27.4% in the same period in 2025.EBITDAC - Adjusted of $1.3 billion, increasing 32.2%, with EBITDAC Margin - Adjusted of 37.2%, compared to 37.4% in the same period in 2025.Net income attributable to the Company of $714 million, increasing $151 million, or 26.8%, compared to the same period in 2025.Diluted net income per share of $1.90, a decrease of 1.6%, with Diluted Net Income Per Share - Adjusted increasing to $2.46, or 6.0%, each compared to the same period in 2025. J. Powell Brown, president and chief executive officer of the Company, noted, “We are pleased with our financial results for the quarter and have great momentum as we head into the back half of the year.”

Reconciliation of Commissions and Fees
to Organic Revenue and Organic Revenue with Contingents
(in millions, unaudited)
       Three Months Ended June 30,  Six Months Ended June 30,  2026  2025  2026  2025 Commissions and fees$1,654  $1,249  $3,534  $2,634 Contingents (85)  (45)  (182)  (88)Core commissions and fees$1,569  $1,204  $3,352  $2,546 Acquisitions (393)     (829)   Dispositions    (4)     (8)Foreign Currency Translation    2      20 Litigation-Related Impact    (18)     (28)Organic Revenue$1,176  $1,184  $2,523  $2,530 Organic Revenue growth (8)     (7)   Organic Revenue growth % (0.7%)     (0.3%)               Organic Contingents$61  $45  $135  $86 Organic Revenue with Contingents 1,237   1,229   2,658   2,616 Organic Revenue with Contingents growth$8     $42    Organic Revenue with Contingents growth % 0.7%     1.6%                  See information regarding non-GAAP measures presented later in this press release.

Reconciliation of Diluted Net Income Per Share to
Diluted Net Income Per Share - Adjusted
(unaudited)
             Three Months Ended June 30,  Change  Six Months Ended June 30,  Change  2026  2025  $  %  2026  2025  $  % Diluted net income per share(1)$0.84  $0.78  $0.06   7.7% $1.90  $1.93  $(0.03)  (1.6%)Change in estimated acquisition earn-out payables (0.09)  0.03   (0.12)     (0.08)  0.02   (0.10)   (Gain)/loss on disposal —   —   —      —   —   —    Acquisition/Integration Costs 0.07   0.09   (0.02)     0.13   0.09   0.04    Amortization 0.25   0.13   0.12      0.51   0.28   0.23    Mark-to-market of escrow liability(2) —   —   —      —   —   —    Diluted Net Income Per Share - Adjusted$1.07  $1.03  $0.04   3.9% $2.46  $2.32  $0.14   6.0%                                 (1)  The calculation of diluted net income per share for the three and six months ended June 30, 2026 (a) excludes the mark-to-market of escrow liability and (b) includes the escrowed shares within the Company’s diluted weighted average number of shares, in each case in accordance with Accounting Standards Codification Topic 260 — Earnings Per Share (“ASC 260”), which requires this treatment in periods where the combined effect of these adjustments is accretive to earnings.

(2)  No adjustment for the mark-to-market of escrow liability was made to Diluted Net Income Per Share – Adjusted for the three or six months ended June 30, 2026 as the calculation of diluted net income per share for these periods already excludes the mark-to-market of escrow liability in accordance with ASC 260.

See information regarding non-GAAP measures presented later in this press release.

Reconciliation of Income Before Income Taxes to EBITDAC and
EBITDAC - Adjusted and Income Before Income Taxes Margin(1)to
EBITDAC Margin and EBITDAC Margin - Adjusted
(in millions, unaudited)
       Three Months Ended June 30,  Six Months Ended June 30,  2026  2025(2)  2026  2025(2) Total revenues$1,676  $1,285  $3,577  $2,689 Income before income taxes$383  $311  $915  $738 Income Before Income Taxes Margin(1) 22.9%  24.2%  25.6%  27.4%Amortization 110   50   226   103 Depreciation 18   11   35   23 Interest 100   51   199   96 Change in estimated acquisition earn-out payables (40)  11   (34)  7 EBITDAC$571  $434  $1,341  $967 EBITDAC Margin 34.1%  33.8%  37.5%  36.0%(Gain)/loss on disposal 1   —   —   1 Acquisition/Integration Costs 31   37   57   37 Mark-to-market of escrow liability (5)  —   (69)  — EBITDAC - Adjusted$598  $471  $1,329  $1,005 EBITDAC Margin - Adjusted 35.7%  36.7%  37.2%  37.4%                 (1)  “Income Before Income Taxes Margin” is defined as income before income taxes divided by total revenues.

(2) 2025 amounts reflect the positive impact of approximately $13 million of interest income earned from the proceeds of the Company’s follow-on common stock offering and senior notes issuance in June 2025, held in preparation for the closing of the Company’s pending acquisition of RSC Topco, Inc.

See information regarding non-GAAP measures presented later in this press release.

Brown & Brown, Inc.
Consolidated Statements of Income
(in millions, except per share data; unaudited)
       Three Months Ended June 30,  Six Months Ended June 30,  2026  2025  2026  2025 REVENUES           Commissions and fees$1,654  $1,249  $3,534  $2,634 Investment and other income 22   36   43   55 Total revenues 1,676   1,285   3,577   2,689 EXPENSES           Employee compensation and benefits 838   640   1,745   1,323 Other operating expenses 271   211   560   398 (Gain)/loss on disposal 1   —   —   1 Amortization 110   50   226   103 Depreciation 18   11   35   23 Interest 100   51   199   96 Change in estimated acquisition earn-out payables (40)  11   (34)  7 Mark-to-market of escrow liability (5)  —   (69)  — Total expenses 1,293   974   2,662   1,951 Income before income taxes 383   311   915   738 Income taxes 94   77   199   169 Net income before non-controlling interests 289   234   716   569 Less: Net income attributable to non-controlling interests 1   3   2   6 Net income attributable to the Company$288  $231  $714  $563 Net income per share:           Basic$0.86  $0.79  $2.14  $1.94 Diluted$0.84  $0.78  $1.90  $1.93 Weighted average number of shares outstanding:           Basic 329   292   330   287 Diluted 334   293   335   289  Brown & Brown, Inc.
Consolidated Balance Sheets
(in millions, except per share data, unaudited)
       June 30,
2026  December 31,
2025 ASSETS     Current assets:     Cash and cash equivalents$918  $1,079 Fiduciary cash 2,613   2,471 Commission, fees, and other receivables 1,547   1,438 Fiduciary receivables 1,632   1,515 Reinsurance recoverable 591   647 Prepaid reinsurance premiums 850   980 Other current assets 541   484 Total current assets 8,692   8,614 Fixed assets, net 368   367 Operating lease assets 274   269 Goodwill 15,146   15,087 Amortizable intangible assets, net 4,570   4,906 Other assets 837   748 Total assets$29,887  $29,991 LIABILITIES AND EQUITY     Current liabilities:     Fiduciary liabilities$4,245  $3,986 Losses and loss adjustment reserve 612   671 Unearned premiums 953   1,053 Accounts payable 807   990 Accrued expenses and other liabilities 683   875 Current portion of long-term debt 413   719 Total current liabilities 7,713   8,294 Long-term debt less unamortized discount and debt issuance costs 7,346   6,894 Operating lease liabilities 248   243 Deferred income taxes, net 925   815 Other liabilities 1,047   1,172 Equity:     Common stock, par value $0.10 per share; authorized 560 shares; issued 359 shares and outstanding 330 shares at 2026, issued 357 shares and outstanding 336 shares at 2025 36   36 Additional paid-in capital 6,189   6,160 Treasury stock, at cost 29 shares at 2026 and 21 shares at 2025 (1,348)  (848)Accumulated other comprehensive income 116   210 Non-controlling interests 25   26 Retained earnings 7,590   6,989 Total equity 12,608   12,573 Total liabilities and equity$29,887  $29,991  Brown & Brown, Inc.
Consolidated Statements of Cash Flows
(in millions, unaudited)
    Six Months Ended June 30,  2026  2025 Cash flows from operating activities:     Net income before non-controlling interests$716  $569 Adjustments to reconcile net income before non-controlling interests to net cash provided by operating activities:     Amortization 226   103 Depreciation 35   23 Non-cash stock-based compensation 49   52 Change in estimated acquisition earn-out payables (34)  7 Mark-to-market of escrow liability (69)  — Deferred income taxes 128   (2)Net loss on sales/disposals of investments, businesses, fixed assets and customer accounts —   2 Payments on acquisition earn-outs in excess of original estimated payables (40)  (1)Other 8   2 Changes in operating assets and liabilities, net of effect from acquisitions and divestitures:     Commissions, fees and other receivables (increase)/decrease (143)  (139)Reinsurance recoverable (increase)/decrease 56   1,142 Prepaid reinsurance premiums (increase)/decrease 130   (9)Other assets (increase)/decrease (112)  (11)Losses and loss adjustment reserve increase/(decrease) (59)  (1,143)Unearned premiums increase/(decrease) (100)  55 Accounts payable increase/(decrease) (11)  5 Accrued expenses and other liabilities increase/(decrease) (194)  (132)Other liabilities increase/(decrease) 22   15 Net cash provided by operating activities 608   538 Cash flows from investing activities:     Additions to fixed assets (38)  (32)Payments for businesses acquired, net of cash acquired (30)  (161)Proceeds from sales of businesses, fixed assets and customer accounts 3   10 Other investing activities (6)  (4)Net cash used in investing activities (71)  (187)Cash flows from financing activities:     Fiduciary receivables and liabilities, net 157   119 Payments on acquisition earn-outs (184)  (45)Proceeds from long-term debt —   4,192 Payments on long-term debt (31)  (188)Deferred debt issuance costs (3)  (36)Borrowings on revolving credit facility 225   150 Payments on revolving credit facility (50)  (400)Proceeds from issuance of common stock, net of expenses —   4,315 Repurchase shares to fund tax withholdings for non-cash stock-based compensation (27)  (41)Purchase of treasury stock (500)  — Cash dividends paid (112)  (86)Other financing activities (1)  1 Net cash (used in) provided by financing activities (526)  7,981 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash inclusive of fiduciary cash (27)  85 Net (decrease) increase in cash, cash equivalents and restricted cash inclusive of fiduciary cash (16)  8,417 Cash, cash equivalents and restricted cash inclusive of fiduciary cash at beginning of period 3,815   2,502 Cash, cash equivalents and restricted cash inclusive of fiduciary cash at end of period$3,799  $10,919  Conference call, webcast and slide presentation

A conference call to discuss the results of the second quarter of 2026 will be held on Tuesday, July 28, 2026, at 8:00 AM (EDT). The Company may refer to a slide presentation during its conference call. You can access the webcast and the slides from the "Investor Relations" section of the Company’s website at bbrown.com.

About Brown & Brown

Brown & Brown, Inc. (NYSE: BRO) is a leading insurance brokerage firm delivering comprehensive and customized insurance solutions and specialization since 1939. With a global presence spanning 700+ locations and a team of more than 23,000 professionals, we are dedicated to delivering scalable, innovative strategies for our customers at every step of their growth journey. Learn more at BBrown.com.

Forward-looking statements

This press release may contain certain statements relating to future results which are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. You can identify these statements by forward-looking words such as “may,” “will,” “should,” “expect,” “anticipate,” “believe,” “intend,” “estimate,” “plan” and “continue” or similar words. We have based these statements on our current expectations about potential future events. Although we believe the expectations expressed in the forward-looking statements included in this press release are based upon reasonable assumptions within the bounds of our knowledge of our business, a number of factors could cause actual results to differ materially from those expressed in any forward-looking statements, whether oral or written, made by us or on our behalf. Many of these factors have previously been identified in filings or statements made by us or on our behalf. Important factors which could cause our actual results to differ, possibly materially from the forward-looking statements in this press release include but are not limited to the following items: the Company's determination as it finalizes its financial results for the second quarter of 2026 that its financial results differ from the current preliminary unaudited numbers set forth herein; risks with respect to the acquisition of RSC Topco, Inc. (“Accession”) (the “Transaction”); the possibility that the anticipated benefits, including any anticipated cost savings and strategies, of the Transaction are not realized when expected or at all; risks related to the financing of the Transaction, including that financing the Transaction resulted in an increase in the Company’s indebtedness; risks relating to the financial information related to Accession; the risk that certain assumptions the Company has made relating to the Transaction prove to be materially inaccurate; risks related to Accession’s business, including underwriting risk in connection with certain captive insurance companies; the inability to hire, retain and develop qualified employees, as well as the loss of any of our executive officers or other key employees; a cybersecurity attack or any other interruption in information technology and/or data security that may impact our operations or the operations of third parties that support us; acquisition-related risks that could negatively affect the success of our growth strategy, including the possibility that we may not be able to successfully identify suitable acquisition candidates, complete acquisitions, successfully integrate acquired businesses into our operations and expand into new markets; risks related to our international operations, which may result in additional risks or require more management time and expense than our domestic operations to achieve or maintain profitability; the requirement for additional resources and time to adequately respond to dynamics resulting from rapid technological change, including the increasing use of artificial intelligence and robotic processing automation; the loss of or significant change to any of our insurance company or intermediary relationships, which could result in loss of capacity to write business, additional expense, loss of market share or material decrease in our commissions; the effect of natural disasters on our Contingents, insurer capacity or claims expenses within our capitalized captive insurance facilities; adverse economic conditions, political conditions, outbreaks of war, disasters, or regulatory changes in states or countries where we have a concentration of our business; the inability to maintain our culture or a significant change in management, management philosophy or our business strategy; fluctuations in our commission revenue as a result of factors outside of our control; the effects of significant or sustained inflation or higher interest rates; claims expense resulting from the limited underwriting risk associated with our participation in captive insurance facilities; risks associated with our automobile and recreational vehicle finance and incentives dealer services (“F&I”) businesses; changes in, or the termination of, certain programs administered by the U.S. federal government from which we derive revenues; the limitations of our system of disclosure and internal controls and procedures in preventing errors or fraud, or in informing management of all material information in a timely manner; our reliance on vendors and other third parties to perform key functions of our business operations and provide services to our customers; the significant control certain shareholders have; changes in data privacy and protection laws and regulations or any failure to comply with such laws and regulations; improper disclosure of confidential information; our ability to comply with non-U.S. laws, regulations and policies; the potential adverse effect of certain actual or potential claims, regulatory actions or proceedings on our businesses, results of operations, financial condition or liquidity; uncertainty in our business practices and compensation arrangements with insurance carriers due to potential changes in regulations; regulatory changes that could reduce our profitability or growth by increasing compliance costs, technology compliance, restricting the products or services we may sell, the markets we may enter, the methods by which we may sell our products and services, or the prices we may charge for our services and the form of compensation we may accept from our customers, carriers and third parties; increasing scrutiny and changing laws or competing expectations from regulators, investors and customers with respect to our environmental, social and governance practices and disclosure; a decrease in demand for liability insurance as a result of tort reform legislation; our failure to comply with any covenants contained in our debt agreements; the possibility that covenants in our debt agreements could prevent us from engaging in certain potentially beneficial activities; fluctuations in foreign currency exchange rates; a downgrade to our corporate credit rating, the credit ratings of our outstanding debt or other market speculation; future sales or other dilution of our equity could adversely affect the market price of our common stock; changes in the U.S.-based credit markets that might adversely affect our business, results of operations and financial condition; changes in current U.S. or global economic conditions, including an extended slowdown in the markets in which we operate; disintermediation within the insurance industry, including increased competition from insurance companies, technology companies and the financial services industry, as well as the shift away from traditional insurance markets; conditions that result in reduced insurer capacity; quarterly and annual variations in our commissions that result from the timing of policy renewals and the net effect of new and lost business production; intangible asset risk, including the possibility that our goodwill may become impaired in the future; changes in our accounting estimates and assumptions; other risks and uncertainties as may be detailed from time to time in our public announcements and Securities and Exchange Commission (“SEC”) filings; and other factors that the Company may not have currently identified or quantified. Assumptions as to any of the foregoing, and all statements, are not based upon historical fact, but rather reflect our current expectations concerning future results and events. Forward-looking statements that we make or that are made by others on our behalf are based upon a knowledge of our business and the environment in which we operate, but because of the factors listed above, among others, actual results may differ from those in the forward-looking statements. Consequently, these cautionary statements qualify all of the forward-looking statements we make herein. We cannot assure you that the results or developments anticipated by us will be realized, or even if substantially realized, that those results or developments will result in the expected consequences for us or affect us, our business or our operations in the way we expect. We caution readers not to place undue reliance on these forward-looking statements. All forward-looking statements made herein are made only as of the date of this press release, and the Company does not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which the Company hereafter becomes aware.

Non-GAAP supplemental financial information

This press release contains references to "non-GAAP financial measures" as defined in SEC Regulation G, consisting of Organic Revenue, Organic Revenue with Contingents, EBITDAC, EBITDAC Margin, EBITDAC - Adjusted, EBITDAC Margin - Adjusted and Diluted Net Income Per Share - Adjusted. We present these measures because we believe such information is of interest to the investment community and because we believe they provide additional meaningful methods to evaluate the Company’s operating performance from period to period on a basis that may not be otherwise apparent on a GAAP basis due to the impact of certain items that have a high degree of variability, that we believe are not indicative of ongoing performance and that are not easily comparable from period to period. This non-GAAP financial information should be considered in addition to, not in lieu of, GAAP information as of the relevant date. Consistent with Regulation G, a description of such information is provided below, and tabular reconciliations of such items to our most directly comparable GAAP information can be found within this press release as well as in our periodic filings with the SEC.

We view Organic Revenue and Organic Revenue growth (including Organic Revenue with Contingents and its growth) as important indicators when assessing and evaluating our performance on a consolidated basis and for each of our two segments, because they allow us to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that were a part of our business in both the current and prior year and that are expected to continue in the future. In addition, we believe Diluted Net Income Per Share - Adjusted provides a meaningful representation of our operating performance and improves the comparability of our results between periods by excluding the impact of the change in estimated acquisition earn-out payables, the impact of amortization of intangible assets and certain other non-recurring or infrequently occurring items. We also view EBITDAC, EBITDAC - Adjusted, EBITDAC Margin and EBITDAC Margin - Adjusted as important indicators when assessing and evaluating our performance, as they present more comparable measurements of our operating margins in a meaningful and consistent manner. As disclosed in our most recent proxy statement, we use Organic Revenue growth, Diluted Net Income Per Share - Adjusted and EBITDAC Margin - Adjusted as key performance metrics for our short-term and long-term incentive compensation plans for executive officers and other key employees.

Non-GAAP Revenue Measures

Organic Revenue is our core commissions and fees less: (i) the core commissions and fees earned for the first twelve months by newly acquired operations; (ii) divested business (core commissions and fees generated from offices, books of business or niches sold or terminated during the comparable period); (iii) Foreign Currency Translation (as defined below) and (iv) the Litigation-Related Impact. The term “core commissions and fees” excludes profit-sharing contingent commissions (“Contingents”); and therefore, represents the revenues earned directly from specific insurance policies sold and specific fee-based services rendered. Growth of Organic Revenue can be expressed as a dollar amount or a percentage rate.Organic Revenue with Contingents is Organic Revenue plus Organic Contingents (as defined below). Growth of Organic Revenue with Contingents can be expressed as a dollar amount or a percentage rate. Non-GAAP Earnings Measures

EBITDAC is defined as income before interest, income taxes, depreciation, amortization and the change in estimated acquisition earn-out payables.EBITDAC Margin is defined as EBITDAC divided by total revenues.EBITDAC - Adjusted is defined as EBITDAC, excluding (i) (gain)/loss on disposal (as defined below), (ii) Acquisition/Integration Costs (as defined below) and (iii) mark-to-market of escrow liability (as defined below).EBITDAC Margin - Adjusted is defined as EBITDAC - Adjusted divided by total revenues.Diluted Net Income Per Share - Adjusted is defined as diluted net income per share, excluding the after-tax impact of (i) the change in estimated acquisition earn-out payables, (ii) (gain)/loss on disposal, (as defined below), (iii) Acquisition/Integration Costs (as defined below), (iv) mark-to-market of escrow liability (as defined below) in periods wherein the effect of mark-to-market of escrow liability is not dilutive to the Company's earnings and, therefore, not already excluded from the calculation of diluted net income per share in accordance with ASC 260, and (v) amortization. Definitions Related to Certain Components of Non-GAAP Measures

“Acquisition/Integration Costs” means the acquisition and integration costs (e.g., costs associated with regulatory filings; costs for third-party professional services, including legal, accounting, consulting, financial advisory and due diligence; costs and fees associated with entry into the bridge financing commitment; costs of integrating or streamlining processes and information technology systems, including data migration and system integration; costs associated with optimizing vendor agreements and leased office space, including exit costs related to location combinations; and employment-related costs, including severance payments, costs associated with the transition of certain legacy compensation programs, retention-related compensation expenses, and incentive payments) arising out of our acquisition of Accession and acquisitions previously completed by Accession, which are not considered to be normal, recurring or part of ongoing operations.“Foreign Currency Translation” means the period-over-period impact of foreign currency translation, which is calculated by applying current-year foreign exchange rates to the various functional currencies in our business to our reporting currency of US dollars for the same period in the prior year.“(Gain)/loss on disposal” is a caption on our consolidated statements of income which reflects net proceeds received as compared to the net book value related to sales of books of business and other divestiture transactions.
“Mark-to-market of escrow liability” is a caption on our consolidated statements of income which reflects the non-cash change in the fair value associated with certain shares of the Company’s common stock held in escrow. The change is driven by fluctuations in our stock price between the beginning of the period and the end of the period. These escrowed shares represent a portion of the merger consideration payable in connection with our acquisition of Accession. The escrowed shares secure certain indemnification obligations of the Accession equity holders related to businesses that are in run-off or discontinued.
“Litigation-Related Impact” means the core commissions and fees attributable to (i) the loss of specifically identified customer accounts and (ii) new business generated in the prior year by certain former employees, in each case in connection with the conduct of a competitor that is the subject of pending litigation in multiple jurisdictions.“Organic Contingents” are Contingents, less (i) Contingents earned for the first twelve months by newly acquired stand-alone operations and (ii) Contingents earned from divested stand-alone operations (Contingents generated from stand-alone operations sold or terminated during the comparable period). Our industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments and, therefore comparability may be limited.  This supplemental non-GAAP financial information should be considered in addition to, and not in lieu of, the Company's condensed consolidated financial statements.

For more information:

R. Andrew Watts
Chief Financial Officer
(386) 239-5770

Key Takeaways Brown & Brown benefits from higher commissions, strong retention and rate increases across insurance lines.Accession integration and ongoing acquisitions continue to expand scale and drive revenue growth. BRO's diversified business mix and strong cash generation support acquisitions and shareholder returns. Shares of Brown & Brown, Inc. (BRO - Free Report) have lost 37.3% in the past year compared with the industry’s 27.9% decline.

The decline reflects slowing organic revenue growth, margin pressure from higher expenses, valuation compression, and concerns that a softer insurance pricing environment could slow premium and commission growth. Despite these factors, the company's strong client retention, new business generation and acquisitions remain intact. Recovery depends on improving earnings growth, stronger insurance market conditions and margin stabilization.

Shares of other insurers like Aon plc. (AON - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) and Willis Towers Watson Public Limited Company (WTW - Free Report) have lost 0.8%, 19.7% and 6.3%, respectively, over the past year.

1-Year Price Performance - BRO, AON, AJG, WTW & Industry 
 

Image Source: Zacks Investment Research

BRO’s Average Target Price Suggests UpsideBased on short-term price targets offered by 16 analysts, the Zacks average price target is $74.25 per share. The average suggests a potential 9.7% upside from the last closing price.

Image Source: Zacks Investment Research

BRO’s ValuationShares of Brown & Brown are trading at a discount compared with the Zacks Brokerage Insurance industry. Its forward price-to-earnings multiple of 14.39X is lower than the industry average of 16.35X. It currently carries a Value Score of C.

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BRO’s Growth ProjectionThe Zacks Consensus Estimate for Brown & Brown’s 2026 earnings per share (EPS) indicates a year-over-year increase of 5.9%. The consensus estimate for revenues is pegged at $7.10 billion, implying a year-over-year improvement of 20.3%. The consensus estimate for 2027 EPS and revenues indicates increases of 8.2% and 5.2%, respectively, from the corresponding 2026 estimates.

Earnings have grown 19.2% in the past five years, better than the industry average of 13.9%. The expected long-term earnings growth rate is 4.8%.

Muted Analyst Sentiment on BROThe Zacks Consensus Estimate for 2026 earnings remained unchanged, while 2027 earnings moved 0.2% south in the last 30 days.

Factors That Benefit BROCommissions and fees, the main component of the top line, benefit from increasing new business, strong retention, and ongoing rate rises across most lines of coverage, supporting recurring revenue and earnings visibility. The company surpassed its intermediate annual revenue target of $4 billion in 2024 and now targets $8 billion in revenues. Last year, its revenues reached $5.9 billion. Additionally, strong contingent commission income supports earnings growth, with contingent commissions increasing $54 million in the first quarter of 2026, including a $22 million contribution from the Accession acquisition.

Brown & Brown’s strategic buyouts help it capitalize on growing market opportunities, strengthen its products and service portfolio, expand global reach and accelerate growth rate. From 1993 through the first quarter of 2026, Brown & Brown acquired 725 insurance intermediary operations. Brown & Brown's growth continues to be driven by the successful integration of the Accession acquisition, which significantly expanded the company's scale and contributed approximately $445 million in first-quarter revenues, helping total revenues rise 35.4% year over year.

The company operates across Retail and Specialty Distribution businesses, providing broad exposure to multiple insurance markets. Revenues from the retail segment have contributed a lion’s share to the company’s total revenues. In the first quarter of 2026, retail revenues increased 33.4% year over year, while Specialty Distribution revenues rose 40%. The balanced contribution from multiple business lines reduces reliance on any single product line.

The company also benefits from robust cash generation and disciplined capital allocation. While BRO effectively deploys cash towards acquisitions and capital expenditure, it also distributes wealth to shareholders via dividend increases. The company has an annualized dividend growth rate of 13.2% over the past five years.

HeadwindsBrown & Brown has been experiencing rising expenses due to higher employee compensation and benefits, amortization, other operating expenses and interest expense. These factors are creating pressure on margins despite revenue growth.

BRO's expanding international operations expose it to foreign currency, regulatory and economic risks across global markets. Additionally, rising debt levels from acquisition-driven growth are increasing interest expenses.

Profitability metrics also lag industry levels. Brown & Brown’s return on equity is 12.9%, well below the industry average of 18.8%.

ConclusionBRO’s commission growth, new business, strong retention, strategic buyouts, diversified brokerage platform and impressive dividend history position the company well for growth. Its robust capital position, favorable estimates, and cheap valuation are other positives. However, international expansion risks, unfavorable ROE, rising expenses, and debt levels are the headwinds.

Therefore, it is wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.