$BRO · BROWN & BROWN, INC.
Brown & Brown reported Q3 2026 results with total revenues of $1.725B (+7.4% YoY), GAAP diluted EPS of $0.67 (-1.5% YoY), and Adjusted diluted EPS of $1.07 (+1.9% YoY). Organic Revenue growth was just 1.2%, reflecting a challenging rate environment. EBITDAC Margin - Adjusted compressed to 34.6% from 36.6% a year ago. The Accession acquisition (closed mid-2025) continues to drive reported revenue and earnings growth, with nine-month net income up 20.8% to $954M.
- Total revenues of $1.725B, up 7.4% YoY, driven by acquisitions; Organic Revenue growth was only 1.2%.
- Diluted GAAP EPS of $0.67, down 1.5% YoY; Adjusted EPS of $1.07, up 1.9% YoY.
- EBITDAC Margin - Adjusted compressed to 34.6% from 36.6% a year ago, reflecting integration costs and mix shift.
- Investment and other income fell to $25M from $56M YoY as prior-year period benefited from interest on acquisition financing proceeds.
- Nine-month net income attributable to the Company rose 20.8% to $954M, boosted by the Accession acquisition closed in 2025.
Extended-hours trading shows BRO at $70.97, down 0.15% from the regular-session close of $71.08. The muted after-hours reaction suggests the 1.2% organic growth and margin compression were largely anticipated or offset by the adjusted EPS beat.
The wide gap between 7.4% reported revenue growth and 1.2% organic growth reveals how dependent Brown & Brown has become on acquisitions, with margin compression adding pressure.
BRO's low-single-digit organic growth contrasts with the acquisition-fueled 7.4% top-line expansion, a pattern common among insurance brokers relying on M&A to offset soft pricing. Peer comps like AJG and MMC face similar rate headwinds.
Organic Revenue growth of just 1.2% signals a "challenging rate environment" per CEO commentary; margin compression (EBITDAC Margin - Adjusted fell 200 bps YoY) reflects integration costs and acquisition earn-out adjustments that could persist.