8-K: Brown & Brown Reports Q2 2026 Results

Brown & Brown, Inc. announced second quarter 2026 financial results, including $1.7 billion in total revenues and diluted EPS of $0.84.

Summary

• Brown & Brown, Inc. reported second quarter 2026 results with total revenues of $1.7 billion, a 30.4% increase year-over-year.
• Organic Revenue decreased by 0.7%, while Organic Revenue with Contingents increased by 0.7%.
• Income before income taxes rose by 23.2% to $383 million, with a margin of 22.9%.
• Adjusted EBITDAC increased by 27.0% to $598 million, with an adjusted margin of 35.7%.
• Net income attributable to the Company was $288 million, up 24.7% from the prior year.
• Diluted net income per share (EPS) was $0.84, a 7.7% increase, and adjusted diluted EPS was $1.07, a 3.9% increase.
• For the first six months of 2026, total revenues reached $3.6 billion, up 33.0%, with adjusted diluted EPS at $2.46.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive report, with strong overall revenue growth driven by acquisitions, but a slight concern regarding the decline in organic revenue.

Positives

• Total revenues for Q2 2026 increased significantly by 30.4% to $1.7 billion.
• Net income attributable to the Company grew by 24.7% to $288 million in Q2 2026.
• Diluted net income per share increased by 7.7% to $0.84 in Q2 2026.
• Adjusted diluted net income per share saw a 3.9% increase to $1.07 in Q2 2026.
• Six-month total revenues increased by 33.0% to $3.6 billion.
• Six-month adjusted diluted EPS increased by 6.0% to $2.46.

Negatives

• Organic Revenue saw a decrease of 0.7% in the second quarter of 2026.
• Income Before Income Taxes Margin decreased to 22.9% from 24.2% in the prior year's second quarter.
• EBITDAC Margin Adjusted decreased to 35.7% from 36.7% in the prior year's second quarter.
• Diluted net income per share for the six months ended June 30, 2026, decreased by 1.6% to $1.90.

Risks

• Potential for financial results to differ from preliminary unaudited numbers.
• Risks associated with the acquisition of RSC Topco, Inc., including realization of anticipated benefits and financing.
• Inability to hire, retain, and develop qualified employees, or loss of key personnel.
• Cybersecurity attacks or interruptions in information technology and data security.
• Acquisition-related risks that could negatively affect the growth strategy.
• Risks related to international operations, including potential for additional risks or management time/expense.
• Rapid technological change, including the increasing use of artificial intelligence and robotic processing automation.
• Loss of or significant change to insurance company or intermediary relationships.

Future Outlook

The company expresses confidence in its momentum heading into the second half of the year, as indicated by the CEO's comments.

Management Comments

• "We are pleased with our financial results for the quarter and have great momentum as we head into the back half of the year."

Industry Context

StockSavvy.ai notes that Brown & Brown's reported revenue growth, while strong overall, is tempered by a slight decline in organic revenue, a common challenge in the insurance brokerage sector where acquisitions often drive headline growth. The company's ability to integrate acquisitions and maintain organic performance will be key.

Comparison to Industry Standards

• No specific industry benchmarks or comparable company results were provided in the filing.
• The filing does not offer direct comparisons to global benchmarks or specific competitor performance.

Legal Proceedings

• The filing mentions 'Litigation-Related Impact' as a factor affecting organic revenue, indicating ongoing legal matters, but provides no specific details on current proceedings.

Stakeholder Impact

• Shareholders: Potential for continued share price appreciation driven by revenue and earnings growth, though organic revenue decline may temper enthusiasm.
• Employees: Continued focus on hiring and retention is implied by management comments and risk factors.
• Customers: Expected to receive comprehensive and customized insurance solutions.
• Suppliers: No direct impact mentioned, but integration of acquisitions may affect vendor relationships.

Next Steps

• Continue to monitor the integration of acquisitions and their contribution to organic growth.
• Focus on maintaining and growing organic revenue streams.
• Manage operational efficiencies to improve margins.
• Prepare for the second half of the year with continued momentum.

Key Dates

Recommendation

The company shows strong top-line growth driven by acquisitions, but the decline in organic revenue and slight decrease in reported diluted EPS for the year-to-date period warrant a cautious 'hold' recommendation. Investors should monitor the sustainability of organic growth and margin improvements.

Keywords

insurance brokerage, financial results, revenue growth, earnings per share, organic revenue, EBITDAC, acquisition, contingents