8-K: Brown & Brown Reports Q3 2026 Results

Brown & Brown, Inc. announced third quarter 2026 results, highlighting $1.7 billion in total revenues, a 7.4% increase, and adjusted diluted EPS of $1.07.

Summary

• Brown & Brown, Inc. reported third quarter 2026 results with total revenues of $1.7 billion, a 7.4% increase year-over-year.
• Organic revenue grew by 1.2%, and organic revenue with contingents increased by 1.5%.
• Diluted net income per share was $0.67, a slight decrease of 1.5%, while adjusted diluted net income per share rose by 1.9% to $1.07.
• For the nine months ended September 30, 2026, total revenues reached $5.3 billion, up 23.4% from the prior year.
• Adjusted diluted net income per share for the nine-month period increased by 5.7% to $3.52.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a generally positive report, with solid revenue growth and adjusted EPS, though some GAAP metrics show slight declines or flatness, and margins have compressed.

Positives

• Total revenues increased by 7.4% to $1.7 billion in Q3 2026.
• Organic revenue growth of 1.2% and organic revenue with contingents growth of 1.5% indicate underlying business expansion.
• Adjusted diluted net income per share increased by 1.9% to $1.07 for the third quarter.
• Nine-month total revenues saw a significant increase of 23.4% to $5.3 billion.
• Nine-month adjusted diluted net income per share grew by 5.7% to $3.52.

Negatives

• Diluted net income per share decreased by 1.5% to $0.67 in the third quarter.
• Income Before Income Taxes Margin decreased to 18.6% from 19.4% in the prior year's third quarter.
• EBITDAC Margin Adjusted decreased to 34.6% from 36.6% in the prior year's third quarter.
• Investment and other income decreased to $25 million in Q3 2026 from $56 million in Q3 2025.

Risks

• Potential for financial results to differ from preliminary unaudited numbers.
• Risks associated with the acquisition of RSC Topco, Inc. (Accession), including realization of anticipated benefits and financing.
• Cybersecurity attacks or interruptions in information technology and data security.
• Acquisition-related risks, including identifying suitable candidates, integration, and market expansion.
• Risks related to international operations, which may require more management time and 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.
• Adverse economic conditions, political conditions, natural disasters, or regulatory changes in key operating regions.

Future Outlook

The filing does not contain specific forward-looking guidance beyond the reported results. However, it includes a comprehensive list of potential risks and uncertainties that could affect future performance, including those related to acquisitions, technology, economic conditions, and regulatory changes.

Management Comments

• "The third quarter reflected the incredible efforts of our teammates to win more customers in spite of a challenging rate environment."
• "Our capabilities were broadly enhanced by the addition of approximately 5,000 new teammates from Accession, just over a year ago."

Industry Context

StockSavvy.ai notes that Brown & Brown's performance, particularly its organic growth metrics, is being reported in a challenging rate environment. The integration of a significant number of new employees from a recent acquisition (Accession) is highlighted as a key factor enhancing capabilities, which is a common strategy in the consolidating insurance brokerage sector.

Legal Proceedings

• The filing mentions 'Litigation-Related Impact' as a factor affecting Organic Revenue, referring to a competitor subject to pending litigation in multiple jurisdictions.

Stakeholder Impact

• Shareholders: Adjusted EPS growth and revenue increases are positive indicators, though GAAP EPS decline and margin compression may be concerns.
• Employees: The integration of 5,000 new teammates from Accession suggests a focus on team growth and capability enhancement.
• Customers: Management highlights efforts to win more customers, indicating a focus on client acquisition and retention.

Next Steps

• Conference call to discuss Q3 2026 results scheduled for October 27, 2026, at 8:00 AM (EDT).
• Continued integration and realization of benefits from the Accession acquisition.
• Ongoing efforts to win customers despite a challenging rate environment.

Key Dates

Recommendation

The report shows continued revenue growth and positive adjusted EPS trends, supported by strategic acquisitions. However, the slight decline in GAAP EPS and margin compression in certain areas, coupled with a broad list of forward-looking risks, suggest a cautious 'hold' stance until the benefits of recent integrations are more fully realized and broader economic conditions stabilize.

Keywords

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