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BROWN & BROWN, INC. (BRO)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 2026 is a pre-release period; Wall Street consensus expects revenue of $1.94B* and EPS of $1.44* for BRO, implying a strong seasonal quarter versus recent run-rate [Values retrieved from S&P Global]*.
  • Recent trajectory: Q3 2025 delivered $1.60B revenue (+35.4% YoY), Organic Revenue growth of 3.5%, diluted EPS of $0.68 and adjusted diluted EPS of $1.05 .
  • Q2 2025 showed slower organic growth (3.6%) and margin compression with diluted EPS down to $0.78, though adjusted EPS rose to $1.03 on efficiency and expense control .
  • Management highlighted positive momentum in H1 2025; CEO commentary: “We are pleased with the earnings for the quarter and have good momentum as we head into the second half of the year” .
  • Watch catalysts: organic growth trajectory into Q1 seasonality, acquisition/financing effects from 2025 (Q3 noted ~$29M interest income tailwind), and any commentary on margin sustainability .

What Went Well and What Went Wrong

What Went Well

  • Resilient top-line: Q3 2025 revenue reached $1.60B with Organic Revenue +3.5%; adjusted diluted EPS was $1.05, demonstrating operating resilience despite mixed GAAP EPS .
  • Margin efficiency: Q2 2025 adjusted EBITDAC margin rose to 36.7% from 35.7%, supporting adjusted EPS growth despite lower GAAP EPS .
  • Strong Q1 2025 baseline: $1.4B revenue (+11.6% YoY), Organic Revenue +6.5%, diluted EPS $1.15 and adjusted EPS $1.29; CEO: “We continue to execute our plan and are pleased with our performance for the quarter” .

What Went Wrong

  • Q2 2025 profit pressure: Income before income taxes margin fell to 24.2% (from 29.4% YoY) and diluted EPS declined to $0.78 (-13.3% YoY), reflecting margin compression .
  • Organic growth moderation: Q3 2025 Organic Revenue growth slowed to 3.5%, versus 6.5% in Q1 2025, highlighting normalization after prior strength .
  • Non-operating tailwind to watch: Q3 2025 results reflected ~$29M positive interest income from June financing proceeds ahead of Accession closing, an item that could fade and affect comparability .

Financial Results

MetricQ1 2025Q2 2025Q3 2025Q1 2026E
Revenue ($USD Billions)$1.40B $1.30B $1.60B $1.94B*
Diluted EPS ($USD)$1.15 $0.78 $0.68 $1.44*
Diluted EPS - Adjusted ($USD)$1.29 $1.03 $1.05 N/A
Organic Revenue Growth %6.5% 3.6% 3.5% N/A
EBITDAC Margin - Adjusted %38.1% 36.7% 36.6% N/A

Notes: Q1 2026 E denotes consensus estimates. Values with asterisks retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial guidance (revenue/margins)Q1 2026None provided pre-releaseNoneMaintained (no guidance)
Capital allocation – dividendOct 2025Prior quarterly dividend rate10% increase in quarterly cash dividend rateRaised 10%
Capital allocation – buybackOct 2025N/AAuthorization up to $1.5B share buybackNew authorization

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2025)Previous Mentions (Q3 2025)Current Period (Q1 2026)Trend
Organic growth3.6% organic, efficiency aided adjusted EPS 3.5% organic; strong revenue, GAAP EPS lower Pending callModerating vs Q1 2025
Margin/EBITDACAdjusted margin 36.7% (+100 bps YoY) Adjusted margin ~36.6%; noted interest income tailwind Pending callStable high-30s adjusted
Financing/AccessionQ2 commentary focused on operations; no Accession close yet ~$29M interest income from June financing ahead of Accession closing Pending callWatch for acquisition/financing updates
Capital allocation—Dividend +10% and $1.5B buyback authorization (Oct 2025) Pending callSupportive of shareholder returns

Management Commentary

  • Q1 2025: “We continue to execute our plan and are pleased with our performance for the quarter.” — J. Powell Brown, President & CEO .
  • Q2 2025: “We are pleased with the earnings for the quarter and have good momentum as we head into the second half of the year.” — J. Powell Brown .
  • Q3 2025: Press release notes ~$29M interest income tailwind from June financing proceeds held ahead of Accession closing, affecting reported margins .

Q&A Highlights

  • Q1 2026 earnings call transcript is not yet available; highlights will be updated post-call. Call timing typically occurs the morning after results release based on recent cadence (e.g., Q1 2025 call at 8:00 a.m. EDT on April 29, 2025) .

Estimates Context

MetricQ1 2026 Consensus# of Estimates
Revenue ($USD Billions)$1.94B*7*
Primary EPS ($USD)$1.44*12*

Notes: Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Heading into Q1 2026, consensus embeds a robust seasonal step-up (revenue ~$1.94B*, EPS ~$1.44*), setting a high bar; watch organic growth vs recent 3.5–3.6% prints [Values retrieved from S&P Global]* .
  • Margin quality is in focus: prior quarter benefited from non-operating interest income; underlying margins and EBITDAC conversion will be key for stock reaction .
  • Watch commentary on acquisition integration and pipeline (Accession), and any updates to capital deployment, given Oct 2025 dividend increase and $1.5B buyback authorization .
  • Near-term trading: a clean beat on organic growth and adjusted margins could be a catalyst; conversely, evidence of fading tailwinds or weaker program/retail activity may pressure shares.
  • Medium-term: Continued disciplined M&A, retention, and operating efficiency support the thesis; monitor any macro-driven softening in pricing or demand reflected in organic trends (recently 3.5–3.6%) .
  • Update plan: Replace estimates with actuals and add full call/Q&A insights immediately post-release and call.

Notes:

  • Q1 2026 primary documents (8-K 2.02 earnings release and call transcript) are not yet published; this recap synthesizes recent quarters and consensus ahead of the event.
  • All press release data cited from Brown & Brown investor communications and GlobeNewswire; consensus estimates marked with asterisks are retrieved from S&P Global.*