Brown & Brown (BRO) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1.725B, up 7.4%; Organic Revenue grew 1.2% and Organic Revenue with Contingents grew 1.5%. Adjusted diluted EPS rose 1.9% to $1.07.

• Net income attributable rose 5.7% to $240M; adjusted EBITDAC margin fell 200 bps to 34.6%.

• Nine-month revenue increased 23.4% to $5.302B, with acquisitions contributing materially to growth.

Financial highlights

• Adjusted income before taxes rose 1.3% to $479M; adjusted net income attributable rose 0.6% to $356M.

• Adjusted EBITDAC increased 1.7% to $597M; adjusted EBITDAC margin declined to 34.6% from 36.6%.

• Nine-month operating cash flow was $1.140B, up 13.3%.

• Q3 contingents increased 9.6% to $80M, supported by improved carrier underwriting results and premium growth.

• Q3 effective tax rate was 25.5%, versus 24.7% in Q3 2025.

Outlook and guidance

• Q4 Retail Organic Revenue growth, excluding contingents, is expected at 2%-3%; Specialty Distribution is expected to decline 2%-4%, including $8M-$12M of non-recurring and timing-related headwinds.

• Preliminary 2027 Organic Revenue growth outlook, excluding contingents: Retail 2%-4%; Specialty Distribution 1%-3%; both divisions are expected to improve.

• Specialty Distribution Q4 YoY contingent commissions are expected to decrease $14M-$16M; some downward pressure is anticipated in 2027.

• Q4 adjusted EBITDAC margin is expected to be down YoY; no 2027 margin guidance was given.

• 2027 operating cash flow conversion is expected to increase from 2026 and trend toward the normal 24%-26% of revenue range.