BRO US S&P 500Russell 1000 Earnings call · transcribed from the recording
Brown & Brown (BRO) · Q3 2026 results and valuation
Share price: $71.39 · 2026-11-11
Brown & Brown is an American insurance brokerage firm. It provides risk management solutions, insurance products, and services to businesses, governmental institutions, professional organizations, trade associations, and individuals. Source: Wikipedia
Results Q3 2026 vs Q2 2026 · previous quarter · published 26 Oct 2026 and 28 Jul 2026
Net income down 17.0% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
−17.0%
Net income vs Q2 2026
Outlook given
Net income 240.0M vs 289.0M
Revenue +2.9%
Against the same quarter last year (Q3 2025) it is +5.7%, so the move on last quarter looks seasonal or timing-related rather than a trend.
Why Against the same quarter last year (+5.7%), net income grew primarily due to disciplined expense management, revenue phasing from recession, and the impact of synergies.
2 · How management spoke
Typical
Less upbeat than 64% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Brown & Brown increased its target for run rate net EBITDAQ synergies by the end of 2028 from $150 million to $175 million.
Valuation
Is Brown & Brown undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (3-year revenue growth), the model's fair value is $70.94 a share — the stock trades 1% above it. Today's price assumes 9.6% growth a year.
Current price
$71.39
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+9.6% for 10 yrs
Fair value / share
$70.94
Buy below
$53.20
Price vs fair value
Overvalued 1%
Price vs buy-below price
Overvalued 34%
Read between the lines
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Guidance
The company increased its target for run rate net EBITDAQ synergies by the end of 2028 from $150 million to $175 million.
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Figure
Revenue grew 7.4% to $1.7 billion in the third quarter.
Source quote
“For the third quarter, we delivered revenues of $1.7 billion, growing 7.4% in total.”
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Figure
The retail segment grew total revenues by 10.8% this quarter.
Source quote
“Over on slide number nine, the retail segment grew total revenues by 10.8%.”
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Guidance
The company increased its full-year 2026 expected benefit to approximately $50 million due to the efforts of its teammates.
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Figure
I would tell you that there is a feeling out there that property rates, cat property rates, will be somewhere between 10% and 20% down in the industry.
4 more
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Figure
The Board of Directors raised the dividend by 9%, marking an increase for the 33rd year in a row.
Source quote
“Additionally, we'd like to highlight that last week our Board of Directors raised our dividend by 9%, which represents an increase for the 33rd year in a row.”
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Figure
Through the first nine months of 2026, Brown & Brown generated strong cash flow from operations and repurchased $750 million of its shares.
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Guidance
The company updated its outlook by anticipating retail's organic growth, excluding contingents, to be in the range of 2% to 3% for the fourth quarter.
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Figure
The company deployed CLAW to over 6,000 teammates in 45 days, with more than 90% actively using the platform.
Source quote
“In just 45 days, we deployed CLAW to over 6,000 teammates with more than 90% actively using the platform.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“So, you know, we're doing the very best to create a platform for our producers to be the most successful and arm them with the the most capabilities to be...”
“In addition, the growth was driven by the alignment of our teams to enhance collaboration, identify incremental opportunities, and generate new business wins that leverage our capabilities.”
“Our overall improvement was the result of utilizing our robust specializations to win more new business.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.73B | 1.68B | +2.9% | 1.61B | +7.4% |
| Operating income | 320.0M | 383.0M | −16.4% | 311.0M | +2.9% |
| Net income | 240.0M | 289.0M | −17.0% | 227.0M | +5.7% |
| EPS | 0.67 | 0.84 | −20.2% | 0.68 | −1.5% |
| P/E today 22.8 | 19.3 | 20.5 | −1.2 | 28.4 | −9.1 |
Topics
Most discussed now
- In total, its overall financial performance represented a continuation of the improvement Brown & Brown delivered last quarter.
- Brown & Brown has also moved quickly to deploy incremental AI capabilities in addition to all teammates having access to co-pilot over…
- There's a lot of discussion around specialty pharmacy pricing, and that is only going to continue.
Faded since Q2 2026
- Dropped For many of you out there, I don't know if you fully understand all the capabilities that Brown & Brown has both...
- Fading Retail had a good quarter for contingents due to Brown & Brown's enhanced carrier engagement model.
- Fading Regarding Accession, Brown & Brown recognized total revenues of approximately $410 million for the quarter and margins were in line with…
- Fading As Brown & Brown's customers have done in the past, they will navigate current challenges while pursuing growth opportunities.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
Brown & Brown, Inc. reported total revenues of $1.7 billion for the third quarter of 2026, representing a 7.4% increase compared to the third quarter of the prior year.
- Director or officer change · SEC 8-K
Bronislaw E. Masojada resigned from the Board of Directors, the Audit Committee, and the Compensation Committee of Brown & Brown, Inc. effective October 21, 2026, to serve as the Lord Mayor of the City of London.
- Regulation FD disclosure · SEC 8-K
The filing provides a Regulation FD disclosure of a company overview presentation for use in meetings with institutional investors and analysts.
- Director or officer change · SEC 8-K
Executive Vice President P. Barrett Brown resigned on August 10, 2026, and will receive a $130,000 transition payment plus $2,500,000 in severance pay over two years.
- Results of operations · SEC 8-K
Brown & Brown, Inc. reported total revenues of $1.7 billion for the second quarter of 2026, representing a 30.4% increase compared to the same period in the prior year.
- Material agreement; New financial obligation · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
Shareholders approved an amendment to the 2019 Stock Incentive Plan to increase the number of available shares by 6,900,000 and extend the plan's term.
- Results of operations · SEC 8-K
Brown & Brown, Inc. reported total revenues of $1.9 billion for the first quarter of 2026, an increase of 35.4% compared to the first quarter of the prior year.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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2026
expected full-year impact for litigation
Source quote
“Based on currently available information, we are not changing our previously communicated expected full-year impact for 2026 of $50 to $60 million.”
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full-year 2026
expected benefit from EBITDA synergies
Source quote
“Based on the efforts of our teammates, we're increasing our full-year 2026 expected benefit to approximately $50 million.”
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by the end of 2028
target run rate net EBITDAQ synergies
Source quote
“We are now targeting run rate net EBITDAQ synergies of $175 million by the end of 2028, up from the $150 million previously anticipated.”
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fourth quarter
anticipated retail organic growth
Source quote
“Regarding outlook and taking into consideration the improvement we've delivered over the past couple quarters, we are now anticipating retail's organic growth, excluding contingents, to be in the range of 2% to 3% for the fourth quarter.”
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fourth quarter
anticipated specialty distribution organic growth
Source quote
“For specialty distribution, based on our earlier comments regarding market headwinds, as well as the incremental negative impact of certain non-recurrent and timing-related items of $8 to $12 million, we're anticipating organic growth, excluding contingents, to decline 2 to 4 percent in the fourth quarter as it relates to 2027 currently in the process of finalizing our budgets and based on what we see today we are expecting improving organic growth excluding contingents for both divisions for the retail segment we're projecting organic growth in the range of two to four percent and one to three percent for specialty distribution segment once Once we finalize year-end results, we'll clarify or adjust the ranges based on incremental information.”