GET DAILY SIGNALSBrown & Brown (BRO) Posts 7.4% Revenue Rise in Q3 With Organic Growth at 1.2%
Key Takeaways
- Total revenues rose 7.4% year over year to $1.725 billion, driven primarily by acquisitions rather than underlying expansion.
- Organic revenue growth slowed to just 1.2% in the quarter, or 1.5% when including contingent commissions.
- Diluted net income per share (EPS) declined 1.5% to $0.67, while adjusted diluted EPS increased 1.9% to $1.07.
- Reported results came in below analyst expectations for both revenue and adjusted earnings per share.
- Net income attributable to the company rose 5.7% to $240 million, and income before income taxes increased 2.9% to $320 million.
Putting the Earnings in Context
Brown & Brown, Inc. (BRO) ranks among the largest U.S. insurance brokerages, earning revenue mainly through commissions and fees in its Retail and Programs segments. The company has expanded heavily via acquisitions, so investors focus closely on organic revenue growth to gauge how the core business is performing without the boost from new additions. The third quarter of 2026 matters because it shows whether Brown & Brown can maintain momentum after the large Accession deal while navigating softer property and casualty insurance conditions. Slower organic growth and a slight earnings miss may shape how the stock is valued into year-end.
The Quarter’s Reported Numbers
For the third quarter ended September 30, 2026, Brown & Brown reported total revenues of $1.725 billion, up $119 million or 7.4% from $1.606 billion a year earlier. Organic revenue advanced 1.2%, and organic revenue including contingents rose 1.5%. Diluted net income per share came in at $0.67, down 1.5% from $0.68 in the prior-year period. Adjusted diluted net income per share climbed 1.9% to $1.07 from $1.05. Net income attributable to the company increased 5.7% to $240 million.
Results fell short of consensus estimates. Analysts polled by Investing.com had expected revenue near $1.76 billion and adjusted EPS around $1.09, so both the top line and adjusted earnings missed forecasts. The modest organic growth, separate from acquisition effects, remained the main focus for investors.
I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction and Investor Sentiment
Heading into the report, sentiment was already measured, with Brown & Brown shares down roughly 10% year to date as of late October 2026 and trailing the broader S&P 500. After the release, early after-hours trading showed a muted, modestly positive move as the market balanced softer organic growth against resilient adjusted profits. The earnings miss on revenue and adjusted EPS appeared to limit immediate enthusiasm, while continued acquisition-driven revenue growth and stable profitability provided some offset. Investors are watching to see if organic momentum can pick up in coming quarters.
Forward Outlook and Factors to Monitor
The key signal for investors will be the path of organic revenue growth. The 1.2% figure in the third quarter points to modest underlying demand, and management has noted that fourth-quarter organic growth could resemble the third quarter. Acquisitions, including the Accession transaction, continue to support headline revenue, but the market will increasingly look for self-generated expansion.
Profitability trends also deserve attention. Brown & Brown reports a non-GAAP measure called EBITDAC—earnings before interest, taxes, depreciation, amortization, and changes in estimated acquisition earn-out payables. Margin movements here help gauge how efficiently acquired businesses are integrated and expenses are controlled.
Capital allocation remains another important theme. Brown & Brown has a solid history of dividend increases and share repurchases that provide support for the stock. Investors will track guidance updates, contingent commission trends, and any additional merger and acquisition activity as the company balances acquisition-driven growth with better organic performance.
Refining My Analysis With Tickeron’s AI Screener
In my own review of insurance brokerage names, I often turn to Tickeron’s AI Screener to quickly filter peers by fundamentals, technical patterns, and performance metrics. It helps surface comparable ideas and track sector momentum without manual effort, which proved useful when examining Brown & Brown’s results alongside industry trends.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for BRO turns positive, indicating new upward trend
BRO saw its Momentum Indicator move above the 0 level on October 07, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 80 similar instances where the indicator turned positive. In 47 of the 80 cases, the stock moved higher in the following days. The odds of a move higher are at 59%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for BRO just turned positive on October 07, 2026. Looking at past instances where BRO's MACD turned positive, the stock continued to rise in 21 of 43 cases over the following month. The odds of a continued upward trend are 49%.
BRO moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for BRO crossed bullishly above the 50-day moving average on October 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 50%.
Following a +7.10% 3-day Advance, the price is estimated to grow further. Considering data from situations where BRO advanced for three days, in 174 of 327 cases, the price rose further within the following month. The odds of a continued upward trend are 53%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
BRO broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for BRO entered a downward trend on October 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 42 (best 1 - 100 worst), indicating steady price growth. BRO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 66 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 71 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 82 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BRO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock better than average.
The Tickeron Valuation Rating of 84 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.940) is normal, around the industry mean (2.661). P/E Ratio (20.440) is within average values for comparable stocks, (18.230). Projected Growth (PEG Ratio) (0.910) is also within normal values, averaging (8.322). Dividend Yield (0.009) settles around the average of (0.045) among similar stocks. P/S Ratio (3.322) is also within normal values, averaging (2.968).
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General Information
a provider of insurance brokerage services and casualty insurance underwriting services
Industry InsuranceBrokersServices
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