Brown & Brown, Inc. Q3 2026 Earnings Recap

Brown & Brown shares fell 5.0% after earnings, as investors likely focused on the 200-basis-point decline in adjusted EBITDAC margin and specialty distribution’s organic revenue decline, which came in below management’s expectations. Retail performed better than expected, but did not offset the weaker specialty result and modest overall organic growth.

Key Takeaways

• Revenue was $1.7 billion, up 7.4% year over year; organic revenue grew 1.2%, or 1.5% including organic contingents.
• Adjusted EBITDAC margin fell 200 basis points to 34.6%; adjusted EPS increased nearly 2% to $1.07.
• Retail organic revenue grew 2.6% (2.5% including contingents) and performed above the top end of expectations.
• Specialty distribution organic revenue declined 0.8% (up 0.3% including contingents), below expectations; management cited increased competition from admitted carriers and movement of accounts out of the E&S market.
• The company repurchased $750 million of shares through the first nine months, including $250 million in Q3, and raised its dividend 9% for the 33rd consecutive year.