Analyst Consensus ?
ConsensusHold31 ratings
Bullish1032.3%
Neutral2064.5%
Bearish13.2%
Brown & Brown, Inc. · BRO · FY2026 Q1 · Calendar Q2 2026
Brown & Brown Q1 2026: Revenue Up 35% to $1.9B as AI and Accession Integration Drive Margins
Brown & Brown delivered a modest EPS and revenue beat in Q1 2026, but the market reaction was sharply negative. Revenue grew 35.4% to $1.9 billion, yet most of that growth came from the Accession acquisition rather than organic expansion, which was held back by CAT property rate declines and flood-claim headwinds. The investment case now centers on whether AI-driven efficiency gains, contingent commission strength, and Accession synergies can offset persistent organic growth challenges. The post-earnings sell-off (-4.0% abnormal move, -10.0% subsequent drift) suggests the market is skeptical that M&A-fueled headline growth can mask softer underlying trends indefinitely.
Reported After market closeNYSEFinancial Services
$25.38B market cap
100quality score
Company context
Snapshot as of publicationBrown & Brown, Inc. operates as an insurance brokerage firm, providing a diverse range of products and services throughout the United States, Bermuda, Canada, Ireland, the United Kingdom, and the Cayman Islands. The company's operations are strategically divided into four primary segments: Retail, National Programs, Wholesale Brokerage, and Services. The Retail division delivers a comprehensive suite of property and casualty, employee benefits, personal, and specialized insurance offerings, complemented by services such as loss control assessments, consulting, and claims processing. This segment caters to a broad spectrum of clients, including commercial entities, public and quasi-public organizations, professionals, and individuals.…
Earnings scorecard
Reported versus consensus
Reported EPS
$1.39
Consensus $1
EPS surprise
+2.2%
Reported versus consensus
Reported revenue
$1.90B
Consensus $1.89B
Revenue surprise
+0.6%
Reported versus consensus
Earnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$70.87Current
$55Low
$86.36Average
$115High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Jul 30, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Mizuho | Outperform | Outperform | Maintain | Jul 29, 2026 |
| Citigroup | Neutral | Buy | Downgrade | Jul 29, 2026 |
| BMO Capital | Market Perform | Market Perform | Maintain | Jul 29, 2026 |
| JP Morgan | Neutral | Neutral | Maintain | Jul 13, 2026 |
| Citizens | Market Outperform | Market Outperform | Maintain | Jul 10, 2026 |
| Wells Fargo | Equal Weight | Equal Weight | Maintain | Jul 9, 2026 |
| UBS | Neutral | Neutral | Maintain | Jul 8, 2026 |
| Keefe, Bruyette & Woods | Market Perform | Market Perform | Maintain | Jul 8, 2026 |
| Barclays | Equal Weight | Equal Weight | Maintain | Jul 7, 2026 |
| Morgan Stanley | Underweight | Equal Weight | Downgrade | Jul 6, 2026 |
| Goldman Sachs | Neutral | Neutral | Maintain | Jul 1, 2026 |
| Truist Securities | Buy | Buy | Maintain | Apr 29, 2026 |
| RBC Capital | Sector Perform | Sector Perform | Maintain | Apr 29, 2026 |
| B of A Securities | Neutral | Neutral | Maintain | Apr 14, 2026 |
| Keefe, Bruyette& Woods | Market Perform | Underperform | Upgrade | Jan 29, 2026 |
| Jefferies | Hold | Hold | Maintain | Jan 28, 2026 |
| Raymond James | Outperform | Outperform | Maintain | Aug 4, 2025 |
| Wolfe Research | Perform | Peer Perform | Maintain | Aug 17, 2021 |
| Credit Suisse | Neutral | Neutral | Maintain | Oct 30, 2020 |
| SunTrust Robinson Humphrey | Buy | Buy | Maintain | Oct 9, 2019 |
| Deutsche Bank | Hold | Hold | Maintain | Mar 29, 2018 |
| William Blair | Market Perform | Underweight | Upgrade | Mar 21, 2016 |
| Keefe Bruyette & Woods | Market Perform | Market Perform | Maintain | Jan 13, 2016 |
| PiperJaffray | Overweight | Overweight | Maintain | Jun 4, 2015 |
| Macquarie | Neutral | Neutral | Maintain | Jul 23, 2014 |
| Compass Point | Neutral | Buy | Downgrade | Apr 23, 2014 |
| Portales Partners | Outperform | Sector Perform | Upgrade | Feb 5, 2014 |
| Stephens & Co. | Equal Weight | Overweight | Downgrade | Oct 16, 2013 |
| Sterne Agee | Buy | Neutral | Upgrade | Nov 5, 2012 |
| Stifel Nicolaus | Buy | Hold | Upgrade | Oct 25, 2012 |
| Stifel | Buy | Hold | Upgrade | Oct 25, 2012 |
Named analyst price targets
Upside is calculated against the persisted current price $70.87. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Truist Financial | Mark Hughes | $90 | $75.44 | +27.0% | Jul 29, 2026 |
| Morgan Stanley | Bob Huang | $55 | $70 | -22.4% | Jul 6, 2026 |
| BMO Capital | Analyst unavailable | $88 | $80.37 | +24.2% | Dec 23, 2025 |
| Mizuho Securities | Analyst unavailable | $89 | $82.34 | +25.6% | Dec 15, 2025 |
| Truist Financial | Mark Hughes | $120 | $92.78 | +69.3% | Jul 30, 2025 |
| Goldman Sachs | Robert Cox | $115 | $103.35 | +62.3% | Oct 29, 2024 |
| Truist Financial | Mark Hughes | $116 | $105.86 | +63.7% | Oct 16, 2024 |
| Barclays | Alex Scott | $108 | $105.82 | +52.4% | Sep 4, 2024 |
| Wells Fargo | Elyse Greenspan | $112 | $99.56 | +58.0% | Aug 12, 2024 |
| Raymond James | Gregory Peters | $110 | $98.59 | +55.2% | Jul 25, 2024 |
| Jefferies | Yaron Kinar | $84 | $81.54 | +18.5% | Apr 29, 2024 |
| Raymond James | Gregory Peters | $95 | $86.35 | +34.0% | Mar 26, 2024 |
| CFRA | Catherine Seifert | $90 | $84.99 | +27.0% | Mar 14, 2024 |
| Citigroup | Analyst unavailable | $62 | $58.17 | -12.5% | Dec 15, 2022 |
| Morgan Stanley | Analyst unavailable | $65 | $58.15 | -8.3% | Nov 22, 2022 |
| Morgan Stanley | Analyst unavailable | $69 | $67.24 | -2.6% | Aug 19, 2022 |
| Jefferies | Analyst unavailable | $70 | $59.84 | -1.2% | Jul 12, 2022 |
| Morgan Stanley | Analyst unavailable | $64 | $55 | -9.7% | May 23, 2022 |
| RBC Capital | Analyst unavailable | $71 | $65.68 | +0.2% | Apr 27, 2022 |
Track every rating change on BRO the moment it posts. Free to start.
Start freeMarket reaction
event-close to next-session close
Stock move
-4.5%
Event window
SPY move
-0.5%
Same window
Abnormal move
-4.0%
Stock minus SPY
Volume
1.5×
Versus trailing sessions
Subsequent drift
-10.0%
Up to 20 sessions
BROSPY benchmark
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Try FN2 freeTranscript intelligence
What changed
Revenue rose 35.4% YoY to $1.90 billion (est. $1.89B) and adjusted EPS came in at $1.39 (est. $1.36), a 2.2% surprise. Adjusted EBITDAC margin improved 40 bps to 38.5%, and operating cash flow exceeded $260 million. Contingent commissions increased $54 million, including $22 million from Accession. AI agents now automate over 25% of the end-to-end submission process, saving 50,000-plus hours annually. Despite the beat, the stock sold off with an abnormal move of -4.0% and a subsequent drift of -10.0% on 1.54x baseline volume.
Guidance delta
Maintained. Management reaffirmed modest organic growth for 2026, $30-40 million of EBITDA synergies from the Accession and 180 integration, and a long-term EBITDAC margin target of 32-37%. No changes to capital allocation priorities across M&A, share repurchases, and dividends.
Key takeaways
- Revenue surged 35% YoY to $1.9 billion, driven by specialty distribution and the Accession acquisition.
- Adjusted EBITDAC margin rose to 38.5% and cash flow from operations topped $260 million.
- CAT property rate declines and flood-claim tail effects muted organic growth, but higher contingent commissions offset margin pressure.
- AI and data initiatives are delivering measurable efficiency gains and new revenue opportunities.
- Integration of Accession and 180 is progressing, with targeted EBITDA synergies of $30-40 million for the year.
Management priorities
- Expand AI capabilities across underwriting, submission processing, and back-office functions.
- Complete integration of Accession and the 180 specialty business to capture synergies.
- Continue share repurchases, dividend growth, and deleveraging of the balance sheet.
- Pursue targeted M&A of boutique firms that fit culturally and financially.
- Invest in technology partners and internal AI talent to accelerate innovation.
Related earnings events
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Sources
- Earnings call transcript and parsed analysis · 2026-06-02T14:19:36.399254+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-07-30T21:31:48.197216+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-30T21:31:48.194745+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated . For educational purposes only; not investment advice.