Brown & Brown Q1 2026: Revenue Up 35% to $1.9B as AI and Accession Integration Drive Margins

Transcript 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.