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Brown & Brown
(NYSE:BRO)
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Rating:79Outperform
Price Target:
$86.00
â–²(27.11% Upside)
Action:Reiterated
Date:07/30/26
BRO’s score is driven primarily by strong financial performance (consistent revenue and earnings growth with healthy margins and solid free cash flow) and supportive technicals (shares trading above all major moving averages). Offsetting factors are a more neutral valuation (P/E ~20 with a low yield) and a balanced earnings-call outlook where reaffirmed margin guidance and synergy targets are tempered by weak organic growth in specialty distribution, margin pressure, and identifiable timing/litigation headwinds.
Positive Factors
Multi-year Revenue & Profit Growth
Sustained scale-up in revenues and profits signals durable demand for brokerage services and successful M&A integration. A larger premium base and recurring commission model support stable topline and earnings, enabling long-term reinvestment and capital returns without sole reliance on short-term market cycles.
Negative Factors
Weak Organic Growth
Underlying organic growth softness, especially in specialty distribution excluding contingents, signals dependence on acquisitions and contingent commissions for headline growth. That reliance raises execution risk and makes sustainable revenue momentum sensitive to integration and carrier dynamics.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year Revenue & Profit Growth
Sustained scale-up in revenues and profits signals durable demand for brokerage services and successful M&A integration. A larger premium base and recurring commission model support stable topline and earnings, enabling long-term reinvestment and capital returns without sole reliance on short-term market cycles.
Read all positive factors
Brown & Brown Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business segment generates, indicating the company's diverse income streams and potential areas for expansion or risk.
Shows how much revenue each business segment generates, indicating the company's diverse income streams and potential areas for expansion or risk.
Data provided by:
The Fly
The FlyBrown & Brown (BRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.56B
Dividend Yield0.92%
Average Volume (3M)2.84M
Price to Earnings (P/E)19.4
Beta (1Y)0.34
Revenue Growth34.22%
EPS Growth3.21%
CountryUS
Employees22,888
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)3.62
Shares Outstanding334,610,350
10 Day Avg. Volume3,002,744
30 Day Avg. Volume2,838,135
Financial Highlights & Ratios
PEG Ratio-10.20
Price to Book (P/B)1.97
Price to Sales (P/S)4.15
P/FCF Ratio17.88
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$74.31Price Target Upside9.83% Upside
Rating ConsensusHold
Number of Analyst Covering16
EPS Forecast (FY)4.48
Revenue Forecast (FY)$6.99B
Brown & Brown Business Overview & Revenue Model
Company Description
Brown & 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 strate...
How the Company Makes Money
Brown & Brown primarily makes money by earning commissions and fees tied to insurance policies it places and services for customers. The largest recurring revenue stream is brokerage commissions paid by insurance carriers based on premiums written...
Brown & Brown Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Neutral
Balanced quarter: strong consolidated revenue growth (30.4% YoY) driven largely by the Accession acquisition and robust contingent commissions, healthy EPS growth, strong cash generation and active capital return; however, underlying organic growth showed softness (down ~70 bps), specialty segment faced margin pressure and timing headwinds (delayed program revenue), CAT property pricing remains a material headwind, and there are one-time Accession-related cash impacts plus litigation-related revenue estimates of $50–$60 million for the year. Management reiterated synergy targets, provided H2 organic growth ranges (retail 1.5%–2.5% excl. contingents; specialty 2%–4% excl. contingents), and emphasized AI/technology partnerships as a long-term enabler, but near-term margin and organic growth risks keep the tone balanced.Positive Updates
Record total revenue (quarter)
Total revenues of $1.7 billion in Q2 2026, up 30.4% year-over-year, driven primarily by the Accession acquisition and higher contingent commissions.
Negative Updates
Organic revenue softness
Overall organic revenue decreased 70 basis points YoY; specialty distribution organic revenue was negative (‑1.6% including contingents and ‑3.5% excluding contingents) for the quarter, reflecting program timing and rate pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Record total revenue (quarter)
Total revenues of $1.7 billion in Q2 2026, up 30.4% year-over-year, driven primarily by the Accession acquisition and higher contingent commissions.
Read all positive updates
Company Guidance
Guidance highlights: retail organic growth (excluding contingents) is expected to be 1.5%–2.5% in the back half of 2026 and specialty distribution organic growth (excluding contingents) 2%–4%; management reaffirmed 2026 margin guidance (roughly a mid‑30s% run‑rate for the combined business, noting Q2 adjusted EBITDAC margin was 35.7%, down 100 bps) and expects $30–40 million of synergies this year; long‑run cash‑flow conversion is targeted at ~24%–27% (H1 cash flow from operations ≈ $610M, cash‑flow/ revenue 17% vs 20% prior year), with continued share repurchases (≈ $500M deployed YTD) and focus on hiring to grow organically to an $8B+ business, selective M&A, debt reduction (a $400M maturity in December will be evaluated) and technology/AI investments (no incremental spend called out today) that management expects will drive incremental organic growth and margin expansion over the coming quarters and years.Brown & Brown Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.85B | 5.96B | 4.71B | 4.20B | 3.56B | 3.05B |
| Gross Profit | 4.04B | 5.22B | 2.30B | 2.01B | 1.75B | 1.41B |
| EBITDA | 2.42B | 2.04B | 1.73B | 1.55B | 1.21B | 980.70M |
| Net Income | 1.21B | 1.05B | 993.00M | 870.50M | 671.80M | 587.10M |
Balance Sheet | ||||||
| Total Assets | 29.89B | 29.99B | 17.61B | 14.88B | 13.97B | 9.80B |
| Cash, Cash Equivalents and Short-Term Investments | 918.00M | 1.08B | 685.00M | 711.00M | 662.00M | 706.10M |
| Total Debt | 8.01B | 7.92B | 4.06B | 4.02B | 4.18B | 2.25B |
| Total Liabilities | 17.28B | 17.42B | 11.18B | 9.30B | 9.37B | 5.60B |
| Stockholders Equity | 12.58B | 12.55B | 6.44B | 5.58B | 4.61B | 4.20B |
Cash Flow | ||||||
| Free Cash Flow | 1.49B | 1.38B | 1.09B | 941.00M | 829.00M | 763.80M |
| Operating Cash Flow | 1.52B | 1.45B | 1.17B | 1.01B | 881.00M | 808.80M |
| Investing Cash Flow | -7.80B | -7.91B | -898.00M | -587.00M | -1.91B | -396.80M |
| Financing Cash Flow | -794.00M | 7.71B | -64.00M | -187.00M | 1.73B | -210.10M |
Brown & Brown Technical Analysis
Positive
67.66
Price Trends
63.39
Positive
63.58
Positive
70.67
Negative
Market Momentum
1.39
Positive
56.47
Neutral
21.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRO, the sentiment is Positive. The current price of 67.66 is below the 20-day moving average (MA) of 68.94, above the 50-day MA of 63.39, and below the 200-day MA of 70.67, indicating a neutral trend. The MACD of 1.39 indicates Positive momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 21.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRO.
Brown & Brown Risk Analysis
Brown & Brown disclosed 41 risk factors in its most recent earnings report. Brown & Brown reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brown & Brown Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $76.48B | 19.77 | 42.56% | 0.83% | 4.36% | 51.69% | |
79 Outperform | $23.56B | 19.45 | 9.62% | 0.95% | 34.22% | 3.21% | |
78 Outperform | $64.08B | 40.89 | 6.91% | 1.07% | 26.74% | -9.59% | |
78 Outperform | $11.27B | 20.85 | 21.98% | 2.57% | 3.65% | -7.67% | |
77 Outperform | $31.20B | 20.60 | 19.95% | 1.27% | 3.00% | 914.66% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
BRO
Brown & Brown
70.40
-21.48
-23.38%
AON
Aon
360.55
2.65
0.74%
AJG
Arthur J Gallagher & Co
249.42
-32.02
-11.38%
ERIE
Erie Indemnity Company
242.04
-106.78
-30.61%
WTW
Willis Towers Watson
335.92
19.20
6.06%
Brown & Brown Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Brown & Brown Expands and Extends Credit Facilities
Positive
Jun 5, 2026
On June 5, 2026, Brown Brown, Inc. entered into a third amended and restated credit agreement that replaces its October 27, 2021 facility and significantly expands its financing capacity. The deal increases the company’s revolving credit fa...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Brown & Brown Shareholders Expand Equity Plan, Reelect Board
Positive
May 8, 2026
At its May 6, 2026 annual meeting, Brown Brown, Inc. shareholders approved an amendment to the company’s 2019 Stock Incentive Plan, adding 6,900,000 shares for issuance and extending the plan’s term, a move that expands the firm’...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.