Brown & Brown (BRO) Q1 2026 earnings summary

Executive summary

• Total revenues for Q1 2026 reached $1.9 billion, up 35.4% year-over-year, driven by acquisitions, higher contingent commissions, and disciplined expense management, with organic revenue flat and organic revenue with contingents up 2.2%.

• Adjusted diluted net income per share rose 7.8% to $1.39, while net income attributable to the company increased 28.7% to $426 million.

• Cash flow from operations was $262 million, up 23% year-over-year, reflecting robust cash generation and financial flexibility.

• Eight acquisitions completed in Q1 2026, adding $9 million in annual revenues and $43 million in goodwill.

• Technology and AI investments are delivering operational efficiencies and cost savings, with over 50,000 hours saved annually.

Financial highlights

• Adjusted EBITDAC grew 36.6% to $731 million, with an adjusted margin of 38.5%, up 40 bps year-over-year.

• Income before income taxes increased 24.8% to $533 million, with a margin of 28.0%.

• Core commissions and fees grew 32.9% to $1,783 million; profit-sharing contingent commissions surged 125.6% to $97 million.

• Dividends per share increased 10% to $0.165; $57 million paid in dividends.

• Share repurchases totaled $250 million in Q1, reducing share count by 5 million (1.4%).

Outlook and guidance

• Management expects modest sequential improvement in organic growth each quarter in 2026, with upper bound of 2.5% by year-end.

• Contingent commissions anticipated to be higher for the full year, following a strong Q1.

• Adjusted EBITDA margin for Accession expected around 35% for the full year.

• Guidance assumes continued pressure on catastrophe property rates and stable to slightly moderating admitted rates.

• Capital deployment will focus on share repurchases, debt paydown, and selective acquisitions.