01—Abstract
Summary
Summary of the 10-Q filed July 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Brown & Brown, Inc. (BRO) reported a strong second quarter for 2026, demonstrating robust revenue growth and improved profitability.
Total revenues increased by 30.4% year-over-year to $1,676 milliona, driven primarily by a significant 32.4% surge in commissions and fees. This growth was fueled by contributions from recent acquisitions, a notable increase in profit-sharing contingent commissions, and solid performance in both the Retail and Specialty Distribution segments. Net income attributable to the Company rose by 24.7% to $288 million for the quarter, translating to diluted earnings per share of $0.84, up from $0.78 in the prior year.
The company also continued its strategic acquisition activities, completing 14 transactions during the first half of the year, while managing its capital effectively through share repurchases and dividend payments. The balance sheet remains strong, with total assets of $29.9 billionb and total equity of $12.6 billion, indicating continued financial stability and capacity for future growth.
02—Key points
Key Highlights
- Total revenues grew 30.4% to $1,676 million in Q2 2026 compared to Q2 2025.
- Commissions and fees increased by 32.4% to $1,654 million, driven by acquisitions and a 88.9% surge in contingent commissions.
- Net income attributable to the Company increased by 24.7% to $288 million for the quarter.
- Diluted earnings per share (EPS) rose to $0.84 from $0.78 in the prior year's second quarter.
- The company completed 14 acquisitions in the first six months of 2026, demonstrating ongoing strategic growth initiatives.
- Employee compensation and benefits increased by 30.9% but remained stable as a percentage of revenue at 50.0%, indicating efficient cost management relative to revenue growth.
- The company maintained a strong liquidity position with $918 million in cash and cash equivalents as of June 30, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2027filed July 27, 2026Financial Statements
Q2 FY2027 against Q2 FY2026
| Line item | Q2 FY2027Q2 FY2026 | Change |
|---|---|---|
| Revenue | $1.68B$1.28B | +30.4% |
| Net Income | $289.00M$234.00M | +23.5% |
| EPS (Basic) | $0.86$0.79 | +8.9% |
| EPS (Diluted) | $0.84$0.78 | +7.7% |
| Shares Outstanding (Basic) | 329.00M292.00M | +12.7% |
| Shares Outstanding (Diluted) | 334.00M293.00M | +14.0% |
05—Questions
Frequently Asked Questions
What were the primary drivers of revenue growth in the second quarter of 2026?
Revenue growth was primarily driven by a substantial increase in commissions and fees, up 32.4% year-over-year. This was significantly boosted by contributions from recent acquisitions, a strong performance in profit-sharing contingent commissions (up 88.9%), and solid underlying growth from both the Retail and Specialty Distribution segments. Acquisitions accounted for a significant portion of the core commission and fee increase.
How did the company's profitability change in the second quarter of 2026?
Profitability improved significantly. Net income attributable to the Company increased by 24.7% to $288 million. Diluted earnings per share (EPS) rose to $0.84 from $0.78 in the prior year's second quarter. The income before income taxes margin was 22.9%, a slight decrease from 24.2% in the prior year, but adjusted EBITDAC margin remained strong at 35.7%.
What is the company's acquisition strategy and its impact on results?
Brown & Brown continues an active acquisition strategy, completing 14 acquisitions in the first six months of 2026. These acquisitions are a key driver of revenue growth, contributing significantly to the increase in core commissions and fees. While acquisitions increase expenses like employee compensation and amortization, the company appears to be effectively integrating them, as evidenced by stable employee compensation as a percentage of revenue and continued profitability.
What is the company's financial health and liquidity position?
The company maintains a strong financial position. Total assets were $29.9 billion and total equity was $12.6 billion as of June 30, 2026. Liquidity remains robust, with $918 million in cash and cash equivalents. The company also has significant borrowing capacity under its revolving credit facility, indicating ample resources to meet its obligations and fund future growth.
06—Continue