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BRO · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Brown & Brown, Inc. (BRO) stock moving?
Brown & Brown's Q3 2026 report on Oct 26 showed revenue of $1.7B (+7.4%) and adjusted EPS of $1.07 (+1.9%), but organic revenue grew only 1.2% and adjusted EBITDAC margin fell to 34.6% from 36.6%. The stock dropped from $74.30 on Oct 22 to $65.71 on Oct 28 on heavy volume of 5.4-5.6M shares on Oct 26-27, versus roughly 2.5M on normal days. It then recovered to $74.38 on Nov 5 and has since eased to $71.89 on Nov 10, with volume back near 2.3-2.9M. Analyst targets are mixed: Truist keeps a Buy at $85, while Citi ($76) and UBS ($72) stay Neutral. BMO (to $74) and KBW (to $77) raised targets in early November, and RBC warned of a tougher fourth quarter as acquired revenue fades. The recent price recovery and target increases are balanced by slow organic growth and margin pressure, with no decisive catalyst in the next weeks.
News behind the analysis
- Keefe Bruyette & Woods Adjusts Price Target on Brown & Brown to $77 From $76Keefe Bruyette & Woods raised its price target on Brown & Brown to $77 from $76.
- Brown & Brown Releases Annual Employer Health and Benefits Strategy SurveyThe 2027 employer survey flags employer concern over rising medical and pharmacy costs. It is a routine industry report with no direct financial impact.
- BMO Capital Adjusts Price Target on Brown & Brown to $74 From $65BMO Capital raised its price target on Brown & Brown from $65 to $74.
- Analysts Update Price Targets for Brown & Brown Following Q3 ResultsTruist Securities and UBS updated their price targets after the third-quarter report. UBS trimmed its target to $72 from $73 and kept a Neutral rating.
- Brown & Brown faces tough Q4 setup as acquired revenue fades, RBC saysRBC flagged potential fourth-quarter headwinds from a deceleration in acquired revenue.
- Citigroup Maintains Neutral on Brown & Brown, Lowers Price Target to $76Citigroup kept its Neutral rating and cut its price target to $76 after the quarter.
- Truist Securities Maintains Buy on Brown & Brown, Lowers Price Target to $85Truist kept its Buy rating and lowered its price target to $85 from $90.
- Brown & Brown, Inc. announces third quarter 2026 resultsQ3 total revenue rose 7.4% to $1.7 billion, but organic revenue grew only 1.2% and EBITDAC margin (adjusted) fell to 34.6% from 36.6%. Adjusted diluted EPS rose 1.9% to $1.07.
- Director Bronislaw E. Masojada resigns from Brown & Brown boardMasojada resigned from the board and its Audit and Compensation Committees, citing his election as Lord Mayor of the City of London, not any disagreement with the company.
About Brown & Brown, Inc.
Brown & Brown is a Florida-based insurance broker founded in 1939. It doesn't take on insurance risk itself; it sells and services insurance policies for businesses and individuals through more than 700 locations, with about 23,000 employees in roughly 16 countries. It is known for growing by buying smaller agencies and running them with a lot of local independence, and it recently made a large purchase of Accession (RSC Topco), a specialty insurance distribution business.
How it makes money
Most of its money comes from commissions and fees on insurance it places for clients. These come mainly from Retail, its brokerage arm for businesses and individuals, and from Specialty Distribution, which includes wholesale brokerage and acting as an agent for insurers through its program businesses. It also earns profit-based 'contingent' commissions from insurers and fees for services such as claims processing. Revenue was roughly $1.7–1.9B per quarter in 2026, a big jump that came largely from the Accession acquisition, while organic growth was close to flat.
What usually moves BRO
- Insurance premium pricing, especially catastrophe property rates
- Organic revenue growth
- Acquisitions and progress integrating Accession
- Contingent commissions that depend on insurers' profitability
- Interest rates and the economy's effect on clients' insurance exposures