Why Brown & Brown Stock Slumped by 5% Today
Its latest quarterly earnings report wasn't greeted warmly by the market.
On Tuesday, Brown & Brown's stock (BRO -4.97%) experienced a decline of nearly 5%, following the release of its third-quarter earnings report. The company reported a revenue of nearly $1.73 billion, marking a 7% increase compared to the same period in 2025, but it fell short of the average analyst estimate of $1.76 billion. Net income under GAAP standards rose by 6% to $240 million, but on a non-GAAP basis, it was slightly lower than expected, coming in at $1.07 per share, which was below the consensus estimate of $1.09.
The company attributed its subpar performance to a challenging rate environment and softening insurance premium prices. Additionally, the addition of insurance broker Accession Risk Management Group, acquired in 2025 for $9.8 billion, contributed to the deterioration of Brown & Brown's fundamentals. However, Accession’s results were recently merged into the parent company's, which temporarily impacts the company's performance.
Organic revenue, which excludes the impact of acquired businesses, saw a mere 1% increase year-over-year, reaching $1.46 billion. This decline in legacy business performance underscores the need for Brown & Brown to boost its organic revenue growth engine to regain investor confidence.
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