Brown & Brown Reports Significant Q1 Revenue Growth Fueled by Major Acquisitions

Brown & Brown reported a substantial 35.4% increase in total revenues for the first quarter of 2026, reaching $1.9 billion. This growth was largely driven by strategic acquisitions, though the company's organic revenue remained stable. Importantly, Organic Revenue with Contingents increased modestly by 2.2%, with acquisitions adding an additional $435 million to the revenue.

The company's income before taxes rose significantly by 24.8% to $533 million. Despite this growth, the operating margin saw a slight decline from 30.4% to 28.0%. Meanwhile, adjusted EBITDAC experienced a notable increase of 36.6% to $731 million, with a minor improvement in the margin to 38.5%.

Net income attributable to the company grew by 28.7% to $426 million. However, diluted net income per share decreased by 7.8% to $1.06, whereas adjusted diluted earnings per share rose by 7.8% to $1.39. This adjusted figure accounted for $0.26 from amortization, $0.06 from acquisition and integration costs, and $0.01 from earn-out modifications.

Total commissions and fees reached $1.88 billion, up from $1.385 billion previously. Core commissions and fees, excluding $97 million in contingents, were reported at $1.783 billion, with Organic Revenue remaining at $1.348 billion. A pivotal factor in this financial performance was the $9.8 billion acquisition of Accession Risk Management Group, bolstering Brown & Brown's operations significantly.

This major acquisition, finalized in August 2025, expanded the company's footprint to over 700 locations and incorporated 23,000 employees. It strategically placed Risk Strategies within the Retail segment and established One80 as the cornerstone of the new Specialty Distribution unit.

Following these financial disclosures, Brown & Brown's shares declined by 2.4%. While StockStory noted the firm surpassed earnings per share forecasts, it missed on organic revenue expectations. Similarly, Quiver Quantitative highlighted a slight revenue shortfall compared to the $1.93 billion consensus.

In the competitive landscape, Marsh McLennan, Aon, and Arthur J. Gallagher demonstrated varied growth projections. Reagan Consulting highlighted a trend of slowing broker organic growth, underscoring acquisitions' increasing importance. J. Powell Brown, President and CEO, emphasized the company's commitment to customer service in a challenging environment, reflecting a strategic focus amid mixed industry performances.