A month has gone by since the last earnings report for Brown & Brown (BRO Quick QuoteBRO - Free Report) . Shares have lost about 0.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Brown & Brown due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Brown & Brown Q2 Earnings Miss Estimates on Weak Organic Growth

Brown & Brown, Inc.’s second-quarter 2026 adjusted earnings of $1.07 per share missed the Zacks Consensus Estimate by 0.9%. The bottom line increased 3.9% year over year. Revenues of $1.67 billion missed the consensus mark by 2.9% but increased 30.4% year over year. Acquisition activity supported the top line, while organic revenues declined 0.7%.

BRO's Q2 Details

Commissions and fees rose 32.4% to $1.65 billion, while investment and other income declined to $22 million from $36 million. Adjusted EBITDAC margin contracted 100 basis points to 35.7%. Adjusted net income attributable to the company increased 18.4% to $361 million. However, a 14% increase in the diluted weighted-average share count limited per-share growth. GAAP net income rose 24.7% to $288 million, while diluted GAAP earnings increased 7.7% to 84 cents.

Brown & Brown's Organic Growth Slips

Organic revenues decreased 0.7% to $1.18 billion. Organic revenues with contingent commissions increased 0.7% to $1.24 billion, supported by higher profit-sharing commissions from insurance carriers. Core commissions and fees increased 30.3% year over year to $1.57 billion. Investment income and other income decreased 39% year over year to $22 million.

BRO's Retail Segment Expands

Retail revenues increased 35.9% year over year to $947 million, primarily due to acquisition activity. Organic revenues advanced 1.5% to $678 million, while organic revenues with contingents increased 2.5% to $692 million.

Net new business and exposure-unit expansion supported organic growth. These gains were partially offset by declines in catastrophe property rates and lower revenues from a specialty pharmacy business. Adjusted EBITDAC climbed 46.9% to $282 million, and the margin expanded 230 basis points to 29.8%.

Brown & Brown's Specialty Unit Softens

Specialty Distribution revenues increased 28.1% to $721 million, aided by acquisitions and higher contingent commissions. Organic revenues, however, declined 3.5% to $498 million, while organic revenues with contingents fell 1.6% to $545 million.

Declining catastrophe property rates and approximately $10 million of new-business timing pressure weighed on the segment. Adjusted EBITDAC rose 17.1% to $308 million, but the adjusted margin contracted 400 basis points to 42.7% amid weaker organic revenues and investments in European capabilities.

BRO's Costs and Margins

Total expenses increased 32.8% year over year to $1.29 billion. Employee compensation and benefits rose 31% to $838 million, while other operating expenses increased 28.4% to $271 million. Amortization more than doubled to $110 million, and interest expense increased 96% to $100 million. 

Adjusted EBITDAC rose 27% to $598 million, but growth trailed the top-line increase, resulting in margin contraction. Adjusted income before taxes increased 17.4% to $480 million.

Brown & Brown's Cash Flow and Capital

Net cash provided by operating activities increased 13% to $608 million during the first six months of 2026. Cash and cash equivalents were $918 million as of June 30, down from $1.08 billion at the end of 2025.

The company repurchased $250 million of stock during the second quarter. Brown & Brown also paid $112 million in dividends and declared a quarterly dividend of 16.5 cents per share, up 10% year over year.

BRO's Market Outlook

Management expects rate changes across most admitted insurance lines in the second half of 2026 to remain relatively similar to second-quarter levels. Casualty and auto rates continued to increase, while property and workers’ compensation pricing was flat to lower.

Excess-and-surplus casualty rates are expected to keep rising because of the legal environment. Brown & Brown does not expect catastrophe property rates to change materially in the second half compared with the first. Capital deployment will focus on share repurchases; internal investment, debt reduction and acquisitions centered on specialty businesses.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

At this time, Brown & Brown has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Brown & Brown has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.