Start here if you're new
what it is
Brown & Brown sells insurance and risk advice to businesses and people, then keeps a cut every time your policy renews.
how it gets paid
Last year Brown & Brown made $5.9B in revenue.
why it's growing
Revenue grew 22.8% last year. The 33.71% EPS miss mattered more than the revenue growth because this stock trades on execution.
what just happened
The latest print reminded you this is not a straight line: EPS came in at $0.59 versus the $0.89 estimate.
At a glance
A balance sheet — strong enough to weather a downturn
95/100 earnings predictability — you can trust these numbers
23.5x trailing p/e — priced about right
0.8% dividend yield — cash in your pocket every quarter
10.0% return on capital — nothing to write home about
xvary composite: 74/100 — average
What they do
Brown & Brown sells insurance and risk advice to businesses and people, then keeps a cut every time your policy renews.
This business wins because leaving your broker is annoying and risky. Switching costs (the hassle of moving policies and advisors) → customers stay put → renewal revenue keeps showing up. That stickiness helped Brown & Brown reach $5.9 billion in annual revenue and a 57.0% operating margin, which is fat for a people-heavy business.
How they make money
$5.9B
annual revenue · their business grew +22.8% last year
total revenue
$5.9B
+22.8%
The products that matter
places and services insurance coverage
Property & Casualty Brokerage
$5.9B revenue
it is the entire $5.9B business, and it grew 22.8% last year. That makes the investment case simple: if this brokerage engine keeps compounding, the stock works. If it slows, there is nowhere to hide.
core business
Key numbers
$107
18-month target
The published 18-month target is 34% above the $80.01 stock price, so the upside case is plain.
57.0%
operating margin
Operating margin (profit after running the business) → 57.0% → this company keeps a lot of each revenue dollar.
$5.9B
annual revenue
Scale matters in brokerage. $5.9B of revenue gives Brown & Brown room to buy smaller rivals and spread costs.
23.5x
trailing p/e
P/E (price divided by past earnings) → 23.5x → you are paying up for consistency, not for a mess.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- long-term debt $7.7B (22% of capital)
- net profit margin 21.1% — keeps 21 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in BRO 3 years ago → it's now worth $13,320.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
The latest print reminded you this is not a straight line: EPS came in at $0.59 versus the $0.89 estimate.
Revenue still grew, but the market cared more about the earnings miss and integration noise. That is why a company with a 57.0% operating margin still sold off.
$1.6B
revenue
$0.59
eps
48.2%
gross margin
the number that mattered
The 33.71% EPS miss mattered more than the revenue growth because this stock trades on execution, not hope.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is softer commercial insurance pricing.
med
commercial pricing pressure
Management's own 2026 market trends report pointed to softer commercial insurance rates. If pricing eases while operating costs do not, a 19.5% net margin gets thinner fast.
this directly touches the whole $5.9B revenue base because brokerage is the entire business on this page.
med
growth normalization
Revenue grew 22.8% last year, and the next-quarter setup points to +35% revenue growth. A stock at 23.5x trailing earnings is priced for steadiness. If growth cools hard, the multiple usually cools with it.
the problem is not survival. The problem is paying a quality multiple for average growth.
med
debt reduces room for error
Long-term debt is $7.7B, or 22% of capital. That is manageable for an A balance sheet. It still means missteps matter more if pricing weakens or earnings stall.
you are not looking at distress risk. You are looking at less flexibility if operations stop compounding.
softer pricing or slower growth would hit a single $5.9B revenue engine while investors are still paying 23.5x trailing earnings for predictability.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
the next quarter's margin math
Revenue is set up at +35% from last year while EPS is set up at -16%. If that gap stays wide, the market reads growth as lower quality.
metric
net margin near 19.5%
This margin is doing a lot of the heavy lifting for the thesis. If it slips, the stock loses one of its cleanest arguments.
trend
whether 22.8% growth was a peak or a pattern
A $5.9B broker growing this fast gets attention. A sudden slowdown changes the whole conversation around 23.5x earnings.
risk
commercial insurance rate softness
Management already flagged softer rates. If that spreads across more accounts, revenue quality gets harder to defend.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a stock moving with the market, not breaking away from it.
safety
above average
stability score 2 — safer than roughly 80% of stocks. You own a steadier name than most.
chart momentum
below average
technical score 4 — the chart is not broken, but it is not leading either.
earnings predictability
95 / 100
few companies print this steadily. That is a real asset when you are underwriting a premium multiple.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 475 buyers vs. 407 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$71
$142
$80
current price
$107
target midpoint · +34% from current · 3-5yr high: $140 (+75% · 16% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive