DailyIQ
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Sector:Financial ServicesAll sectors
Last updated 3 minutes ago

BRO·Brown & Brown, Inc.

$.
-. (-.%)
After Hours
High
$68.76
Open
$68.56
Market Cap
23.00B
52W High
$108.36
Low
$67.34
P. Close
$67.67
P/E
20.03
52W Low
$53.81
Fwd P/E
13.96
DailyIQ Est.
$73.42
Technical Score (1D)
55
BUY
News Sentiment
68
BULLISH
Wells Fargo’s latest research, released 14.5 hours ago, kept Brown & Brown at an equal‑weight rating but cut its price target to $68, signaling a modest downgrade in earnings expectations. The same analyst reiterated the hold stance 19 hours earlier, noting the target reduction from $69 to $68 while affirming that the company’s fundamentals remain unchanged. In contrast, Mizuho’s 20‑hour‑old note upgraded Brown & Brown to an outperform rating and lifted its target to $81, reflecting a more bullish view on growth prospects. The divergence between the two banks creates uncertainty about the fair value range for the next trading week. Both reports highlight the importance of the upcoming earnings release, which will reveal underwriting performance and any shifts in loss ratios. Regulatory developments, particularly changes to property‑casualty exposure limits, could materially affect the insurer’s risk profile and are cited as a key watch item. The price target cut by Wells Fargo suggests that market participants are pricing in tighter margins or higher claim volatility. Mizuho’s higher target implies confidence in the company’s ability to capture market share or benefit from favorable pricing power. Traders should monitor the earnings call for any commentary on loss experience, reinsurance costs, and the impact of recent regulatory proposals, as these factors will likely drive the next 1–10 trading days’ volatility.
Earnings Summary
Brown & Brown, Inc. (BRO) is a diversified insurance broker operating through Retail, Programs, Wholesale Brokerage, and Services segments, offering property and casualty, employee benefits, and niche solutions across the U.S., Canada, Ireland, the U.K., and other markets. The company’s broad portfolio positions it within the financial services sector’s insurance brokerage industry, where underwriting performance and loss ratios are key performance drivers. In the most recent two quarters, BRO posted a 0.93 EPS in Q4 2025 versus a 1.39 EPS in Q1 2026, a 50% YoY rise in the latter period, while revenue climbed from $1.607 B to $1.901 B, a 18% increase; the prior two quarters (Q2 2025 and Q3 2025) saw EPS of 1.03 and 1.05 and revenue of $1.285 B and $1.606 B, respectively, indicating a slight deceleration in EPS growth but steady revenue expansion. The company has consistently beat analyst estimates in four of the last six quarters, with Q4 2024, Q2 2025, Q3 2025, and Q1 2026 exceeding EPS forecasts, while it missed in Q1 2025 and Q4 2025, the latter also falling short of revenue expectations; this pattern suggests that while revenue growth remains robust, margin compression or higher claim volatility may be impacting profitability. Recent analyst commentary underscores this dynamic: Wells Fargo trimmed its price target to $68 citing tighter margins, whereas Mizuho and UBS raised targets to $81 and $73, respectively, reflecting optimism about underwriting gains and operational efficiencies such as the PremiumPay platform, which could translate into operational efficiencies that support underwriting profitability, which UBS highlighted. Barclays and Morgan Stanley present divergent views on pricing cycles and regulatory exposure, particularly in Florida, highlighting the sensitivity of BRO’s performance to market and regulatory shifts. Investors should watch for the upcoming Q2 2026 earnings release for guidance on loss‑ratio stability, reinsurance costs, and the impact of recent regulatory proposals, as well as management’s discussion of the company’s strategic focus on complex‑risk specialization, which could shape future revenue mix and margin dynamics.

EPS

EstBeatMiss
$0.86$1.01$1.16$1.31$1.46Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.08 - -
Q1'26$1.36$1.39+2.3%
Q4'25$1.37$0.93-32.3%
Q3'25$0.93$1.05+12.9%
Q2'25$0.99$1.03+4.6%
Q1'25$1.30$1.29-0.5%

Revenue

EstBeatMiss
$1.2B$1.4B$1.6B$1.8B$2.0BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.7B - -
Q1'26$1.9B$1.9B+0.6%
Q4'25$1.9B$1.6B-16.4%
Q3'25 - $1.6B -
Q2'25 - $1.3B -
Q1'25 - $1.4B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

BRO Stock Snapshot

BRO is currently trading at $67.66, giving Brown & Brown, Inc. a market cap of 23.00B and a P/E ratio of 20.0. Today's range spans $67.34–$68.76, with shares opening at $68.56 and moving down $0.01 (0.0%) from the prior close. DailyIQ's technical score sits at 55/100 (HOLD) with a news sentiment reading of 68/100.

Over the past year BRO has traded between $53.81 and $108.36 - the current price is +25.7% off the 52-week low and -37.6% from the high. 28 analysts cover the stock with a Hold consensus and a mean 12-month target of $73.38 (range $55.00–$90.00), implying upside of +8.5%.

BRO is in consolidation mode: 55/100 technical score (HOLD), bullish sentiment at 68/100, price at $67.66 (in the lower half of its 52-week range within $53.81–$108.36). The current P/E ratio stands at 20.0. The 23.00B market cap in Financial Services means the stock is widely covered and any shift in analyst sentiment or earnings expectations will be immediately reflected in price - making the current neutral phase a good time to track upcoming catalysts closely.

Portfolio construction in Financial Services often uses large-cap names like BRO as tactical swing positions during neutral phases: cheap enough to overweight, liquid enough to exit quickly, and large enough to provide meaningful sector beta. The current 55/100 (HOLD) at $67.66 (in the lower half of its 52-week range) and bullish sentiment (68/100) frame the position as a catalyst play within the $53.81–$108.36 annual range rather than a directional bet.