Overview
BofA Securities has trimmed its price target on Brown & Brown to $90 from $94 and left its rating at Neutral. The firm said the revision follows the company’s most recent quarterly disclosure, which combined an adjusted earnings beat with a revenue shortfall and weakening organic performance.
Quarterly results in brief
Brown & Brown reported adjusted earnings per share of $0.93 for the quarter, exceeding the analyst consensus of $0.91. Total revenue was $1.6 billion, however, coming up short of the $1.65 billion estimate. Year-over-year, total revenue rose 35.7%, but organic revenue for the quarter declined by 2.8%.
BofA’s analysis of drivers
In its note, BofA pointed to several specific drivers behind the gap between its prior expectations and the reported result. The firm said the 2.8% decline in organic growth contrasted with its forecast of 0.4% growth and translated into a roughly $0.14 per-share negative impact relative to its model. Lower incremental contribution from acquisitions produced an additional roughly $0.20 per-share drag, and margins were slightly weaker than anticipated, exerting further pressure on per-share results.
Investment income and prior quarter comparison
Investment income for the quarter totaled $27 million, below BofA’s $28.4 million estimate and materially lower than the $56 million reported in the third quarter of 2025. BofA noted the third-quarter figure was elevated by additional investment income tied to cash held in connection with the Accession transaction, a factor that did not recur at the same scale in the latest quarter.
Implications highlighted
BofA’s downward price-target adjustment reflects the combination of a revenue shortfall, a decline in organic revenue, muted acquisition contribution and slightly compressed margins. While adjusted EPS exceeded consensus, the firm signaled these revenue and growth dynamics as reasons for a more cautious valuation relative to its prior target.
What investors saw in the numbers
- Adjusted EPS: $0.93 vs. analyst consensus $0.91.
- Total revenue: $1.6 billion vs. consensus $1.65 billion.
- Organic revenue change: -2.8% year over year.
- Investment income: $27 million vs. BofA estimate $28.4 million and vs. $56 million in Q3 2025.
The data points combine to explain why BofA retained a Neutral stance while lowering its target price: the firm identified concrete shortfalls against its expectations and quantified their impact on per-share results, even as the company produced an earnings beat on an adjusted basis.