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    How Brown & Brown’s (BRO) Acquisition-Fueled Q3 2025 Earnings Beat Has Changed Its Investment Story

    Simply Wall St·12/25/2025 09:31:09
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    • Earlier this year, Brown & Brown reported third-quarter 2025 results that surpassed market expectations, with revenue rising 35.4% year on year and non-GAAP earnings per share beating analyst estimates by 12.9%.
    • The outperformance was driven largely by acquisitions and profit-sharing contingent commissions, highlighting how Brown & Brown’s expansion efforts are feeding directly into stronger top- and bottom-line results.
    • With Brown & Brown’s recent earnings beat underpinned by acquisition-driven growth, we’ll now examine how this updates the company’s broader investment narrative.

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    Brown & Brown Investment Narrative Recap

    To own Brown & Brown, you need to believe that its acquisition-led expansion can translate into durable revenue and earnings growth despite cyclical insurance and economic conditions. The recent third quarter beat reinforces that deals and profit-sharing commissions are working as intended in the near term, but it does not materially change the key short term catalyst, which is continued integration and execution on recent acquisitions. The biggest current risk remains pressure on margins from shifting insurance pricing and loss trends.

    Against this backdrop, the company’s third quarter 2025 results, with revenue up 35.4% year on year to US$1,606 million and non GAAP EPS 12.9% above expectations, are especially relevant. They show that acquisition activity is feeding directly into higher reported revenue, even as organic growth stays more measured, and that contingent commissions can still boost earnings. However, investors should keep in mind that any normalization in CAT property rates or contingent income could affect how repeatable this outperformance really is in...

    Read the full narrative on Brown & Brown (it's free!)

    Brown & Brown's narrative projects $9.0 billion revenue and $1.6 billion earnings by 2028. This requires 21.9% yearly revenue growth and about a $600 million earnings increase from $994.0 million today.

    Uncover how Brown & Brown's forecasts yield a $92.86 fair value, a 15% upside to its current price.

    Exploring Other Perspectives

    BRO Earnings & Revenue Growth as at Dec 2025
    BRO Earnings & Revenue Growth as at Dec 2025

    Five members of the Simply Wall St Community currently value Brown & Brown between about US$92.86 and US$134.44 per share, underlining how far apart individual views can be. You can weigh those estimates against the recent acquisition driven earnings beat and consider how sensitive your own expectations are to shifts in insurance pricing, contingent commissions and regulatory outcomes.

    Explore 5 other fair value estimates on Brown & Brown - why the stock might be worth just $92.86!

    Build Your Own Brown & Brown Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.