Brown & Brown, Inc. posted total revenues of $1.7 billion for the second quarter of 2026, up 30.4% year over year. Organic revenue, however, fell 0.7% for the period. It is the second consecutive quarter of stalled or declining organic growth as Accession integration costs weigh on the numbers.
The results show that acquisition activity drove the bulk of the top-line expansion. Organic revenue with contingents, which includes profit-sharing commissions, edged up 0.7%, providing partial offset to the core organic decline.
Net income attributable to the company was $288 million for the quarter, up 24.7% from the same period in 2025. Diluted net income per share came in at $0.84, an increase of 7.7%, while the adjusted diluted figure rose 3.9% to $1.07.
Adjusted EBITDAC reached $598 million, up 27%. The adjusted EBITDAC margin contracted to 35.7% from 36.7% in the second quarter of 2025, as the expanded cost base from acquisitions weighed on profitability. Income before income taxes was US$383 million, up 23.2%, with the margin narrowing to 22.9% from 24.2% in the prior-year quarter.
Employee compensation and benefits rose to $838 million from $640 million a year earlier. Interest expense doubled to $100 million from $51 million, a direct result of the debt taken on to fund the RSC Topco, Inc. acquisition, which Brown & Brown operates under the name Accession.
For the first half of 2026, total revenues were $3.6 billion, up 33%. Organic revenue with contingents rose 1.6% for the period, and adjusted diluted earnings per share for the six months reached $2.46, up 6%.
The second-quarter organic decline was split across two segments. The retail segment posted organic revenue growth of 1.5%, driven by net new business and exposure unit expansion. Falling catastrophe property rates and lower revenues from a specialty pharmacy business partially offset those gains.
The specialty distribution segment saw organic revenue fall 3.5%, hurt by declining catastrophe property rates and approximately $10 million in timing issues on new business.
Brown & Brown noted its litigation-related impact adjustment in the organic revenue reconciliation. The adjustment covers core commissions and fees linked to a competitor's conduct that is the subject of pending litigation in multiple jurisdictions.
The organic softness across both quarters reflects broader pressure on commercial property rates. The company said E&S casualty rates are expected to keep rising given the legal environment. Rate changes for most admitted lines in the second half of 2026 are expected to be broadly similar to the second quarter.
J. Powell Brown, president and chief executive officer, said the company was pleased with its financial results. Brown added that the company had "great momentum" heading into the second half of the year.
Brown & Brown held cash and cash equivalents of $918 million at June 30, 2026. Total assets stood at $29.9 billion, with goodwill of $15.1 billion and amortizable intangible assets of $4.6 billion.
