What Happened?

Shares of insurance brokerage firm Brown & Brown (NYSE: BRO) fell 7.3% in the afternoon session after the company reported mixed fourth-quarter 2025 results, with an earnings beat failing to offset a shortfall in revenue. 

The insurance brokerage firm posted adjusted earnings of $0.93 per share, which was 3.3% higher than the consensus estimate of $0.90. However, investors appeared more focused on the top-line performance. Total revenues for the quarter came in at $1.61 billion, a 36% increase year-over-year, but this figure fell short of the $1.64 billion analysts had forecasted. The market's negative reaction to the revenue miss suggests that concerns about the company's sales trajectory outweighed the stronger-than-expected profitability in the quarter.

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What Is The Market Telling Us

Brown & Brown’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Brown & Brown is down 5% since the beginning of the year, and at $73.78 per share, it is trading 40.7% below its 52-week high of $124.43 from April 2025. Investors who bought $1,000 worth of Brown & Brown’s shares 5 years ago would now be looking at an investment worth $1,674.

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