Baldwin Insurance Group (NASDAQ:BWIN) Surprises With Q1 CY2026 Sales

Insurance distribution company Baldwin Insurance Group (NASDAQ:BWIN) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 28.7% year on year to $532.2 million. Its non-GAAP profit of $0.63 per share was in line with analysts’ consensus estimates.

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"Our first quarter results demonstrate the durability and accelerating earnings power of our differentiated platform," said Trevor Baldwin, Chief Executive Officer of The Baldwin Group.

Company Overview

Rebranded from BRP Group in May 2024, Baldwin Insurance Group (NASDAQ:BWIN) is an independent insurance distribution company that provides tailored insurance, risk management, and employee benefits solutions to businesses and individuals.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

With $1.62 billion in revenue over the past 12 months, Baldwin Insurance Group is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base.

As you can see below, Baldwin Insurance Group’s sales grew at an incredible 36.7% compounded annual growth rate over the last five years. This shows it had high demand, a useful starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Baldwin Insurance Group’s annualized revenue growth of 13.1% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

We can better understand the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Baldwin Insurance Group’s organic revenue averaged 10.4% year-on-year growth. Because this number is lower than its two-year revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results.

This quarter, Baldwin Insurance Group reported robust year-on-year revenue growth of 28.7%, and its $532.2 million of revenue topped Wall Street estimates by 3.2%.

Looking ahead, sell-side analysts expect revenue to grow 24.8% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and indicates its newer products and services will fuel better top-line performance.

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Adjusted Operating Margin

Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes.

Baldwin Insurance Group’s adjusted operating margin has more or less stayed the same over the last 12 months , averaging negative 1.6% over the last five years. Unprofitable, high-growth companies warrant extra attention, especially if their profitability doesn’t improve. In Baldwin Insurance Group’s case, it seems it’s deferring current profits by investing heavily to win market share.

Analyzing the trend in its profitability, Baldwin Insurance Group’s adjusted operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

Baldwin Insurance Group’s adjusted operating margin was negative 16.6% this quarter.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Baldwin Insurance Group’s EPS grew at an astounding 18.7% compounded annual growth rate over the last five years. However, this performance was lower than its 36.7% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Baldwin Insurance Group, its two-year annual EPS growth of 15.1% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.

In Q1, Baldwin Insurance Group reported adjusted EPS of $0.63, down from $0.65 in the same quarter last year. This print was close to analysts’ estimates. Over the next 12 months, Wall Street expects Baldwin Insurance Group’s full-year EPS of $1.67 to grow 30.5%.

Key Takeaways from Baldwin Insurance Group’s Q1 Results

We enjoyed seeing Baldwin Insurance Group beat analysts’ revenue expectations this quarter. On the other hand, its organic revenue slightly missed. Overall, this print had some key positives. The stock remained flat at $21.99 immediately after reporting.

Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).