CBRE

CBRE Group, Inc. (NYSE:CBRE) expanded its net-lease investment platform through the $1.6 billion acquisition of Tenet Equity by its investment management business. Cerberus Capital Management, L.P. announced the completed sale on September 8, specifying that the buyer invested on behalf of several investment strategies. Tenet Equity owns more than 200 properties totaling approximately 12 million square feet, serving over 65 tenants across 39 states and 26 industries. Founded in 2021, the business provides real estate financing to middle-market companies and financial sponsors. For CBRE Group, Inc. (NYSE:CBRE), the test is whether additional management fees can lift earnings enough to justify the capital and operating resources required. Tenet Equity combines an existing property portfolio with an origination business that can source additional investments. Its sale-leaseback model allows companies to sell their properties, release capital, and continue occupying the buildings as tenants. Triple-net leases generally make tenants responsible for property taxes, insurance and maintenance alongside rent. This can give property owners more predictable income by shifting many operating expenses to occupiers. Diversification across locations, industries and tenants also reduces dependence on any single business or local economy. CBRE Group, Inc. (NYSE:CBRE) already has a substantial investment management platform. As of June 30, the business reported approximately $155 billion in assets under management. Second-quarter investment management revenue increased 2%, reflecting higher recurring asset management fees. The acquisition could strengthen that recurring fee base. Customer relationships and an established origination team create opportunities to put further client capital to work. Fees could grow faster than costs if the larger portfolio uses existing reporting, investment oversight and distribution infrastructure. The transaction announcement did not disclose management fees, participating fund allocations, acquisition financing or any parent capital commitment. Those terms determine how much of the portfolio's economics reaches shareholders of CBRE Group, Inc. (NYSE:CBRE). The $1.6 billion transaction value does not establish the amount of additional fee-bearing assets. Fees could depend on invested equity, asset values, or other contractual measures. Performance-based compensation would depend on the investment agreements and results. Tenant credit is another central risk. Tenet Equity describes its target market as non-rated middle-market companies. Geographic and industry diversification helps spread exposure, but tenants can still face simultaneous pressure from weaker demand or more expensive financing. Triple-net structures allocate property expenses without eliminating default risk. A failed tenant can leave the owner with interrupted rent, carrying costs, and spending required to secure a replacement occupier. Financing conditions also affect property valuations and investment returns. If acquisition debt is expensive, or required property yields rise, rental income may deliver less attractive equity returns. For CBRE Group, Inc. (NYSE:CBRE), weak investment performance could constrain future fundraising and fee growth even if the portfolio expands. The filings available so far reflect positions held before CBRE Group, Inc. (NYSE:CBRE) reported its investment management business's acquisition of Tenet Equity. Insider Monkey’s database showed 75 hedge funds holding CBRE Group, Inc. (NYSE:CBRE) at the end of 2Q2026, down from 82 funds three months earlier. CBRE Group, Inc. (NYSE:CBRE) has expanded its net-lease presence with a diversified portfolio and an established origination business. The strategic fit is credible. Fee revenue, incremental operating costs, parent capital exposure, and tenant-credit performance will determine whether the added scale produces worthwhile shareholder returns. While we acknowledge the potential of CBRE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Vertiv (VRT) Signed a Deal Worth Up to $2.6B for UtilityInnovation. Can Faster Power Deployment Justify the Contingent Consideration? and Asana (ASAN) Reached a 10% Non-GAAP Operating Margin. Can Agentic Products Restore Expansion? This article is originally published at Insider Monkey.

It has been about a month since the last earnings report for CBRE Group (CBRE). Shares have lost about 1.5% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is CBRE due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. CBRE Group reported second-quarter 2026 core earnings of $1.56 per share, beating the Zacks Consensus Estimate of $1.47. The figure increased 30% from $1.20 in the year-ago quarter. Revenues rose 15.5% year over year to $11.23 billion and surpassed the consensus mark of $11.17 billion. Strong leasing, property sales, critical infrastructure and project-management activity drove growth. Advisory Services revenues increased 17.7% year over year to $2.31 billion. Segment operating profit climbed 29.4% to $449 million, outpacing revenue growth and reflecting solid operating leverage. Global leasing revenues advanced 24%, driven by a 24% increase in the United States on strength in office and industrial activity. Leasing revenues in Europe, the Middle East and Africa (EMEA) grew 27%, while Asia-Pacific revenues rose 19%. Global property sales revenues increased 20%, and commercial mortgage origination revenues improved 8%. BOE revenues grew 14.6% to $6.69 billion. BOE’s operating profit increased 25.5% to $335 million, aided by business expansion and the reclassification of certain amortization costs associated with vehicle finance leases. Critical infrastructure services revenues surged 68%, driven by Data Center Solutions and contributions from Pearce Services, which CBRE Group acquired in November 2025. Facilities management revenues rose 11%, led by local facilities management and growth from technology, media and telecommunications clients. Project Management revenues increased 19.1% year over year to $2.05 billion. Pass-through costs rose 22.2% to $1.08 billion, reflecting the subcontracted work performed for clients and reimbursed by them. Segment operating profit advanced 27.8% to $147 million. Infrastructure activity remained strong across transportation and utility projects in the U.K., Europe and the Middle East. Real estate project growth was led by North America and Asia, with notable demand from hyperscaler and technology clients. Real Estate Investments revenues declined 10.2% to $193 million, mainly reflecting a 37% decrease in development revenues to $44 million. However, segment operating profit increased 68% to $42 million. Development operating profit rose to $9 million from $3 million, while investment management operating profit edged up to $32 million from $31 million. The development portfolio of in-process projects and pipeline remained at $29.6 billion. Assets under management were approximately $155 billion at quarter-end. CBRE Group generated nearly $1.7 billion of free cash flow during the trailing 12 months, representing a 76% conversion rate. Management expects full-year conversion to be near the high end of its 75-85% target range. The company repurchased nearly $1 billion of shares from the beginning of 2026 through July 27. It made no material acquisitions during the second quarter, directing capital toward buybacks while maintaining liquidity for strategic investments. Balance sheet metrics remained conservative. Net leverage was 1.6X as of June 30, 2026. Total liquidity stood at approximately $4.39 billion at quarter-end, comprising $1.49 billion of cash and $2.90 billion available under revolving credit facilities. Management expects year-end leverage to be around the midpoint of its target range. Management raised its full-year 2026 core earnings guidance to $7.80-$7.90 per share from $7.60-$7.80. The midpoint implies 23% year-over-year growth, supported by the second-quarter outperformance, stronger expected Advisory growth and higher development profits. The company expects approximately 20% segment operating profit growth in Advisory Services and about 25% growth in BOE. Project Management profit is projected to grow in the mid-teens, while Real Estate Investments profit is expected to exceed the prior-year level, led by development gains. In the past month, investors have witnessed a flat trend in estimates revision. Currently, CBRE has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. CBRE has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CBRE Group, Inc. (CBRE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

(Bloomberg) -- Whoop Inc., the maker of popular screenless fitness trackers, plans to roughly double the size of its Boston headquarters, boosting a city struggling to grab a bigger piece of the artificial intelligence boom. Most Read from Bloomberg Phoebe Gates Knew Phia Shopping App Took Credit for Sales It Didn’t Drive Trump Weighs Call for Capital Gains Tax Cuts as Midterm Boost Tata Sons Chairman to Step Down, Deepening Leadership Turmoil Five Takeaways From Zuckerberg’s 6,500-Word Manifesto on AI Pakistan Says Deal Is Close Even as Iran, US Harden Stances Whoop plans to lease 107,000 square feet of office space in a building next to the company’s current headquarters near Fenway Park, a spokesperson said. The expansion will help support the company’s future growth and reflects its belief in the local talent pool, according to Chief Executive Officer Will Ahmed. The additional space can accommodate 1,000 employees. The lease hasn’t yet been finalized. Whoop is growing rapidly following a March fundraising round that valued the company at $10.1 billion. It plans to hire 600 people this year, a roughly 75% boost to its headcount, as it works to further integrate AI into its health and wellness monitoring tools and to expand internationally. Whoop is on track for an IPO in roughly 18 months, Ahmed said in an interview at Bloomberg’s Boston office on Tuesday, in line with the timetable he’s previously shared. Whoop is one of the largest office tenants in Kenmore Square, an area that’s also adjacent to Boston University and several of the city’s research hospitals that has seen significant development over the past decade. If finalized, the lease would be one of the largest in Boston’s office market to be signed this year. Having a Boston headquarters gives the company an advantage in employee retention versus startups based in New York or San Francisco, Ahmed said. “Boston’s been underrated in regards to a lot of what it can provide an up and coming company,” he said. The city breeds “missionaries” who stick with an employer because they believe in its mission, a contrast to the mercenary mindset of many in Silicon Valley, he said. “The folks that get a little caught up in the hype cycle of a tech company, or get too caught in the valuation speak or what’s en vogue, they are less likely to stick it out through some of the more challenging periods,” Ahmed said. Whoop is one of the leaders of the Massachusetts AI Coalition, a group of companies and investment firms organized this year that’s seeking to stem the westward migration of startup founders educated at the state’s elite universities like Harvard University and the Massachusetts Institute of Technology. Of the 20 most valuable venture-backed US AI companies as of this spring, none are headquartered in Massachusetts, even though half had co-founders who attended MIT or Harvard. “It’s hard to know at an early stage if a company is great, but you want to create an environment where they can continue to flourish,” Ahmed said, pointing to the importance of access to office space, capital and networking. “People are waking up around here being like, ‘We’ve got to do a little bit more. We’re taking for granted that we have such great talent here.’” Of the nearly 400 people Whoop has hired so far this year, more than 70% are for Boston-based roles. That includes new C-level hires like Chief Marketing Officer Dirk-Jan “DJ” van Hameren, a former Nike Inc. executive who relocated from that company’s headquarters in Beaverton, Oregon. The company requires its Boston employees to work from the office at least four days a week, Ahmed said. Boston’s Fenway neighborhood, where Whoop is based, had the highest office vacancy of any neighborhood in the city as of the end of the second quarter at 29.2%, according to CBRE Group Inc. data. The citywide vacancy rate was 18.7%. “CEOs have to play a role” in revitalizing downtowns, he said. Whoop employees “are going to be showing up in Boston in the heart of the city. And guess what they’re going to be doing for breakfast and lunch and dinner and happy hour? They’re going to be going out and spending.” Whoop is finding more success persuading candidates to move to Boston, according to Ahmed, who touts the city’s low crime rates, hospitals and schools. “If they’re going to be turned off by the weather, they may or may not be ready for the hard things we’re going to ask them to do,” Ahmed said. Whoop is facing increased competition from the likes of Alphabet Inc.’s Google, which released a $100 screenless Fitbit Air wearable in May while giving customers the option to pay $10 a month for extra features. Whoop, which doesn’t charge for hardware, requires membership plans that start at $200 a year. Ahmed says he sees Whoop as a premium product whose design and technology come at a cost. Whoop is pushing past its traditional fitness tracking into more general health offerings, including a partnership with the Natural Cycles birth control app. Its blood pressure tracking tool drew pushback from the US Food and Drug Administration last year, which initially deemed it an unapproved medical device before ultimately dropping the complaint in June. --With assistance from Samantha Murphy Kelly and Dana Wollman. Most Read from Bloomberg Businessweek Supercharged by Social Media, the GLP-1 Boom Is Warping Teen Psyches ICE Arrests Are Pushing Immigrant Families Deeper Into Poverty Suno Says AI Is the Future of Music. Record Labels Say It’s Theft Lululemon Is At War With Itself With EV Sales Slowing, Hybrid Cars Are Hot Again ©2026 Bloomberg L.P.

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:30 a.m. ET Global Head of FP&A and IR - Chandni Luthra Chairman and Chief Executive Officer - Robert E. Sulentic Chief Financial Officer - Emma E. Giamartino Operator: Greetings. Welcome to the CBRE Group Second Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. Please note this conference is being recorded. I will now turn the conference over to Chandni Luthra, Global Head of FP&A and IR for CBRE. Thank you. You may begin. Chandni Luthra: Good morning, everyone. And welcome to CBRE's Second Quarter 2026 Earnings Conference Call. Earlier today, we posted a presentation deck on our website that you can use to follow along with our prepared remarks and an Excel file that contains additional supplemental materials. Today's presentation contains forward-looking statements including, without limitation, statements concerning our business outlook, business plans, capital allocation strategy as well as our earnings and free cash flow outlook. These statements involve risks, and uncertainties that may cause actual results and trends to differ materially. For a full discussion of the risks and other factors that may impact these statements, please refer to this morning's earnings release and our other SEC filings. We have provided reconciliations of our non-GAAP financial measures discussed on our call to the most directly comparable GAAP measures together with explanations of these measures in our presentation deck appendix. Throughout our remarks, when we cite financial performance relative to expectations, we are referring to actual results against the outlook we provided on our first quarter 2026 earnings call in April, unless otherwise noted. All the growth rates we cite are in U.S. dollars unless otherwise noted and reflect an FX tailwind of 1% to 2%. Also as a reminder, our resilient businesses include facilities management, critical infrastructure services, property management, project management, loan servicing, valuations, other portfolio services and recurring investment management fees. Our transactional businesses are comprised of property sales, leasing, mortgage originations, carried interest and incentive fees in the investment management business and development fees. I am joined on today's call by Robert E. Sulentic, our Chairman and CEO and Emma E. Giamartino, our Chief Financial Officer. Now please turn to slide 3 as I turn the call over to Bob. Robert E. Sulentic: Thank you, Chandni, and good morning, everyone. The momentum in CBRE's business continued in the second quarter with core EPS up 30% on a 16% revenue increase. Our strength was balanced across the company. Each of our segments advisory, building operations and experience, project management, and REI grew SOP by more than 25%. Our strategy is working the way we intended. Resources and investments are being productively directed into areas that drive current growth and position us for long-term growth. Directly related to this positioning, over the last several months, we have received many questions from investors. About our infrastructure and data center services businesses. Those businesses are performing well and they provide an excellent forward-looking opportunity. Infrastructure services revenue reached nearly $1.2 billion in the second quarter. Increasing by more than 45%. Within infrastructure services, data center services revenue surpassed $700 million rising nearly 30%. This revenue is strictly from the provision of services and does not include any data center development land sales. The work we do includes the build-out of data centers as well as ongoing maintenance and operational oversight. During this period of significant AI investment, we expect our data center services revenue to remain elevated at about 25% annually for the next five years and then above 15% as the build cycle matures. Given the momentum in our entire business, and specifically our infrastructure business, we have increased our core EPS expectations for 2026. We now expect to earn in the range of $7.80 to $7.90 equating to 23% growth at the midpoint. Now, Emma will discuss our outlook and results for the quarter in more detail. Emma? Emma E. Giamartino: Thank you, Bob, and good morning, everyone. CBRE's strong second quarter saw revenue increase by 16% as both resilient and transactional businesses delivered double-digit growth. Results exceeded our expectations with core EBITDA up 34% and core EPS up 30%. This is the fifth consecutive quarter that we achieved at least 18% core EPS growth. In Advisory Services, revenue rose 18% and exceeded our expectations driven by accelerated growth in leasing and continued strength in sales. Global leasing revenue grew 24% with strength across office and industrial in the U.S., leasing also grew 24%, led by office up 29% and industrial up 17%. We generated our highest U.S. office leasing revenue for any second quarter, driven by large deals in gateway markets. We have seen notable strength across the legal and financial services sectors as tenants are upgrading and expanding their space. U.S. industrial leasing growth was led by Los Angeles, San Francisco, Washington DC and Chicago, reflecting increased demand from 3PL providers and companies engaged in advanced manufacturing. Outside the U.S., leasing grew 27% in EMEA, led by France, Germany and Spain, 19% in APAC with notable strength in Australia and India. Global property sales revenue grew 20% led by the U.S., which grew 24% double-digit increases across most major property types. Outside the U.S., sales grew 8% in EMEA and 6% in APAC. Mortgage origination revenue grew 8% with strong volumes from private capital sources partly offset by lower agency lending activity. Advisory SOP grew 29% reflecting strong operating leverage. We delivered strong double-digit revenue growth in our Building Operations and Experience segment. Growth was led by Critical Infrastructure Services, where revenue increased 68%. Data Center Solutions business grew nearly 30% benefiting from both significant hyperscaler demand and the depth and breadth of our capabilities. Contributions from the Pearce Services business we acquired last November enhanced the growth rate. Our local facilities management business once again delivered strong high-teens revenue growth across all regions particularly in the Americas. Up almost 35% Enterprise Facilities Management revenue growth was led by the technology, media and telecom sectors. BOE SOP grew 25%. In our Project Management segment, revenue grew 19%. Underpinned by solid infrastructure activity which increased 30% while real estate-related services grew 13%. Infrastructure saw strength across transportation and utility projects in the UK, Europe and the Middle East. Real estate saw greater than 20% growth in North America, and strong double-digit growth in Asia. Across all regions, hyperscaler and technology clients drove significant activity. SOP grew 28%, notable operating leverage which we expect to moderate in the back half of the year given the timing of costs. Turning to the Real Estate Investment segment. Development operating profit exceeded the prior year in line with our expectations and without the benefit of any data center land sales. We continue to have embedded gains of approximately $900 million in our development portfolio. In Investment Management, operating profit was up modestly. We ended the quarter with approximately $155 billion of AUM. We raised $1.6 billion of new capital in the quarter, up from $1.3 billion in the fourth quarter, but below our expectations. Some investors particularly capital from the Middle East remained cautious given the volatile global backdrop. Now I will turn to free cash flow and capital allocation. Free cash flow totaled nearly $1.7 billion on a trailing 12-month basis. For the full year, we remain on track to achieve near the high end of our free cash flow conversion range of 75% to 85%. Since the end of the first quarter, we have bought back more than $450 million worth of shares bringing our year-to-date total to nearly $1 billion. This level of buyback activity underscores our conviction that our stock price is meaningfully undervaluing the enduring long-term growth we see ahead for the business. As Bob indicated, we now expect full year core EPS of $7.80 to $7.90 up from $7.60 to $7.80 previously. The increase is driven by our outperformance in the second quarter and improved expectations for the balance of the year. We now foresee more than 20% core EPS growth in the third quarter with the fourth quarter likely to be comparable to last year when we also realized significant profits from our data center land program. Assuming no material changes to the macroeconomic or interest rate environment, we remain confident in delivering at least a 15% increase in core EPS in 2027. With that, operator, we will open the line for questions. Operator: Thank you. We will now be conducting a question-and-answer session. We ask that you please limit yourself to one question and one follow-up. Our first question is from Anthony Paolone from JPMorgan. Please proceed with your question. Anthony Paolone: Yes, thanks. Good morning. My first question relates to just capital priorities. And the second half of the year and what is in guidance, just given the heavy cash flow production later in the year? Kind of what do you have baked in for buybacks or other activities? Emma E. Giamartino: So our capital allocation priorities remain unchanged from where we have been for the past number of years. Continue to prioritize M&A. And as we have talked about, we have a really strong pipeline across the areas where we know we want to invest. But it is difficult to project which M&A targets we will be able to convert. And then we will fill in with buybacks if we do not deploy that level of free cash flow that we generate through M&A. In terms of the back half of the year, there is no significant incremental capital allocation included in our guidance. Anthony Paolone: Okay, got it. And then just on BOE, you maybe update us on your thinking as it relates to margins in that business for the year? Because I think you started the year out pointing to being more frothy, but it seems like it is improved quite a bit here in the second quarter. Emma E. Giamartino: Yes. So we did make a change to how we classify amortization related to our fleet in that segment. And so without that change, the margin for the year will improve by 20 basis points or so. But the rest of that margin improvement is related to that reclass. Anthony Paolone: Okay. Got it. Thank you. Operator: Our next question is from Stephen Sheldon at William Blair. Please proceed with your question. Stephen Sheldon: Hey, good morning. Thanks. On the leasing side, another very strong quarter there in that has now been true for the last two-plus years. So do you think activity leasing activity there has effectively normalized now after the pandemic where leasing growth would be more in line with an average seen throughout the macro cycle? Or is there still room for above cycle growth just as pent-up demand on the leasing side continues to come through? I guess, just how are you thinking about it on over the next couple of years? Robert E. Sulentic: Stephen, I think there has been a return to the norm. I think COVID is so far in the rearview mirror now that people. You see it in office buildings, you see it in restaurants, you see it in everything. There is a real return to the norm. Secondly, people really are focused on what office space can do for their businesses, for the productivity of their businesses, exciting their employees about being part of the company, getting their young people educated and brought into the business. that is a very real thing. it is a real thing for us. We have a lot of space around the world and we think about that a lot. We know our big occupier clients are thinking about that a lot and they are competing with each other. To try to have the kind of space that allows them to get those things done. So I think it is going to be somewhere between a return to the norm and maybe more than that. I will give you one anecdote with all the talk about the various parts of our economy that might get disintermediated by AI. one of the areas is the legal profession, law firms. We are having tremendous leasing. success with law firms now, kind of unlike we ever had before. And it is because they recognize the importance of office space to their business. And it is also because using AI for certain things and then doing other things with their talent that is causing their headcount not to go down the way some people think it might. Stephen Sheldon: Got it. Stephen Sheldon: That is helpful. It makes sense. And then just as a follow-up, Bob, a really encouraging commentary on the data center revenue growth outlook. As you think about CBRE's opportunity continuing to support the data center build-out. Where do you see the biggest opportunities by business line? I guess, to drive the 25% annual revenue growth that you are expecting over the next five years? I mean, is there certain business lines where, you know, there is a huge opportunity where you are not doing much yet? There is a big opportunity for activity to pick up and yeah, maybe where you are seeing those opportunities. Robert E. Sulentic: Well, first of all, it has become big for us. So infrastructure was $1.2 billion of revenue in the quarter, $700 million of that was data centers. We think by the year 2030, we could have a $10 billion business with over $1 billion of EBITDA related to infrastructure, the disproportionate share that would be in data center, certainly not exclusively in data centers. Where we are really seeing it, the opportunity and the current activity is in two places. It is in our project management and program management business with Turner & Townsend. By the way, they have been growing their data center-related business at over 30% for a decade now. And then the second place we are seeing is building operations and experience. We are helping create data centers in support of the boom that AI is generating, but over half of our data center revenue is from downstream work, managing them refitting them, doing project work in data centers. So we expect to see a lot of growth in both those areas of our business in the BOE area and in the projects business. Stephen Sheldon: Good to hear. Thank you. Operator: Our next question is from Julien Blouin at Goldman Sachs. Please proceed with your question. Julien Blouin: Yes. Thank you. Thank you for the question, and congratulations on the strong quarter. I wanted to maybe dig into project management a little bit more, very impressive quarter. Both top-line and bottom-line. It sounds like maybe that will flow with expenses a little bit in the back half. But I guess, could you talk about how we should think about the sort of the projects that go into that? Sounds like it is a lot of projects. I think of those as sort of longer-dated Turner & Townsend projects. And so is it right to think that much of this strength could carry into sort of the future quarters? Robert E. Sulentic: We are, Julien, we are very excited about the future for Turner & Townsend. The project management and program management business that they participate in. First of all, one thing to realize about them is they were really dominant. Europe, Middle East, significant in Asia, in Australia, By combining with us they have been able to significantly escalate their activity in Japan and India and especially in the U.S. So just the geographic positioning of that business has improved dramatically and I have commented on this over and over We have been able to leadership team of Turner & Townsend is in the in the tools and capabilities they bring to the table just has not existed in our before. But where do we think the real opportunity will be with them? It will be in big infrastructure projects, big energy projects. It will be in doing more of that in particular here in the U.S. And, you know, Emma tells the M&A story every quarter. We have, we have specific areas of our business we want to grow with M&A. We have got some ideas around Turner & Townsend that we want to make happen there if we could find the right deals. So we think that you should expect lots of growth in the U.S. and in infrastructure and in energy etcetera, from Turner & Townsend. But they also do a tremendous amount of corporate work And with Turner & Townsend as part of our business now, we are doing big complicated projects for corporates that we were not able to do before. So that will be another area of growth. Julien Blouin: Thank you. Julien Blouin: No. That is very helpful. And then on the land sales, Emma, it sounds like you have a number of these earmarked to be sold in the third quarter. Just wondering beyond the ones that are sort of earmarked here, how many will you have left in your land bank for potential future monetization? Emma E. Giamartino: We still have about 30 sites across the U.S. in our land bank. They are varying sizes, and it is very difficult to time when they will potentially monetize, but we still have 30 sites. Julien Blouin: Okay. Great. Thank you. Operator: Our next question is from Jade Rahmani at KBW. Please proceed with your question. Jade Rahmani: Thank you very much. In terms of the 2027 commentary for EPS growth of at least 15%, is it reasonable to expect double-digit revenue growth? And are there any key areas of operating leverage you would like to highlight? Emma E. Giamartino: So if we go through our segments, just simply, it is we are looking at low double-digit SOP growth across both BOE and project management, and that does include some operating leverage, but revenue growth is going to be in line with that low double-digit growth. And then advisory, as you would expect, will moderate somewhat from this year. But it is not going to be anywhere near mid-cycle growth levels. And then what we are expecting for REI is that it will be roughly flat to what we are expecting for this year's SOP, which we are expecting to be very strong. So some operating leverage across our segments, but not a tremendous amount. Jade Rahmani: Thank you very much. Jade Rahmani: Turning to the AI theme. Wondering if you could comment on whether you see any risk of unbundling of services within property and facilities management also, could you parse out your views on the smaller size deals in the market and if you see that as an area of potential risk. You say, Jade, unbundling, give us a little more on what you are what you are commenting on there. Well, the thesis around outsourcing has been institutionalization. Of CBRE being a one-stop shop. And so within that, there is you know, basic facilities and property management, but there is many other services that are provided to occupiers a full suite of services. And so does AI give them potentially you know, the capacity to shrink the scope of certain outsourcing projects. Robert E. Sulentic: So the outsourcing work that we do for occupiers centers around three big things. Facilities management, project management, and transactions or leasing. All of those areas of our business and I am going to I am going to start with transactions. The three big products that we are introducing or the three big areas that we are introducing AI into our product mix or with transactions leasing in particular now we are using agentic AI to collect and assimilate data in a way that we can help For instance, our occupier clients predict and benchmark their predict will their portfolio should go and benchmark them against others in the market. We have a whole protocol that we are putting in place in our project management business to span the life cycle of projects related to budget schedule and risk that is going to give our clients much greater insight. Into how projects go. it is going to give them much greater confidence in when to kick off big projects and how to correct course on big projects when they get off course on any of those three areas. And then in facilities management, we are using it for some very basic things. The kind of the back-office work can make it more efficient But we are also using it for predictive maintenance on the buildings that we manage. We are also using it to help move our mobile engineers around and schedule those engineers except So we think it is going to help all of the products that we offer to our occupier clients in the traditional outsourcing sense it is actually the areas where we are going to use it most. And we do not think that any of those things that we do are positioned to be, I guess, when you say disintermediated or separated pulled away from us because our clients would do it instead of having us do it. There is significant labor involved in all of that work and we think we have we will have tools and an overall platform that the clients themselves will not have. Jade Rahmani: Thank you very much. Operator: Our next question is from Steve Sakwa at Evercore ISI. Please proceed with your question. Steve Sakwa: Bob, I know that the rate environment has not been as cooperative as everybody had hoped for at the beginning of the year. But you still put up pretty good growth in the transaction business. I am just curious what kind of you are seeing, what the pipeline looks like and is there any sort of concern about just funding in debt markets and how that business kind of moves forward? Robert E. Sulentic: You know, there is concern that interest rates will go up and what is going on in the Middle East causes that. But a few things as it relates to our business and the market in general. Steve. Number one, and we have said this over the last couple of years quite a bit. that is a big important business for us, but double-digit growth trajectory of our business does not depend on strong capital markets and large lease or large sales volumes and large origination volumes. it is really important and things will go even better if that happens. But the growth trajectory of our business and the strategy that underpins our business is not tied to that. Secondly, what we saw in the quarter was lots of uncertainty around debt. And the cost of debt and some things happen. So a big part of our profit stream in the origination business comes from the agencies. We did not have a strong quarter at all with the but yet we had still a very strong quarter overall. In capital markets and in debt origination. What we saw in the market was bid-ask spread had come down and was closer than it had been in years. And there are people out there. Arlin, we have talked about this quarter after quarter. there are people out there with assets that they want to sell and there are people out there with lots of money to invest in assets. So the choppiness in the debt markets did not keep them on the sidelines. We do not know how that will unfold going forward, but we think we will continue to see pretty strong sales for the rest of the year and we think we will see pretty strong debt origination for the rest of the year, but it may come down if interest rates go up or if the volatility gets to be too great. Steve Sakwa: Okay, thanks. Steve Sakwa: And maybe, Emma, just as a follow-up to Anthony's earlier question on kind of capital deployment. If I am looking at the cash flow statement right, between buybacks and acquisitions, I think you have invested close to $1.3 billion in the first half of the year. And given that you sort of generate that $1.7 billion of free cash flow, is it fair to then assume that kind of buyback activity would likely taper off quite significantly? Or if the stock remains at sort of these levels you would lean in and even, I guess, invest more than the free cash flow of $1.7 billion? Emma E. Giamartino: Our goal is not to deploy more than we generate in free cash flow in buybacks. So yes, it is safe to assume that the buybacks will taper off. Steve Sakwa: Great. Thank you. Operator: Our next question is from Ronald Kamdem with Morgan Stanley. Please proceed with your question. Ronald Kamdem: Great. Just thinking back to the presentation that you guys had in June, I think you talked about 30% of revenues from Fortune 100 companies. I guess, just when you sort of take a step back and you guys think about sort of your penetration rate and your opportunity set not just across these Fortune 100 companies, but just broadly, just where do you think you are in that cycle, in that inning? How much more sort of white space is there? For CBRE? Thanks. Robert E. Sulentic: Yeah. We do a lot for the world's biggest companies. And it is just very clear in our results and what we are seeing day-to-day that there is a skewing of that opportunity toward anything related to data centers and infrastructure. There is all kinds of emphasis. There is all kinds of work going on with various military-related companies. And so on and so forth. So those are very large companies. Obviously, the hyperscalers are the biggest companies in the world. And all of that all of those types of companies are offering up bigger and bigger opportunity than we have ever seen from them before. And all of those companies like to interface with companies that have substantial scale. Our scale helps us with those companies. Our ability to invest helps us with those companies. Our global footprint I do not think I ever remember us being involved in any area of our business where the revenue synergies were as great as they are in the data center business. If you do data center work for a company in one area, the odds of getting work from them in other areas, other types of services or other geographies are as high as I have ever seen in terms of revenue synergies. So our future is going to be skewed toward big companies in that opportunity for us is substantial. Ronald Kamdem: Great. And just my follow-up, I mean, I think some of the numbers suggest we are in sweet spot of the real estate cycle and you have sort of talked about 2027 growth core EPS growth. And my question is really just on visibility. Right? Like what are you guys looking at, whether it is contracts or pipelines? Like, of what gives you sort of confidence in that visibility call it, 12 to 18 months out to have that target out there? Thanks. Emma E. Giamartino: So across our BOE and project management business, we have strong visibility. That low double-digit growth on SOPs that I talked about across both of those segments is in line with, if not slightly below, what those businesses have delivered consistently over the past number of years on an organic basis. And so we have high confidence that will continue. And then within advisory, we do believe that there is more room. Bob was talking about it earlier, but on the leasing side, we are still not back to 2019 levels. We see there is more room to go this year, and that will extend into next year. And on the sales side, we are still pretty early. We have seen strong growth, but not near the levels of growth that we have seen coming out of other recoveries. So we have a high level of confidence that we will be able to deliver 15% growth next year. Ronald Kamdem: Thank you. Operator: Our next question is from Brendan Lynch with Barclays. Please proceed with your question. Brendan Lynch: Great. Thanks for taking my questions. Emma, I anticipate any impacts on your data center business from the growing NIMBYism that we are seeing in the market? And is there anything that CBRE can do either in conjunction or on behalf of your clients to mitigate concerns among local governments and local residents. Robert E. Sulentic: There are all kinds of things that are challenging the growth of the data center business relative to the demand for that growth. So there is the NIMBYism, there are water issues, which are tied to the NIMBYism, there are power issues, which are tied to the NIMBYism. there are challenges all over with regard to the supply chain for the kind of work we do. there are challenges, hard to hire the people you need to hire to do the work we do. Obviously, all the equipment that goes into data centers etcetera. So there are challenges everywhere. With regard to growing the base of data centers in the world. There is enormous demand and there will be even in light of those challenges, there will be considerable growth in the number of data centers and the size of the data centers out there. We are convinced of that. They will have to move to areas that allow them to get that done. The supply chains will have to adjust etcetera. So yes, there are all kinds of pressures. When anything becomes that big and rapidly changing and uses up resources the way data centers use up resources, there is going to be challenges. But we expect a very, very substantial sustained opportunity in the creation of data centers and an even bigger long-term opportunity in the downstream work we do in data centers. Brendan Lynch: Great. Thanks, Bob. Brendan Lynch: And for my follow-up, on the local facilities management growth, I think it was in the high-teens, it seems to outpace enterprise growth. Can you just discuss what was behind those dynamics this quarter? Emma E. Giamartino: So, mobile, that business has consistently outpaced enterprise and we expect that to continue. A major driver is the expansion of our local business into new markets. So for example, we really just started entering the U.S. five years ago or so or maybe a little bit before that and within the U.S., we have been growing that business at 20% to 30% very consistently, and we expect that to continue. Even in the more mature markets where our local business is within the UK, that is growing at a low-teens rate. So there is a lot of growth in that business. Brendan Lynch: Great. Thank you very much. Operator: There are no further questions at this time. I would like to turn the floor back over to Robert Sulentic for closing comments. Robert E. Sulentic: Thanks everyone for being with us and we will talk to you again when we report our third quarter results. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in CBRE Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CBRE Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. Annie Dean, Chief Strategy Officer at CBRE, is a member of The Motley Fool’s board of directors. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. CBRE (CBRE) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Jones Lang LaSalle Incorporated JLL reported second-quarter 2026 adjusted earnings per share (EPS) of $5.26, up 59.4% from $3.30 a year ago. The figure surpassed the Zacks Consensus Estimate of $4.41 by 19.27%. Revenues increased 10.8% year over year to $6.93 billion and beat the consensus mark of $6.78 billion by 2.14%. Results benefited from accelerating Leasing Advisory and Capital Markets Services revenues, along with improved platform leverage. Assets under management (AUM) ended the quarter at $86.8 billion compared with $86.9 billion at March 31, 2026. Real Estate Management Services revenues increased 8.5% year over year to $5.37 billion. Workplace Management revenues climbed 10.7% to $3.71 billion, led by mandate expansions and new client wins. Project Management revenues rose 4.3% to $1.01 billion. The increase reflected low-double-digit management fee growth in the Americas, augmented by higher pass-through costs and partly offset by slower growth in certain other geographies. Property Management revenues advanced 3.1% to $468.6 million. Leasing Advisory revenues surged 23.7% year over year to $836.9 million. Growth reflected stronger activity across office, industrial and data center asset classes, with double-digit revenue increases in many geographies. The United States led the improvement, supported by meaningful growth in Japan and the U.K. Office leasing revenues increased 20%, exceeding the 2% rise in global market volumes reported by JLL Research. U.S. office leasing revenues grew 24% compared with a 12% increase in market volumes. Capital Markets Services revenues rose 19.2% year over year to $620.2 million. Investment Sales, Debt/Equity Advisory and Other revenues, excluding net non-cash mortgage servicing rights activity, increased 25.4% to $482.5 million. Debt advisory revenues advanced 44% year over year, while investment sales revenues grew 20% and equity advisory revenues increased 53%. Growth was broad-based across most geographies and was led by the United States, Japan and Australia. This strength significantly outpaced softness in investment sales in parts of Europe, where transaction timelines elongated. U.S. investment sales revenue growth of more than 53% outpaced the broader market, which grew 22% over the same period, according to JLL Research. Revenues in the Investment Management segment decreased nearly 1% year over year to $102.4 million. Advisory fees grew modestly, reflecting capital raise activity over the trailing 12 months, most notably in North America. Cash and cash equivalents totaled $458.2 million as of June 30, 2026, up from $436.2 million at the end of the first quarter. Net debt declined sequentially to $1.19 billion from $1.49 billion, while the net leverage ratio improved to 0.7 times from 1.0 times. Corporate liquidity was $3.41 billion. JLL repurchased $110 million of shares during the quarter, bringing first-half repurchases to $410 million. The company had $2.6 billion remaining under its share-repurchase authorization at quarter-end. Management raised its 2026 adjusted EPS outlook to $24.60-$25.90 from the prior range of $21.80-$23.50. The revised guidance reflects 34% year over year growth at the midpoint. The Zacks Consensus Estimate of $22.86 is below the guided range. JLL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Jones Lang LaSalle Incorporated price-consensus-eps-surprise-chart | Jones Lang LaSalle Incorporated Quote CBRE Group, Inc. CBRE reported second-quarter 2026 core earnings of $1.56 per share, beating the Zacks Consensus Estimate of $1.47. The figure increased 30% from $1.20 in the year-ago quarter. Revenues rose 15.5% year over year to $11.23 billion and surpassed the consensus mark of $11.17 billion. Strong leasing, property sales, critical infrastructure and project-management activity drove growth. CBRE currently carries a Zacks Rank #3. It’s time to look forward to another stock from the real estate operation industry, namely Cushman & Wakefield CWK. The company is slated to report quarterly numbers on Aug. 5. The Zacks Consensus Estimate for Cushman & Wakefield’s second-quarter 2026 EPS stands at 36 cents, which suggests an increase of 20% on a year-over-year basis. CWK currently carries a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jones Lang LaSalle Incorporated (JLL) : Free Stock Analysis Report CBRE Group, Inc. (CBRE) : Free Stock Analysis Report Cushman & Wakefield PLC (CWK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was balanced across all segments, with each growing segment operating profit by more than 25% due to productive resource allocation into high-growth areas. Infrastructure services reached nearly $1.2 billion in revenue, driven by a 30% increase in data center services as AI investment remains elevated. Global leasing revenue grew 24% as the market returned to pre-pandemic norms, with notable strength in legal and financial services sectors expanding their space. U.S. office leasing achieved its highest second-quarter revenue ever, fueled by large deals in gateway markets and a focus on space as a productivity tool. The Building Operations and Experience segment benefited from the Pearce Services acquisition and significant hyperscaler demand for critical infrastructure. Management attributes the 20% growth in global property sales to a narrowing bid-ask spread, despite continued volatility in debt markets. Full-year 2026 core EPS guidance was raised to $7.80–$7.90, reflecting second-quarter outperformance and improved expectations for the remainder of the year. Data center services revenue is projected to grow approximately 25% annually for the next five years before moderating to above 15% as the build cycle matures. Management expects to deliver at least 15% core EPS growth in 2027, assuming no material changes to the macroeconomic or interest rate environment. The infrastructure business is targeted to reach $10 billion in revenue and over $1 billion in EBITDA by 2030, skewed toward downstream management and refitting work. Q4 2026 performance is expected to be comparable to the prior year, which included significant profits from the data center land program. Embedded gains in the development portfolio remain at approximately $900 million, with 30 sites currently held in the U.S. land bank for future monetization. Capital raising in Investment Management fell below expectations as Middle Eastern investors remained cautious due to the volatile global backdrop. Operating leverage in Project Management is expected to moderate in the second half of the year due to the specific timing of costs. Supply-side challenges for data centers include NIMBYism, water and power constraints, and labor shortages, though demand is expected to outweigh these pressures. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. M&A remains the primary priority for capital deployment, with a strong pipeline across targeted investment areas. Share buybacks will likely taper off in the second half of the year as the company does not intend to deploy more than its generated free cash flow. Management does not believe AI will lead to the unbundling of services, as the complexity and labor involved in facilities and project management require a unified platform. AI is being integrated into leasing for predictive benchmarking and into facilities management for predictive maintenance and engineer scheduling. Confidence in 15% growth for 2027 is supported by high visibility in BOE and Project Management contracts, which have historically delivered consistent double-digit growth. Advisory growth is expected to continue as leasing volumes remain below 2019 levels and property sales are still in the early stages of a recovery cycle.

This story was originally published on Facilities Dive. To receive daily news and insights, subscribe to our free daily Facilities Dive newsletter. Revenue in CBRE’s building operations and experience segment increased 15% year over year in the second quarter of 2026, led by a surge in data center solutions demand from hyperscalers and other infrastructure services, the company said in its earnings report. Local, non-enterprise, facilities management revenue grew almost 35% in the Americas, CFO Emma Giamartino said on the company’s July 29 earnings call. Office and industrial activity helped CBRE grow U.S. leasing revenue 24% year over year, according to the company’s earnings presentation. CBRE expects significant AI investment to help its data center services, which include buildouts, maintenance and operations, grow revenue by about 25% annually over the next five years and then above 15% as the build cycle matures, CEO Bob Sulentic said. Companywide, CBRE revenue rose 16% to $11.2 billion, with resilient businesses up 15% and transactional businesses up 19%. Resilient businesses include facilities management, critical infrastructure services, property and project management, loan servicing, valuations, other portfolio services and investment management. CBRE’s building operations and experience growth was driven by a 68% increase in critical infrastructure services revenue, including a 30% boost in its data center solutions business, much of it from hyperscalers, according to Sulentic. Infrastructure services revenue reached nearly $1.2 billion, jumping more than 45%, Sulentic said. Although the company provides services during the buildout of data centers, half of its data center revenue is from downstream work, “managing them, refitting them [and] doing project work,” Sulentic said. Facilities management revenue grew 11% year-over-year to $5.3 billion, including high-teen growth in local, non-enterprise management business across all regions, Giamartino noted. Enterprise facilities management success was led by the technology, media and telecommunications sectors, she said. By the numbers 35% Year-over-year increase in Americas local, non-enterprise facilities management revenue. 68% Increase in critical infrastructure services revenue, including a 30% rise in CBRE's Data Center Solutions business. 24% Growth in U.S. leasing revenue, led by strength in the office and financial services sectors. Transactional businesses include property sales, leasing, mortgage origination, carried interest and incentive fees in the investment management business, and development fees. The company generated its highest U.S. office leasing revenue of any second quarter, driven by large deals in gateway markets, Giamartino said. “There is a real return to the norm,” Sulentic said. “People are really focused on what office space can do for their businesses [and] for the productivity of their businesses — exciting their employees about being part of the company, getting their young people educated and brought into the business … Our big occupier clients are thinking about that a lot and they’re competing with each other to have space that allows them to get those things done.” CBRE saw office strength across legal and financial services as tenants upgraded and expanded their space, Giamartino said. Legal is one area that is bucking the talk about some sectors being disintermediated by AI, Sulentic said. “We’re having tremendous leasing success with law firms, unlike we ever had before, and it is because they recognize the importance of office space to their business,” he said. “It also is because they’re using AI for certain things and then doing other things with their talent. That’s causing their headcount not to go down the way some people might think.” The company saw the most U.S. industrial leasing growth in Los Angeles, San Francisco, Washington, D.C., and Chicago, which Giamartini said reflects increased demand from third-party logistics providers and companies engaged in advanced manufacturing. Recommended Reading CBRE revenue jumps 19% on pivot to data center services

CBRE Group (CBRE) came out with quarterly earnings of $1.56 per share, beating the Zacks Consensus Estimate of $1.47 per share. This compares to earnings of $1.19 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.12%. A quarter ago, it was expected that this provider of real estate investment management services would post earnings of $1.13 per share when it actually produced earnings of $1.61, delivering a surprise of +42.48%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. CBRE, which belongs to the Zacks Real Estate - Operations industry, posted revenues of $11.23 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.54%. This compares to year-ago revenues of $9.75 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CBRE shares have lost about 8.6% since the beginning of the year versus the S&P 500's gain of 8.5%. While CBRE has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CBRE was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.82 on $11.66 billion in revenues for the coming quarter and $7.75 on $46.95 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Real Estate - Operations is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, RMR Group (RMR), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This real estate management services provider is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -28.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. RMR Group's revenues are expected to be $162.67 million, up 5.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CBRE Group, Inc. (CBRE) : Free Stock Analysis Report The RMR Group Inc. (RMR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: Increased by 16% in Q2 2026. Core EPS: Up 30% in Q2 2026. Core EBITDA: Increased by 34% in Q2 2026. Infrastructure Services Revenue: Nearly $1.2 billion, up more than 45%. Data Center Services Revenue: Surpassed $700 million, rising nearly 30%. Global Leasing Revenue: Grew 24% in Q2 2026. US Office Leasing Revenue: Up 29%. US Industrial Leasing Revenue: Up 17%. Global Property Sales Revenue: Grew 20%. Mortgage Origination Revenue: Grew 8%. Building Operations and Experience Revenue: Critical infrastructure services revenue increased 68%. Project Management Revenue: Grew 19%. Free Cash Flow: Nearly $1.7 billion on a trailing 12-month basis. Share Buybacks: More than $450 million worth of shares bought back since the end of Q1 2026. Full Year Core EPS Expectation: Revised to $7.80-$7.90, up from $7.60-$7.80. Warning! GuruFocus has detected 5 Warning Signs with CBRE. Is CBRE fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CBRE Group Inc (NYSE:CBRE) reported a 30% increase in Core EPS and a 16% rise in revenue for Q2 2026, indicating strong financial performance. Infrastructure services revenue reached nearly $1.2 billion, with data center services revenue surpassing $700 million, reflecting significant growth in these areas. Global leasing revenue grew 24%, with notable strength in the US, EMEA, and APAC regions, driven by demand in office and industrial sectors. The company achieved strong double-digit revenue growth in Building Operations and Experience segments, led by critical infrastructure services. CBRE Group Inc (NYSE:CBRE) raised its full-year Core EPS expectations to $7.80-$7.90, reflecting confidence in continued growth and performance. Some investors, particularly from the Middle East, remained cautious, impacting capital raising efforts in the investment management segment. The company faced challenges in agency lending activity, which partly offset strong volumes from private capital sources in mortgage origination. There are concerns about potential impacts on the data center business from NIMBYism and resource constraints, such as water and power issues. The interest rate environment remains uncertain, posing potential risks to transaction business growth and funding in debt markets. Despite strong performance, the company anticipates operating leverage to moderate in the back half of the year due to the timing of costs. Q: What are CBRE's capital allocation priorities for the second half of the year, considering the strong cash flow production? A: Emma Giamartino, Chief Financial Officer, stated that CBRE's capital allocation priorities remain unchanged, focusing on mergers and acquisitions (M&A). They have a strong pipeline for M&A, but it's challenging to predict which targets will convert. If M&A doesn't utilize the free cash flow, they will consider buybacks. There is no significant incremental capital allocation included in their guidance for the second half of the year. Q: Can you update us on the margins for the Building Operations and Experience (BOE) segment for the year? A: Emma Giamartino explained that a change was made in how they classify amortization related to their fleet in the BOE segment. Without this change, the margin for the year would improve by about 20 basis points. The rest of the margin improvement is related to this reclassification. Q: Has leasing activity normalized post-pandemic, or is there still room for above-cycle growth? A: Robert Sulentic, Chairman and CEO, noted that leasing activity has returned to normal levels post-pandemic. There is a focus on how office space can enhance business productivity and employee engagement. He mentioned that sectors like the legal profession are seeing significant leasing success, partly due to the integration of AI and the importance of office space. Q: What are the biggest opportunities for CBRE in supporting the data center build-out? A: Robert Sulentic highlighted that infrastructure and data centers are significant growth areas. The project management and program management business, particularly with Turner & Townsend, and the Building Operations and Experience segment are key areas. Over half of their data center revenue comes from downstream work, such as managing and refitting data centers. Q: How does CBRE view the potential impact of AI on the unbundling of services within property and facilities management? A: Robert Sulentic stated that AI is being integrated into their services, particularly in transactions, project management, and facilities management. AI is used for data assimilation, predictive maintenance, and scheduling, enhancing their service offerings. He believes AI will not lead to unbundling but will strengthen their position as a comprehensive service provider. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

CBRE Group (CBRE) reported $11.23 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 15.1%. EPS of $1.56 for the same period compares to $1.19 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $11.17 billion, representing a surprise of +0.54%. The company delivered an EPS surprise of +6.12%, with the consensus EPS estimate being $1.47. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how CBRE performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: AUM - Investment Management: $155.00 billion versus the two-analyst average estimate of $158.38 billion. Total Revenue- Real Estate Investments: $193 million versus $230.18 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -10.2% change. Revenue- Real Estate Investments- Development services: $44 million versus the three-analyst average estimate of $76.15 million. Revenue- Real Estate Investments- Investment management: $149 million versus $154.03 million estimated by three analysts on average. Total Revenue- Advisory Services: $2.31 billion versus $2.2 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +15.5% change. Revenue- Advisory Services- Other portfolio services, less pass-through costs: $88 million compared to the $85.76 million average estimate based on two analysts. Revenue- Advisory Services- Advisory sales: $551 million compared to the $514.04 million average estimate based on two analysts. Revenue- Advisory Services- Commercial mortgage origination: $97 million versus the two-analyst average estimate of $102.4 million. Total Revenue- Building Operations & Experience: $6.69 billion versus the two-analyst average estimate of $6.77 billion. The reported number represents a year-over-year change of +16%. Revenue- Advisory Services- Loan servicing: $121 million versus $124.25 million estimated by two analysts on average. Revenue- Advisory Services- Valuation: $220 million versus the two-analyst average estimate of $213.84 million. Total Revenue- Project Management: $2.05 billion versus $1.92 billion estimated by two analysts on average. View all Key Company Metrics for CBRE here>>> Shares of CBRE have returned +9.2% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CBRE Group, Inc. (CBRE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in CBRE Group, Inc.? Here are five stocks we like better. Strong Q2 performance: CBRE’s Core EPS rose 30% and revenue increased 16%, with operating profit growing more than 25% across all four segments. Infrastructure and data centers drove growth: Infrastructure Services revenue climbed over 45% to nearly $1.2 billion, while Data Center Services revenue rose nearly 30% to more than $700 million. 2026 outlook raised: CBRE increased its Core EPS forecast to $7.80–$7.90, representing approximately 23% growth at the midpoint, while continuing stock repurchases and maintaining confidence in at least 15% EPS growth in 2027. Should You Buy the Dip in Real Estate Stocks Now? CBRE Group (NYSE:CBRE) reported continued momentum in the second quarter of 2026, with Core EPS rising 30% and revenue increasing 16%, as both its resilient and transactional businesses posted double-digit growth. Chair and CEO Bob Sulentic said each of the company’s operating segments—Advisory, Building Operations & Experience, Project Management, and Real Estate Investments—grew segment operating profit by more than 25%. He said the company’s investments were being directed toward businesses that support current performance and long-term growth. → This Tiny AI Supplier Could Be More Important Than the Chipmakers 3 Stocks to Watch as Home Prices Reach a New All-Time High “The momentum in CBRE’s business continued in the second quarter,” Sulentic said, pointing particularly to the company’s infrastructure and data center services operations. Infrastructure Services generated nearly $1.2 billion of revenue during the quarter, an increase of more than 45% from a year earlier. Data Center Services revenue exceeded $700 million, rising nearly 30%, according to Sulentic. The reported figure reflects service revenue and excludes data center development land sales. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Bears covered shorts on this ETF, 3 stocks to pop on the shift CBRE provides services including data center construction, maintenance and operational oversight. Sulentic said the company expects Data Center Services revenue to remain elevated at roughly 25% annual growth over the next five years and then grow at more than 15% as the data center construction cycle matures. Looking further ahead, Sulentic said CBRE believes its Infrastructure business could reach $10 billion in revenue and more than $1 billion in EBITDA by 2030, with data centers representing a disproportionate share of that opportunity. He identified project and program management through Turner & Townsend, as well as Building Operations & Experience services, as the primary sources of growth. → Innovative ETF Strategies That Are Paying Off This Summer More than half of CBRE’s data center revenue currently comes from downstream work, including managing, refitting and performing project work at operating data centers, Sulentic said. Chief Financial Officer Emma Giamartino said Advisory Services revenue rose 18%, exceeding the company’s expectations. Global leasing revenue increased 24%, supported by office and industrial activity, while global property sales revenue rose 20%. U.S. leasing revenue increased 24%, including a 29% gain in office leasing and a 17% increase in industrial leasing. U.S. property sales revenue grew 24%, with double-digit increases across most major property types. Leasing revenue rose 27% in Europe, the Middle East and Africa and 19% in Asia-Pacific. Mortgage origination revenue increased 8%, as private-capital volume partly offset lower agency lending activity. Giamartino said CBRE generated its highest U.S. office leasing revenue for a second quarter, driven by large transactions in gateway markets. Legal and financial-services tenants have been upgrading and expanding space, while industrial demand was supported by third-party logistics providers and advanced manufacturing companies. Sulentic said leasing conditions have largely moved beyond the disruption caused by the pandemic. He said companies are increasingly focused on office space as a tool for productivity, employee engagement and training. He also cited strong activity from law firms, which he said are using artificial intelligence for certain functions while maintaining headcount needs in other areas. In Building Operations & Experience, revenue growth was led by Critical Infrastructure Services, where revenue increased 68%. Data Center Solutions grew nearly 30%, aided by hyperscaler demand and contributions from Pearce Services, which CBRE acquired in November 2025. Local Facilities Management posted high-teens revenue growth across regions, including nearly 35% growth in the Americas. Project Management revenue rose 19%, including 30% growth in infrastructure-related activity and 13% growth in real estate-related services. Giamartino said transportation and utility projects in the U.K., Europe and the Middle East supported infrastructure performance, while hyperscaler and technology clients were active across regions. Project Management segment operating profit increased 28%, though she said operating leverage is expected to moderate in the second half because of cost timing. Within Real Estate Investments, development operating profit exceeded the prior-year level without the benefit of data center land sales. CBRE said it had approximately $900 million of embedded gains in its development portfolio. Investment Management operating profit increased modestly, while assets under management ended the quarter at approximately $155 billion. The business raised $1.6 billion of new capital, compared with $1.3 billion in the first quarter, but Giamartino said the amount was below company expectations as some investors, particularly those in the Middle East, remained cautious amid global volatility. Trailing 12-month free cash flow totaled nearly $1.7 billion. CBRE said it remains on track to achieve near the high end of its 75% to 85% full-year free-cash-flow conversion target. Since the end of the first quarter, the company repurchased more than $450 million of stock, bringing year-to-date repurchases to nearly $1 billion. Giamartino said CBRE continues to prioritize mergers and acquisitions, with share repurchases serving as a use of excess cash flow when acquisition opportunities do not materialize. She added that there is no significant incremental capital allocation assumed in the company’s updated guidance and that buyback activity is expected to taper off. CBRE raised its 2026 Core EPS outlook to $7.80 to $7.90, from a prior range of $7.60 to $7.80. At the midpoint, the revised forecast represents 23% growth. The company expects more than 20% Core EPS growth in the third quarter, while fourth-quarter performance is expected to be comparable with the prior year, when CBRE recorded significant profits from its data center land program. Assuming no material changes in macroeconomic conditions or interest rates, CBRE said it remains confident it can deliver at least 15% Core EPS growth in 2027. Giamartino said the company expects low-double-digit segment operating profit growth in Building Operations & Experience and Project Management, while Advisory growth is expected to moderate from 2026 levels but remain above mid-cycle levels. Sulentic said the company expects property sales and debt origination to remain relatively strong through the remainder of the year, though higher interest rates or greater volatility could affect activity. He said CBRE’s broader growth strategy does not depend on a strong capital-markets environment. CBRE Group, Inc is a global commercial real estate services and investment firm that provides a broad range of advisory, transactional and property-related services to occupiers, investors and owners. Its core activities include leasing and sales brokerage, facilities and property management, valuation and advisory, project and development services, and capital markets execution. The firm serves corporate occupiers, institutional investors, private owners and public entities across office, industrial, retail, multifamily and specialized property types. In addition to traditional brokerage and management services, CBRE offers investment management capabilities and outsourced real estate solutions, combining market research, technology and data analytics to support portfolio strategy, transaction execution and asset operations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "CBRE Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.