CBRE Q2 Earnings Beat Estimates on Broad-Based Segment Growth

In response to the above results, CBRE shares were trading close to 3% higher in the early hours of today’s market session.

CBRE Advisory Strengthens on Leasing and Sales

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%, with the United States also up 24% on strength in office and industrial activity. EMEA leasing grew 27%, while Asia-Pacific rose 19%. Global property sales revenues increased 20%, and commercial mortgage origination revenues improved 8%.

CBRE Group's BOE Gains From Infrastructure

Building Operations & Experience (“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 acquired in November 2025. Facilities management revenues rose 11%, led by local facilities management and growth from technology, media and telecommunications clients.

CBRE’s Project Management Delivers Strong Growth

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.

CBRE Group's REI Profit Rises as Revenues Fall

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’s Cash Flow Supports Share Repurchases

CBRE 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.

CBRE Group Raises Its 2026 Earnings Outlook

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.

CBRE expects approximately 20% segment operating profit growth in Advisory Services and about 25% growth in Building Operations & Experience. 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.

Currently, CBRE Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

It’s time to look forward to two stocks from the real estate operations industry, Jones Lang LaSalle JLL and Cushman & Wakefield CWK. Jones Lang and Cushman & Wakefield are slated to report quarterly numbers on July 30 and Aug. 5, respectively.

The Zacks Consensus Estimate for Jones Lang LaSalle’s second-quarter 2026 EPS is pegged at $4.41, which implies a 33.6% increase year over year. JLL currently carries a Zacks Rank #3 (Hold).

The Zacks Consensus Estimate for Cushman & Wakefield’s second-quarter 2026 EPS stands at 36 cents, which suggests a jump of 20% on a year-over-year basis. CWK currently carries a Zacks Rank #2.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research