Q2 FY2026
Filed Jul 29, 2026CBRE reported Q2 2026 revenue up 16% to $11.2 billion, Core EPS of $1.56, and raised its 2026 Core EPS outlook to $7.80 to $7.90.
Revenue, Core EPS and Core EBITDA increased strongly, segment operating profit grew by more than 25% in each operating segment, and the company raised its 2026 Core EPS outlook. GAAP net income and GAAP EPS declined because of a $168 million non-cash reserve increase for U.K. fire-safety remediation.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $11,226 million | – | 15.5% |
| Pass-through costsother | $4,622 million | – | 13.1% |
| GAAP net incomeGAAP | $204 million | – | (5.1)% |
| Core adjusted net incomenon-GAAP | $459 million | – | 27.1% |
| GAAP EPSGAAP | $0.69 | – | (4.2)% |
| Core EPSnon-GAAP | $1.56 | – | 30.0% |
| Core EBITDAnon-GAAP | $836 million | – | 33.5% |
| Cash flow provided by operationsother | $138 million | – | 142.1% |
| Gain on disposition of real estateother | $5 million | – | (73.7)% |
| Capital expendituresother | $114 million | – | 54.1% |
| Free cash flownon-GAAP | $29 million | – | N/M |
| Advisory Services segment operating profitother | $449 million | – | 29.4% |
| Building Operations & Experience segment operating profitother | $335 million | – | 25.5% |
| Project Management segment operating profitother | $147 million | – | 27.8% |
| Real Estate Investments segment operating profitother | $42 million | – | 68.0% |
| Real Estate Development operating profitother | $9 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Advisory ServicesGlobal leasing revenue increased 24% (23% local currency), global property sales revenue increased 20% (19% local currency), mortgage origination revenue rose 8%, and valuations revenue rose 12% (10% local currency). | $2,306 million | – | 17.7% |
| Building Operations & ExperienceCritical infrastructure services revenue increased 68% (66% local currency), driven by data center solutions growth and contributions from Pearce Services, acquired in November 2025. Facilities management revenue rose 11% (10% local currency) and property management revenue rose 8% (7% local currency). | $6,686 million | – | 14.6% |
| Project ManagementGrowth was underpinned by solid infrastructure activity in the U.K., Europe and the Middle East, and strong gains in real estate projects in North America and Asia. | $2,045 million | – | 19.1% |
| Real Estate InvestmentsInvestment Management revenue edged up 2% (1% local currency), reflecting higher recurring asset management fees. Real Estate Development operating profit totaled $9 million. | $193 million | – | (10.2)% |
2026 outlook
- NoteCore EPS outlook raised to $7.80 to $7.90 from $7.60 to $7.80, reflecting 23% growth at midpoint of new range
Capital returns
- Year-to-date, the company repurchased nearly $1.0 billion worth of shares.
What drove it
- Resilient Businesses revenue up 15%.
- Transactional Businesses revenue up 19%.
- Global leasing growth was led by office and industrial in the U.S., with especially strong growth in France, Germany and Spain in EMEA.
- Global property sales growth included strong growth across most property types in the U.S.
- BOE operating leverage was aided by the reclassification of certain amortization costs, as disclosed in first-quarter 2026 results.
- Project Management benefited from infrastructure activity in the U.K., Europe and the Middle East and real estate projects in North America and Asia.
- Each of Advisory, Building Operations & Experience, Project Management and Real Estate Investments grew Segment Operating Profit by more than 25%.
Concerns
- Second-quarter GAAP net income was reduced by $168 million due to the non-cash impact of an increased reserve for fire-safety remediation in the U.K. development business.
- Real Estate Investments revenue declined 10.2% (11.6% local currency).
- Loan servicing revenue growth was tempered by a decline in escrow income tied to lower average interest rates.
- Investment Management operating profit increased 3% as higher asset management fees were partly offset by lower co-investment returns.
- Assets under management ended the second quarter at approximately $155 billion, down slightly from the prior quarter, driven by unfavorable currency movement.
- Core corporate operating loss increased by approximately $9 million, primarily driven by higher incentive compensation related to the company’s strong performance.
What to watch
- Execution against the raised 2026 Core EPS outlook of $7.80 to $7.90.
- The impact of the increased reserve for fire-safety remediation in the U.K. development business on GAAP results.
- Sustained critical infrastructure services growth, including data center solutions and Pearce Services contributions.
- Leasing, property sales and mortgage origination activity within Advisory Services.
- Real Estate Investments revenue, co-investment returns and assets under management.
Balance sheet and cash flow
- Free cash flow totaled nearly $1.7 billion for the 12 months ended June 30, 2026.
- Total debt: $7,382 million as of June 30, 2026.
- Cash and cash equivalents: $1,489 million as of June 30, 2026.
- Net debt: $5,893 million as of June 30, 2026.
- Trailing twelve-month Core EBITDA: $3,680 million.
- Net leverage ratio: 1.60x as of June 30, 2026.
- Total liquidity: $4.4 billion at the end of the second quarter.
Analysis
CBRE delivered broad-based Q2 growth. Revenue was $11,226 million, up 15.5%, while Core adjusted net income increased 27.1% to $459 million, Core EPS increased 30.0% to $1.56, and Core EBITDA increased 33.5% to $836 million. Resilient Businesses revenue rose 15% and Transactional Businesses revenue rose 19%, indicating that performance was supported by both recurring and transaction-linked activities.
Operating performance was strong across all four segments. Advisory Services revenue increased 17.7% and segment operating profit increased 29.4%, supported by leasing, property sales, mortgage origination and valuations growth. BOE revenue increased 14.6%, while segment operating profit rose 25.5%, with critical infrastructure services up 68% and operating leverage aided by an amortization-cost reclassification. Project Management delivered 19.1% revenue growth and 27.8% segment operating profit growth, supported by infrastructure and real estate project activity across multiple regions.
GAAP earnings did not reflect the strength in Core results. GAAP net income declined 5.1% to $204 million and GAAP EPS declined 4.2% to $0.69 because a $168 million non-cash increase in the reserve for fire-safety remediation in the U.K. development business reduced second-quarter GAAP net income. Real Estate Investments also remained a mixed area: revenue declined 10.2% to $193 million even as segment operating profit rose 68.0% to $42 million. Investment Management recurring asset management fees increased, but lower co-investment returns partly offset the benefit, while AUM was approximately $155 billion and down slightly from the prior quarter.
Cash generation and capital allocation remained notable. Q2 cash flow provided by operations was $138 million and free cash flow was $29 million, while the company reported nearly $1.7 billion of free cash flow for the 12 months ended June 30, 2026. Year-to-date share repurchases totaled nearly $1.0 billion. At quarter-end, CBRE reported $7,382 million of total debt, $1,489 million of cash and cash equivalents, a 1.60x net leverage ratio, and $4.4 billion of total liquidity.
Management raised its 2026 Core EPS outlook to $7.80 to $7.90 from $7.60 to $7.80. The release attributes the increase to continued business momentum, with management stating that resources and investments are being directed toward areas that support current and long-term growth. Key reported execution markers are sustained critical infrastructure growth, continued transaction-market activity in leasing and property sales, and the trajectory of U.K. remediation reserve impacts and Real Estate Investments revenue.
Management, verbatim
The momentum in CBRE’s business continued in the second quarter, with Core EPS up 30% on a 16% revenue increase.
Bob Sulentic, CBRE’s chair and chief executive officer
Our strength was balanced across the company. Each of our segments – Advisory, Building Operations & Experience, Project Management and Real Estate Investments – grew Segment Operating Profit by more than 25%.
Bob Sulentic, CBRE’s chair and chief executive officer
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.
Bob Sulentic, CBRE’s chair and chief executive officer
Not in the filing
stated, not guessed- Consolidated gross profit and gross margin.
- Consolidated operating income or operating margin.
- Consolidated operating expenses.
- Consolidated net income attributable to common shareholders, if different from GAAP net income.
- Diluted share count.
- Dividend amount or dividend declaration.
- Forward revenue guidance.
- Forward gross-margin guidance.
- Forward operating-expense guidance.
- Forward tax-rate guidance.
- Previous-release outlook section for comparison with actual reported results.
- Prior-quarter comparisons for consolidated Q2 operating results and segment revenue.
- Prior-year and prior-quarter comparisons for Real Estate Development operating profit.
- Absolute Investment Management operating profit.
- Absolute Investment Management revenue.
- Absolute assets under management for the prior quarter.
- Quarter-end cash flow from operations and free cash flow on a trailing 12-month table basis.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.