second quarter of 2026
Filed Aug 5, 2026Cushman & Wakefield Reports Financial Results for the Second Quarter 2026
Revenue increased 11%, led by 27% Leasing growth and 8% Services growth, while Adjusted EBITDA increased 14% and Adjusted EPS increased 17%. GAAP net income decreased 8%, and Capital markets revenue decreased 1%. The company raised its 2026 annual Adjusted EPS growth guidance to 18%-23% from 15%-20%.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| 2026 annual Adjusted EPS growth | 15%-20% | Adjusted EPS growth of 18%-23% | n/a |
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $2,762.6 million | – | 11% (11% in local currency) |
| Services revenueGAAP | $1,801.3 million | – | 8% (7% in local currency) |
| Leasing revenueGAAP | $628.5 million | – | 27% (27% in local currency) |
| Capital markets revenueGAAP | $206.4 million | – | (1)% ((1)% in local currency) |
| Valuation and other revenueGAAP | $126.4 million | – | 10% (8% in local currency) |
| Gross contract costsGAAP | $1,126.7 million | – | 9% (9% in local currency) |
| Cost of services provided to clientsGAAP | $1,123.9 million | – | 14% (13% in local currency) |
| Total costs of servicesGAAP | $2,250.6 million | – | 12% (11% in local currency) |
| Operating, administrative and otherGAAP | $349.3 million | – | 10% (9% in local currency) |
| Depreciation and amortizationGAAP | $28.5 million | – | 9% (8% in local currency) |
| Restructuring, impairment and related chargesGAAP | — | – | 0% (0% in local currency) |
| Total costs and expensesGAAP | $2,628.4 million | – | 11% (11% in local currency) |
| Operating incomeGAAP | $134.2 million | – | 9% (10% in local currency) |
| Interest expense, net of interest incomeGAAP | $(59.6) million | – | 12% (11% in local currency) |
| Earnings from equity method investmentsGAAP | $2.3 million | – | n.m. |
| Other income (expense), netGAAP | $0.4 million | – | (94)% ((94)% in local currency) |
| Earnings before income taxesGAAP | $77.3 million | – | 1% (4% in local currency) |
| Provision for income taxesGAAP | $24.6 million | – | 30% (29% in local currency) |
| Net incomeGAAP | $52.7 million | – | (8)% ((5)% in local currency) |
| Adjusted EBITDAnon-GAAP | $183.6 million | – | 14% (13% in local currency) |
| Adjusted net incomenon-GAAP | $83.6 million | – | 20% |
| Weighted average shares outstanding, basicGAAP | 234.4 million | – | – |
| Weighted average shares outstanding, dilutedGAAP | 236.3 million | – | – |
| Earnings per share, basicGAAP | $0.22 | – | – |
| Earnings per share, dilutedGAAP | $0.22 | – | down $0.03 |
| Adjusted earnings per sharenon-GAAP | $0.35 | – | 17% |
| First-half total revenueGAAP | $5,298.4 million | – | 11% (10% in local currency) |
| First-half operating incomeGAAP | $192.8 million | – | 15% (16% in local currency) |
| First-half net incomeGAAP | $40.1 million | – | (32)% ((29)% in local currency) |
| First-half Adjusted EBITDAnon-GAAP | $294.9 million | – | 14% (14% in local currency) |
| First-half Adjusted net incomenon-GAAP | $118.4 million | – | 32% |
| First-half diluted earnings per shareGAAP | $0.17 | – | down $0.08 |
| First-half Adjusted earnings per sharenon-GAAP | $0.50 | – | 28% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ServicesSustained momentum across all segments, led by higher facilities management and project management revenue. | $1,801.3 million | – | 8% (7% in local currency) |
| LeasingGrowth in the Americas across all deal sizes, with continued strength in office and industrial leasing, including data centers. | $628.5 million | – | 27% (27% in local currency) |
| Capital marketsA 6% decline in the Americas driven primarily by declines in mid-sized transactions, most notably in the multi-family sector, partially offset by strength in EMEA and APAC. | $206.4 million | – | (1)% ((1)% in local currency) |
| Valuation and otherRevenue increased 10%. | $126.4 million | – | 10% (8% in local currency) |
2026 annual outlook
- NoteAdjusted EPS growth of 18%-23%
What drove it
- Services revenue growth was led by higher facilities management revenue, which increased approximately $55.0 million including through new client wins and the expansion of existing client mandates.
- Project management revenue increased approximately $27.0 million in the Americas and approximately $20.0 million in EMEA.
- Leasing growth reflected continued strength in office and industrial leasing, including data centers, as demand for high-quality assets remained strong.
- Adjusted EBITDA increased $21.9 million or 14%, and Adjusted net income increased $14.1 million or 20%.
- The company raised its 2026 annual Adjusted EPS growth target to 18%-23%.
Concerns
- GAAP net income decreased $4.6 million or 8%, while diluted EPS declined to $0.22 from $0.25.
- Capital markets revenue decreased 1%, following a 6% decline in the Americas driven primarily by mid-sized transactions and the multi-family sector.
- Interest expense, net of interest income increased $6.4 million or 12%, primarily due to $4.5 million of costs associated with the credit agreement amendment and a $2.0 million loss on debt extinguishment.
- Operating, administrative and other expenses increased $31.0 million or 10%, reflecting higher employment costs, occupancy costs, strategic investments and cost inflation.
- The Greystone JV recorded a non-cash provision for loan losses of $9.0 million, of which the company recorded $3.6 million based on its 40% equity interest. Changes in expectations and forecasts may materially impact the provision for loan losses in the future.
What to watch
- Whether 27% Leasing revenue growth persists across the Americas, office, industrial leasing and data centers.
- Services revenue momentum in facilities management and project management, including new client wins and expanded mandates.
- Capital markets performance in the Americas and mid-sized multi-family transactions.
- The effect of higher salaries, bonuses, commissions, occupancy costs, strategic investments and cost inflation on expenses.
- Execution of the raised 2026 annual Adjusted EPS growth target of 18%-23%.
Balance sheet and cash flow
- Liquidity as of June 30, 2026 was $1.5 billion, consisting of availability on the company’s undrawn revolving credit facility of $1.0 billion and cash and cash equivalents of $0.5 billion.
- In June 2026, the company amended its credit agreement to reprice a senior secured term loan, reducing the interest rate by 50 basis points to 1-month Term SOFR plus 2.25%, extend the maturity date to 2033, and increase the principal amount by $352.5 million.
- The proceeds were used to partially redeem the senior secured notes due in 2028 which, along with the $100.0 million partial redemption in May 2026, reduced the outstanding principal on the notes by $450.0 million in the quarter.
Analysis
Cushman & Wakefield reported second-quarter revenue of $2,762.6 million, up 11% in both USD and local currency. Growth was led by Leasing, which increased 27% to $628.5 million, and Services, which increased 8% to $1,801.3 million. Management attributed Services growth to facilities management, including new client wins and expansions of existing mandates, and to project management in the Americas and EMEA. Leasing growth was driven by the Americas across deal sizes, supported by office, industrial and data-center activity.
The revenue mix was not uniformly positive. Capital markets revenue declined 1% to $206.4 million as a 6% Americas decline, particularly in mid-sized multi-family transactions, outweighed strength in EMEA and APAC. Valuation and other revenue increased 10% to $126.4 million. For the first half, total revenue increased 11% to $5,298.4 million, while first-half Leasing revenue increased 24% and Capital markets revenue increased 6%.
Costs expanded alongside revenue. Total costs of services increased 12% to $2,250.6 million, with cost of services provided to clients up 14%, including approximately $120.0 million of higher employment costs. Operating, administrative and other expense increased 10% to $349.3 million, citing salaries, bonuses, occupancy costs, strategic investments and cost inflation. Despite these costs, operating income increased 9% to $134.2 million and Adjusted EBITDA increased 14% to $183.6 million.
GAAP profitability trailed the operating trend. Net income declined 8% to $52.7 million and diluted EPS declined to $0.22 from $0.25. Interest expense, net of interest income rose 12% to $59.6 million, reflecting $4.5 million of credit agreement amendment costs and a $2.0 million loss on debt extinguishment. Adjusted net income increased 20% to $83.6 million and Adjusted EPS increased 17% to $0.35. First-half GAAP net income decreased 32% to $40.1 million, while first-half Adjusted EBITDA increased 14% and Adjusted EPS increased 28%.
The company amended its credit agreement in June 2026, reducing the term loan interest rate by 50 basis points to 1-month Term SOFR plus 2.25%, extending maturity to 2033 and increasing principal by $352.5 million. It used proceeds, together with a May redemption, to reduce outstanding 2028 senior secured notes principal by $450.0 million in the quarter. Liquidity was $1.5 billion as of June 30, 2026. Management raised 2026 annual Adjusted EPS growth guidance to 18%-23% from 15%-20%, making the durability of leasing and Services growth, expense control and capital-markets recovery central to the outlook.
Management, verbatim
We didn't just meet the bar this quarter—we moved it, with record second quarter leasing, services and total revenues, and our lowest gross debt balance ever.
Michelle MacKay, Chief Executive Officer of Cushman & Wakefield
That breadth, combined with a century of earned trust, is why we're raising our 2026 annual Adjusted EPS growth target to 18%-23% just two quarters into our three-year plan.
Michelle MacKay, Chief Executive Officer of Cushman & Wakefield
Not in the filing
stated, not guessed- Gross margin
- GAAP operating margin
- Adjusted EBITDA margin
- Operating cash flow
- Free cash flow
- Dividend information
- Share repurchases
- Cash flow statement
- Total debt balance
- Revenue guidance
- Gross margin guidance
- Operating expense guidance
- Tax-rate guidance
- Actual full-year 2026 Adjusted EPS growth for comparison with prior annual guidance
- Third-quarter 2026 guidance
- Prior-quarter comparisons for reported metrics
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.