Key facts
- CBRE's Q2 revenue increased by 16%, with core earnings per share growing by 30%.
- The company's infrastructure and data center services businesses saw significant growth, with data center revenue up nearly 30% to $700M.
- CBRE raised its 2026 core earnings per share guidance to $7.80-$7.90.
- Cash flow from operations reached nearly $1.4B, and free cash flow was close to $1.7B on a trailing 12-month basis.
- CBRE repurchased over $450M in stock during the quarter.
CBRE reported a strong second quarter, with revenue up 16% and core earnings per share increasing by 30%, exceeding industry expectations. This performance was largely driven by the company's infrastructure and data center services businesses, which saw revenue growth of over 45% and nearly 30%, respectively.
Buoyed by these results, CBRE raised its 2026 core earnings per share guidance to a range of $7.80 to $7.90. Core earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 34% year-over-year to $836 million.
CBRE Chair and CEO Bob Sulentic highlighted that the company's strategy is effectively directing resources into growth areas. He specifically noted the robust performance of the infrastructure and data center segments, anticipating continued elevated revenue growth of about 25% annually for data center services over the next five years. Sulentic also projected that infrastructure could contribute over $1 billion in EBITDA by 2030, despite acknowledging headwinds such as NIMBYism, power, and water issues in the data center sector.
Resilient transactional businesses also contributed to the revenue increase, with global and U.S. leasing up 24%, and U.S. office leasing showing a 29% increase. The company's cash flow from operations was nearly $1.4 billion, with free cash flow close to $1.7 billion on a trailing 12-month basis. This marks the fifth consecutive quarter of at least 18% core EPS growth for CBRE.
Industry analysts viewed CBRE's performance positively for the broader commercial real estate sector. William Blair analyst Stephen Sheldon described it as a "high-quality beat" led by higher-margin transactional services, with both property sales and leasing outperforming estimates.
Despite recent stock performance challenges attributed to the "AI scare trade," JPMorgan Chase analyst Anthony Paolone noted that CBRE's growth has become more visible, particularly with its substantial free cash flow generation. In response to perceived undervaluation, CBRE repurchased over $450 million in shares during the second quarter, bringing year-to-date buybacks to nearly $1 billion. CFO Emma Giamartino stated that this buyback activity reflects confidence in the company's long-term growth prospects.