CBRE Group, Inc.

CBRE reported second-quarter revenue growth of 16%, core EBITDA up 34%, and core EPS up 30%. Advisory revenue rose 18% with global leasing up 24% and property sales up 20%; BOE revenue grew strongly with Critical Infrastructure Services up 68% and local facilities management in the high-teens; Project Management revenue increased 19%; and REI development operating profit exceeded the prior year. On the outlook, management raised full-year 2026 core EPS guidance to $7.80-$7.90, up from $7.60-$7.80, and said that implies 23% growth at the midpoint. They also said they expect more than 20% core EPS growth in Q3, with Q4 likely comparable to last year, and reiterated confidence in at least 15% core EPS growth in 2027 assuming no material macro or rate changes.

Bob Sulentic said the company’s strategy is working and that resources are being directed into areas that drive current and long-term growth. He emphasized especially strong momentum in infrastructure and data centers, noting data center services revenue was above $700 million in the quarter and could remain elevated for years. His tone was confident and expansionary, arguing CBRE’s scale, global footprint, and capabilities are creating unusually strong revenue synergies with large clients.

Emma Giamartino highlighted that second-quarter results exceeded expectations, with core EBITDA up 34% and core EPS up 30%, marking the fifth straight quarter of at least 18% core EPS growth. She said free cash flow totaled nearly $1.7 billion on a trailing 12-month basis and that CBRE remains on track to be near the high end of its 75% to 85% free cash flow conversion range. She also noted more than $450 million of buybacks since the end of Q1, nearly $1 billion year to date, but said there is no significant incremental capital allocation included in guidance and that buybacks should taper if M&A opportunities are available.

Analysts pressed on capital allocation, leasing normalization, data center growth, project management durability, land sales, 2027 visibility, and risks from NIMBYism and debt market volatility. Management said M&A remains the top priority, with buybacks used to absorb excess free cash flow, and confirmed no major incremental capital deployment is in guidance. On the business side, management said leasing has largely returned toward normal but still has room to grow, data center demand is being supported by hyperscalers and downstream work, and 2027 confidence rests on visible growth in BOE, project management, and continued upside in advisory.