Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 29, 2026 · Beat 7 of last 7 quarters
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CBRE's results underscore the accelerating AI infrastructure buildout, with data center services revenue up nearly 30% and infrastructure services up over 45%. The company's raised guidance and long-term outlook for 25% annual data center revenue growth signal sustained demand for data center construction, management, and maintenance services. This positions CBRE as a key beneficiary of the AI-driven physical infrastructure expansion.
CBRE delivered another strong quarter with core EPS up 30% and revenue up 16%, exceeding expectations. All four segments grew SOP by more than 25%. Infrastructure services revenue reached nearly $1.2 billion, with data center services surpassing $700 million. Global leasing revenue grew 24%, with U.S. office leasing up 29%, and property sales grew 20%. The company bought back nearly $1 billion in shares year-to-date and raised full-year EPS guidance. Free cash flow conversion remains on track for the high end of the 75%–85% range.
Management raised full-year 2026 core EPS guidance to $7.80–$7.90, up from $7.60–$7.80, driven by Q2 outperformance and improved expectations for the balance of the year. They expect more than 20% core EPS growth in Q3, with Q4 likely comparable to the prior year, which included significant data center land sale profits. For 2027, management reiterated confidence in at least 15% core EPS growth, assuming no material macro or interest rate changes. They expect data center services revenue to grow about 25% annually for the next five years, then above 15% as the build cycle matures. Management also noted that BOE and Project Management SOP growth should remain low double-digit, with some operating leverage, while Advisory growth will moderate but remain above mid-cycle levels.
“During this period of significant AI investment, we expect our data center services revenue to remain elevated at about 25% annually for the next five years and then above 15% as the build cycle matures.”
on Data center growth outlook
“We think by the year 2030, we could have a $10 billion business with over $1 billion of EBITDA related to infrastructure, the disproportionate share that would be in data center, certainly not exclusively in data centers.”
on Infrastructure opportunity
“Our goal is not to deploy more than we generate in free cash flow in buybacks. So yes, it is safe to assume that the buybacks will taper off.”
on Capital allocation
On capital priorities and what is baked into guidance for buybacks or other activities in the second half.
Capital allocation priorities remain unchanged: M&A first, then buybacks to fill in if free cash flow is not deployed. No significant incremental capital allocation is included in guidance for the back half.
Is leasing activity now normalized after the pandemic, or is there still room for above-cycle growth?
Bob sees a return to the norm, with COVID in the rearview mirror. Companies are focused on what office space does for productivity and talent, and law firms are a notable driver. Growth could be somewhere between a return to the norm and more than that.
On project management strength and whether it can carry into future quarters, plus how many land sites remain for future monetization.
Bob is excited about Turner & Townsend's future, with geographic expansion into the U.S., Japan, and India, and growth in infrastructure and energy. Emma noted there are still about 30 sites in the land bank, with timing of monetization difficult to predict.