Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 6 of last 7 quarters
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Cushman & Wakefield's data center-related revenue growth of 83% year-to-date and the fact that 25% of its integrated facilities management pipeline is now data center-related underscore the accelerating demand for AI infrastructure services. The company's expansion into technical services and project management for data centers positions it as a key beneficiary of the AI buildout, with potential to capture more value as it moves up the value chain.
Cushman & Wakefield delivered record Q2 revenue of $2.8 billion, up 11%, with leasing up 27% globally (Americas up 35%) and services up 7%. Capital markets declined 1% globally due to softness in the Americas, but APAC and EMEA grew 50% and 11% respectively. The company continued to strengthen its balance sheet, reducing net leverage to 3.0x and refinancing $850 million of term loan at a lower spread. Free cash flow conversion reached 79%, at the high end of the targeted 60% to 80% range.
Management raised full-year 2026 revenue growth guidance to the mid-to-high end of the 6%–8% range and raised adjusted EPS growth guidance from 15%–20% to 18%–23%. They reiterated their target of 150 basis points of margin expansion over the three-year plan and expect continued operating leverage. They highlighted strong pipelines in leasing and services, with project management and data center-related work as key growth drivers. On capital allocation, they plan to continue deleveraging toward investment grade, invest organically in high-growth areas, and consider accretive M&A or shareholder returns. Michelle MacKay noted that the capital markets softness in Q2 appears to be an 'air pocket' with improved momentum early in Q3.
“We didn't just meet the bar this quarter, we moved it, setting several company records, including the highest second quarter total revenue in the history of the company, the highest second quarter leasing and services revenue in the history of the company and the lowest gross debt balance in the history of the company.”
on Record quarterly performance
“And we're no longer talking about the traditional definition of commercial real estate, and we haven't been for quite some time. We're talking about the built world.”
on Expanding market definition
“And we raised guidance today, and that raise doesn't depend on this capital markets expansion. It's driven by the strength of the business we operate now, including our existing capital markets teams. So growth from the institutional portfolio build is upside beyond those numbers, and that means that we're never forced buyers of talent.”
on Guidance and capital markets strategy
How are you thinking about growing the data center business—organically or through acquisitions?
Michelle MacKay noted the opportunity spans the full asset life cycle, with the services side offering sustainable long-term potential. They have invested organically in sales and delivery capabilities and brought on new leadership, but inorganic options are also on the table.
How sustainable is the high single-digit revenue growth in services, and what does profitability look like?
Neil Johnston said services growth is resilient with a strong pipeline over the next 12 months. IFM and property management are performing well globally, and project management is exceptionally strong. Margins are exactly where they expect them to be, with EMEA design and build improvements contributing.
Does the capital markets softness in Q2 change your strategy or hiring plans?
Michelle MacKay said they are staying the course with their long-term plan. The guidance raise does not depend on capital markets expansion, so they are never forced buyers of talent. The institutional portfolio build is upside beyond current guidance.