Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 7 of last 7 quarters
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JLL's strong quarter underscores the accelerating AI infrastructure buildout, with data center project management and leasing momentum contributing to double-digit growth. The company's contracted data center gigawatts are set to grow by a third within two quarters, signaling sustained demand for AI-related real estate services. This positions JLL as a key beneficiary of the AI infrastructure cycle.
JLL delivered double-digit revenue growth and accelerated profit gains in Q2, with adjusted EBITDA up 33% and adjusted EPS up 61%. Advisory revenue growth accelerated to 21%, led by U.S. strength in leasing and capital markets, with debt advisory up 44% and investment sales up 20%. Resilient businesses grew 8%, driven by workplace management and project management, including data center momentum. Free cash flow rose 52% to $438 million, and the company repurchased $110 million of shares in the quarter.
Management raised full-year 2026 adjusted EPS guidance to $24.60-$25.90, implying 34% growth at the midpoint, and lifted segment revenue growth targets for Leasing Advisory (mid-to-high teens) and Capital Markets (mid-teens). They affirmed mid-to-high single-digit growth for Real Estate Management Services, with second-half weighting to Q4. The tone was confident, citing strong pipelines, particularly in the U.S., and continued operating leverage from platform investments. They expect commission tier headwinds to moderate as the year progresses. Management also highlighted ongoing momentum in data centers, with contracted gigawatts expected to grow by a third within the next two quarters.
“Q2 was a big quarter for JLL. We grew revenue by double digits and profit gains accelerated with adjusted EBITDA up 33% and adjusted earnings per share up 61%.”
on Q2 performance
“We are meaningfully increasing our full year 2026 adjusted EPS target range to $24.60 to $25.90, reflecting 34% growth at the midpoint.”
on Guidance raise
“We had at the end of the quarter, 340 data centers in our facility management and from a gigawatt point of view, because we have contracted now numerous, very large data centers we expect from a just gigawatt perspective, that number to grow by 1/3 within the next 2 quarters because we have already signed those contracts and those data centers will be finished over the next couple of months.”
on Data center growth
Can you help parse out what you think was more company specific to JLL and talk about the leverage you might continue to see that could help margins even further going forward?
Kelly Howe attributed margin expansion to mix and ongoing EBITDA growth, plus significant operating leverage from platform investments. She noted fixed costs relative to fee revenue are improving and there is more runway for margin expansion.
What impact do you think the shifting interest rate outlook will have on capital markets pipelines? Do you see any deals moving to the sidelines or potential for repricing in lower cap rate areas like multifamily?
Kelly Howe said stability of rates is most important, and they don't expect meaningful impact for the rest of the year. Debt markets are very liquid, and there is pent-up demand on the sidelines.
How are you feeling about the likely impacts of the Middle East on Asia and Europe in the back half?
Kelly Howe said the biggest impact is on macro outlook, not direct business impact. Europe has seen some elongation in capital markets transactions, but deals are not falling out. Asia is impacted by proximity to conflict, but pent-up interest remains.