Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 29, 2026 · Beat 7 of last 7 quarters
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Newmark's strong capital markets performance, particularly in data center financing, underscores the ongoing buildout of AI infrastructure. Management's commentary on robust pipeline for compute and power needs suggests continued demand for data center transactions, which could drive further revenue growth for the firm.
Newmark delivered another strong quarter with total revenue up 17% to $888.4 million, driven by double-digit growth across all segments: management & servicing (+17.7%), leasing (+17.2%), and capital markets (+16%). Adjusted EPS rose 25.8% to $0.39, and adjusted EBITDA grew 22.1% to $139.2 million. The company highlighted continued market share gains, moving to #2 in U.S. investment sales per MSCI, and strong momentum in data center financing and affordable housing. Free cash flow conversion was at the high end of the target range.
Management maintained full-year 2026 guidance, expecting total revenue growth of ~16%, adjusted EPS growth of ~19%, and adjusted EBITDA growth of ~20% at the midpoint. They noted a strong pipeline for the back half, but flagged tougher comps (20% growth in 2H25) and uncertainty around the timing of large transactions. They reiterated the goal of exceeding $2 billion in annual management and servicing revenue by 2029, implying mid-teens growth. Margin expansion is expected to continue through the back half and into next year, with investments in global growth initiatives temporarily dampening margin gains by ~100 bps. Capital allocation is shifting toward M&A, with a pipeline of deals; if they don't close, they'll pivot back to buybacks.
“We have now produced double-digit year-on-year revenue growth for 11 quarters in a row in Capital Markets. 8 consecutive quarters in management and servicing and 7 straight quarters in leasing.”
on Growth streak
“We are involved in many of the large visible, high-profile opportunities, as you guys know that. And we see a very robust pipeline. I mean the need for compute is still enormous.”
on Data center demand
“We continue to see really strong pipeline of activity. We continue to win management business. So everything looks pretty good. But we're up against a little bit of a tougher comp in the second half of the year.”
on Guidance rationale
As we think about the peak back in '21, '22 when rates were low and originations high, how are you thinking about your business as those maturities mature?
Debt pipeline remains strong through the back half; significant maturities over the next 3 years should continue to drive activity. Last year's comp was affected by a one $7 billion transaction, but excluding that, the pipeline is healthy. Barry added that large transactions in data centers, digital infrastructure, and office are driving capital needs.
In investment sales, you significantly outperformed the industry. How much more ramp in productivity do you expect from U.S. producers?
Lou said there's still a lot of running room in the U.S. and internationally, with expansion into Asia still small. They continue to pick up market share and see no reason for a slowdown.
Can you provide some perspective on performance of recent M&A and cross-sell opportunities?
Barry highlighted RealFoundations as a successful integration, with significant cross-selling into managed services. They continue to look for M&A in the managed services sector to help reach the $2 billion revenue goal by 2029. Mike added that capital allocation is shifting to M&A, with a pivot back to buybacks if deals don't close.