CBRE US S&P 500Russell 1000 Earnings call · transcribed from the recording

CBRE Group (CBRE) · Q3 2026 results and valuation

Share price: $134.58 · 2026-11-11

CBRE Group provides commercial real estate services, investment management, and project management for institutional investors and occupiers. The company operates in more than 100 countries, offering solutions for office, industrial, retail, and critical infrastructure properties. Its services include leasing, property management, and technical facilities management. Source: 10-K annual report (2026-02-12)

Results Q3 2026 vs Q2 2026 · previous quarter · published 22 Oct 2026 and 29 Jul 2026

Net income up 117.2% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.

1 · Numbers

+117.2%

Net income vs Q2 2026

Outlook given

Net income 443.0M vs 204.0M

Revenue +2.6%

Against the same quarter last year (Q3 2025) it is +22.0% — part of the move on last quarter is seasonal.

Why Against the same quarter last year (+22.0%), net income rose primarily because global property sales revenue increased 28% led by the U.S., and critical infrastructure services revenue increased 80%.

2 · How management spoke

Restrained

Less upbeat than 72% of company calls

Answers to analysts: restrained, in line with the script.

Last call it was different: the answers were more upbeat than the script.

3 · What stood out

CBRE expects infrastructure services revenue to reach nearly $7 billion in 2027, representing a growth of more than 40% from this year.

Valuation

Is CBRE Group undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 9.6% growth a year (3-year revenue growth), the model's fair value is $65.87 a share — the stock trades 104% above it. Today's price assumes 17.0% growth a year.

Current price

$134.58

close of 2026-11-11

Market implies growth of i

+17.0% for 10 yrs

Fair value / share

$65.87

Buy below

$49.40

Price vs fair value

Overvalued 104%

Price vs buy-below price

Overvalued 172%

Management expects

EPS +23% · from the Q3 2026 report: “CBRE maintained its 2026 core EPS guidance of $7.80 to $7.90, which reflects 23% growth at the midpoint.”

A guidance figure for eps, usually one year ahead, not a 10-year free-cash-flow rate.

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

CBRE maintained its 2026 core EPS guidance of $7.80 to $7.90, which reflects 23% growth at the midpoint.
Guidance

CBRE expects infrastructure services revenue to reach nearly $7 billion in 2027, which is a growth of more than 40% from this year.
Figure

Core EPS improved 28% on a 13% revenue increase as both resilient and transactional businesses grew by double digits.

Source quote
“Financially, Core EPS improved 28% on a 13% revenue increase with both resilient and transactional businesses growing by double digits.”
Key theme

The interest rate environment is expected to create downward pressure on businesses driven by real estate capital markets, despite anticipated growth in infrastructure services.

Source quote
“First, we should see continued outsized growth and investment in our infrastructure services businesses. Second, given the interest rate environment, we are expecting downward pressure in our businesses that are driven by the real estate capital markets.”
Figure

Revenue increased by 80% in critical infrastructure services, which continued to lead growth for the company.

Source quote
“Growth continued to be led by critical infrastructure services where revenue increased 80%.”

4 more

Guidance

CBRE is targeting a return of at least 15% on all of its deals to achieve its performance goals.
Guidance

CBRE expects capital markets to remain roughly flat in Q4 and continue into the first half of next year.
Guidance

CBRE expects the current performance to continue through the end of the year.
Key theme

CBRE expects some deals from its strong pipeline to convert in 2027, despite the difficulty of predicting which specific deals will convert.

Source quote
“We have a really strong pipeline of deals. I know I always say it's difficult to predict what will convert, but we have a great pipeline and we do expect some of that to convert in 2027.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q3 2026. Ring: Q2 2026.

Prepared remarks Restrained (was cautious)

Answers to analysts Restrained (was very upbeat)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“Financially, Core EPS improved 28% on a 13% revenue increase with both resilient and transactional businesses growing by double digits.”

“CBRE produced another quarter of strong financial results and continued to make strategic gains in targeted areas of our business.”

“We think that, as I said, we're going to see double-digit growth in leasing in Q4, and then we think we're going to settle out in the mid to high...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)

Metric	Q3 2026period end 2026-09-30	Q2 2026period end 2026-06-30	Change	Q3 2025	YoY
Revenue	11.52B	11.23B	+2.6%	10.22B	+12.7%
Gross profit	2.12B	2.09B	+1.9%	1.92B	+10.9%
Operating income	561.0M	365.0M	+53.7%	481.0M	+16.6%
Net income	443.0M	204.0M	+117.2%	363.0M	+22.0%
EPS	1.52	0.69	+120.3%	1.21	+25.6%
P/E today 29.0	27.5	30.8	−3.3	39.0	−11.5

Topics

Most discussed now

Strategically, CBRE continued to advance both its critical Infrastructure Services business line which operates as part of the BOE…
For a full discussion of the risks and other factors that may impact these statements, please refer to this...
Throughout its remarks, when CBRE cites financial performance relative to expectations, it is referring to actual results against the…
All growth rates CBRE cites are in U.S.

Faded since Q2 2026

Fading CBRE's local facilities management business once again delivered strong high-teens revenue growth across all regions particularly in the…
Fading CBRE knows its big occupier clients are thinking about that a lot and they are competing with each other.
Fading Wondering if you could comment on whether you see any risk of unbundling of services within property and facilities management...
Fading If you do data center work for a company in one area, the odds of getting work from them in...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-11-05 Material agreement; New financial obligation · SEC 8-K
2026-10-28 Material agreement · SEC 8-K
2026-10-22 Results of operations · SEC 8-K
CBRE reported revenue of $11.5 billion, up 13% year over year, and GAAP EPS of $1.52, up 26% compared to the previous year.
2026-10-20 Regulation FD disclosure · SEC 8-K
CBRE agreed to acquire Onnec Group Limited for an initial purchase price of £460 million (approximately $610 million) plus a multi-year earnout of up to £300 million (approximately $400 million).
2026-07-29 Results of operations · SEC 8-K
2026-06-23 Material agreement; New financial obligation · SEC 8-K
The Company entered into a new 364-day senior unsecured Revolving Credit Agreement with a commitment of up to $1 billion, replacing the previous agreement dated June 24, 2025.
2026-06-15 Regulation FD disclosure · SEC 8-K
The company furnished a Regulation FD disclosure on June 15, 2026, regarding Item 7.01, which is not deemed filed for purposes of the Securities Exchange Act of 1934.
2026-05-22 Shareholder vote results · SEC 8-K · routine

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-27.

Cash & runway

Cash & equivalents

$1.68B

2026-09-30

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -2.8% YoY, -0.9% QoQ.

Quarter	Shares
Q1 2025	300.3M
Q2 2025	298.0M
Q3 2025	297.6M
Q1 2026	294.4M
Q2 2026	291.8M
Q3 2026	289.3M

Shares outstanding: 288.2M (2026-10-20)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. 47 filings parsed.

Sold by insiders

18.3K shares

$2.7M · 9 transactions

Bought by insiders

0 shares

0 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

2027

critical infrastructure services revenue

Source quote
“We expect critical infrastructure services to generate nearly 4.5 billion dollars of revenue in 2027.”
2027

total infrastructure services revenue

Source quote
“Taking this work into account, we expect our total infrastructure services revenue to reach nearly $7 billion in 2027, growing more than 40% from this year.”
fourth quarter

global leasing revenue growth

Source quote
“We have strong pipelines and expect global leasing revenue to grow at a low double-digit rate in the fourth quarter.”
around the end of the year

close the acquisition of ONIC

Source quote
“As Bob mentioned, we've agreed to acquire ONIC and expect to close the acquisition around the end of the year.”
2026

core EPS guidance

Source quote
“Turning to our outlook, we are maintaining our previously stated 2026 core EPS guidance in the range of $7.80 to $7.90, reflecting 23% growth at the midpoint.”