CBRE

CBRE Group, Inc.

Next est. report 2026-10-22 · BMO

Data Centers '25: Development, Investment & Real Estate Data Owners '25: Property, Mortgage & Real Estate Data Software '26: Legal Tech

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Overview

CBRE Group, Inc. offers global commercial real estate services and investments. It provides strategic advice, manages properties and projects (including critica

CBRE Group, Inc. offers global commercial real estate services and investments. It provides strategic advice, manages properties and projects (including critical infrastructure and data centers), and handles real estate investments. Key segments are Advisory (~45%), Building Operations & Experience (~40%), and Real Estate Investments (~15%). They serve owners, investors, and occupiers, notably large corporations and hyperscalers like Meta.

What They Do (Plain English & Analogies): CBRE is like a comprehensive real estate partner for businesses and investors worldwide. Imagine you own a large office building, a factory, or a shopping mall, or you're a company looking for space to rent. CBRE helps with almost every aspect of commercial real estate. They find tenants for properties, help sell buildings, manage the daily operations of buildings (like keeping the lights on and the air conditioning running), oversee big construction and renovation projects, and even manage large real estate investments for big funds. They also develop new properties, especially in high-demand areas like data centers and industrial facilities. Think of them as a real estate concierge and project manager, handling everything from finding the perfect spot to making sure it runs smoothly and profitably. They've recently put a lot of focus on supporting critical infrastructure, like data centers, power, and telecom assets, which are essential for today's digital world.
Very Brief History: CBRE Group, Inc. was founded in 1906. Its modern form emerged from the 1996 merger of CB Commercial and Richard Ellis International. The company went public in 2004. Key acquisitions include Trammell Crow Company in 2006, Johnson Controls Global Workplace Solutions in 2015, a majority stake in Turner & Townsend in 2021, and Pearce Services in November 2025.
"Street Stereotype": CBRE is generally perceived as the world's largest and a leading global commercial real estate services and investment firm, often considered one of the 'Big 4' alongside JLL, Cushman & Wakefield, and Colliers. The 'street stereotype' recognizes its immense scale, strong brand, and broad service offerings, which include both cyclical transactional services (like brokerage) and more stable, recurring revenue streams (like facilities management and investment management). There's an increasing focus on its strategic pivot towards high-growth areas like critical infrastructure and data centers, aiming to enhance earnings stability and capitalize on secular tailwinds.
Subsidiaries On Linked In*: Trammell Crow Company — Real estate development and investment; LinkedIn: trammell-crow-company
CBRE Investment Management — Investment management services; LinkedIn: cbre-investment-management
Turner & Townsend — Project management and consulting services; LinkedIn: turner-&-townsend
Pearce Services — Critical infrastructure services, acquired in 2025; LinkedIn: pearce-services
Industries — Flexible co-working business; LinkedIn: industries-cbre
Customer Sectors & Example Clients: CBRE serves a broad range of commercial real estate customers, primarily large corporate occupiers and property investors. Customer sectors include: Industrial and Logistics, Data Centers, Energy, Oil and Gas, Financial Services, Retail, Healthcare, Law Firms, Student Housing and Education, Life Sciences, Technology, Media & Telecommunications, Multifamily, Government & Defense, Nonprofit, Public Sector, Manufacturing (automotive, chemicals, food and beverage, consumer goods, aerospace and defense), Banking and Financial Services, Education, Ports, Sports and Leisure, and Transportation. Example clients include "Hyperscalers" (for data center services), Meta (for data center capabilities training partnership), and institutional investors such as pension funds, insurance companies, sovereign wealth funds, foundations, and endowments. The company has seen notable strength across the legal and financial services sectors for leasing.
New Customers / Segments They'Re Targeting: CBRE is aggressively targeting the critical infrastructure and data center sectors, driven by the boom in AI and digital transformation. They are expanding their data center services to include build-outs, ongoing maintenance, and operational oversight, with a significant focus on hyperscalers. The company is also expanding the geographic reach of its Turner & Townsend project management business, particularly in the U.S., Japan, and India, and focusing on big infrastructure and energy projects. Additionally, they are growing their local facilities management business in new markets, such as the U.S., where it has been expanding at a 20% to 30% rate.
Supply Chain And Sourcing Geographies: CBRE is primarily a service and investment company, not a manufacturer of physical goods, so it does not have a traditional supply chain for products or components. Its 'supply chain' largely consists of its global network of professionals, data, technology, and partnerships. For its facilities management and project management services, it sources local contractors, materials, and labor within the geographies where projects are undertaken. The company has a partnership with Meta to recruit, train, and place technical people in multiple cities around the U.S. to support Meta's data center initiatives, indicating a localized sourcing of human capital for specific projects.
Sales Geographies And Expansion Plans: CBRE operates globally, serving clients in more than 100 countries. Current sales geographies include: The Americas (its largest market, with strong performance in the U.S. across gateway markets, with U.S. office leasing up 29% and industrial up 17%), Europe, the Middle East, and Africa (EMEA, with leasing growing 27% led by France, Germany, and Spain), and Asia Pacific (APAC, with leasing growing 19% with notable strength in Australia and India). Global property sales revenue grew 20%, led by the U.S. which grew 24%. Expansion plans include: Turner & Townsend (project management) is growing rapidly in the U.S., leveraging CBRE's network, and is also expanding in Japan and India. CBRE's data center services (building management and small projects) are expanding in Europe and Asia, having been primarily U.S.-focused previously.
How Key Themes May Help/Hurt: The 'Software '26: Legal Tech' theme primarily benefits CBRE. The company is experiencing 'tremendous leasing success with law firms now,' as these firms recognize the importance of office space for their business, productivity, and employee engagement. This trend, coupled with law firms using AI for certain tasks while maintaining or even growing headcount, drives demand for premium office space, which CBRE facilitates through its Advisory Services. Furthermore, CBRE is actively integrating AI into its own product mix across transactions, project management, and facilities management. For example, they are using agentic AI to help clients predict and benchmark their portfolios, and for predictive maintenance in facilities management. Management believes these AI applications will enhance their offerings and efficiencies, rather than disintermediating their services, as there is significant labor involved and CBRE provides a comprehensive platform that clients would not have on their own.

3 Main Long-Term Bull Details

Dominant Global Market Leadership and Diversified Business Model with Strong Secular Tailwinds: CBRE is the world's largest commercial real estate services and investment firm, offering a comprehensive suite of services across advisory, building operations, project management, and real estate investments. This broad diversification provides inherent resilience and numerous cross-selling opportunities. The company is strategically positioned to capitalize on the massive demand for data centers and critical infrastructure, driven by AI and digital transformation, which is delivering significant revenue and profit growth. Data center services revenue is expected to grow by about 25% annually for the next five years.
Robust and Growing Resilient/Recurring Revenue Streams: The company's strategic focus on expanding its 'Resilient Businesses' (e.g., facilities management, critical infrastructure services, property management, recurring investment management fees) provides a stable and growing earnings base that is less susceptible to real estate market cycles, ensuring strong through-cycle growth and predictable cash flows. These businesses delivered double-digit growth in Q2 2026.
Strategic Leverage of AI for Growth and Efficiency: CBRE is actively integrating AI to enhance its product offerings and drive operational efficiencies across all segments, including transactions, project management, and facilities management. Management believes its transactional businesses are well-protected from disintermediation due to the human element of strategy and negotiation, while AI-enabled tools are expected to create significant efficiency gains and support new service lines.

3 Main Long-Term Bear Details

Sensitivity to Macroeconomic and Interest Rate Volatility: Despite efforts to diversify, CBRE's transactional businesses (property sales, leasing, mortgage origination) remain susceptible to economic downturns, rising interest rates, and geopolitical instability. This can lead to slower client decision-making and reduced transaction volumes, particularly if interest rates go up or volatility becomes too great.
Lumpiness and Execution Risk in Development Profits: While data center land development offers significant embedded gains (approximately $900 million in embedded profits across Trammell Crow Company), the monetization of these profits can be 'lumpy' due to the complexities of securing approvals, power, and water, as well as potential public opposition (NIMBYism). This introduces volatility to the Real Estate Investments segment and makes consistent forecasting challenging.
Talent Acquisition and Resource Constraints in Specialized Growth Areas: The rapid expansion in critical infrastructure services, particularly data centers, requires a highly skilled workforce. Management has noted difficulties in hiring enough qualified personnel, and the growth of data centers faces challenges related to NIMBYism, water issues, power issues, and supply chain constraints. These factors could constrain growth, increase labor costs, or impact service delivery quality if not effectively addressed.

Competitors And Differentiation: CBRE's main competitors include JLL, Cushman & Wakefield, Colliers, Newmark, and Savills. On the investment management side, competitors include private equity leaders like Blackstone, Brookfield, and Nuveen. CBRE differentiates itself through its immense scale, global coverage across over 100 countries, and breadth of integrated services, which allows it to be a single platform for large clients across leasing, valuation, and management. Its reputation is built on integrated services, recurring contracts, and cross-border execution. CBRE has pivoted from its brokerage roots to become a tech-integrated commercial real estate powerhouse, leading in AI-driven data center solutions. This includes leveraging its proprietary Ellis AI platform for advanced analytics, automated workflows, and predictive insights across its services.
Recent Performance & What The Market'S Focused On: CBRE reported strong second-quarter 2026 results, with core EPS up 30% and revenue increasing 16%, marking the fifth consecutive quarter of at least 18% core EPS growth. All four business segments (Advisory, Building Operations and Experience, Project Management, and Real Estate Investments) grew segment operating profit by more than 25%. Infrastructure services revenue reached nearly $1.2 billion, increasing by more than 45%, with data center services revenue surpassing $700 million, rising nearly 30%. Management raised its full-year 2026 core EPS guidance to $7.80 to $7.90, reflecting 23% growth at the midpoint. The market is primarily focused on the continued strong momentum in CBRE's critical infrastructure and data center services, the sustainability of leasing activity (especially in office and industrial), and the company's capital allocation strategy, which prioritizes M&A over buybacks.

Revenue Segments And Estimated Mix: Advisory Services — Mix: ~45% (FY2025); Source: Q1 2026 transcript, search result [8]; Trend: Q2 2026 revenue rose 18%, driven by accelerated growth in leasing (24% globally) and continued strength in sales (20% globally). SOP grew 29%.
Building Operations & Experience (BOE) — Mix: ~40% (FY2025, as Global Workplace Solutions); Source: Q1 2026 transcript, search result [8]; Trend: Q2 2026 delivered strong double-digit revenue growth. Critical Infrastructure Services revenue increased 68%, and Data Center Solutions business grew nearly 30%. Local facilities management delivered strong high-teens revenue growth. SOP grew 25%.
Project Management — Mix: n/m; Source: Q1 2026 transcript; Trend: Q2 2026 revenue grew 19%, underpinned by solid infrastructure activity (up 30%) and real estate-related services (up 13%). SOP grew 28%.
Real Estate Investments (REI) — Mix: ~15% (FY2025); Source: Q1 2026 transcript, search result [8]; Trend: Q2 2026 Development operating profit exceeded the prior year (without data center land sales). Investment Management operating profit was up modestly, with AUM of approximately $155 billion.
Product Brands: CBRE Capital Markets
CBRE Investment Management
Trammell Crow Company
Turner & Townsend
Industries
Pearce Services
CBRE Capital Planner
CBRE CostLab
CBRE Deal Flow
CBRE Dimension Suite
CBRE Estimator
CBRE Global Pulse
CBRE Host Digital
CBRE Kahua
CBRE Plans
CBRE Plans Pro
CBRE Sequentra
CBRE ServiceInsight
CBRE Spacer
CBRE Vantage Analytics
Ellis AI
Capital AI

Bull / Bear Details

CBRE remains a compelling long investment as of 2026-07-30, driven by exceptional Q2 2026 performance and an upgraded full-year EPS outlook to $7.80-$7.90. The

Thesis

CBRE remains a compelling long investment as of 2026-07-30, driven by exceptional Q2 2026 performance and an upgraded full-year EPS outlook to $7.80-$7.90. The company is significantly benefiting from explosive demand in critical infrastructure and data center services, projecting a $10 billion infrastructure business by 2030. Despite anticipated H2 growth moderation and macroeconomic uncertainties, CBRE's market leadership, diversified resilient businesses, and strategic AI integration position it for sustained long-term growth.

Bull case

CBRE is experiencing unprecedented growth from its critical infrastructure and data center services, a major secular tailwind. Q2 infrastructure revenue reached nearly $1.2 billion (up >45%), with data center services surpassing $700 million (up nearly 30%). Management projects data center services revenue to grow ~25% annually for five years, aiming for a $10 billion infrastructure business with over $1 billion EBITDA by 2030.
The company's diversified business model continues to deliver strong financial performance, leading to an upgraded 2026 core EPS guidance of $7.80-$7.90, representing 23% growth. This follows five consecutive quarters of at least 18% core EPS growth. CBRE also confidently projects at least a 15% increase in core EPS for 2027, supported by robust pipelines and a "return to the norm" in leasing activity, particularly strong in office and industrial.
CBRE is strategically leveraging AI to enhance its services and maintain a competitive edge. AI is being integrated into transactions (agentic AI for data assimilation), project management (budget, schedule, risk protocols), and facilities management (predictive maintenance, mobile engineer scheduling). Management asserts these human-centric services are well-protected from disintermediation, strengthening CBRE's platform and client value proposition.

Bear case

Despite strong performance, CBRE faces macroeconomic headwinds and capital allocation uncertainties. Some investors, particularly from the Middle East, remain cautious, impacting capital raising for investment management. Concerns about rising interest rates and geopolitical volatility could dampen transactional business volumes. Additionally, buybacks are expected to taper off in H2 as the company prioritizes M&A and aims not to exceed free cash flow generation.
The Real Estate Investments segment, particularly data center land sales, remains inherently lumpy and faces execution risks. While approximately $900 million in embedded gains exist, monetizing the remaining ~30 sites is difficult to time. Furthermore, the rapid growth of data centers is challenged by NIMBYism, limited water and power availability, supply chain bottlenecks, and difficulties in hiring skilled personnel, potentially constraining development timelines and costs.
Operating leverage in the Building Operations and Experience (BOE) segment is expected to moderate in the second half of 2026 due to the timing of costs, potentially impacting margin expansion. While M&A is a priority, the company acknowledges it's "difficult to project which M&A targets we will be able to convert," introducing uncertainty into a key capital deployment strategy.

Bull / Bear Case

Bear Case: Despite strong performance, CBRE faces macroeconomic headwinds and capital allocation uncertainties. Some investors, particularly from the Middle East, remain cautious, impacting capital raising for investment management. Concerns about rising interest rates and geopolitical volatility could dampen transactional business volumes. Additionally, share buybacks are expected to taper off in H2 as the company prioritizes M&A and aims not to exceed free cash flow generation. The Real Estate Investments segment, particularly data center land sales, remains inherently lumpy and faces execution risks, with approximately 30 sites difficult to time for monetization. The rapid growth of data centers is also challenged by NIMBYism, limited water and power availability, supply chain bottlenecks, and difficulties in hiring skilled personnel, potentially constraining development timelines and costs.
Bull Case: CBRE is experiencing unprecedented growth driven by its critical infrastructure and data center services, a significant secular tailwind. Q2 infrastructure revenue reached nearly $1.2 billion (up >45%), with data center services surpassing $700 million (up nearly 30%). Management projects data center services revenue to grow approximately 25% annually for five years, aiming for a $10 billion infrastructure business with over $1 billion EBITDA by 2030. The company's diversified business model delivered strong Q2 2026 financial performance, leading to an upgraded 2026 core EPS guidance of $7.80-$7.90 (23% growth). CBRE also confidently projects at least a 15% increase in core EPS for 2027, supported by robust pipelines and a 'return to the norm' in leasing activity. Strategic AI integration further enhances services and maintains a competitive edge, protecting human-centric services from disintermediation.
More Compelling & Why: Bear. CBRE's current P/E ratio of approximately 32x is significantly above its 10-year median of 21.22x and the broader Real Estate industry median of 12.65x, indicating a premium valuation. This premium appears vulnerable given macroeconomic headwinds, potential moderation of operating leverage in H2, and the inherent lumpiness and execution risks associated with monetizing its data center land bank amidst growing challenges like NIMBYism and resource constraints. My view would flip if CBRE's valuation metrics, specifically its P/E, compressed to align more closely with its historical averages (e.g., closer to 21-25x) or if there was a clear and sustained resolution to the macro uncertainties and data center development challenges, allowing for consistent and predictable monetization of its land bank.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Critical Infrastructure Services (CIS) Revenue Growth & Data Center Services Outlook	CIS and data center services are key secular tailwinds, driving significant revenue and profit growth. Sustained high growth validates CBRE's strategic focus and market leadership in this high-demand sector.	Quarterly reported revenue growth rate for the Critical Infrastructure Services business line (Q2 2026: 68%) and data center services revenue (Q2 2026: nearly 30%) within the Building Operations & Experience (BOE) segment. Also, management commentary on the 25% annual growth target for data center services over the next five years.	Bullish: CIS revenue growth consistently exceeding 68% year-over-year and data center services revenue growth consistently above 30% year-over-year, or management reaffirming/raising the 25% annual growth outlook for data center services. Bearish: CIS or data center services revenue growth significantly decelerating below Q2 2026 levels or management lowering the long-term data center services growth outlook.	Company earnings releases and investor presentations. Next earnings call for Q3 2026.	Industry reports on data center market growth (e.g., Gartner, IDC), news articles on hyperscaler investments.	Thinknum: Job postings for 'data center technician' or 'critical infrastructure engineer' at CBRE and competitors.
Trammell Crow Company (TCC) Data Center Land Sale Profits & Land Bank Monetization	Data center land sales provide lumpy but significant profits within the REI segment. Consistent monetization and replenishment of the land bank are crucial for sustained earnings from this high-value activity.	Reported profits from data center land sales within the REI segment. Management commentary on the monetization of the remaining 30 sites in the land bank and the pace of securing/entitling new sites. Embedded gains of approximately $900 million.	Bullish: Reported data center land sale profits exceeding expectations (even if lumpy) or consistent commentary on strong pipeline replenishment (e.g., 'filling back up at the same rate'). Bearish: Significant delays in monetization of existing sites, difficulty securing/entitling new sites, or a decrease in the $900 million embedded gains without sufficient replenishment.	Company earnings releases, investor presentations, and SEC filings. Next earnings call for Q3 2026.	Local government planning commission meeting minutes for data center approvals, news on major data center developments.	Green Street Advisors: Commercial real estate development pipeline data, land transaction data.
Advisory Services Revenue Growth (Leasing & Sales)	Advisory Services, particularly leasing and property sales, are core transactional businesses. Strong growth here indicates robust real estate market activity and CBRE's ability to capture market share, contributing to excellent margins.	Global leasing revenue growth rate (Q2 2026: 24%), U.S. office leasing growth (Q2 2026: 29%), U.S. industrial leasing growth (Q2 2026: 17%), and global property sales revenue growth rate (Q2 2026: 20%).	Bullish: Global leasing revenue growth consistently above 24% and global property sales revenue growth consistently above 20% year-over-year. Bearish: Significant deceleration in global leasing or property sales revenue growth below Q2 2026 levels.	Company earnings releases and investor presentations. Next earnings call for Q3 2026.	Commercial real estate market reports (e.g., JLL, Cushman & Wakefield), regional economic indicators.	CoStar: Commercial property transaction volumes, leasing activity data.
Management's Full-Year Core EPS Guidance Revisions	Changes to full-year core EPS guidance directly reflect management's updated outlook on profitability and operational performance, significantly impacting investor confidence and valuation. Upward revisions signal strong execution and market conditions.	Any changes to the full-year core EPS guidance range in subsequent earnings reports. The current range for 2026 is $7.80 to $7.90.	Bullish: Further upward revision to the full-year core EPS guidance range (e.g., above $7.90). Bearish: Downward revision or a significant narrowing of the range with a lower midpoint (e.g., below $7.80).	Company earnings releases, investor presentations, and SEC filings (10-Q, 10-K). Next earnings call for Q3 2026.	Financial news outlets (e.g., Reuters, Bloomberg, Wall Street Journal) for headlines on earnings and guidance.	Bloomberg Terminal: Analyst consensus EPS estimates, company guidance.
Sustained Movement of the 10-Year U.S. Treasury Yield	Interest rates directly impact the cost of debt, influencing real estate transaction volumes (sales, mortgage originations) and overall corporate capital investment, which can affect CBRE's transactional businesses.	Daily/weekly movements of the 10-year U.S. Treasury yield.	Bullish: Sustained 10-year Treasury yield within the 4%-4.5% range or a consistent decline below 4%. Bearish: A significant spike consistently above 4.5% or sustained volatility.	Federal Reserve announcements, U.S. Treasury website, financial news outlets (e.g., Wall Street Journal, Bloomberg).	FRED (Federal Reserve Economic Data): 10-Year Treasury Constant Maturity Rate.	Refinitiv Eikon: Real-time 10-year Treasury yield data, interest rate forecasts.

Key Reported Metrics, Reratings Triggers & Results3 rows

As a key component of Advisory Services, strong leasing growth indicates a healthy transactional market and CBRE's ability to capitalize on returning demand for

Upcoming print · 2026-10-22

Key reported metrics
Metric	Last period	Why it matters
Global Leasing Revenue Growth	24%	As a key component of Advisory Services, strong leasing growth indicates a healthy transactional market and CBRE's ability to capitalize on returning demand for office space, contributing to strong margins.
Critical Infrastructure Services Revenue Growth	68%	This metric represents a significant secular tailwind, particularly from data centers and AI investment. Sustained high growth validates CBRE's strategic focus and drives substantial profit across segments.
Core EPS Growth	30%	Core EPS is a primary indicator of overall profitability and management's ability to execute. The upgraded full-year guidance and strong Q3 expectations signal continued operational efficiency and investor confidence.

Last reported · 2026-07-29

Key reported metrics			Rerating thresholds			Earnings results
Metric	Last period	Why it matters	What's needed for rerating	Rerating context	Earnings date	Actual reported	Hit target?	Notes
Critical Infrastructure Services Revenue Growth	68%	This metric is crucial as it validates CBRE's strategic focus on high-growth critical infrastructure and data center services, a significant secular tailwind driven by AI and digital transformation. Consistently achieving or surpassing the 60% growth target demonstrates successful execution in a rapidly expanding market, reinforcing CBRE's competitive advantage and justifying a higher valuation.	For CBRE Group, Inc. (CBRE) to experience a higher stock rerating, its Critical Infrastructure Services Revenue Growth metric needs to consistently meet or exceed the company's stated expectation of 'in excess of 60%' year-over-year growth for 2026. Given the 71% growth achieved in Q1 2026, maintaining or surpassing this level in upcoming earnings, particularly in Q2 2026, would be a strong bullish signal.	This metric is crucial as it validates CBRE's strategic focus on high-growth critical infrastructure and data center services, a significant secular tailwind driven by AI and digital transformation. Consistently achieving or surpassing the 60% growth target demonstrates successful execution in a rapidly expanding market, reinforcing CBRE's competitive advantage and justifying a higher valuation.	2026-07-29	68% y/y growth	Yes	Critical Infrastructure Services revenue increased by 68% year-over-year in Q2 2026, exceeding the 'in excess of 60%' rerating trigger. This strong performance validates CBRE's strategic focus on high-growth critical infrastructure and data center services. Infrastructure services revenue reached nearly $1.2 billion in the second quarter, increasing by more than 45%, with data center services revenue surpassing $700 million, rising nearly 30%. Management expects data center services revenue to remain elevated at about 25% annually for the next five years.
Global Property Sales Revenue Growth	39%	Exceeding this threshold would confirm robust market activity and CBRE's ability to extend its market leadership in transactional businesses, particularly driven by secular tailwinds in data centers. This performance generates excellent margins and cash flow, reinforcing the bull thesis and justifying a higher valuation.	Global Property Sales Revenue Growth needs to exceed the Q1 2026 reported growth of 43% year-over-year, or at least consistently demonstrate growth significantly above 39% year-over-year, to signal continued acceleration in transactional businesses.	Exceeding this threshold would confirm robust market activity and CBRE's ability to extend its market leadership in transactional businesses, particularly driven by secular tailwinds in data centers. This performance generates excellent margins and cash flow, reinforcing the bull thesis and justifying a higher valuation.	2026-07-29	20% y/y growth	No	Global property sales revenue grew 20% year-over-year in Q2 2026, which is below the Q1 2026 reported growth of 39% and the rerating trigger of exceeding 43% or consistently demonstrating growth significantly above 39%. This deceleration suggests a moderation in transactional business acceleration, potentially influenced by macroeconomic uncertainties and interest rate volatility.
Core EPS Growth	30%	Exceeding EPS expectations and raising full-year guidance would validate CBRE's strategic focus on resilient businesses and high-growth areas like data centers and critical infrastructure, reinforcing its market leadership. This demonstrates operational efficiency and strong execution, which are key to the investment thesis. Such performance would boost investor confidence, potentially leading to multiple expansion and a positive rerating, especially as market perception has recently outweighed strong fundamentals.	To rerate higher, CBRE's Core EPS Growth metric needs to demonstrate continued strong momentum. For Q2 2026, the company would need to report Core EPS significantly above the analyst consensus of approximately $1.47-$1.50. Crucially, for a sustained rerating, CBRE would need to either further raise its full-year 2026 Core EPS guidance above the current high end of $7.80 or provide a strong indication that it will comfortably exceed this range, driven by robust performance in Critical Infrastructure Services (expected to grow over 60% this year) and consistent monetization of its data center land bank.	Exceeding EPS expectations and raising full-year guidance would validate CBRE's strategic focus on resilient businesses and high-growth areas like data centers and critical infrastructure, reinforcing its market leadership. This demonstrates operational efficiency and strong execution, which are key to the investment thesis. Such performance would boost investor confidence, potentially leading to multiple expansion and a positive rerating, especially as market perception has recently outweighed strong fundamentals.	2026-07-29	30% y/y growth	Partially	Core EPS was up 30% year-over-year in Q2 2026, marking the fifth consecutive quarter of at least 18% core EPS growth. While the actual Q2 EPS number was not provided to compare against the analyst consensus, management raised the full-year 2026 core EPS guidance to a range of $7.80 to $7.90, up from the previous range of $7.60 to $7.80. This upward revision, with the new high end ($7.90) exceeding the previous high end ($7.80), indicates strong momentum and partially meets the rerating trigger for sustained rerating.

Key Questions

Will CBRE's continued strong momentum, particularly in critical infrastructure and data centers, enable it to exceed the newly upgraded full-year 2026 core EPS

Will CBRE's continued strong momentum, particularly in critical infrastructure and data centers, enable it to exceed the newly upgraded full-year 2026 core EPS guidance of $7.80-$7.90, or will moderating operating leverage and potential macroeconomic headwinds temper performance in the second half and impact the 2027 outlook?

Question 2: How effectively can CBRE navigate the growing challenges (NIMBYism, resource constraints, talent shortages) in the data center market to sustain its projected 25% annual data center services revenue growth over the next five years, and consistently monetize its remaining 30 data center land sites with embedded gains?
Question 3: Will a sustained increase in the 10-year U.S. Treasury yield above the 4.5% threshold, or other macroeconomic shifts and geopolitical volatility, significantly dampen transactional business volumes (sales, leasing, mortgage origination) and corporate capital investment, posing a downside risk to CBRE's performance despite its diversified model?

Earnings Transcript Summary2 rows

2026-07-29 · 2026Q2 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Leveraging Growth in Infrastructure and Data Center Services: Management highlighted the significant momentum in their infrastructure services, with revenue reaching nearly $1.2 billion in Q2, up over 45%, and data center services revenue surpassing $700 million, rising nearly 30%. They expect data center services revenue to remain elevated at about 25% annually for the next five years, seeing it as a major long-term opportunity. 2. Delivering Strong Financial Performance and Raising Full-Year EPS Outlook: Management emphasized the company's continued momentum, with core EPS up 30% on a 16% revenue increase, and strength balanced across all segments. They raised their core EPS expectations for 2026 to a range of $7.80 to $7.90, representing 23% growth at the midpoint, driven by Q2 outperformance and improved expectations for the rest of the year. 3. Strategic Capital Allocation and Long-Term Growth Confidence: Management reiterated their consistent capital allocation priorities, focusing on M&A first, then buybacks to deploy free cash flow. They expressed confidence in delivering at least a 15% increase in core EPS in 2027, citing strong visibility in BOE and Project Management businesses and continued room for growth in Advisory.	Call Takeaway & ToneThe call conveyed a highly positive and confident tone, with management reporting strong second-quarter 2026 results that exceeded expectations. The key takeaway was the significant momentum driven by CBRE's diversified business model, particularly the explosive growth in critical infrastructure and data center services, which is seen as a major long-term secular tailwind. Management raised full-year core EPS guidance and expressed strong confidence in achieving at least 15% core EPS growth in 2027. While acknowledging challenges such as NIMBYism and resource constraints for data centers, and potential macroeconomic volatility, the company emphasized its resilience, strategic capital allocation, and proactive use of AI to enhance services and efficiency. The overall sentiment was one of robust performance and optimistic future outlook.	Prior Quarter'S Y/Y Growth By SegmentIn Q1 2026, overall Services segments (Advisory, Building Operations & Experience, and Project Management) grew revenue by 20%. Resilient Businesses revenue grew 18%, and Transactional Businesses revenue grew 22%. Advisory Services revenue grew 18%, with global leasing revenue up 18% (U.S. leasing up 21%, U.S. industrial leasing up 24%, U.S. office leasing up 15%), data center leasing revenue more than tripled, global property sales revenue rose 39% (U.S. property sales up 64%), and mortgage origination revenue increased 53%. Building Operations & Experience (BOE) segment revenue grew 16%, with local facilities management growing at a mid-teens rate (Americas up almost 30%). Project Management segment revenue increased 11%. Real Estate Investments (REI) SOP exceeded expectations, and Investment Management recurring asset management fees increased, though operating profit declined.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Data Center Business Outlook and Opportunities: Analysts questioned the drivers of the strong data center revenue growth and where the biggest opportunities lie. Management responded that the opportunity is significant, with infrastructure revenue at $1.2 billion and data centers at $700 million in Q2, projecting a potential $10 billion infrastructure business by 2030. They see growth primarily in project management (Turner & Townsend) and building operations and experience, noting that over half of data center revenue comes from downstream work like managing and refitting. 2. Leasing Activity Normalization and Future Growth: Analysts asked if leasing activity had normalized post-pandemic or if there was still pent-up demand. Management believes there has been a return to the norm, but also sees potential for more, driven by companies focusing on office space for productivity and employee engagement. They cited strong leasing success with law firms as an example, indicating that AI might not reduce headcount as much as some expect. 3. Capital Allocation and Buyback Activity: Analysts inquired about capital priorities for the second half of the year and the expected level of buybacks given strong cash flow. Management stated that capital allocation priorities remain unchanged, prioritizing M&A with a strong pipeline, and then filling in with buybacks if M&A deployment is insufficient. They clarified that their goal is not to deploy more than generated in free cash flow, so buybacks are likely to taper off in the second half.	Revenue SegmentsOverall revenue increased by 16%. Core EPS was up 30%. Advisory Services revenue rose 18%, with global leasing revenue growing 24% (U.S. leasing also up 24%, led by office up 29% and industrial up 17%), global property sales revenue growing 20% (U.S. sales up 24%, EMEA up 8%, APAC up 6%), and mortgage origination revenue growing 8%. Building Operations and Experience (BOE) segment delivered double-digit revenue growth, led by Critical Infrastructure Services up 68% and Data Center Solutions business up nearly 30%. Local facilities management showed strong high-teens revenue growth, particularly in the Americas, up almost 35%. Project Management segment revenue grew 19%, underpinned by solid infrastructure activity which increased 30%, while real estate-related services grew 13%. In the Real Estate Investment (REI) segment, Development operating profit exceeded the prior year, and Investment Management operating profit was up modestly.

2026-04-23 · 2026Q1 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Growing Resilient and Transactional Businesses with Secular Tailwinds: Management emphasized the strategy to grow businesses resistant to real estate cycles or benefiting from secular tailwinds, citing 18% revenue growth in Resilient Businesses and 22% in Transactional Businesses, and maintaining market leadership in transactional areas. 2. Leveraging Infrastructure Assets and Data Centers: This was highlighted as a significant source of profit and growth across all four business segments, generating nearly $950 million in Q1 from infrastructure activities, with the Critical Infrastructure Services business line expected to grow over 60% this year. 3. Achieving Strategic Gains and Upgrading EPS Expectations: Management noted strong financial results and important strategic gains, leading to an upgraded full-year EPS expectation of $7.60 to $7.80, reflecting over 20% growth at the midpoint, driven by Q1 outperformance and strong pipelines.	Call Takeaway & ToneThe call conveyed a highly positive and confident tone. Management reported strong Q1 2026 results that exceeded expectations, driven by robust growth across both resilient and transactional businesses, particularly in infrastructure services and data centers. The company raised its full-year EPS guidance, reflecting continued momentum and strong pipelines. While acknowledging macroeconomic uncertainties and the evolving impact of AI, management expressed confidence in their diversified strategy, market leadership, and ability to leverage AI for opportunities rather than being significantly disrupted. The focus remains on strategic growth areas like critical infrastructure, disciplined capital allocation (prioritizing M&A and then buybacks), and operational efficiency.	Prior Quarter'S Y/Y Growth By SegmentIn Q4 2025, overall revenue grew 12%. Resilient Businesses revenue grew 12%. Transactional Businesses revenue grew 12%. Advisory Services revenue grew 13%. Within Advisory, global leasing revenue grew 14%; U.S. leasing revenue grew 12%; global property sales revenue increased 19%; U.S. sales revenue increased 27%; and mortgage origination revenue rose 18%. Building Operations & Experience (BOE) revenue grew 15%. Project Management revenue increased 8%.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Second Half of the Year Outlook and Conservatism: Analysts questioned if strong Q1/H1 performance was due to pull-forward or outright strength and inquired about conservatism for the second half. Management responded that one-third of the EPS guidance raise was from Q1 outperformance and two-thirds from increased expectations for the remainder of the year, driven by strong pipelines in Advisory and BOE, but noted growth would decelerate in 2H due to tough comparisons. 2. Impact of AI on the Business (Risks and Opportunities): Analysts pressed on AI's potential for job destruction, disintermediation of brokerage, and CBRE's AI rollout. Management emphasized AI as a 'considerable secular tailwind' for critical infrastructure/data centers, enabling product enhancement and creating efficiencies in some areas (e.g., call centers, research) while also presenting hiring challenges for skilled talent. They asserted transactional businesses are 'most protected' due to reliance on strategy, negotiation, and creativity, and that they are controlling AI access to balance benefits with costs. 3. Transaction Pipeline and Macro/Interest Rate Environment: Analysts asked if the transaction pipeline had slowed due to increased rates and widening borrowing spreads, and about client decision-making. Management stated the pipeline 'hasn't slowed at all' and is stronger than expected for Q2. They indicated that sales and loan origination activity continue to grow as long as the 10-year Treasury remains in the 4% to 4.5% range, and while corporate capital investment (excluding data centers) might see some slowdown, traditional leasing is not experiencing a slowdown.	Revenue SegmentsServices segments (Advisory, Building Operations & Experience, and Project Management) grew revenue by 20%. Resilient Businesses revenue grew by 18%. Transactional Businesses revenue grew by 22%. In Advisory Services, global leasing revenue grew 18%, U.S. leasing revenue grew 21%, U.S. industrial leasing grew 24%, U.S. office leasing revenue increased 15%, data center leasing revenue more than tripled, global property sales revenue rose 39%, U.S. property sales revenue increased 64%, and mortgage origination revenue increased 53%. Advisory SOP grew 35%. The Building Operations & Experience (BOE) segment revenue grew 16%, with local facilities management growing at a mid-teens rate (Americas up almost 30%) and enterprise facilities management growing by double digits. BOE SOP increased 23%. Project Management segment revenue increased 11%. Project Management SOP grew 14%. Real Estate Investments (REI) SOP exceeded expectations. Investment Management recurring asset management fees increased, but operating profit declined.

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2026-07-29

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketCBRE's infrastructure services revenue reached nearly $1.2 billion in the second quarter, increasing by more than 45%, with data center services revenue surpassing $700 million, rising nearly 30%. The company expects 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. By 2030, CBRE anticipates a $10 billion infrastructure business with over $1 billion of EBITDA, with a disproportionate share in data centers. Opportunities are strong in project management with Turner & Townsend, which has been growing its data center-related business at over 30% for a decade, and in building operations and experience. Turner & Townsend has significantly escalated its activity in Japan, India, and especially the U.S. since combining with CBRE, and is expected to see substantial growth in infrastructure and energy projects in the U.S.. The local facilities management business is also expanding into new markets, particularly in the Americas, growing at a consistent 20% to 30% rate. CBRE's future is increasingly skewed toward big companies, such as hyperscalers and military-related firms, offering substantial opportunities due to the company's scale and high revenue synergies in the data center business.	About CompetitionLaw firms are actively competing with each other to provide office spaces that enhance business productivity and employee engagement. CBRE's substantial scale and ability to invest are key advantages when working with large companies. The company believes its comprehensive tools and integrated platform for outsourcing services, which involve significant labor, provide a competitive edge that clients would not have on their own, thus protecting against disintermediation.	About The Broader IndustryThe market is experiencing a 'return to the norm' across various sectors, including office buildings and restaurants, post-pandemic. Companies are increasingly focusing on how office space can drive business productivity, excite employees, and facilitate the education of younger talent. There is notable strength in office leasing within the legal and financial services sectors, as tenants are upgrading and expanding their spaces. U.S. industrial leasing growth is driven by increased demand from 3PL providers and advanced manufacturing companies. The broader industry faces uncertainty regarding debt markets and the cost of debt, partly influenced by geopolitical events. However, the bid-ask spread in the market has narrowed, and there is significant capital available for investment, alongside assets available for sale. Data center growth, despite enormous demand, is challenged by NIMBYism, water and power availability, supply chain issues, and difficulties in hiring skilled personnel. Despite these challenges, considerable growth in data centers is expected, necessitating shifts to new locations and supply chain adjustments.	Where Things Are HeadedCBRE has increased its core EPS expectations for 2026 to a range of $7.80 to $7.90, representing 23% growth at the midpoint. The company anticipates more than 20% core EPS growth in the third quarter, with the fourth quarter expected to be comparable to last year, which included significant data center land program profits. CBRE remains confident in achieving at least a 15% increase in core EPS in 2027, assuming no material changes to the macroeconomic or interest rate environment. Capital allocation priorities remain unchanged, with M&A being the primary focus due to a strong pipeline, followed by share buybacks. No significant incremental capital allocation is included in the guidance for the latter half of the year. For 2027, low double-digit SOP growth is expected across both Building Operations and Experience (BOE) and Project Management, with revenue growth in line. Advisory growth is projected to moderate from current levels but will not return to mid-cycle rates, and Real Estate Investments (REI) SOP is expected to be roughly flat compared to this year's strong performance. The company still holds approximately 30 data center land sites in its land bank for future monetization, though timing is difficult to predict. Share buybacks are expected to taper off as the company aims not to deploy more than the free cash flow it generates. CBRE foresees a very substantial and sustained opportunity in data center creation, with an even larger long-term opportunity in downstream data center work. Both leasing and sales activity are seen as having more room for growth, not yet having returned to 2019 levels or typical recovery levels.	Updates On ThemeLegal	Broader Themes EmergingArtificial Intelligence (AI) is a significant emerging theme, driving demand for data center services and influencing operational efficiencies and talent utilization across industries, including the legal profession and real estate services. The rapid investment in AI is creating a secular tailwind for critical infrastructure and data center development. Macroeconomic volatility, including interest rate fluctuations and geopolitical events, continues to be a broader theme impacting investment decisions and market activity. Resource constraints, such as water and power availability, and supply chain challenges are also emerging as critical factors affecting large-scale development, particularly in the data center sector.	Bullish-Leaning Quotes (Short)The momentum in CBRE's business continued in the second quarter with core EPS up 30% on a 16% revenue increase. Infrastructure services revenue reached nearly $1.2 billion in the second quarter. Increasing by more than 45%. We now expect to earn in the range of $7.80 to $7.90 equating to 23% growth at the midpoint. This is the fifth consecutive quarter that we achieved at least 18% core EPS growth. We have seen notable strength across the legal and financial services sectors as tenants are upgrading and expanding their space. We remain confident in delivering at least a 15% increase in core EPS in 2027. We are having tremendous leasing success with law firms now, kind of unlike we ever had before. By the year 2030, we could have a $10 billion business with over $1 billion of EBITDA related to infrastructure. The bid-ask spread had come down and was closer than it had been in years. Our future is going to be skewed toward big companies in that opportunity for us is substantial.	Bearish-Leaning Quotes (Short)Some investors particularly capital from the Middle East remained cautious given the volatile global backdrop. Operating leverage which we expect to moderate in the back half of the year given the timing of costs. But it is difficult to project which M&A targets we will be able to convert. We still have about 30 sites across the U.S. in our land bank. They are varying sizes, and it is very difficult to time when they will potentially monetize. There is concern that interest rates will go up and what is going on in the Middle East causes that. But it may come down if interest rates go up or if the volatility gets to be too great. 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. There are all kinds of things that are challenging the growth of the data center business relative to the demand for that growth. There are challenges, hard to hire the people you need to hire to do the work we do.	HiringThe transcript mentions challenges in hiring the necessary personnel for data center work. It also notes that the use of AI in law firms for certain tasks, combined with other talent-focused activities, is preventing the headcount reductions that some might expect in the legal profession. Additionally, CBRE uses AI to help manage and schedule its mobile engineers.

2026-04-23

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketCBRE's work related to infrastructure assets, including data centers, power, telecom, and transportation, has become a source of significant profits and growth across all four business segments, generating over $3 billion in revenue in 2025 and nearly $950 million in Q1 2026. The company has created a dedicated critical infrastructure services business line within the Building Operations & Experience (BOE) segment, which is expected to grow in excess of 60% this year. CBRE has aggressively moved into industrial and multifamily land and development, and has secured dozens of land sites with potential for data center development. The company is also building a capability in multiple U.S. cities to recruit, train, and place technical people to support Meta's data center initiatives, which is expected to be an enduring service. The flexible co-working business, Industries, is exceeding expectations in adding units and is becoming an increasing opportunity with corporate clients on the facilities management side. CBRE sees a big opportunity to expand its data center services, building management, and small projects business in Europe and Asia.	About CompetitionCBRE is recruiting and training technical people for Meta's data center initiatives and sending them not only into CBRE's teams but also to competitors and others in the market. Robert Sulentic dismissed anecdotes about proptech companies disintermediating the brokerage business, stating that such companies should be asked to show their revenue streams.	About The Broader IndustryPeople generally feel good about the economy, unless energy prices spike to a point that could cause a recession. The average length of office leases has not decreased, suggesting that fears around job losses due to AI might not be as high as headlines suggest. Corporate capital investment is slowing down, except for data center investment, with resources potentially shifting from other real estate-related capital investments to data centers. There is more worry in Asia Pacific and Continental Europe regarding the impacts of higher energy prices.	Where Things Are HeadedCBRE is upgrading its full-year EPS expectations to a range of $7.60 to $7.80, which would represent more than 20% growth at the midpoint. The company expects to generate nearly 40% of its EPS in the first half of the year, a higher percentage than typical. The outlook for Advisory and BOE segments has been increased, with Advisory expected to deliver high-teens SOP growth and BOE approximately 25% SOP growth. CBRE anticipates a relatively steady, though lumpy, stream of opportunities in data center land over the next few years. The company sees even greater opportunity for M&A, especially in the data center space. CBRE expects free cash flow conversion to be around the high end of its 75% to 85% target range for 2026.	Updates On ThemeReal	Broader Themes EmergingArtificial Intelligence (AI) is creating a significant secular tailwind for CBRE, particularly in critical infrastructure and data center services. AI is also being used to enhance products across all four segments and to drive efficiency in areas like call centers, research, financial planning and analysis, and human resources, though job reductions are anticipated to take a few years. The impact of geopolitical events, specifically in the Middle East, and energy prices are being monitored, though they have not materially impacted CBRE's business or most clients to date.	Bullish-Leaning Quotes (Short)CBRE continued to generate strong financial results while making important strategic gains during the first quarter of 2026. Our Resilient Businesses grew revenue by 18%. Our Transactional Businesses achieved their highest growth rate of the current cycle at 22%. We are upgrading our EPS expectations to a range of $7.60 to $7.80 for the year, which would result in more than 20% growth at the midpoint of the range. Our first quarter results exceeded expectations. data center leasing revenue more than tripled from last year's first quarter. Global property sales revenue growth accelerated from Q4, rising 39%. The number of industrial units that we're adding is exceeding our expectation in underwriting when we bought the business. The pipeline hasn't slowed at all and going into Q2 the pipeline is actually stronger than we would have expected it to be at the beginning of the year.	Bearish-Leaning Quotes (Short)operating profit declined due to lower incentive fees and promote income. growth will still decelerate going into the second half, given we're working against tough comparisons. Capital investment is 1 of those things that tends to slow down a little bit when there is some uncertainty. It can get really expensive really fast if you don't control who has the access to use it and what they can use it for.	HiringCBRE's biggest challenge in its critical infrastructure business is recruiting enough skilled people. The company is partnering with Meta to recruit, train, and place technical people to support Meta's data center initiatives. CBRE anticipates some job losses in certain areas due to AI, such as rationalizing call centers by as much as 25% and cutting back on research, human resources, and financial planning and analysis. However, these headcount reductions are anticipated to happen a few years from now rather than immediately. The company hires approximately 30,000 people a year.

2026-04-23

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketCBRE's work related to infrastructure assets, including data centers, power, telecom, and transportation, has become a significant source of profits and growth across all four business segments, generating over $3 billion in revenue in 2025 and nearly $950 million in Q1 2026. A dedicated critical infrastructure services business line within the Building Operations & Experience (BOE) segment is expected to grow in excess of 60% this year. The company has aggressively moved into industrial and multifamily land and development, and has secured dozens of land sites with potential for data center development. CBRE is also building a capability in multiple U.S. cities to recruit, train, and place technical people to support Meta's data center initiatives, which is expected to be an enduring service. The flexible co-working business, Industries, is exceeding expectations in adding units and is becoming an increasing opportunity with corporate clients. CBRE sees a big opportunity to expand its data center services, building management, and small projects business in Europe and Asia, having been primarily U.S.-focused previously.	About CompetitionCBRE is recruiting and training technical people for Meta's data center initiatives and sending them not only into CBRE's teams but also to competitors and others in the market. Robert Sulentic dismissed anecdotes about proptech companies disintermediating the brokerage business, stating that such companies should be asked to show their revenue streams.	About The Broader IndustryPeople generally feel good about the economy, unless energy prices spike to a point that could cause a recession. Most companies CBRE interfaces with are not particularly impacted by what's specifically going on in the Middle East. The average length of office leases has not decreased, suggesting that fears around job losses due to AI might not be as high as headlines suggest. Corporate capital investment is slowing down, except for data center investment, with resources potentially shifting from other real estate-related capital investments to data centers. There is more worry in Asia Pacific and Continental Europe regarding the impacts of higher energy prices. Sales activity and loan origination activity continue to grow and accelerate as long as the 10-year Treasury has been around in the 4% to 4.5% range.	Where Things Are HeadedCBRE is upgrading its full-year EPS expectations to a range of $7.60 to $7.80, which would represent more than 20% growth at the midpoint. The company expects to generate nearly 40% of its EPS in the first half of the year, a higher percentage than typical. The outlook for Advisory and BOE segments has been increased, with Advisory expected to deliver high-teens SOP growth and BOE approximately 25% SOP growth. CBRE anticipates a relatively steady, though lumpy, stream of opportunities in data center land over the next few years. The company sees even greater opportunity for M&A, especially in the data center space. CBRE expects free cash flow conversion to be around the high end of its 75% to 85% target range for 2026. Growth is expected to decelerate in the second half due to tough comparisons.	Updates On ThemeLegal	Broader Themes EmergingArtificial Intelligence (AI) is creating a considerable secular tailwind for CBRE, particularly in critical infrastructure and data center services, and is being leveraged to enhance products and drive efficiency across the company. Geopolitical events (e.g., in the Middle East) and energy price fluctuations are being monitored for their potential impact on the global economy. Talent shortages, particularly for skilled people in critical infrastructure services, are a significant challenge across the industry.	Bullish-Leaning Quotes (Short)CBRE continued to generate strong financial results while making important strategic gains during the first quarter of 2026. Our Resilient Businesses grew revenue by 18%. Our Transactional Businesses achieved their highest growth rate of the current cycle at 22%. We are upgrading our EPS expectations to a range of $7.60 to $7.80 for the year, which would result in more than 20% growth at the midpoint of the range. Our first quarter results exceeded expectations. data center leasing revenue more than tripled from last year's first quarter. The pipeline hasn't slowed at all and going into Q2 the pipeline is actually stronger than we would have expected it to be at the beginning of the year.	Bearish-Leaning Quotes (Short)operating profit declined due to lower incentive fees and promote income. growth will still decelerate going into the second half, given we're working against tough comparisons. Capital investment is 1 of those things that tends to slow down a little bit when there is some uncertainty. It can get really expensive really fast if you don't control who has the access to use it and what they can use it for.	HiringCBRE is experiencing challenges in hiring enough skilled people for its critical infrastructure business. The company is building a capability in multiple U.S. cities to recruit, train, and place technical people to support Meta's data center initiatives. CBRE anticipates some job loss in certain areas due to AI initiatives aimed at creating efficiencies, specifically mentioning rationalizing call center staff by as much as 25%, and cutbacks in research, human resources, and financial planning and analysis. These headcount reductions are anticipated to happen a few years from now versus immediately.