CBRE earnings analysis
What we found in CBRE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
CBRE reported quarterly revenue of $10,527.0 million, up 18.6% year-over-year, driving consolidated operating income of $511 million (4.9% margin) and net income attributable to CBRE of $318 million. Core EBITDA rose to $831 million from $518 million a year earlier, while costs (cost of revenue ex pass-through, operating expenses and D&A) increased materially. Management continues share repurchases and expects up to $500 million of capital expenditures in 2026.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Top-line growth
- Revenue increased 18.6% YoY to $10,527 million (from $8,875 million in Q1 2025).
- Operating income and margin expansion
- Operating income rose to $511 million (4.9% of revenue) from $276 million (3.1% of revenue) in the prior-year quarter.
- Core EBITDA expansion
- Core EBITDA increased to $831 million in Q1 2026 from $518 million in Q1 2025.
- Segment strength — BOE and Advisory
- BOE revenue grew 20.4% YoY to $6,491 million and Advisory Services revenue grew 22.0% YoY to $2,024 million; Project Management revenue rose 15.3% to $1,838 million.
- Monetization gain boosted results
- Gain on disposition of real estate increased by $301 million (consolidated gain of $301 million recorded in the quarter), contributing to REI operating income and consolidated results.
- Capital allocation — buybacks and capex
- Management repurchased $531 million of stock in Q1 2026 (and deployed $538 million to repurchase 3,639,682 shares as of April 21, 2026) and incurred $81 million of capital expenditures in the quarter; they expect up to $500 million of capital expenditures for 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Rising operating and cost pressure
- Cost of revenue (excluding pass-through costs) increased 21.9% YoY to $4,227 million and operating, administrative and other expenses rose 22.5% YoY to $1,460 million, pressuring margins.
- Pass-through cost exposure
- Pass-through costs increased 17.1% YoY to $4,448 million and represented 42.3% of revenue in the quarter, adding volatility tied to client-reimbursed spend.
- Higher depreciation & amortization
- Depreciation and amortization expense increased 28.2% YoY to $182 million, driven by intangible amortization from recent acquisitions.
- Higher tax burden
- Provision for income taxes rose to $112 million (effective tax rate 24.7%) from $52 million (21.4%) in Q1 2025, increasing the tax headwind to earnings.
- Interest expense and funding mix
- Interest expense, net of interest income, increased 18.0% YoY to $59 million, driven by higher commercial paper borrowings; available capacity under revolving credit facilities was $2.7 billion as of March 31, 2026.
- REI revenue contraction
- Real Estate Investments revenue decreased 14.6% YoY to $199 million (from $233 million), though REI benefited this quarter from a gain on disposition.
What they reported.
What the company itself reported, taken out of the document.
- Operating margin
- 4.9%
- Segment
- Building Operations & Experience: $6,491 million (up 20.4% YoY from $5,393 million)
- Segment
- Advisory Services: $2,024 million (up 22.0% YoY from $1,659 million)
- Segment
- Project Management: $1,838 million (up 15.3% YoY from $1,594 million)
- Segment
- Real Estate Investments: $199 million (down 14.6% YoY from $233 million)
- Segment
- Corporate and Other / Eliminations: $(25) million (vs $(4) million prior year)
What they said about what is next.
The 10-Q does not provide numeric revenue or EPS guidance. Management discloses expected 2026 capital expenditures of up to $500 million, incurred $81 million of capex in Q1 2026, and notes the impact of OECD Pillar Two top-up taxes is 'expected to be insignificant for 2026.' The filing also states $4.3 billion remained available for share repurchases under the 2024 program as of March 31, 2026 and that $214 million of aggregate future co-investment commitments exist (approximately $100 million expected to be funded in 2026).
The filing reads better than the one before it.
What came before.
- 10-K · February 12, 2026
- CBRE emphasizes scale and an integrated platform as its competitive moat, citing operations in more than 100 countries and serving nearly 90% of Fortune 100 companies. Management reorganized services in 2025 (creating…
- 10-Q · October 23, 2025
- CBRE reported a beat in Q3 with revenue of $10,258 million and diluted EPS of $1.21, up materially versus the comparable 2024 quarter. Operating income rose to $481 million (4.7% operating margin) driven by higher…
- 10-Q · April 24, 2025
- CBRE reported quarterly revenue of $8,910 million (up $975 million, +12.3% YoY vs $7,935 million) and GAAP diluted EPS of $0.54 (up $0.13, +31.7% YoY vs $0.41). Operating income rose to $276 million (vs $204 million a…
- 10-K · February 14, 2025
- CBRE emphasizes scale, integration and diversification as its core strategy — highlighting global leadership across services, a broad platform and targeted investments to expand resilient revenuestreams. The filing…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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