CBRE Group, Inc. (NYSE: CBRE) shares fell 12.5% intraday Thursday. This drop followed earnings amid broader commercial real estate weakness. Therefore, the stock now trades below recent highs. Meanwhile, volatility persists within its 52-week range. For instance, sector sentiment and transaction market swings drive this. Additionally, no analyst upgrades or downgrades appeared alongside the release.
Q4 2025 Results Snapshot
CBRE reported Q4 revenue of $11.63 billion. This marked a 12% year-over-year increase. Specifically, higher leasing, property sales, and facilities management fueled growth. However, GAAP net income dropped to $416 million, down 14.6% YoY. In contrast, core adjusted net income rose to $818 million, up 14.9%.
GAAP EPS fell to $1.39 from $1.58 prior year. Yet, core EPS climbed to $2.73 from $2.32. Leasing revenue surged 14%. For example, EMEA growth led at 26%. Additionally, U.S. leasing posted double-digit gains, thanks to industrial and data center demand. Property sales revenue increased 19%. Meanwhile, mortgage origination revenue rose 18%.
Segment Performance
Building Operations & Experience (BOE) revenue jumped 14.6% to $6.31 billion. Consequently, operating profit rose nearly 20%. Facilities management and property management grew strongly. For instance, Industrious and Pearce Services contributed.
Project Management revenue increased 8.3% to $2.21 billion. At the same time, segment operating profit leaped 34%.
Real Estate Development operating profit surged 46% to $179 million. This came from U.S. data center monetizations. However, Investment Management revenue edged down 1% due to lower incentive fees. Despite this, assets under management (AUM) rose above $155 billion.
Full-Year 2025 Performance
For FY 2025, CBRE delivered revenue of $40.55 billion. This represented a 13% year-over-year rise. GAAP net income reached $1.16 billion, up 19.5%. Similarly, core adjusted net income hit $1.92 billion, up 22.2%. GAAP EPS improved to $3.85 from $3.14. Core EPS advanced to $6.38 from $5.10. Operating cash flow totaled about $1.6 billion. Free cash flow reached roughly $1.7 billion. Both resilient and transactional business lines posted double-digit annual revenue growth. Thus, improved capital markets and outsourcing demand shone through.
Outlook
CBRE forecasts 2026 Core EPS of $7.30 to $7.60. This implies roughly 17% growth at the midpoint. Management highlights sustained leasing momentum. Additionally, outsourcing expansion and infrastructure-related real estate demand drive this. Therefore, key positives enter 2026.
Stock & Trading Context
Despite record revenue and earnings growth, shares weakened that day. However, sector-wide pressure caused this, not earnings-specific issues. For example, no price-target revisions or rating changes emerged with the results.