Cushman & Wakefield Q2 2026 Earnings: Leasing Drives 11% Revenue Growth

Cushman & Wakefield (NYSE: CWK) reported second-quarter 2026 revenue of $2.76 billion, up 11% year over year, while diluted EPS fell to $0.22 from $0.25. Leasing revenue rose 27% and Services grew 8%, helping adjusted EBITDA increase 14% even as GAAP net income declined 8%. The company raised its full-year adjusted EPS growth guidance following the quarter.

Core Earnings Data

The results, released on August 5, cover the three months ended June 30, 2026. Revenue and operating income increased, but higher interest expense, taxes and other costs prevented that operating growth from reaching the bottom line.

Adjusted results showed a different trend: adjusted EBITDA and adjusted net income both grew faster than revenue. The following changes are based on reported U.S. dollar results.

Adjusted EBITDA, adjusted net income and adjusted EPS are non-GAAP measures. Revenue increased 11% in both reported and local-currency terms, while adjusted EBITDA grew 13% in local currency.

Business and Segment Performance

Services and Leasing generated most of the quarterly revenue increase. Leasing produced the fastest growth, while Capital markets was the only service line to report lower revenue.

Services benefited from new client wins and expanded mandates. Facilities management revenue increased by approximately $55 million, while project management revenue rose by approximately $27 million in the Americas and $20 million in EMEA.

Leasing growth came primarily from the Americas and extended across deal sizes. Office and industrial leasing remained areas of strength, including data centers, as demand for higher-quality assets supported activity.

Capital markets revenue declined because the Americas business fell 6%, primarily due to fewer mid-sized transactions in the multifamily sector. Improved activity in EMEA and APAC partially offset that weakness.

Adjusted Earnings Rose While GAAP Net Income Fell

Cushman & Wakefield converted its revenue growth into higher operating income and adjusted EBITDA, but not higher GAAP net income. Its operating margin was approximately 4.9% in both periods, with a slight year-over-year decline, while adjusted EBITDA margin improved to about 6.6% from 6.5%.

Total costs of services increased 12% to $2.25 billion, slightly faster than revenue. Cost of services provided to clients included an approximately $120 million increase in employment costs, reflecting higher brokerage commissions and salaries associated with Services growth. Operating, administrative and other expenses increased 10% to $349.3 million because of higher compensation, occupancy costs, strategic investments and inflation.

Below operating income, net interest expense rose 12% to $59.6 million. That included $4.5 million of credit agreement amendment costs and a $2.0 million loss related to the partial redemption of senior secured notes. Other income fell to $0.4 million from $6.4 million, partly because unrealized losses on real estate investments increased by $3.4 million.

The tax provision also rose 30% to $24.6 million even though pretax income increased only 1%. The company attributed the higher tax expense to the geographic mix of earnings and discrete adjustments, including higher accruals for uncertain tax positions. These factors help explain why adjusted EBITDA rose 14% while GAAP net income declined 8%.

Debt Refinancing and Liquidity

The quarter’s refinancing produced immediate transaction costs but reduced the borrowing spread and extended the maturity of the company’s term loan. Cushman & Wakefield repriced the loan by 50 basis points to one-month Term SOFR plus 2.25%, extended its maturity to 2033 and increased its principal by $352.5 million.

The proceeds helped redeem part of the senior secured notes due in 2028. Together with a separate redemption in May, the company reduced the notes’ outstanding principal by $450 million during the quarter.

At June 30, Cushman & Wakefield had $1.5 billion of liquidity, consisting of $500 million in cash and cash equivalents and $1.0 billion available under an undrawn revolving credit facility. Term loans totaled $2.0 billion, senior secured notes totaled $600 million and net debt was $2.1 billion. After the quarter, the company redeemed another $50 million of its 2028 notes on August 4, leaving $150 million outstanding.

Earnings Guidance

Cushman & Wakefield raised its 2026 adjusted EPS growth target, increasing both ends of the range by three percentage points. Management cited record second-quarter Leasing, Services and total revenue when announcing the revision.

The guidance applies to adjusted EPS growth rather than a specific per-share amount.

Recent Insider Transaction

The supplied insider transaction information identifies one recent entry with an explicit sale price and value. No reason for the transaction was provided, so it should not be interpreted as a statement about the company’s outlook.

Risks Investors Should Watch

• Capital markets weakness: Revenue from the service line declined 1%, including a 6% decrease in the Americas. Continued weakness in mid-sized and multifamily transactions could limit overall growth.
• Cost growth and margin conversion: Costs of services rose faster than revenue, while higher compensation, occupancy expenses, strategic investments and inflation contributed to a slight reduction in operating margin.
• Debt and interest burden: Net debt remained $2.1 billion at quarter-end, and net interest expense increased 12%. The lower term-loan spread may help future borrowing costs, but debt service remains an important factor in converting operating income into net income.
• Credit-loss exposure: The Greystone joint venture recorded a $9.0 million non-cash provision for loan losses during the quarter, of which Cushman & Wakefield recognized $3.6 million based on its 40% interest. Changes in loan-loss expectations could affect future equity-method results.
• Tax variability: The sharp increase in tax expense reflected the geographic mix of earnings and discrete adjustments, creating another source of potential volatility in GAAP net income.

Summary

Cushman & Wakefield’s second-quarter growth was led by Leasing and Services, supporting higher operating income, adjusted EBITDA and an increase in full-year adjusted EPS growth guidance. However, higher interest expense, taxes, real estate investment losses and operating costs caused GAAP net income to decline. Future results will depend on whether the company can sustain leasing and services momentum while improving profit conversion, managing debt costs and stabilizing Capital markets activity.