AI Takeaway
CBRE delivered a strong Q1 FY2026 with revenue surging 18.6% YoY to $10.5B and net income nearly doubling to $318M, though operating cash flow remained negative at -$825M and long-term debt jumped 56.6% YoY.
Revenue
$10.53B
++18.61% YoY
EPS (Basic)
$1.08
++100.00% YoY
Operating Income
$511M
++85.14% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
CBRE posted Q1 FY2026 revenue of $10.53B, up 18.6% from $8.88B in the prior-year period, reflecting broad-based growth across its real estate services segments and continued demand for outsourcing and advisory services.
Source: Source: 10-Q Income Statement, Q1 FY2026
Operating income surged 85.1% YoY to $511M from $276M, with operating margin expanding approximately 175 basis points to 4.85%, indicating meaningful operating leverage as revenue growth outpaced cost increases.
Source: Source: 10-Q Income Statement & Key Ratios, Q1 FY2026
Cost of revenue rose 19.4% YoY to $8.68B, slightly outpacing revenue growth of 18.6%, which compressed gross profit margins modestly and underscores ongoing cost pressures in service delivery.
Source: Source: 10-Q Income Statement, Q1 FY2026
2 more insights available
Upgrade to unlockLong-term debt increased 56.6% YoY to $5.02B, resulting in a debt-to-equity ratio of 2.45x. This elevated leverage increases CBRE's sensitivity to interest rate movements and could constrain financial flexibility if market conditions deteriorate.
Source: Source: 10-Q Balance Sheet, Q1 FY2026
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.61 versus the $1.15 analyst consensus — a +39.8% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $10.53B | $8.88B | +18.61% |
Cost of Revenue | $8.68B | $7.26B | +19.41% |
Operating Income | $511M | $276M | +85.14% |
Net Income | $318M | $163M | +95.09% |
EPS (Basic) | $1.08 | $0.54 | +100.00% |
EPS (Diluted) | $1.07 | $0.54 | +98.15% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $30.17B | $26.37B | +14.43% |
Current Assets | $12.73B | $10.83B | +17.57% |
Total Liabilities | $20.86B | $17.36B | +20.16% |
Current Liabilities | $11.75B | $10.87B | +8.14% |
Stockholders' Equity | $8.52B | $8.28B | +2.87% |
Cash & Equivalents | $1.66B | $1.38B | +20.41% |
Long-Term Debt | $5.02B | $3.21B | +56.56% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-825M | $-546M | -51.10% |
Investing Cash Flow | $64M | $-462M | +113.85% |
Financing Cash Flow | $545M | $1.26B | -56.61% |
Share Buybacks | $530M | $418M | +26.79% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 4.9% | 3.1% | +1.74% |
Net Margin | 3.0% | — | — |
ROE | 3.7% | — | — |
ROA | 1.1% | — | — |
Current Ratio | $1.083 | — | — |
Debt to Equity | $2.449 | — | — |
Other companies in Real Estate Services
CBRE had a strong Q1 FY2026, with revenue rising 18.6% YoY to $10.53B and net income nearly doubling to $318M. Diluted EPS came in at $1.07, up 98.1% from $0.54 in Q1 FY2025, reflecting significant operating leverage.
CBRE's operating income jumped 85.1% YoY to $511M in Q1 FY2026, as revenue growth of 18.6% outpaced the increase in operating costs, expanding the operating margin from 3.11% to 4.85%. This reflects improved efficiency and scale across its real estate services business.
Yes, CBRE's operating cash flow was -$825M in Q1 FY2026, worse than -$546M in Q1 FY2025, which is a seasonal pattern but still notable. Combined with $530M in share buybacks and a 56.6% YoY surge in long-term debt to $5.02B, investors should monitor the company's liquidity position closely.
CBRE's long-term debt stood at $5.02B as of Q1 FY2026, a 56.6% increase from $3.21B a year earlier, pushing the debt-to-equity ratio to 2.45x. This elevated leverage is a key risk factor for the company going forward.
The most significant risks for CBRE in Q1 FY2026 include its sharply rising long-term debt (up 56.6% YoY to $5.02B), persistent negative operating cash flow (-$825M), and a thin net margin of just 3.02% that leaves little room for error if revenue growth slows. The current ratio of only 1.08x also signals limited short-term liquidity cushion.