Cushman & Wakefield NYSE: CWK reported third-quarter 2026 revenue of $2.8 billion, up 8% from a year earlier, as growth in leasing and capital markets helped drive the commercial real estate services company’s seventh consecutive quarter of double-digit earnings growth.
Adjusted earnings before interest, taxes, depreciation and amortization rose 16% to $184 million, while adjusted earnings per share increased 28% to $0.37. CEO Michelle MacKay said the company recorded its highest third-quarter revenue on record.
Unless otherwise noted, year-over-year comparisons discussed on the earnings call were in local currency.
Leasing and capital markets lead growth
Global leasing revenue rose 15%, including a 19% increase in the Americas. CFO Neil Johnston said growth in the Americas spanned deal sizes, with several large leases closing earlier than expected. Industrial leasing was particularly strong, while office demand benefited from occupiers seeking high-quality space, he said.
Leasing revenue increased 5% in Asia Pacific but fell 8% in Europe, the Middle East and Africa, or EMEA. Johnston attributed the EMEA decline primarily to geopolitical and macroeconomic uncertainty.
Global capital markets revenue grew 18%, with a 24% increase in the Americas. MacKay said the third-quarter increase was not the result of deals delayed from the second quarter and was largely tied to office and industrial assets. Asia Pacific capital markets revenue rose 18%, while EMEA declined 21%.
MacKay said the company had seen minimal impact on its capital markets pipeline from the recent rise in interest rates, although some deals were being repriced and could take longer to close. She said multifamily, a more rate-sensitive segment, represented less than 15% of the company’s capital markets revenue this year.
Adjusted EBITDA increased 17% in the Americas and 41% in Asia Pacific, but declined in EMEA because of lower brokerage revenue, Johnston said. He added that brokerage weakness in EMEA was concentrated in larger markets including the U.K., France and Italy, while the U.K. services business performed strongly.
Services expand as contract mix shifts
Services revenue, which MacKay said accounted for 66% of company revenue, increased 5% globally. Project management revenue rose 10%, and facilities management grew 7%.
In the Americas, services revenue increased 1%. Johnston said project management growth was partly offset by slower multifamily property management activity and lower pass-through costs as more work shifted to services performed by the company itself. Excluding lower pass-through costs, Americas services fee revenue grew 5%. Johnston expects a similar contract mix dynamic in the fourth quarter.
Johnston attributed the property management slowdown to client transitions a year earlier. He said the business has a new leadership team and that the company is seeing improved results as it looks toward the fourth quarter.
MacKay identified data centers as a growing services opportunity, particularly in project and facilities management, but said the asset class remains a small part of the business. Data centers accounted for about 3% of Americas leasing revenue in the third quarter, she said.
Debt repayment creates flexibility
The company redeemed the remaining $150 million of its 2028 notes on October 21, roughly eight months ahead of its earlier target. MacKay said Cushman & Wakefield has repaid more than $800 million in debt since the start of 2024.
Net leverage at the end of the third quarter was 2.9 times, down from 3.4 times a year earlier. The company had approximately $500 million in cash and cash equivalents and $1.5 billion in total liquidity.
Trailing 12-month free cash flow was $200 million, up $36 million from the prior-year period. That represented 60% of adjusted net income, at the low end of the company’s 60% to 80% target range. Johnston attributed the result primarily to working capital movements and said he expects conversion to move back toward the midpoint by year-end.
MacKay said the company plans a more balanced approach to capital allocation, including organic investment, selective acquisitions and the option of measured share repurchases. She also said the company remains committed to redeeming an additional $200 million to $400 million of debt over time, with a goal of achieving investment-grade credit ratings.
Full-year outlook maintained
Cushman & Wakefield maintained its 2026 adjusted earnings-per-share growth target of 18% to 23% and continued to expect revenue growth at the middle to high end of its 6% to 8% target range.
Asked about the company’s longer-term targets of 15% to 20% earnings-per-share growth and 6% to 8% fee revenue growth, MacKay said she was “highly confident” in its ability to deliver those results in 2027.
Johnston said the company expects approximately 150 basis points of margin expansion over its three-year plan, with more modest expansion early in the period as it invests in services and brokerage.
About Cushman & Wakefield (NYSE:CWK)
Cushman & Wakefield plc NYSE: CWK is a global commercial real estate services company that provides advisory, transaction, and property-related solutions to property owners, occupiers, investors, and developers. The company serves clients across office, industrial, retail, multifamily, hospitality, and other real estate sectors.
Its services include leasing and tenant representation, capital markets and investment sales, valuation and advisory, property and facilities management, project and development services, and workplace and portfolio consulting.
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