Cushman & Wakefield Reports Financial Results for the Third Quarter 2026
NEW YORK--(BUSINESS WIRE)--#CRE--Cushman & Wakefield Ltd. (NYSE: CWK) today reported financial results for the third quarter of 2026. Diluted earnings per share (“EPS”) was $0.22, flat with prior year, while Adjusted EPS was $0.37, up 28%.
“Today we reported our seventh consecutive quarter of double-digit adjusted earnings per share growth, showcasing the power of our balanced platform and strategy. With $800 million in debt paydowns since 2024 our balance sheet has been transformed, and we enter this next stage of growth with increased strength, stability and optionality,” said Michelle MacKay, Chief Executive Officer of Cushman & Wakefield. “In three years, we have built a more agile and future-ready company, and the opportunity in front of us has never been greater. Our teams have consistently delivered, and we will continue to focus on converting the strength we have built into durable, profitable long-term growth.”
Summary Financial Results:
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||||
(in millions, except per share data) |
| 2026 |
| 2025 |
% Change
|
% Change
|
|
| 2026 |
| 2025 |
% Change
|
% Change
| ||||
Revenue | $ | 2,807.8 | $ | 2,605.9 | 8 | % | 8 | % |
| $ | 8,106.2 | $ | 7,374.4 | 10 | % | 9 | % |
Gross contract costs | $ | 1,119.0 | $ | 1,088.7 | 3 | % | 3 | % |
| $ | 3,335.4 | $ | 3,099.8 | 8 | % | 7 | % |
Net income | $ | 52.1 | $ | 51.4 | 1 | % | 3 | % |
| $ | 92.2 | $ | 110.6 | (17 | )% | (14 | )% |
Adjusted EBITDA(1) | $ | 183.7 | $ | 159.6 | 15 | % | 16 | % |
| $ | 478.6 | $ | 417.5 | 15 | % | 15 | % |
Adjusted net income(1) | $ | 87.8 | $ | 68.1 | 29 | % |
|
| $ | 206.2 | $ | 158.1 | 30 | % |
| ||
EPS, diluted | $ | 0.22 | $ | 0.22 | 0 | % |
|
| $ | 0.39 | $ | 0.47 | (17 | )% |
| ||
Adjusted EPS(1) | $ | 0.37 | $ | 0.29 | 28 | % |
|
| $ | 0.87 | $ | 0.68 | 28 | % |
| ||
Third Quarter Highlights:
- Leasing revenue increased 15% (15% in local currency), principally driven by 19% growth in the Americas spread across all deal sizes, with continued strength in office and industrial leasing, including data centers.
- Capital markets revenue increased 18% (18% in local currency), primarily due to 24% revenue growth in the Americas, which experienced growth in all major asset classes.
- Services revenue increased 5% (5% in local currency), reflecting growth across all segments, led by higher global facilities management revenue and project management revenue, especially in EMEA and APAC.
- EPS remained flat while Adjusted EPS grew 28%. Maintaining full year 2026 Adjusted EPS guidance range of 18%-23% growth.
- For the trailing twelve months ended September 30, 2026, Net cash provided by operating activities was $281.7 million and Free cash flow was $200.2 million.
(1) | See the “Use of Non-GAAP Financial Measures” section at the end of this release for the (i) reconciliation of Net income to Adjusted EBITDA, (ii) reconciliation of Net income to Adjusted net income and Adjusted earnings per share (“Adjusted EPS”), and (iii) definition of, and a description of the purposes for which management uses, these non-GAAP financial measures. | |
(2) | In order to assist our investors and improve comparability of results, we present the period-over-period changes in our results of operations and certain non-GAAP financial measures in “local” currency. The local currency figures represent the period-over-period change assuming no movement in foreign exchange rates from the prior period. We believe that this provides our management and investors with another important view of comparability and trends in the underlying operating business. | |
Consolidated Results (unaudited)
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||||||||
(in millions, except per share data) |
| 2026 |
|
| 2025 |
|
% Change
|
% Change
|
|
| 2026 |
|
| 2025 |
|
% Change
|
% Change
| ||||
Revenue: |
|
|
|
|
|
|
|
|
| ||||||||||||
Services | $ | 1,821.7 |
| $ | 1,737.0 |
| 5 | % | 5 | % |
| $ | 5,365.7 |
| $ | 5,008.5 |
| 7 | % | 6 | % |
Leasing |
| 625.9 |
|
| 544.7 |
| 15 | % | 15 | % |
|
| 1,752.1 |
|
| 1,456.2 |
| 20 | % | 20 | % |
Capital markets |
| 241.3 |
|
| 205.2 |
| 18 | % | 18 | % |
|
| 629.3 |
|
| 570.9 |
| 10 | % | 10 | % |
Valuation and other |
| 118.9 |
|
| 119.0 |
| 0 | % | 0 | % |
|
| 359.1 |
|
| 338.8 |
| 6 | % | 4 | % |
Total revenue | $ | 2,807.8 |
| $ | 2,605.9 |
| 8 | % | 8 | % |
| $ | 8,106.2 |
| $ | 7,374.4 |
| 10 | % | 9 | % |
Costs and expenses: |
|
|
|
|
|
|
|
|
| ||||||||||||
Gross contract costs(1) | $ | 1,119.0 |
| $ | 1,088.7 |
| 3 | % | 3 | % |
| $ | 3,335.4 |
| $ | 3,099.8 |
| 8 | % | 7 | % |
Cost of services provided to clients |
| 1,202.5 |
|
| 1,063.3 |
| 13 | % | 13 | % |
|
| 3,351.8 |
|
| 2,969.1 |
| 13 | % | 11 | % |
Total costs of services |
| 2,321.5 |
|
| 2,152.0 |
| 8 | % | 8 | % |
|
| 6,687.2 |
|
| 6,068.9 |
| 10 | % | 9 | % |
Operating, administrative and other |
| 329.6 |
|
| 320.6 |
| 3 | % | 3 | % |
|
| 1,015.7 |
|
| 944.7 |
| 8 | % | 7 | % |
Depreciation and amortization |
| 26.8 |
|
| 25.8 |
| 4 | % | 4 | % |
|
| 80.6 |
|
| 78.7 |
| 2 | % | 1 | % |
Restructuring, impairment and related charges |
| — |
|
| — |
| 0 | % | 0 | % |
|
| — |
|
| 6.5 |
| (100 | )% | (100 | )% |
Total costs and expenses |
| 2,677.9 |
|
| 2,498.4 |
| 7 | % | 7 | % |
|
| 7,783.5 |
|
| 7,098.8 |
| 10 | % | 9 | % |
Operating income |
| 129.9 |
|
| 107.5 |
| 21 | % | 22 | % |
|
| 322.7 |
|
| 275.6 |
| 17 | % | 18 | % |
Interest expense, net of interest income |
| (49.2 | ) |
| (56.0 | ) | (12 | )% | (12 | )% |
|
| (157.9 | ) |
| (161.5 | ) | (2 | )% | (3 | )% |
Earnings (loss) from equity method investments |
| 5.2 |
|
| (8.6 | ) | n.m. | n.m. |
|
| 3.4 |
|
| 2.7 |
| 26 | % | 10 | % | ||
Other (expense) income, net |
| (2.2 | ) |
| 2.2 |
| n.m. | n.m. |
|
| (16.8 | ) |
| 9.5 |
| n.m. | n.m. | ||||
Earnings before income taxes |
| 83.7 |
|
| 45.1 |
| 86 | % | 88 | % |
|
| 151.4 |
|
| 126.3 |
| 20 | % | 23 | % |
Provision for (benefit from) income taxes |
| 31.6 |
|
| (6.3 | ) | n.m. | n.m. |
|
| 59.2 |
|
| 15.7 |
| n.m. | n.m. | ||||
Net income | $ | 52.1 |
| $ | 51.4 |
| 1 | % | 3 | % |
| $ | 92.2 |
| $ | 110.6 |
| (17 | )% | (14 | )% |
Adjusted EBITDA(2) | $ | 183.7 |
| $ | 159.6 |
| 15 | % | 16 | % |
| $ | 478.6 |
| $ | 417.5 |
| 15 | % | 15 | % |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Adjusted net income(2) | $ | 87.8 |
| $ | 68.1 |
| 29 | % |
|
| $ | 206.2 |
| $ | 158.1 |
| 30 | % |
| ||
|
|
|
|
|
|
|
|
|
| ||||||||||||
Weighted average shares outstanding, basic |
| 234.7 |
|
| 231.5 |
| 1 | % |
|
|
| 234.0 |
|
| 231.1 |
| 1 | % |
| ||
Weighted average shares outstanding, diluted |
| 237.2 |
|
| 235.9 |
| 1 | % |
|
|
| 236.3 |
|
| 233.8 |
| 1 | % |
| ||
Earnings per share (“EPS”), basic | $ | 0.22 |
| $ | 0.22 |
| 0 | % |
|
| $ | 0.39 |
| $ | 0.48 |
| (19 | )% |
| ||
EPS, diluted | $ | 0.22 |
| $ | 0.22 |
| 0 | % |
|
| $ | 0.39 |
| $ | 0.47 |
| (17 | )% |
| ||
Adjusted EPS(2) | $ | 0.37 |
| $ | 0.29 |
| 28 | % |
|
| $ | 0.87 |
| $ | 0.68 |
| 28 | % |
| ||
| n.m. not meaningful | ||
(1) | Gross contract costs represents reimbursed client costs including client-dedicated labor, subcontractor costs and third-party consumables. These costs are presented on a gross basis in total costs and expenses (with the corresponding fees in revenue) and primarily relate to Services. | |
(2) | See the “Use of Non-GAAP Financial Measures” section at the end of this release for the (i) reconciliation of Net income to Adjusted EBITDA, (ii) reconciliation of Net income to Adjusted net income and Adjusted EPS, and (iii) definition of, and a description of the purposes for which management uses, these non-GAAP financial measures. | |
(3) | In order to assist our investors and improve comparability of results, we present the period-over-period changes in our results of operations and certain non-GAAP financial measures in “local” currency. The local currency figures represent the period-over-period change assuming no movement in foreign exchange rates from the prior period. We believe that this provides our management and investors with another important view of comparability and trends in the underlying operating business. | |
Third Quarter Results (unaudited)
Revenue
Revenue of $2.8 billion increased $201.9 million or 8% compared to the three months ended September 30, 2025, primarily driven by Services, Leasing and Capital markets revenue growth of 5%, 15% and 18%, respectively. Services revenue was strong across all segments, led by higher global facilities management revenue, which increased approximately $53.0 million, including through new client wins and the expansion of existing client mandates, and higher project management revenue, especially in EMEA and APAC, which increased approximately $10.0 million and $8.0 million, respectively. Leasing revenue increased principally driven by broad-based strength in the Americas as demand for high-quality assets remained strong, driving growth across all deal sizes, with continued strength in office and industrial leasing, including data centers. Capital markets revenue increased 18%, primarily due to 24% revenue growth in the Americas, which experienced growth in all major asset classes. Valuation and other revenue was relatively flat.
Costs of services
Costs of services of $2.3 billion increased $169.5 million or 8% compared to the three months ended September 30, 2025. Gross contract costs increased $30.3 million or 3%, principally driven by an increase in reimbursed client-dedicated labor costs, third-party consumables and subcontractor costs. Cost of services provided to clients increased $139.2 million or 13%, primarily due to an increase in employment costs of approximately $119.0 million, including higher commissions associated with higher brokerage revenue and higher salaries as a result of higher Services revenue.
Operating, administrative and other
Operating, administrative and other expenses of $329.6 million increased $9.0 million or 3% compared to the three months ended September 30, 2025, driven by an increase in employment costs of approximately $9.0 million, largely due to higher salaries and bonuses, as well as strategic investments and cost inflation.
Interest expense, net of interest income
Interest expense, net of interest income of $49.2 million decreased $6.8 million or 12% compared to the three months ended September 30, 2025, primarily driven by lower outstanding principal balances on our debt following optional principal prepayments on our term loans made in 2025 and partial redemptions of the senior secured notes due in 2028 (the “2028 Notes”) in 2026, as well as lower interest rates on our term loans compared to the prior period as a result of repricings in 2025 and 2026.
Earnings (loss) from equity method investments
Earnings from equity method investments was $5.2 million for the three months ended September 30, 2026 compared to loss from equity method investments of $8.6 million for the three months ended September 30, 2025. The $13.8 million improvement in Earnings (loss) from equity method investments was primarily due to an increase of $13.5 million recognized from our equity method investment in Cushman Wakefield Greystone LLC (the “Greystone JV”) largely driven by lower provisions for credit losses for mortgage loans compared to the third quarter of 2025. In the third quarter of 2026, the Greystone JV recorded a non-cash provision for loan losses of $3.5 million, of which the company recorded $1.4 million based on its 40% equity interest which was included within Earnings (loss) from equity method investments. Changes in expectations and forecasts may materially impact the provision for loan losses in the future.
Other (expense) income, net
Other expense, net was $2.2 million for the three months ended September 30, 2026 compared to other income, net of $2.2 million for the three months ended September 30, 2025. The $4.4 million decline was principally driven by a higher net unrealized loss on our real estate investments of $4.8 million.
Provision for (benefit from) income taxes
Provision for income taxes for the third quarter of 2026 was $31.6 million on earnings before income taxes of $83.7 million. For the third quarter of 2025, the benefit from income taxes was $6.3 million on earnings before income taxes of $45.1 million. The change from income tax benefit to income tax expense was primarily attributable to higher earnings before income taxes and changes in the jurisdictional mix of those earnings, as well as favorable discrete tax benefits recognized in the third quarter of 2025, including the non-recurring release of valuation allowances in the United Kingdom (“U.K.”) on certain deferred tax assets.
Net income and Adjusted EBITDA
Net income of $52.1 million increased $0.7 million or 1% compared to the three months ended September 30, 2025. The increase in net income was principally driven by growth in our Services, Leasing and Capital markets service lines, lower interest expense and higher earnings from equity method investments, partially offset by a higher net unrealized loss on real estate investments, higher income tax expense, strategic investments and cost inflation.
Adjusted EBITDA of $183.7 million increased $24.1 million or 15% compared to the three months ended September 30, 2025, attributable to the same factors impacting Net income above, with the exception of interest expense, the impact of the Greystone JV, net unrealized losses on real estate investments and income taxes.
Year-to-Date Results (unaudited)
Revenue
Revenue of $8.1 billion increased $731.8 million or 10% compared to the nine months ended September 30, 2025, primarily driven by Services and Leasing revenue growth of 7% and 20%, respectively. Services revenue was strong across all segments, led by higher facilities management revenue, which increased approximately $186.0 million, including through new client wins and the expansion of existing client mandates, and higher project management revenue of approximately $113.0 million. Leasing revenue increased driven by growth in the Americas across all deal sizes, with continued strength in office and industrial leasing, including data centers, as demand for high-quality assets remained strong. Capital markets revenue increased 10%, attributable to growth in the Americas, reflecting our ongoing investments in hiring top talent and strengthening our platform. Valuation and other revenue increased 6%.
Costs of services
Costs of services of $6.7 billion increased $618.3 million or 10% compared to the nine months ended September 30, 2025. Gross contract costs increased $235.6 million or 8%, principally driven by an increase in reimbursed client-dedicated labor costs, third-party consumables and subcontractor costs. Nearly all of Gross contract costs related to Services. Cost of services provided to clients increased $382.7 million or 13%, primarily due to an increase in employment costs of approximately $332.0 million, including higher commissions associated with higher brokerage revenue and higher salaries as a result of higher Services revenue. Of the $382.7 million increase in Cost of services provided to clients, $109.5 million related to Services. Total costs of services as a percentage of total revenue was 82% for both the nine months ended September 30, 2026 and 2025.
Operating, administrative and other
Operating, administrative and other expenses of $1.0 billion increased $71.0 million or 8% compared to the nine months ended September 30, 2025, primarily driven by an increase in employment costs of approximately $37.0 million, largely due to higher salaries, as well as higher technology costs, higher occupancy costs, strategic investments and cost inflation. In addition, the company recorded a non-cash servicing liability of $11.8 million related to the revolving accounts receivables securitization program (the “A/R Securitization”) amendment in March 2026. Operating, administrative and other expenses as a percentage of total revenue was 13% for both the nine months ended September 30, 2026 and 2025.
Restructuring, impairment and related charges
The company did not incur any Restructuring, impairment and related charges during the nine months ended September 30, 2026. In the nine months ended September 30, 2025, Restructuring, impairment and related charges of $6.5 million were related to an impairment loss on real estate investments.
Interest expense, net of interest income
Interest expense, net of interest income of $157.9 million decreased $3.6 million or 2% compared to the nine months ended September 30, 2025, primarily driven by lower outstanding principal balances on our debt following optional principal prepayments on our term loans made in 2025 and partial redemptions of the 2028 Notes in 2026, as well as lower interest rates on our term loans compared to the prior period as a result of repricings in 2025 and 2026. These favorable trends were offset by $4.5 million of new transaction costs related to the refinancing of a portion of the borrowings under the credit agreement in June 2026, as well as a total $2.2 million loss on debt extinguishment from the partial redemptions of the 2028 Notes.
Earnings (loss) from equity method investments
Earnings from equity method investments of $3.4 million increased $0.7 million or 26% compared to the nine months ended September 30, 2025, reflecting a $4.5 million improvement in earnings recognized from the Greystone JV, driven primarily by lower provisions for credit losses for mortgage loans compared to the nine months ended September 30, 2025. In the nine months ended September 30, 2026, the Greystone JV recorded a non-cash provision for loan losses of $21.1 million, of which the company recorded $8.4 million based on its 40% equity interest which was included within Earnings (loss) from equity method investments. Changes in expectations and forecasts may materially impact the provision for loan losses in the future. This trend was partially offset by lower earnings from our equity method investment in CWVS Holding Limited (the “Onewo JV”), which declined $2.6 million compared to the nine months ended September 30, 2025, due to higher provisions for credit losses.
Other (expense) income, net
Other expense, net was $16.8 million for the nine months ended September 30, 2026 compared to other income, net of $9.5 million for the nine months ended September 30, 2025. The $26.3 million change was principally due to the non-cash settlement loss of $17.2 million related to a pension buy-out arrangement in the U.K. In addition, the company recognized a higher net unrealized loss from our real estate investments compared to the nine months ended September 30, 2025.
Provision for (benefit from) income taxes
Provision for income taxes for the nine months ended September 30, 2026 was $59.2 million on earnings before income taxes of $151.4 million. For the nine months ended September 30, 2025, the provision for income taxes was $15.7 million on earnings before income taxes of $126.3 million. The increase in income tax expense compared to the nine months ended September 30, 2025 was primarily attributable to higher earnings before income taxes and changes in the jurisdictional mix of those earnings, as well as discrete tax adjustments, including higher accruals associated with uncertain tax positions, return to provision adjustments from various foreign entities and the non-recurring release of valuation allowances in the U.K. on certain deferred tax assets in the third quarter of 2025.
Net income and Adjusted EBITDA
Net income of $92.2 million decreased $18.4 million or 17% compared to the nine months ended September 30, 2025. The decrease in net income was principally driven by the pension buy-out settlement loss, A/R Securitization servicing liability, higher income tax expense, higher technology costs, higher occupancy costs, strategic investments and cost inflation. These unfavorable trends were partially offset by growth in all of our service lines, with particular strength in Services and Leasing.
Adjusted EBITDA of $478.6 million increased $61.1 million or 15% compared to the nine months ended September 30, 2025, attributable to the same factors impacting Net income above, with the exception of the pension buy-out settlement loss, the A/R Securitization servicing liability and income taxes.
Balance Sheet
Liquidity as of September 30, 2026 was $1.5 billion, consisting of availability on the company’s undrawn revolving credit facility of $1.0 billion and cash and cash equivalents of $0.5 billion.
As of September 30, 2026, the company had outstanding term loans of $2.0 billion, senior secured notes totaling $0.6 billion and cash and cash equivalents of $0.5 billion, resulting in net debt of $2.1 billion. See the “Use of Non-GAAP Financial Measures” section in this release for the definition of, and a description of the purposes for which management uses, this non-GAAP financial measure.
On October 21, 2026, the company fully redeemed the remaining $150.0 million principal amount outstanding of the 2028 Notes, completing the retirement of these notes and eliminating the company’s nearest debt maturity. Following the redemption, there are no long-term debt arrangements maturing prior to 2030.
Conference Call
The company’s Third Quarter 2026 Earnings Conference Call will be held today, November 4, 2026, at 9:00 a.m. Eastern Time. A webcast, along with an associated slide presentation, will be accessible through the Investor Relations section of the company’s website at https://ir.cushmanwakefield.com.
Shortly after the call concludes, both an audio replay and a transcript of the call will be available on the company’s Investor Relations website at https://ir.cushmanwakefield.com.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for occupiers and investors with approximately 53,000 employees in over 350 offices and nearly 60 countries. In 2025, the firm reported revenue of $10.3 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements, which rely on a number of estimates, projections and assumptions concerning future events. Such statements are also subject to a number of uncertainties and factors outside the control of the company. Such factors include, but are not limited to, disruptions in general macroeconomic conditions and global and regional demand for commercial real estate; risks associated with sociopolitical polarization and changes in political landscapes; social, geopolitical and economic risks associated with its international operations; foreign currency volatility; the seasonality of significant portions of its revenue and cash flow; its ability to recruit and retain qualified revenue-producing advisors and senior management; its ability to maintain and execute its information technology strategies; the increasing use of artificial intelligence (“AI”) technologies in its operations and client service offerings and the inadequate deployment and governance of these AI technologies; interruption or failure of its information technology, communications systems or data services; its vulnerability to potential breaches in security or other threats related to its information systems; its ability to comply with cybersecurity, AI governance and data privacy laws and regulations and other confidentiality obligations; the concentration of business with specific corporate clients; its ability to preserve, grow and leverage the value of its brand; its ability to compete globally, regionally and locally and its ability to cross-sell its services; the extent to which infrastructure disruptions may affect its ability to provide its services; the failure of its mergers, acquisitions and investments to perform as expected or the lack of future acquisition opportunities; the potential impairment of its goodwill or equity method investments; its ability to comply with new and existing laws, regulations or licensing requirements; changes in tax legislation or tax rates and its ability to make correct determinations in complex and varied tax regimes; incremental tax risk associated with Bermuda’s limited network of international treaties; the failure of third parties performing on its behalf to comply with contract, regulatory or legal requirements; risks related to climate change and with respect to other environmental conditions; restrictions imposed on the company by the agreements governing its indebtedness; its amount of indebtedness and the potential adverse impact on its available cash flow and the operation of its business; its ability to incur more indebtedness; litigation and regulatory risks; the fact that the rights of its shareholders may be limited or otherwise differ in certain respects from the rights afforded to shareholders of a U.
Contacts
INVESTOR RELATIONS
Megan McGrath
Investor Relations
+1 312 338 7860
ir@cushwake.com
MEDIA CONTACT
Aixa Velez
Corporate Communications
+1 312 424 8195
aixa.velez@cushwake.com
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