Jefferies reiterated a Buy rating on CBRE Group (NYSE:CBRE) and left its price target at $187.00 on Thursday. The firm’s action comes as CBRE reported quarterly results that beat on core earnings per share but showed a mixed revenue picture across business lines.
At a market capitalization of $42.1 billion and a share price of $142.78, InvestingPro’s assessment flags the stock as slightly undervalued according to its Fair Value framework. That valuation signal sits alongside operational metrics that both support and complicate the investment case.
CBRE posted fourth-quarter core EPS of $2.73, ahead of Jefferies’ $2.67 projection and the consensus expectation of $2.72. Net revenue for the quarter was $6,978 million - modestly beneath Jefferies’ $7,014 million forecast but above the consensus of $6,925 million. Over the last twelve months the company reported diluted EPS of $4.05 and annual revenue of $39.33 billion, which corresponds to 14.6% year-over-year growth.
Segment performance and margins
Advisory Services expanded 13.4% year-over-year, with leasing up 13.9% and sales rising 18.5%. Within leasing, industrial, data centers, and office properties were the primary drivers. Capital Markets activity was likewise supported by office, industrial, and data center transactions.
CBRE’s Business Outsourcing Enterprises (BOE) showed accelerated momentum, with net revenues increasing 19.4% year-over-year compared with 15.7% growth in the prior quarter. By contrast, the Real Estate Investments segment materially underperformed expectations, generating $220 million in revenue versus Jefferies’ $337 million estimate and the Street’s $307 million estimate.
InvestingPro analysis highlights the company’s gross profit margins at 19.3%, a metric that may help explain the shortfall in the investments business relative to forecasts. CBRE’s overall balance-sheet and stability metrics remain strong, with an Altman Z-Score of 4.44 indicating solid financial health.
Guidance and valuation
Management issued 2026 core EPS guidance of $7.30 to $7.60. The midpoint of that range, $7.45, exceeds both Jefferies’ and consensus estimates. The guidance is built on the expectation of double-digit growth across services: low-teens growth in Advisory revenues, mid-teens growth in BOE, and low-teens growth in Project Management.
Despite guidance and segment momentum, the shares trade at a price-to-earnings ratio of 37.22 on near-term earnings, a multiple that is high relative to the company’s immediate earnings trajectory. For investors assessing valuation alongside growth assumptions, that premium multiple is a key consideration.
Additional quarter details and market reaction
In other reporting around the fourth-quarter 2025 results, CBRE disclosed an EPS of $2.73, beating analyst expectations of $2.68. Quarterly revenue was reported at $11.6 billion, slightly below the $11.67 billion projection. These results drew a positive reaction from market participants, with the stock noted to have risen in pre-market trading following the announcements. Analyst shops have not issued recent upgrades or downgrades tied to these releases.
Taken together, the quarter presents a mixed but constructive reading: earnings outperformance and healthy segment growth balanced against pockets of revenue shortfall and a relatively rich valuation multiple.
What to watch next
- Execution on management’s 2026 assumptions across Advisory, BOE, and Project Management.
- Whether the Real Estate Investments segment can recover toward consensus-level revenues and improve gross profit contribution.
- How the market continues to price growth against a P/E of 37.22 as near-term earnings and margin trends become clearer.