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JLL reported third-quarter revenue of $7.3 billion, above the consensus estimate of $7.1 billion. Adjusted earnings per share of $6.76 also exceeded the consensus of $6.01.
Revenue rose from $6.5 billion a year earlier, while diluted earnings per share increased to $6.82 from $4.61. JLL’s filing said advisory revenue growth was led by leasing and investment sales, debt and equity advisory. The filing also cited growth in workplace and project management, with new client wins and expanded mandates contributing to workplace management.
The filing said U.S. leasing growth was driven in part by larger average deals, while investment sales growth was led geographically by the U.S. and Japan. Lower incentive and transaction fees reduced investment management revenue.
JLL’s operating margin increased to 5.37% from 4.20% a year earlier. Its filing attributed higher adjusted EBITDA and margin primarily to leasing and capital markets, as well as contributions from real estate management services. Free cash flow was $556.1 million, compared with $567.6 million a year earlier.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $7.3 billion | $6.5 billion | 11.8% |
| Diluted EPS | $6.82 | $4.61 | 48.0% |
| Gross margin | 54.8% | 53.7% | 1.1 percentage points |
| Operating margin | 5.37% | 4.20% | 1.2 percentage points |
| Free cash flow | $556.1 million | $567.6 million | −2.03% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $6.76 | $6.01 | Beat by 12.5% |
| Revenue | $7.3 billion | $7.1 billion | Beat by 2.05% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CFO Kelly Howe said leasing demand spanned industrial, office and data centers, particularly in the U.S. Larger average deals and a few data center transactions drove a 39% increase in U.S. leasing advisory revenue. Asked about data centers, Howe said they contributed about 5% of total third-quarter revenue and that large deal sizes could make their contribution uneven from quarter to quarter.
In capital markets, Howe said investment sales, debt and equity advisory pipelines remained active, although conversion had moderated slightly. She said higher bond yields had led to pricing adjustments and longer decision times in some marketed transactions. CEO Christian Ulbrich added that some deals had been repriced, delayed or lost, and that U.S. multifamily was particularly affected where investors had less ability to offset higher capital costs through income growth.
Howe said higher commission tiers had increased leasing expenses as producers reached those tiers earlier than a year before. She expected that headwind to moderate in the fourth quarter. In property management, she said JLL had completed action on approximately 80% of identified contracts targeted for exit or modification, retaining more than expected on improved terms.
Ulbrich said clients were consolidating suppliers and that JLL was organizing teams across business lines to serve them. He said the company was also redesigning invoicing and collections with AI agents and automation. Asked about AI and fees, he said clients could benefit from savings and JLL could participate in those savings through its fees.
Howe said JLL repurchased $142 million of shares in the quarter and intended to enter a $500 million accelerated share repurchase agreement. Asked about 2027, Ulbrich said the company was still budgeting and it was too early to provide a granular outlook; Howe nevertheless expected growth in leasing and capital markets to moderate against the 2026 comparisons.
Guidance
JLL raised its FY2026 adjusted earnings-per-share target to $25.20 to $26.30. Howe said the range includes nominal expected accretion from remaining share repurchases, including the planned accelerated repurchase.
Howe also raised JLL’s full-year leasing advisory revenue growth target to the high teens, from the mid- to high teens.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| EPS growth, non-GAAP | FY2026 | $0.37 | — | New |
| Share repurchases | FY2026 | $1.0 billion | — | New |
| Revenue, Property Management | FY2027 | JLL expects property management to return to growth over the course of FY2027. | — | — |
| Revenue, Workplace Management | FY2027 | JLL expects workplace management to continue growing in FY2027. | — | — |
| Share repurchases | FY2027 | JLL expects to remain active in share repurchases in FY2027. | — | — |
| Revenue, Investment Management Advisory Fees | FY2027 | JLL expects investment management advisory fees to begin increasing in FY2027. | — | — |
| Revenue, Leasing Advisory | FY2027 | JLL expects revenue growth in its leasing business in FY2027, at a moderated rate. | — | — |
| Revenue, Capital Markets Services | Q4 FY2026 | JLL expects moderated capital markets revenue growth in Q4 FY2026 relative to year-to-date growth. | — | — |
| Revenue, Workplace Management | Q4 FY2026 | JLL expects workplace management revenue growth to accelerate in Q4 FY2026. | — | — |
| EPS, non-GAAP | FY2026 | $25.20–$26.30 | $24.60–$25.90 | Raised |
| Free cash flow, Conversion Ratio | FY2026 | JLL expects its FY2026 free cash flow conversion ratio to be well above its long-term average. | — | — |
| Revenue, Investment Management Incentive Fees | FY2026 | JLL expects FY2026 investment management incentive fees around the low end of their historical range. | — | — |
| Revenue, Investment Management Advisory Fees | FY2026 | JLL targets low single-digit advisory fee growth in investment management for FY2026. | JLL expects low-single-digit advisory fee growth in Investment Management for FY2026. | — |
| Revenue, Capital Markets Services | FY2026 | JLL targets mid-teens revenue growth in capital markets services for FY2026. | — | — |
| Revenue, Leasing Advisory | FY2026 | JLL targets high-teens revenue growth in leasing advisory for FY2026. | — | — |
| Revenue, Real Estate Management Services | FY2026 | JLL targets mid to high single-digit revenue growth in real estate management services for FY2026. | JLL expects mid- to high-single-digit revenue growth in Real Estate Management Services for FY2026. | — |
| Operating income, Software and Technology | FY2027 | JLL expects its software and technology business to be profitable in FY2027. | — | — |
| Share repurchases | FY2026 | JLL expects to remain active in share repurchases in FY2026, with the annual amount dependent on operating conditions and other factors. | — | — |
| Free cash flow growth, Conversion Ratio | FY2026 | 80.0% | — | New |
| Revenue, Investment Management Incentive and Transaction Fees | FY2026 | JLL expects Investment Management incentive and transaction fees toward the lower end of their historical range for FY2026. | — | — |
| Revenue, Capital Market Services | FY2026 | JLL expects mid-teens revenue growth in Capital Market Services for FY2026. | — | — |
| Revenue, Leasing and Advisory | FY2026 | JLL expects mid- to high-teens revenue growth in Leasing & Advisory for FY2026. | — | — |