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Earnings analysis · 10-Q

JLL earnings analysis

Filed October 28, 2026 · Our reading of the company's report

The latest report

JLL delivered a strong third quarter, with revenue of $7,281.2 million up 12% year over year, operating income up 43% to $391.0 million and diluted EPS of $6.85. Leasing Advisory and Capital Markets Services were the…

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JLL delivered a strong third quarter, with revenue of $7,281.2 million up 12% year over year, operating income up 43% to $391.0 million and diluted EPS of $6.85. Leasing Advisory and Capital Markets Services were the primary earnings drivers, while Investment Management declined due to lower incentive and transaction fees. Operating cash flow improved to $342.8 million for the first nine months, although capital additions rose to $168.6 million and debt included $247.0 million of Facility borrowings, $214.9 million of short-term borrowings and $113.5 million of commercial paper. The 10-Q reports no material changes to the 2025 Form 10-K risk factors; the principal operating headwinds are Investment Management weakness, restructuring costs and transaction-driven earnings volatility.

Read the original on SEC.gov

Where revenue came from

The business segments reported by the company.

Real Estate Management Services 75.5% Leasing Advisory 12.9% Capital Markets Services 10.1% Investment Management 1.4%

Shares of the segments disclosed in this filing, largest first.

Reported figures

Earnings per share
$6.85
Operating margin
5.4%

What stood out

  • Revenue growth exceeded consensus

    Third-quarter revenue was $7,281.2 million, up 12% from $6,510.4 million a year earlier and up approximately 5% from $6,932 million in the prior quarter. Revenue exceeded the provided consensus estimate of $7,230.3 million by approximately $50.9 million.

  • Operating leverage accelerated

    Operating income increased 43% year over year to $391.0 million from $273.7 million, lifting operating margin to approximately 5.4% from 4.2% a year earlier and 4.2% in the prior quarter.

  • EPS increased materially

    Net income attributable to common shareholders rose to $319.8 million from $222.8 million year over year. Diluted EPS was $6.85 versus $4.61 in the prior quarter and $4.61? Actually prior-year diluted EPS was $4.61 in the provided quarterly history, representing substantial year-over-year growth.

  • Leasing Advisory led growth

    Leasing Advisory revenue rose 27% to $941.8 million, while Adjusted EBITDA increased 47% to $201.8 million. U.S. Leasing Advisory revenue grew 39% for the quarter, led by industrial, office and data-center activity.

  • Capital Markets momentum strengthened

    Capital Markets Services revenue increased 20% to $736.8 million and Adjusted EBITDA increased 46% to $131.1 million. Investment sales revenue grew 33% globally and 34% in the U.S., outpacing broader market growth of 9% and 11%, respectively.

  • Operating cash flow improved

    Operating cash flow for the first nine months was $342.8 million versus $182.3 million in the prior-year period. Net capital additions were $168.6 million versus $138.4 million, implying operating cash flow less capital additions of approximately $174.2 million before other investing items.

What to watch

  • Investment Management weakness

    Investment Management remained a drag: revenue declined 9% year over year to $105.2 million, Incentive and transaction fees fell 44% to $12.6 million, and Adjusted EBITDA declined 24% to $17.9 million. AUM was $88.4 billion at September 30, 2026, with trailing-twelve-month dispositions and withdrawals of $8.4 billion versus $7.0 billion of acquisitions and takeovers.

  • Restructuring charges increased

    Restructuring and acquisition charges increased 65% year over year in the quarter to $19.3 million from $11.7 million, primarily due to higher severance and employment-related charges of $14.6 million versus $5.4 million. These charges reduced reported operating earnings despite stronger core results.

  • Variable-rate debt exposure

    Liquidity remains exposed to variable-rate debt and working-capital needs. Borrowings at September 30, 2026 included $247.0 million under the Facility, $214.9 million of short-term borrowings and $113.5 million of commercial paper; management estimated that a 50-basis-point increase in short-term rates would add $3.1 million of interest expense for the first nine months.

  • No formal risk-factor changes

    The filing states there were no material changes to risk factors from the 2025 Form 10-K. Nevertheless, trade receivables increased in a manner correlated with revenue growth and contributed to cash-flow variability, while foreign-currency-exposed revenue represented 36% of total revenue for the first nine months.

Management's outlook

The 10-Q does not disclose a revised numeric EPS or revenue range. The October 28, 2026 earnings release referenced in the provided materials raised full-year Adjusted EPS expectations, with 37% growth at the midpoint, but did not provide the revised range in the available text.

Earlier filings 1

10-Q · April 30, 2026

JLL reported a robust Q1 2026, achieving a revenue of $6.39 billion and an EPS of $3.33, surpassing consensus estimates. The strong performance was driven by notable growth across several segments, particularly in…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.