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    JLL
    Earnings call· Mar 2026(Q1 FY26)

    JONES LANG LASALLE Q1 FY26 earnings call JLL

    Apr 30, 2026 Source

    Executive summary

    Jones Lang LaSalle Q1 FY26 — Record Revenue & Earnings Driven by Strong Advisory and Resilient Businesses

    JLL delivered a very strong Q1 FY26, achieving record revenue and earnings, propelled by robust performance in its advisory businesses and high single-digit organic growth in resilient revenues. The company is actively executing its Accelerate 2030 strategy, making strategic investments in LaSalle and committing to significant share repurchases. While navigating some contract turnover and macro uncertainties, JLL maintains a positive outlook, leveraging its data and AI advantage for continued growth.

    Highlights

    5

    • Achieved record first quarter revenue and earnings, driven by market-leading advisory businesses and resilient revenue base.

    • Adjusted EBITDA increased 24% and adjusted EPS was up 56% year-over-year.

    • Robust growth across core advisory businesses, led by momentum in office and industrial leasing, and broad growth across capital market services.

    • Resilient revenues, including workplace management and project management, grew organically by high single digits.

    • Repurchased $300 million of shares at an average price of $301, reducing share count by nearly 2%.

    Concerns

    4

    • Property management business experienced a mid-single digit decline in management fees due to elevated contract turnover, though 60% of targeted Asia Pacific contracts have been exited or repositioned.

    • Continued pullback of discretionary technology solutions spend from certain large existing clients partially offset high single-digit software revenue growth.

    • Leasing advisory adjusted EBITDA and margin expansion were tempered by producers hitting higher commission tiers earlier in the year.

    • Fluidity of the macro environment limits late-year visibility into economically sensitive businesses, despite strong Q1 results.

    Guidance & targets

    16
    CategoryTargetConfidence
    Property Management contract churn impact
    Largely offset by core business growth and new wins in the Americas
    medium materiality
    Medium
    Software and Technology Solutions revenue growth
    Mid- to high single-digit growth
    medium materiality
    High
    Leasing & Advisory revenue growth
    High single-digit growth
    high materiality
    High
    Capital Market Services revenue growth
    Low double-digit growth
    high materiality
    High
    Investment Management advisory fee growth
    Low single-digit growth
    medium materiality
    Medium
    Investment Management incentive and transaction fees
    Towards the lower end of historical range, weighted to Q4
    medium materiality
    Medium
    Free cash flow conversion ratio
    Over 80%
    high materiality
    High
    Adjusted EPS
    $21.80 to $23.50 (20% growth at midpoint)
    high materiality
    High
    Adjusted EBITDA
    Aligns with range provided last quarter
    high materiality
    High
    Adjusted EPS outlook
    Trending towards upper end of $21.80-$23.50 range
    high materiality
    Medium
    Primary annual targets
    Segment revenue and adjusted EPS
    low materiality
    High
    Leasing & Advisory commission headwind
    Moderate through the year
    medium materiality
    Medium
    Leasing & Advisory overall margin rate
    Relatively flat versus prior year
    high materiality
    High
    Capital Markets incremental margin
    Strong incremental margin
    high materiality
    High
    Capital Markets incremental margin
    Mid-30s
    high materiality
    High
    Property Management contract churn impact
    Headwind offset by strength in Americas
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Real Estate Management Services
    Revenue increase led by workplace management (mandate expansions, new client wins) and project management (higher volumes in U.S., new data center wins). Healthy core business growth in Property Management tempered by elevated contract turnover, particularly in Asia Pacific. Software revenue growth partially offset by pullback in discretionary tech solutions spend.
    Workplace management growth: high single-digitProject management revenue growth: double-digitProject management management fee increase: high single-digitProperty Management management fees: declining mid-single digitsSoftware revenue growth: high single-digit
    		————
    Leasing & Advisory
    Revenue growth led by momentum in office and industrial sectors, and a meaningful contribution from data centers. Adjusted EBITDA and margin expansion driven by revenue growth, partially tempered by higher commission tiers and business mix.
    Global leasing advisory revenue growth (2-year stacked basis): 29%Office leasing revenue growth: outpaced 1% decline in market volumes
    		————
    Capital Market Services
    Investor bidding activity resilient, underpinned by robust liquidity and uptick in transactions. Revenue growth and lower loan-related expenses drove adjusted EBITDA and margin expansion. Investment sales revenue growth notably outpaced global market volumes.
    Investment sales revenue growth: 27%Debt advisory revenue growth: 30%Equity advisory revenue growth: 75%Investment sales growth (2-year stacked basis): 42%Debt advisory growth (2-year stacked basis): 81%
    		————

    Operational metrics

    15
    Adjusted EBITDA growth
    24%YoY
    Q1 FY26

    Driven by increased revenue and disciplined operating rigor.

    Adjusted EPS growth
    56%YoY
    Q1 FY26

    Driven by increased revenue and disciplined operating rigor.

    Resilient revenues growth
    high single digitsYoY
    Q1 FY26

    Supported by Care wins for outsourcing and strong demand for project management.

    Total revenue growth
    11%YoY
    Q1 FY26

    Almost entirely organic, inclusive of foreign currency benefit.

    Share count reduction
    nearly 2%QoQ
    Q1 FY26

    Due to share repurchases.

    Property management contracts repositioned
    nearly 60%
    Q1 FY26

    Targeted contracts in Asia Pacific.

    Leasing & Advisory commission tier headwind
    —
    Q1 FY26

    Producers hit higher commission tiers earlier than expected due to strong performance and geo mix. Expected to moderate through the year.

    Net Debt/Adjusted EBITDA
    1.0ximproved versus a year ago
    Q1 FY26

    At the end of the first quarter, typically a seasonal peak period.

    Share repurchase authorization increase
    275%
    Q1 FY26

    Increased to $3 billion.

    Share repurchases
    $300 million
    Q1 FY26

    Includes $200 million accelerated share repurchase plan.

    Accelerated Share Repurchase (ASR) average price
    $290
    Q1 FY26

    Average price for shares delivered during the quarter under the $200 million ASR.

    AI adoption rate (core enablement products)
    75%
    Q1 FY26

    Across JLL's core enablement products.

    Employees using enterprise AI applications
    25,00060% year-over-year increase
    Q1 FY26

    Daily usage.

    Capital Markets incremental margin
    mid-30s
    FY26

    Generally expected for the full year. Analyst asked about 35-40% range.

    Property management contracts renegotiated
    1/3
    Q1 FY26

    Of the specific contracts targeted for repositioning/exit, approximately one-third were successfully renegotiated to more attractive terms.

    Industry KPIs

    9
    MetricValueDetails
    Leasing revenue growth—
    Free cash flow conversionover 80%%
    Property sales revenue growth27%%
    Development in process pipeline—
    Segment operating profit growth—
    Mortgage origination loan servicing—
    Facilities management revenue growth—
    Investment management AUM capital raised—
    Resilient vs transactional revenue splithigh single digits%

    Orderbook & backlog

    1
    Global Decarbonization Fund (LPPF)EUR 300 millionQ1 FY26

    Initial size, fundraising ongoing. Focuses on retrofitting existing buildings and ground-up developments.

    Deals & partnerships

    2
    LaSalleIncremental investment in a flagship European fundEUR 100 million

    Investment in the LaSalle Encore+ Fund, an open-ended core European fund, to support its next phase of growth.

    LaSalleLaunch of a global decarbonization fundEUR 300 million

    First close of the global decarbonization fund (LPPF), which will execute a retrofit-led approach for vacant/underperforming buildings to improve energy efficiency.

    Risks & headwinds

    5
    Geopolitical conflict in the Middle EastOngoing, potential impact in H2 FY26

    Middle East business represents a low single-digit percentage of revenue

    Mitigation: Conservative approach to leverage, prepared for wide range of outcomes, monitoring first and second-order risks globally. No material commercial impact on consolidated results to date, but prolonged conflict could lead to higher energy prices and broader economic headwinds, especially outside the U.S.

    Fluidity of the macro environmentLate FY26

    Limits late year visibility into economically sensitive businesses

    Mitigation: Guidance reflects a range of scenarios, trending towards upper end but acknowledging uncertainty.

    Elevated contract turnover in Property ManagementFY26 (expected to continue through year-end)

    Mid-single digit decline in management fees

    Mitigation: Strategically exiting/repositioning contracts (60% completed in Asia Pacific), renegotiating terms, offset by healthy core business growth and new wins in Americas.

    Pullback of discretionary technology solutions spendQ1 FY26, implied to continue

    Offset high single-digit software revenue growth

    Mitigation: Targeting mid- to high single-digit revenue growth for the segment for FY26, weighted to H2.

    Higher commission tiers for leasing producersQ1 FY26, expected to moderate through the year

    Tempered adjusted EBITDA and margin expansion in Leasing & Advisory

    Mitigation: Expected to moderate over the course of the year.

    What to watch in Q2 FY26

    5

    Property Management contract churn completion

    By year-end FY26
    CurrentNearly 60% of targeted Asia Pacific contracts exited/repositioned.
    TargetProcess wrapped up, headwind offset by Americas growth.

    Why it matters

    Completion of this transformation is key to stabilizing and growing Property Management segment profitability.

    One of the things that we pleasantly -- that pleasantly surprised us as we got into that process was that many clients were actually interested in renegotiating terms of those contracts, which we view as a win. And so the upside is that, obviously, the outcome for us is better, but it's taking a bit longer to cycle through those and we expect that to go through the end of the year at this point.

    Q&A highlights

    6

    Is the full-year guidance for leasing and capital markets conservative, given strong Q1, or does it imply a return to normalized growth rates?

    Kelly Howe stated that guidance reflects a range of scenarios, with Q1 trending towards the high end. The outlook for leasing and capital markets is in line with long-term expectations, but the back half faces tough comparables from strong prior-year quarters. Macroeconomic fluidity limits late-year visibility, and potential impacts from geopolitical events are factored into the guidance range.

    “Our guidance obviously reflects a range of scenarios, as I noted. We are, at this point, trending towards the high end of our guidance. As it relates to leasing and capital markets, our outlook is roughly in line with where we would expect growth rates to be over a longer-term period in line with what we articulated at Investor Day.”

    asked by Anthony Paolone · answered by Kelly Howe

    3 min read6 chapters

    Detailed Narrative

    01

    Accelerate 2030 Strategy Underway

    JLL introduced its Accelerate 2030 strategy at an investor briefing in March, outlining long-term financial targets and an approach to advanced value creation. This strategy is built on a decade of progress, resulting in a resilient foundation, strong financial profile, and unique structural advantages, including scale in complex markets, balance sheet strength, and investments in proprietary data and AI. The company aims to drive synergistic scale, increase resiliency, and deliver compelling value creation through this strategy.

    02

    Strategic Investments in LaSalle and Decarbonization Fund

    JLL is strategically investing in its Investment Management business, LaSalle, to accelerate growth of its resilient revenue base and generate synergies with the broader JLL portfolio. This includes a EUR 100 million incremental investment in the LaSalle Encore+ Fund, a flagship European product, to support its next phase of growth. LaSalle also launched a global decarbonization fund (LPPF) with an initial size of EUR 300 million, which will focus on retrofit-led approaches for vacant buildings and ground-up developments to address the scarcity of high-quality, energy-efficient properties.

    03

    Leveraging Data and AI Advantage

    JLL emphasizes its decade-long investment in technology and a proprietary data platform, which it believes is industry-leading. The company reports a 75% adoption rate across its core enablement products and 25,000 employees using enterprise AI applications daily, representing a 60% year-over-year increase. Management views AI as a significant tailwind, enhancing productivity and market share, and does not foresee disintermediation risks due to its rich data platform and strong brand reputation in areas like valuation.

    04

    Property Management Business Transformation

    The company is progressing with the transformation of its property management business, having strategically exited or repositioned nearly 60% of targeted contracts in Asia Pacific. While this has led to a mid-single-digit decline in management fees, a portion of these contracts have been successfully renegotiated to more attractive terms, extending the timeline for completion to year-end. The financial impact of this contract churn is expected to be largely offset by healthy core business growth and new client wins in the Americas.

    05

    Disciplined Capital Allocation

    JLL's capital deployment priorities remain focused on driving organic growth and productivity across business lines, weighted to areas with the highest return on capital and long-term growth potential. Acquisition pursuits are focused on augmenting organic initiatives, enriching capabilities, and deepening client relationships. The company repurchased $300 million of shares in Q1, including a $200 million accelerated share repurchase, reflecting its commitment to returning capital to shareholders and confidence in its valuation. The share repurchase authorization was increased by 275% to $3 billion.

    06

    Geopolitical Impact and Macro Outlook

    JLL's business in the Middle East represents a low single-digit percentage of revenue, and the ongoing conflict has had no material commercial impact on consolidated results to date. However, the company is taking a conservative approach to leverage and monitoring first and second-order risks globally. Management noted that a prolonged conflict could lead to higher energy prices and broader economic headwinds, particularly in energy-dependent regions outside the U.S., potentially limiting late-year visibility for economically sensitive businesses.

    AI-generated summary of the company’s earnings call. Not investment advice.