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    JLL
    Earnings call· Jun 2026(Q2 FY26)

    JONES LANG LASALLE Q2 FY26 earnings call JLL

    Jul 30, 2026 Source

    Executive summary

    Jones Lang LaSalle Incorporated Q2 FY26 — Double-Digit Revenue Growth and Accelerated Profit Gains

    JLL delivered strong Q2 FY26 results, driven by double-digit revenue growth and accelerated profit gains, particularly in advisory businesses. The company is seeing benefits from its Accelerate 2030 strategy, focusing on resilient business lines, advisory segment strength, and disciplined capital allocation, leading to a significantly raised full-year adjusted EPS target. Management highlighted market share gains and increased productivity from technology investments.

    Highlights

    5

    • Revenue grew by 11% (10% in local currency) in Q2 FY26.

    • Adjusted EBITDA increased by 33% in Q2 FY26.

    • Adjusted EPS rose by 61% in Q2 FY26.

    • Free cash flow generated $438 million, up 52% from a year ago.

    • Net leverage improved to 0.7x, and corporate liquidity stood at $3.4 billion.

    Concerns

    3

    • Investment sales timelines in parts of Europe were elongated due to the Middle East conflict.

    • Commission tier headwinds impacted margins in Q1 and Q2, though expected to moderate in H2 FY26.

    • Property Management growth was offset by strategic contract exits, with this headwind expected to dissipate over coming quarters.

    Guidance & targets

    7
    CategoryTargetConfidence
    Full-year 2026 Adjusted EPS
    $24.60 to $25.90
    high materiality
    High
    Real Estate Management Services Revenue Growth
    mid- to high single-digit
    medium materiality
    Medium
    Leasing & Advisory Revenue Growth
    mid- to high teens
    medium materiality
    Medium
    Capital Market Services Revenue Growth
    mid-teens
    medium materiality
    Medium
    Investment Management Advisory Fee Growth
    low single digits
    medium materiality
    Low
    Investment Management Incentive and Transaction Fees
    lower end of our historical range and weighted to the fourth quarter
    medium materiality
    Low
    Free Cash Flow Conversion Ratio
    comfortably above our long-term average of over 80%
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Real Estate Management Services
    Revenue growth was broad-based across all business lines. Workplace management led with mandate expansions and new client wins. Project Management saw momentum from data centers. Property Management's growth headwind from strategic contract exits is expected to largely dissipate over coming quarters.
    Workplace Management: strong revenue growthProject Management revenue growth: 3% (current quarter)Project Management revenue growth (2-year stacked): 25%Project Management management fee growth: mid-single-digitProperty Management: core business growth and new wins offset by strategic contract exits
    		—8%——
    Leasing & Advisory
    Revenue growth was driven by accelerated momentum across office, industrial, and data centers, with a meaningful increase in deal size and healthy volume growth globally, most notably in the U.S. The segment materially outpaced the broader market in global office leasing.
    Global office leasing revenue growth: 20%Market volume increase (office leasing): 2%Global leasing advisory revenue growth (2-year stacked): 28%
    		—24%——
    Capital Market Services
    Rising bid activity and a highly liquid credit market fueled strong growth across sectors and most geographies, led by the U.S., Japan, and Australia. This significantly outpaced softness from elongated investment sales timelines in parts of Europe.
    Debt advisory revenue growth: 44%Investment sales revenue growth: 20%Equity advisory revenue growth: 53%Debt advisory revenue growth (2-year stacked): 71%Investment sales revenue growth (2-year stacked): 30%U.S. investment sales revenue growth: 53%
    		————
    Investment Management
    Advisory fee growth from capital deployment was mostly offset by an anticipated decline driven largely by dispositions in Asia Pacific. Incentive and transaction fees are expected towards the lower end of the historical range and weighted to Q4.
    Capital raised (past year): $3.7 billion
    		————

    Operational metrics

    12
    Adjusted EBITDA Growth
    33%YoY
    Q2 FY26

    Accelerated profit gains.

    Adjusted EPS Growth
    61%YoY
    Q2 FY26

    Accelerated profit gains.

    Net Leverage
    0.7ximproved
    Q2 FY26

    Improvement due to growth in adjusted EBITDA plus lower borrowings.

    Corporate Liquidity
    $3.4 billion
    Q2 FY26

    Provides ample flexibility for investment and shareholder returns.

    Share Repurchases
    $110 million
    Q2 FY26

    Part of capital return to shareholders.

    Share Repurchases (H1)
    $410 million
    H1 FY26

    Bringing first half repurchases to $410 million.

    Share Count Reduction
    nearly 3%from a year earlier
    Q2 FY26

    Result of share repurchases.

    Remaining Share Repurchase Authorization
    $2.6 billion
    Q2 FY26

    Intend to remain active on the authorization.

    Data Centers Under Facility Management
    340
    Q2 FY26

    At the end of the quarter.

    Data Center Gigabit Capacity Growth (Expected)
    1/3
    next 2 quarters

    Expected growth from signed contracts for numerous very large data centers.

    Software and Technology Business Profitability
    well ahead of our own plan
    Q2 FY26

    Moved into overall P&L, showing strong performance.

    Commission Tier Headwinds
    —
    Q2 FY26

    Higher commission expense from higher tiers being met sooner, due to outsized performance and larger deal sizes, particularly in the U.S. Expected to moderate as the year progresses.

    Industry KPIs

    7
    MetricValueDetails
    Leasing revenue growth24%%
    Free cash flow conversioncomfortably above 80%%
    Property sales revenue growth20%%
    Mortgage origination loan servicing44%%
    Facilities management revenue growth8%%
    Investment management AUM capital raised$3.7 billionUSD
    Resilient vs transactional revenue splitnearly 80%%

    Orderbook & backlog

    1
    Signed Data Center Management ContractsExpected 1/3 growth in gigabit capacityQ2 FY26

    Contracts already signed; data centers expected to be finished over the next couple of months, leading to 1/3 growth in gigabit capacity within 2 quarters.

    Risks & headwinds

    4
    Elongated investment sales timelines in parts of Europenear term

    Softness in investment sales revenue growth in parts of Europe

    Mitigation: Management notes highly liquid debt markets and pent-up demand, suggesting deals are elongating rather than falling out.

    Middle East conflict impact on macro outlook and investor psychologyH2 FY26

    Not quantified, but noted as having 'very significant impact also from a psychological point of view on investors in Europe'

    Mitigation: Monitoring carefully; not seeing immediate and direct material impact to business, assuming conflict does not worsen.

    Commission tier headwinds impacting marginsH2 FY26

    Impacted margins in Q1 and Q2 due to outsized performance and larger deal sizes pushing producers into higher commission tiers earlier.

    Mitigation: Expected to moderate as the year progresses and reset in January.

    Property Management growth offset by strategic contract exitscoming quarters

    Not quantified, but noted as a 'growth headwind'.

    Mitigation: Expected for this headwind to largely dissipate over the coming quarters.

    What to watch in Q3 FY26

    5

    Property Management growth recovery

    over the coming quarters
    CurrentGrowth offset by strategic contract exits
    TargetGrowth headwind to largely dissipate

    Why it matters

    Indicates stabilization and potential for segment growth within Real Estate Management Services.

    For Property Management, core business growth and new wins continue to be offset by the strategic contract exits as mentioned in the past 2 quarters. We expect this growth headwind to largely dissipate over the coming quarters.

    Q&A highlights

    6

    What were the key drivers of margin expansion, distinguishing between company-specific factors and market trends, and what is the outlook for continued operating leverage?

    Margin expansion was driven by a favorable business mix and revenue growth, but also significantly by operating leverage from platform investments. The company is seeing improvements in its fixed cost base relative to fee revenue and expects further runway for margin expansion.

    “we're seeing the benefits of that operating leverage come through as well. And so we look at fixed cost as it relates to our fee revenue. We look at variable costs, including commissions and other variable costs. And we're very happy with the performance of our fixed cost base against our fee revenue as well, and we're seeing a lot of improvement there.”

    asked by Tony Paolone · answered by Kelly Howe

    2 min read6 chapters

    Detailed Narrative

    01

    Accelerate 2030 Strategy Progress

    Christian Ulbrich highlighted the early success of the Accelerate 2030 strategy, noting its impact on consistent growth and margin expansion in resilient business lines, and operating leverage in advisory businesses. The strategy emphasizes long-term client relationships, recurring revenue, and scale, with continued investment in data and AI. The company is seeing significant progress in platform efficiency and general automation, contributing to confidence in future performance.

    02

    Resilient Business Lines Performance

    Resilient business lines, representing nearly 80% of JLL's revenue, demonstrated consistent growth and margin expansion. Real estate management services grew 8% in local currency, driven by long-term secular tailwinds such as increased outsourcing of real estate operations. Workplace management saw strong revenue growth from mandate expansions and new client wins, while project management grew 3% (25% on a 2-year stacked basis), with momentum from data centers.

    03

    Advisory Business Acceleration and Market Share Gains

    Advisory revenue growth accelerated to 21% in local currency, with profit growing even faster, reflecting operating leverage. This performance is attributed to client trust, JLL's brand, and investments in data and AI, enabling the company to take market share, particularly in the U.S. Global office leasing revenue grew 20%, significantly outpacing the broader market's 2% increase, while U.S. investment sales revenue grew 53%, nearly double the broader market.

    04

    Capital Allocation and Balance Sheet Strength

    JLL generated $438 million in free cash flow during the quarter, a 52% increase year-over-year, providing flexibility for capital deployment. The company maintains a strong balance sheet with $3.4 billion in corporate liquidity and a net leverage of 0.7x. Share repurchases totaled $110 million in Q2, bringing the first-half total to $410 million, reducing share count by nearly 3%.

    05

    Technology and AI Driving Productivity

    Management emphasized that JLL's technology platform, including AI tools, is enabling producers to be significantly more productive without adding additional brokers, especially in the capital markets business. This increased productivity and the appreciation from clients for JLL's intelligence are key drivers of market share gains. The software and technology business, now integrated into the P&L, is performing ahead of its profitability plan.

    06

    Data Center Business Expansion

    The data center segment is a super dynamic market for JLL. The company managed 340 data centers under facility management at the end of the quarter. This gigabit capacity is expected to grow by one-third within the next two quarters due to already signed contracts for large data centers, contributing significantly to recurring revenue. The company aims for an overall mix of 80% recurring and 20% transactional revenue in this segment.

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