Real estate services firm CBRE Group Inc. surpassed Wall Street expectations for first-quarter profit and revenue on Thursday, fueled by robust demand for data center properties and a resilient commercial real estate market.
The Dallas-based company reported adjusted earnings of $1.52 per share for the three months ended March 31, beating the average analyst estimate of $1.35 per share, according to data compiled by LSEG. Revenue rose 12% to $8.9 billion, also exceeding forecasts.
CBRE's strong performance underscores the growing importance of data centers in the real estate landscape, as technology companies and cloud providers race to expand their infrastructure to support artificial intelligence and cloud computing. The company's data center solutions segment saw double-digit revenue growth, driven by record leasing activity and development pipelines.
"Data centers continue to be a powerful engine for our business, with demand far outstripping supply in many markets," said Bob Sulentic, CBRE's chief executive officer. "We are also seeing strength in our property management and valuation services."
The company's advisory services segment, which includes leasing and property management, posted an 8% revenue increase, while its global workplace solutions division grew 15%. CBRE's investment management arm reported a 20% rise in fee revenue, benefiting from higher assets under management.
Looking ahead, CBRE raised its full-year 2026 earnings guidance, citing strong momentum across its businesses. The company now expects adjusted earnings per share in the range of $5.80 to $6.20, up from its previous forecast of $5.50 to $5.90.
Shares of CBRE rose 3.5% in afternoon trading following the earnings release.
