Oct 28, 2026 earnings call — Quarterly results and Accelerate 2030 progress
JLL reported revenue up 12% and raised full-year adjusted EPS target to $25.20 to $26.30.
Revenue $7.3B (est $7.2B) · EPS $6.76 (est $6.15)
Key quotes
"As part of Accelerate 2030, we expect the enhancement of our platform to contribute more than 20-basis points of annual margin expansion on average, increasing as years progress."
"While bond yields have risen sharply, the interest rate outlook has been well telegraphed and is working through the market in a measured way."
"At quarter end, we had completed actions on approximately 80% of the identified contracts, while retaining more than we anticipated. and, importantly, at improved margins."
Analyst Q&A 10
leasing strength by property type
Q (Anthony Paolone · JPMorgan): How much of leasing share gain was due to data centers and will comps get tougher? Also what are trends by property type?
A: Management said leasing strength was broad based across industrial, office and data centers, with particularly strong U.S. performance. Data centers were important but only mid single digits of revenue in the third quarter and are lumpy; pipelines and conversion rates look strong into the fourth quarter.
"I would say office has been particularly strong in the U.S." — Kelly Howe (CFO)
rates impact beyond capital markets
Q (Stephen Sheldon · William Blair): Is the slowdown from higher rates mostly in Capital Markets, and have other segments been affected? Also what drives workplace management growth?
A: Management said so far they have not seen impact outside Capital Markets and that interest rates mainly affect Capital Markets. For workplace management, revenue was up roughly 10% in Q3 driven by both mandate expansions and new client wins, and they expect acceleration into Q4.
"So far, we have not seen any impact on any parts of our other businesses." — Christian Ulbrich (CEO)
2027 growth outlook and initiatives
Q (Alex Kramm · UBS): Can you give a view on 2027 growth versus your long-term EPS target and any early impact from JLL initiatives?
A: Management said it is too early for granular 2027 guidance and they are focused on finishing 2026 strong while budgeting for 2027. They said their platform initiatives increase resiliency and they expect platform-driven margin expansion; they will provide more precise guidance with Q4 results.
"we expect to deliver 20-basis points of margin improvement on average per year over the next couple of years." — Kelly Howe (CFO)
capital markets Q4 and data centers
Q (Jade Rahmani · KBW): Given strong YTD capital markets growth, should we expect flattish Q4? And how much of leasing growth was from data centers and is pipeline sustainable?
A: Management cautioned Q4 comps are tough versus a strong prior-year quarter and higher interest rates add unpredictability, though they remain confident many deals will close in Q4. On data centers, in Q3 they contributed about 5% of total revenue, growth is strong off a small base, and deal timing will be lumpy.
"in the third quarter, it contributed 5% to our total revenue, about 5%, mid single digits to our total revenue." — Kelly Howe (CFO)
REMS margin drivers
Q (Julien Blouin · Goldman Sachs): What drove REMS margin expansion: contract exits, mix shift, or platform leverage?
A: Management said REMS margin expansion came from growth and scale on the operating platform, margin accretion from contract churn in property management, and synergies from moving software and tech solutions into REMS. They noted many churned contracts were retained on better terms and AI capabilities are helping win business and improve profitability.
"We are certainly seeing margin accretion as it relates to the contract churn in property management." — Kelly Howe (CFO)
debt market liquidity and pipelines
Q (Mitch Germain · Citizens Bank): Can the market digest the wall of maturing debt with higher rates, and how do current transaction pipelines compare to a year ago?
A: Management said liquidity providers have grown and absolute liquidity remains very high today, so they see no sign liquidity will be a near-term concern. They also said pipelines are still growing, but deal times to close are longer with more intense negotiations; few deals are collapsing in their book.
"the absolute liquidity is still very, very high." — Christian Ulbrich (CEO)
share buybacks vs M&A and productivity
Q (Seth Bergey · Citi): How do you choose between buybacks and M&A, and can productivity gains let you delay hiring on Capital Markets?
A: Management said the number one priority is investing in their platform, and buybacks have been attractive; they will be disciplined on M&A and only act if opportunities meet their criteria. On productivity, higher revenue per head is driven by technology, increasing brokers' compensation but also delivering healthy incremental margins.
"our number 1 priority is to invest into our platform." — Christian Ulbrich (CEO)
larger US office deal sizes and client retention
Q (Annabel · Barclays): Why are deal sizes larger in US office and is this concentrated in certain asset types? Also how to think about retention beyond top 100 clients?
A: Management said larger deal sizes are happening across asset classes driven by market activity and demand for large blocks, stronger growth in gateway markets, and big data center deals in Q3. On clients beyond the top 100, they said complexity favors JLL because clients value their global capabilities and reliability.
"our growth rates in gateway markets have been significantly higher than they have been in non gateway markets, and that, by definition, tends to lead to larger deal sizes in office." — Kelly Howe (CFO)
employment plans and office demand
Q (Patrick O'Shaughnessy · Raymond James): With recent layoffs at big firms, what are clients saying about employment plans and effects on office demand?
A: Management said many successful companies grew employment over the last decade and remain acquisitive; even with layoffs in parts of businesses, absolute employee numbers for those companies generally continue to grow. They expect their client base's real estate needs to keep growing as those companies expand.
"the absolute employee number with most of these companies is still continuing to grow." — Christian Ulbrich (CEO)
interest rate volatility risks
Q (Jade Rahmani · KBW): Are you seeing knock-on effects outside capital markets from higher rates and has the outlook improved recently?
A: Management said they avoid predictions and noted recent volatility has been worse than the absolute level; other than Capital Markets they have not seen the types of interest rate increases impact other areas which follow GDP trends. They added predictability matters: if volatility declines, transaction volumes should increase again.
"other than capital markets, I see the impact of the type of interest rate increases we have seen over the last couple of months not impacting the other areas" — Christian Ulbrich (CEO)