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Introduction & Market Context
Jones Lang LaSalle (NYSE:JLL) presented second-quarter 2026 results on July 30 that significantly exceeded analyst expectations, with the commercial real estate services firm reporting adjusted earnings per share of $5.26—a 61% increase from the prior year and well above the $4.52 consensus estimate. The company’s shares rose 4.04% in premarket trading to $353.75 and currently trade at $348.10, up 2.38% from the previous close of $340.
The strong performance came amid a recovering commercial real estate market, with global direct investment volumes growing 27% in local currency during the quarter and office leasing showing renewed momentum. JLL’s results demonstrated the company’s ability to outpace broader market trends, with U.S. investment sales revenue rising 53%—more than double the 22% market growth rate.
Quarterly Performance Highlights
As shown in the following table of consolidated financial results, JLL delivered broad-based growth across all key metrics for the second quarter of 2026.
Revenue reached $6.9 billion, up 11% in U.S. dollars and 10% in local currency compared with the second quarter of 2025. Advisory revenues led the growth, with Leasing up 24% and Investment Sales and Debt/Equity Advisory increasing 25% in local currency, excluding mortgage servicing rights. The company’s resilient revenue streams, which represent nearly 80% of total revenue, grew 8% in local currency, driven by continued strength in Workplace Management.
Profitability metrics showed even stronger expansion. Adjusted EBITDA climbed 32% to $386 million, while adjusted net income surged 55% to $247 million. The adjusted diluted earnings per share of $5.26 represented a 59% increase in U.S. dollars and 61% in local currency, reflecting accelerated profit growth and margin expansion driven by higher advisory revenues and enhanced platform leverage.
Free cash flow reached $438 million for the quarter, up 52% year-over-year, demonstrating strong cash conversion that management said is tracking above the company’s long-term average of more than 80%.
Business Segment Performance
The company’s four business segments all contributed to the quarter’s performance, though advisory businesses showed the most pronounced acceleration. The following breakdown illustrates each segment’s financial contribution.
Real Estate Management Services
The Real Estate Management Services segment, which accounts for the largest portion of JLL’s revenue, generated $5.4 billion in the quarter, representing 8% growth in local currency. As detailed in the following charts, growth was broad-based across all business lines.
Workplace Management led the segment’s performance with 10% local currency growth (11% in U.S. dollars), driven by mandate expansions and new client wins. Project Management revenue increased despite following a strong 22% gain in the prior-year quarter, with low double-digit management fee growth in the Americas augmented by higher pass-through costs. The segment’s adjusted EBITDA reached $107 million, up 11% in local currency, primarily due to revenue growth and incremental platform leverage.
Leasing Advisory
Leasing Advisory emerged as a standout performer, as illustrated in the following revenue and profitability charts.
Revenue climbed 24% in local currency to $837 million, driven by accelerated momentum in office, industrial, and data center asset classes. The segment achieved double-digit revenue increases across many geographies, with particular strength in the U.S., Japan, and the U.K. Notably, office leasing revenue growth of 20% significantly outpaced the 2% increase in global market volumes, demonstrating clear market share gains.
In the U.S., office leasing revenue rose 24% compared with 12% growth in market volumes. The company attributed the broad-based growth to a significant uptick in average deal size complemented by higher transaction volume. Adjusted EBITDA for the segment reached $167 million, up 39% in local currency, with margin expansion driven by revenue growth and incremental platform leverage, partially offset by higher commission expenses.
Capital Markets Services
The Capital Markets Services segment delivered strong growth across investment sales, debt advisory, and loan servicing, as shown in the following breakdown.
Total segment revenue increased 19% in local currency to $620 million. Excluding the impact of mortgage servicing rights, Investment Sales and Debt/Equity Advisory revenue grew 25% in local currency, with growth across all sectors. Debt advisory led with 44% growth, while investment sales rose 20%, complemented by robust equity advisory activity.
The revenue increase was broad-based geographically, led by the U.S., Japan, and Australia, which more than offset softness in parts of Europe where deal timelines elongated. U.S. investment sales revenue growth of over 53% substantially outpaced the broader market’s 22% expansion. Adjusted EBITDA surged 74% in local currency to $95 million, with margin expansion attributable to strong revenue growth, favorable year-over-year changes in loan-related expenses, and platform leverage.
Investment Management
Investment Management maintained steady performance, as detailed in the following charts.
Revenue of $102 million was essentially flat with the prior year, up 1% in local currency. Advisory fees reflected growth from continued capital raise momentum over the trailing twelve months, particularly in North America, offset by anticipated lower fees from funds in Asia Pacific. Assets under management totaled $86.8 billion at quarter end, flat sequentially and up 1% in local currency (2% in U.S. dollars) over the trailing twelve months. Adjusted EBITDA remained at $16 million, up 8% in local currency.
Industry Market Dynamics
JLL’s presentation highlighted several favorable industry trends supporting the quarter’s performance. The following chart illustrates the recovery in global real estate investment volumes.
Global direct investment grew 27% in local currency (28% in U.S. dollars) compared with the prior-year quarter, with major markets driving volumes given stable asset performance and deep liquidity levels. The U.S., Canada, Japan, U.K., and Australia led the increase. Real estate credit markets remained highly active and competitive throughout the quarter, propelling activity and liquidity, with spreads reversing their movement following the onset of the Iran conflict.
Capital markets trends showed continued improvement across multiple dimensions, as illustrated in the following comprehensive market overview.
The Global Bid Intensity Index recovered to approximately 110 by June 2026, up from a mid-2023 low of around 90, indicating strengthening competition for assets. Quarterly investment volumes by sector showed Living/Multifamily and Industrial & Logistics as significant contributors, with total volumes around $55 billion in the second quarter of 2026. Industrial & Logistics commanded the largest share of investment volume at 29% in the first half of 2026, followed by Living/Multifamily at 25% and Office at 23%.
Office Leasing Market
The office leasing market demonstrated resilience, as shown in the following global volume and rental growth data.
Global office leasing volumes rose 2% year-over-year in the second quarter, with growth led by the U.S. where activity increased 12%. First-half volumes globally and in the U.S. reached new post-pandemic highs. Gateway markets in the U.S. recorded the strongest momentum with 27% year-over-year growth during the quarter, driving positive net absorption nationally for the fourth consecutive quarter.
Supply shortages for high-quality space are becoming evident in many mature markets globally, with global office vacancy declining by 30 basis points over the quarter. Deliveries remain near record lows in the U.S., and new supply is expected to be at its lowest level since 2011 in Europe. Prime office rental growth turned positive at 4.3% in 2025 after negative growth in 2020-2021, with continued positive momentum visible in the second quarter of 2026.
Industrial Leasing Market
Industrial leasing showed particularly strong performance in North America, as illustrated in the following regional breakdown.
In the U.S., leasing activity increased 49% year-over-year in the second quarter, driven by a combination of deferred requirements and strategic expansion by third-party logistics and e-commerce operators. North America gross leasing reached 17 million square meters in the second quarter of 2026, up from 12 million in the prior-year quarter. Third-party logistics and e-commerce companies are driving robust demand across regions, with occupiers in major markets increasingly accepting uncertainty as the new normal and acting on requirements.
The presentation noted that tenants are shifting from a focus on flexibility and shorter commitments to a renewed willingness to sign larger and longer-term leases. Supply chain and network optimization requirements are expected to drive continued activity, supported by long-term structural drivers including regionalization of higher-value manufacturing, growing defense spending, rising e-commerce, and urbanization.
Balance Sheet Strength and Capital Allocation
JLL’s financial position strengthened considerably during the quarter, as detailed in the following debt and leverage summary.
Total net debt declined to $1.19 billion at the end of the second quarter, down from $1.49 billion at the end of the first quarter and $1.59 billion in the prior-year period. The sequential quarter decline was driven by positive free cash flow in the second quarter, while the year-over-year reduction reflected improved free cash flow over the trailing twelve months.
The company’s net debt to adjusted trailing-twelve-month EBITDA ratio improved to 0.7 times, down from 1.0 times in the first quarter and 1.2 times a year earlier. Corporate liquidity stood at $3.4 billion, providing ample operational flexibility. JLL maintains investment-grade credit ratings of Baa1 from Moody’s and BBB+ from S&P, with a $3.3 billion credit facility maturing in November 2028.
The company continued its aggressive capital return program, as shown in the following share repurchase activity.
Share repurchases totaled $110 million in the second quarter of 2026, bringing the year-to-date total to $410 million, including $200 million from an accelerated share repurchase plan initiated in March. The average share repurchase price for the year to date was $314. The share count as of June 30 was down 2.0% from year-end 2025 and 2.9% lower year-over-year. Approximately $2.6 billion remains on the company’s share repurchase authorization, and management indicated plans to stay active on buybacks for the remainder of the year.
Forward-Looking Statements and 2026 Guidance
Based on the strong first-half performance and healthy advisory pipelines, JLL raised its full-year 2026 financial targets. The company now expects adjusted earnings per share in the range of $24.60 to $25.90, representing 34% growth at the midpoint compared with 2025.
The updated guidance reflects better-than-expected operating leverage from platform investments, strong performance across advisory businesses, and continued strength in resilient revenue streams. Management expects free cash flow conversion to remain above the long-term average of more than 80% for the full year.
By segment, the company provided the following revenue growth expectations for 2026: Real Estate Management Services is expected to deliver mid- to high-single-digit growth with variances by business line; Leasing Advisory should achieve mid- to high-teens growth; Capital Markets Services is targeted for mid-teens growth; and Investment Management is projected to generate low-single-digit advisory fee growth with incentive and transaction fees toward the low end of the historic range.
The guidance assumes the company will remain active on its share repurchase authorization throughout the year, continuing the capital return strategy that has reduced the share count by nearly 3% over the past twelve months.
Strategic Positioning
Management emphasized that the second-quarter results demonstrate the effectiveness of the company’s "Accelerate 2030" strategy, which focuses on building scale in resilient business lines, expanding advisory capabilities, and investing in technology and integrated services. The company’s resilient business lines, which include Workplace Management, Property Management, and other recurring revenue streams, now represent nearly 80% of total revenue and are positioned for consistent growth and margin expansion.
JLL’s market share gains in both leasing and investment sales suggest the company is successfully executing on its strategy to leverage data, technology, and cross-selling capabilities. The "One JLL" initiative, which aims to connect services across geographies and business lines, appears to be contributing to the company’s ability to capture larger mandates and expand client relationships.
The strong cash generation and balance sheet strength provide JLL with flexibility to continue investing in strategic initiatives while returning capital to shareholders through buybacks. With net leverage at a comfortable 0.7 times and corporate liquidity of $3.4 billion, the company maintains financial capacity for both organic growth investments and potential strategic acquisitions, though management has indicated it remains disciplined on M&A opportunities.
Full presentation:
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