CoStar Group Q2 adjusted EPS beats estimates on cost control

CoStar

28/07/2026 21:15

Overview
US real estate data platform's Q2 revenue rose 18% yr/yr, slightly missing analyst expectations
Adjusted EPS for Q2 grew 88% yr/yr, beating analyst expectations
Company says profitability inflection driven by cost control and residential segment turning EBITDA positive

Outlook
CoStar Group sees full-year 2026 revenue between $3.715 bln and $3.755 bln
Company expects full-year 2026 Adjusted EBITDA of $780 mln to $820 mln
CoStar Group expects full-year 2026 Adjusted EPS in a range of $1.32 to $1.39

Result Drivers
COST CONTROL - Co said operating cost growth was limited to 2%, supporting improved profitability
RESIDENTIAL SEGMENT TURNAROUND - Residential segment turned adjusted EBITDA positive, a $41 mln improvement over Q1, per CEO Andy Florance
AI PRODUCT LAUNCHES - New AI-powered features in Homes.com and Apartments.com drove user engagement and higher conversion rates

Company press release: ID:nBwbR7Vkqa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$925 mln
$928.75 mln (18 Analysts)
Q2 Adjusted EPS
Beat
$0.32
$0.29 (16 Analysts)
Q2 EPS
 
$0.14
 
Q2 Net Income
 
$55 mln
 
Q2 Gross Profit
 
$728 mln
 
Q2 Income From Operations
 
$76 mln
 
Q2 Pretax Profit
 
$74 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Costar Group Inc is $44.00, about 50.8% above its July 27 closing price of $29.17
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 28 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)