2Q26 Earnings: Core EPS in-line with cons; 26e guide raise above cons; cap markets below expectations but 3Q off to good start; capital allocation in focus

Research evidence excerpt

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M

Update

August 5, 2026 03:45 PM GMT

Cushman & Wakefield PLC | North America

Morgan Stanley & Co. LLC

Ronald Kamdem, CFA

Equity Analyst

2Q26 Earnings: Core EPS in-line

with cons; 26e guide raise above

cons; cap markets below

expectations but 3Q off to good

start; capital allocation in focus

Matthew Glickman

Research Associate

Jenny Li

Research Associate

Cushman & Wakefield PLC (CWK.N, CWK UN)

Real Estate Services | United States of America

Stock Rating

Industry View

Price target

Shr price, close (Aug 4, 2026)

Mkt cap, curr (mm)

52-Week Range

Overweight

In-Line

$19.00

$14.08

$3,337

$17.33-11.58

AlphaSignals Earnings Reaction

Unchanged

In-line

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

2Q Adj. EPS of $0.35 vs Cons/MSe of $0.35/$0.33; 2Q Adj. EBITDA of $184mn

(+14% YoY vs +16% YoY in 1Q) vs Cons/MSe $176mn/$169mn

26e Adj. EPS guide of 18-23% growth (from 15-20%) vs cons +21%; revenue guide

of mid-to-high end of 6-8% (from 6-8%); FCF conversion guide of 60-80% (unch)

Liquidity $1.5bn incl. $0.5bn cash vs 1Q $1.6bn incl $0.6bn cash

2Q cash gained from operations of +$54mn (vs +$10mn in 2Q25); free cash flow

of +$46mn (vs +$0mn in 2Q25); leverage of 3.0x vs 3.1x in 1Q

Capital allocation in focus as leverage start to trend closer to 2x over the next 1218months; capital markets performance vs peers going forward also key focus

Additional details:

• What's our view? We expect a neutral stock reaction as capital markets was

below expectations offsetting strength in services, leasing and the guide

raise above consensus. Indeed given the strength peers reported in capital

market investor expectations may have been elevated. We note margin

improvement, cash flow conversion and cap market 3Q trends are

constructive. As the company approaches 2x leverage over time capital

allocation comes into focus between external growth, reinvesting in the

business, more debt paydown or buybacks.

• Total revenue of $2,763mn (+11% YoY vs 1Q +11% YoY) vs MSe of $2,679mn.

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