CoStar Group’s Q4 Revenue Climbs 14% to $1.02 B, FY26 EPS Midpoint Misses Forecast
CoStar Group reported fourth-quarter revenue of $1.02 billion, a 14% year-over-year increase, with adjusted EPS of $1.52, topping analyst predictions. It issued FY26 adjusted EPS guidance of $6.60–$7.00, with a $6.80 midpoint that trails consensus by roughly 3%.
1. Strong Fourth-Quarter Results
CoStar Group delivered Q4 revenue of $1.02 billion, up 14% year-over-year, and adjusted EPS of $1.52, surpassing estimates. Growth was fueled by increased demand on its Apartments.com multifamily platform and expansion of commercial property services.
2. FY26 EPS Guidance Falls Short
Management set FY26 adjusted EPS guidance between $6.60 and $7.00, with a midpoint of $6.80—about 3% below the $7.05 consensus. Revenue outlook was maintained at $4.20 billion to $4.32 billion, signaling moderation in growth expectations.
3. Analyst Forecast Cuts
In response to guidance, analysts trimmed their FY26 EPS forecasts by an average of 5%, and several lowered price targets. Concerns center on softening rent growth trends and intensifying competition in digital real estate services.
4. Outlook and Strategy
CoStar reiterated plans to accelerate investments in data analytics and expand its digital real estate marketplaces. The company aims to leverage its leadership in multifamily and commercial segments to navigate near-term headwinds and drive long-term value.