CBRE Group (CBRE) just posted its FY 2025 third quarter numbers, with revenue of about US$10.3b and basic EPS of US$1.22 setting the tone for its latest update. The company has seen revenue move from roughly US$8.4b in Q2 2024 to US$10.3b in Q3 2025, while quarterly EPS has ranged from US$0.42 to US$1.60 over that period. This results in a trailing twelve month EPS of US$4.09 that feeds into the current earnings story. With net profit margins reported at 3.1% over the last year, investors are likely to focus on how sustainably CBRE is converting its large revenue base into bottom line performance.

See our full analysis for CBRE Group.

With the latest figures on the table, the next step is to see how these results line up with the widely held narratives around CBRE’s growth profile, risk factors, and long term profitability story.

TTM earnings up 28.2% versus softer five year trend

• Over the last 12 months, earnings grew 28.2% and net income reached about US$1.2b, while the five year earnings trend is described as a 7.5% annual decline, so the recent strength sits against a weaker longer term backdrop.
• Consensus narrative fans the idea of more stable growth, but this mix of strong 12 month EPS of US$4.09 and a softer five year profile keeps the story balanced:
  • On the supportive side, Q3 2025 net income of US$363 million and Q4 2024 net income of US$487 million both sit well above the smaller quarters like Q2 2024 at US$130 million, which lines up with the view that the business can generate sizeable profits even when some parts of commercial real estate are under pressure.
  • On the cautious side, that same long term decline of 7.5% per year in earnings is exactly what critics of the consensus point to when they say recent 28.2% growth needs to be tested over more than just a one year window.

3.1% margin and high debt keep leverage in focus

• Trailing 12 month net profit margin sits at 3.1%, up from 2.8% a year earlier, and this is paired with commentary that the balance sheet carries a high level of debt, which is flagged as a minor risk.
• Bears argue that heavy exposure to office and retail plus higher leverage could bite, and the margin and debt data give them plenty to point to:
  • The 3.1% margin on about US$39.3b of trailing 12 month revenue translates to roughly US$1.2b of net income, so even small shifts in pricing or volumes in weaker segments like office and retail can matter a lot in dollar terms.
  • With leverage already called out as elevated, the bearish narrative that high fixed costs and a global footprint could squeeze earnings during any slowdown in transactions is consistent with a modest margin percentage that does not leave a wide buffer.

From here, skeptics who worry about office and retail exposure may want to see how the cautious case stacks up against the numbers in more detail with 🐻 CBRE Group Bear Case

P/E of 32.5x versus peers and DCF fair value

• The shares trade on a P/E of 32.5x, compared with 24.9x for peers and 27.6x for the wider US real estate industry, while the current share price of US$136.28 sits below both a DCF fair value of about US$181.08 and the allowed analyst price target of US$185.33.
• Bullish investors argue that earnings growth and cash generation justify this richer P/E, and the current data give them some support as well as some friction:
  • On the supportive side, trailing earnings growth of 28.2% and forecasts around 15.5% per year provide a growth backdrop that bulls link to the gap between the US$136.28 share price and the US$181.08 DCF fair value plus the US$185.33 analyst target.
  • On the other hand, critics of the bullish view point out that paying 32.5x earnings while the peer group sits at 24.9x and the industry at 27.6x means a lot is already built into the price, so any slowdown from that 15.5% forecast growth path would leave less room for error.

If you are weighing whether that 32.5x P/E is justified by the growth story, it can help to see how bullish investors connect these valuation gaps to their thesis in the full case for the stock: 🐂 CBRE Group Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for CBRE Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your CBRE Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Explore Alternatives

CBRE’s modest 3.1% margin, higher leverage, and five year earnings decline contrast with its richer 32.5x P/E and leave limited room for error.

If that mix of thin margins and higher debt makes you uneasy, check out solid balance sheet and fundamentals stocks screener (45 results) to quickly focus on companies built on stronger financial footing.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.