CoStar Group (NASDAQ:CSGP – Get Free Report) released its earnings results on Tuesday. The technology company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.03, FiscalAI reports. The business had revenue of $925.00 million for the quarter, compared to the consensus estimate of $928.81 million. CoStar Group had a net margin of 0.74% and a return on equity of 2.90%. The firm’s quarterly revenue was up 18.4% compared to the same quarter last year. During the same period last year, the firm posted $0.17 earnings per share. CoStar Group updated its Q3 2026 guidance to 0.310-0.340 EPS and its FY 2026 guidance to 1.320-1.390 EPS.
Here are the key takeaways from CoStar Group’s conference call:
- Profitability improved sharply: Q2 revenue rose 18% year over year to $925 million, while adjusted EBITDA more than doubled to $184 million, producing a 20% margin. Management maintained full-year adjusted EBITDA guidance of $780 million to $820 million and expects $700 million of share repurchases in 2026.
- CoStar reduced full-year revenue guidance to $3.715 billion-$3.755 billion, reflecting slower near-term growth at Ten-X, Apartments.com, and Homes.com. Net new bookings were $69 million, up sequentially but down approximately 26% year over year.
- The residential segment reached profitability for the first time, generating $12 million of adjusted EBITDA in Q2. Homes.com revenue increased 66% year over year, cancellations fell to 2.4%, and management is shifting toward a more productive field-sales model and launching higher-priced “platinum” advertising.
- Apartments.com continued to add paid properties, up 12% year over year, and reported strong lead-to-lease conversion, but multifamily owners remain price-sensitive amid elevated supply and concessions. The company is maintaining price integrity despite aggressive competitor discounting.
- CoStar highlighted ongoing product expansion, including rent benchmarking, French and U.K. launches, AI-powered lease abstraction, and strong Matterport and Debt Solutions momentum. The pending Zonda acquisition, expected to close in the second half of 2026, is not included in current guidance and could expand the company’s new-home data and analytics capabilities.
CoStar Group Trading Up 4.0%
Shares of NASDAQ:CSGP opened at $30.33 on Wednesday. The company has a current ratio of 2.20, a quick ratio of 2.20 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $12.39 billion, a PE ratio of 505.58, a P/E/G ratio of 0.75 and a beta of 0.74. CoStar Group has a 1 year low of $26.68 and a 1 year high of $97.43. The firm has a fifty day moving average price of $30.83 and a 200 day moving average price of $40.64.
Insider Buying and Selling at CoStar Group
Hedge Funds Weigh In On CoStar Group
Several large investors have recently made changes to their positions in CSGP. Invesco Ltd. lifted its holdings in shares of CoStar Group by 18.7% during the fourth quarter. Invesco Ltd. now owns 5,387,056 shares of the technology company’s stock worth $362,226,000 after buying an additional 849,713 shares during the last quarter. Corient Private Wealth LLC lifted its holdings in shares of CoStar Group by 9.8% during the 4th quarter. Corient Private Wealth LLC now owns 123,418 shares of the technology company’s stock worth $8,299,000 after acquiring an additional 11,057 shares during the period. Vident Advisory LLC increased its stake in CoStar Group by 6.1% in the fourth quarter. Vident Advisory LLC now owns 14,104 shares of the technology company’s stock valued at $948,000 after acquiring an additional 815 shares during the period. First Citizens Bank & Trust Co. raised its position in CoStar Group by 117.9% in the fourth quarter. First Citizens Bank & Trust Co. now owns 257,404 shares of the technology company’s stock worth $17,308,000 after purchasing an additional 139,258 shares in the last quarter. Finally, Wahed Invest LLC bought a new position in CoStar Group during the fourth quarter worth about $738,000. Institutional investors and hedge funds own 96.60% of the company’s stock.
Key Headlines Impacting CoStar Group
Here are the key news stories impacting CoStar Group this week:
- Positive Sentiment: CoStar reported second-quarter adjusted earnings of $0.32 per share, above the $0.28–$0.29 analyst consensus and up from $0.17 a year earlier. Revenue rose 18.4% year over year to $925 million, while net income increased sharply and adjusted EBITDA more than doubled, signaling improving profitability. CoStar Group Q2 2026 Results
- Positive Sentiment: Net new bookings reached $69 million, up 3% from the prior quarter, supporting continued demand across CoStar’s real estate marketplaces, information and analytics businesses. Management described the results as a profitability inflection. CoStar Group Q2 2026 Earnings
- Positive Sentiment: Full-year 2026 adjusted EPS guidance of $1.32–$1.39 is above the roughly $1.29 analyst estimate, potentially reinforcing the longer-term earnings-growth story.
- Neutral Sentiment: Management’s second-quarter revenue was slightly below expectations, despite the strong year-over-year growth rate. The company also continues to trade well below its 52-week high, which may be encouraging bargain hunting and speculative buying ahead of earnings.
- Negative Sentiment: Third-quarter guidance was below consensus: adjusted EPS of $0.31–$0.34 versus $0.36 expected, and revenue of $935–$945 million versus approximately $970 million expected. The softer near-term outlook may limit the stock’s upside and explains the mixed market reaction. CoStar Q2 Earnings and Q3 Guidance
Analyst Upgrades and Downgrades
A number of analysts have recently issued reports on CSGP shares. Bank of America reduced their target price on CoStar Group from $42.00 to $37.00 and set a “neutral” rating for the company in a report on Tuesday, May 19th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of CoStar Group in a research note on Wednesday, June 24th. Citizens Jmp reduced their price target on shares of CoStar Group from $73.00 to $44.00 and set a “market outperform” rating for the company in a research report on Wednesday, April 29th. Citigroup lowered their price objective on shares of CoStar Group from $100.00 to $70.00 and set a “buy” rating on the stock in a research report on Thursday, April 23rd. Finally, BTIG Research dropped their price objective on shares of CoStar Group from $55.00 to $42.00 and set a “buy” rating on the stock in a research note on Wednesday. Eleven investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $46.17.
View Our Latest Report on CSGP
About CoStar Group
CoStar Group, Inc is a provider of information, analytics and online marketplaces for the commercial real estate industry. The company gathers property-level data, builds market analytics and supplies research tools used by brokers, owners, lenders, investors and other real estate professionals to evaluate markets, track inventory and manage listings. CoStar’s offerings are delivered primarily through subscription-based platforms that combine proprietary databases, mapping and workflow applications to support decision-making across the property life cycle.
In addition to its core CoStar research service, the company operates prominent online listing and marketing platforms that connect buyers, sellers, tenants and brokers.
See Also
- Five stocks we like better than CoStar Group
- UPS Just Gave Investors a Second Chance to Buy
- Welltower at 52-Week Highs—But Analysts Believe There’s More to Come
- D-Wave’s AT&T Deal Shows Quantum Computing Is Moving Beyond Theory
- Insiders Sell, Institutions Buy: The AI Trade Is Getting More Interesting
Receive News & Ratings for CoStar Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CoStar Group and related companies with MarketBeat.com's FREE daily email newsletter.
