CoStar Group (NASDAQ:CSGP) Posts Earnings Results, Beats Expectations By $0.03 EPS

CoStar Group (NASDAQ:CSGP) announced its quarterly earnings results on Tuesday. The technology company reported $0.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.03, FiscalAI reports. CoStar Group had a return on equity of 3.70% and a net margin of 2.08%.The business had revenue of $925.00 million during the quarter, compared to analyst estimates of $928.81 million. During the same period in the previous year, the company earned $0.17 EPS. The firm’s revenue was up 18.4% on a year-over-year basis. 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 Stock Performance

CoStar Group stock traded down $1.27 during mid-day trading on Thursday, reaching $28.55. The company’s stock had a trading volume of 4,078,109 shares, compared to its average volume of 7,269,001. The firm’s fifty day moving average price is $30.74 and its two-hundred day moving average price is $40.42. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.20 and a current ratio of 2.20. CoStar Group has a 12-month low of $25.89 and a 12-month high of $97.43. The company has a market capitalization of $11.66 billion, a P/E ratio of 150.18, a PEG ratio of 0.78 and a beta of 0.74.

Insider Activity at CoStar Group

In related news, CEO Andrew C. Florance purchased 71,430 shares of CoStar Group stock in a transaction dated Friday, May 1st. The stock was bought at an average cost of $35.20 per share, for a total transaction of $2,514,336.00. Following the completion of the transaction, the chief executive officer owned 1,722,865 shares in the company, valued at $60,644,848. This trade represents a 4.33% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 1.18% of the stock is owned by insiders.

Hedge Funds Weigh In On CoStar Group

A number of large investors have recently modified their holdings of CSGP. Viking Global Investors LP purchased a new stake in shares of CoStar Group in the second quarter worth $258,773,000. Ion Asset Management Ltd. increased its position in shares of CoStar Group by 730.3% in the second quarter. Ion Asset Management Ltd. now owns 1,169,833 shares of the technology company’s stock worth $94,055,000 after purchasing an additional 1,028,933 shares during the last quarter. Amundi lifted its position in CoStar Group by 31.2% during the fourth quarter. Amundi now owns 4,114,516 shares of the technology company’s stock valued at $276,660,000 after purchasing an additional 979,380 shares during the last quarter. Invesco Ltd. grew its stake in CoStar Group by 18.7% in the 4th 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 in the last quarter. Finally, Squarepoint Ops LLC lifted its holdings in shares of CoStar Group by 5,664.9% during the 4th quarter. Squarepoint Ops LLC now owns 795,563 shares of the technology company’s stock worth $53,494,000 after acquiring an additional 781,763 shares during the last quarter. 96.60% of the stock is currently owned by institutional investors.

Key CoStar Group News

Here are the key news stories impacting CoStar Group this week:

• Positive Sentiment: Second-quarter earnings beat estimates. CoStar reported adjusted EPS of $0.32, above the $0.29 consensus, while revenue increased 18.4% year over year to $925 million. Net income rose sharply, and adjusted EBITDA more than doubled, supporting management’s view that profitability is improving. CoStar Group Q2 2026 Results
• Positive Sentiment: Full-year EPS guidance remains above expectations. CoStar set fiscal 2026 EPS guidance at $1.32-$1.39, compared with the $1.29 analyst consensus. The company also said residential EBITDA turned positive, while net new bookings rose 3% sequentially to $69 million.
• Neutral Sentiment: Multifamily market conditions were stable. Apartments.com reported that U.S. apartment rents rose just 0.03% in July to $1,747, marking an eighth consecutive month of increases. The modest growth is constructive for CoStar’s rental-marketplace business but does not indicate a significant near-term acceleration. Apartments.com Multifamily Rent Growth Report
• Negative Sentiment: Third-quarter guidance fell well short of expectations. CoStar forecast EPS of $0.31-$0.34 and revenue of $935-$945 million, below consensus estimates of $0.36 and $970.1 million, respectively. The outlook suggests that near-term growth and margin expectations may be moderating despite the quarterly earnings beat.
• Negative Sentiment: Analysts broadly lowered targets and some ratings. JPMorgan reduced its target to $52 from $58, BTIG to $42 from $55, Needham to $40 from $50, and Citizens JMP to $35 from $44. Keefe, Bruyette & Woods and William Blair downgraded the stock to “market perform,” with KBW cutting its target to $29 from $41. These revisions reinforce concerns about the weaker outlook and elevated valuation.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Bank of America decreased their target price on CoStar Group from $42.00 to $37.00 and set a “neutral” rating for the company in a research report on Tuesday, May 19th. Royal Bank Of Canada set a $34.00 price target on shares of CoStar Group and gave the company a “sector perform” rating in a report on Monday, July 13th. Stephens cut their price target on CoStar Group from $50.00 to $42.00 and set an “overweight” rating on the stock in a report on Monday, May 4th. Keefe, Bruyette & Woods downgraded shares of CoStar Group from an “outperform” rating to a “market perform” rating and cut their target price for the company from $41.00 to $29.00 in a research note on Wednesday. Finally, Deutsche Bank Aktiengesellschaft set a $44.00 price target on shares of CoStar Group in a research report on Thursday, April 30th. Nine investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $41.61.

CoStar Group Company Profile

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.