Cushman & Wakefield delivered its seventh consecutive quarter of double-digit adjusted earnings growth. Adjusted EPS of $0.37 topped the $0.36 consensus by 2.8% and grew 27.6% year over year. Revenue of $2.808 billion beat the $2.76 billion estimate by 1.7% and rose 7.7%. Earnings growth accelerated from roughly 17% in the second quarter. Revenue growth moved the other way, easing to 8% from 11%. That is the central tension. The bottom line is accelerating because of a capital markets rebound, lower interest costs and operating leverage. The top-line engine that powered the first half, leasing and services, is losing speed.
The quality of the beat deserves scrutiny, though it holds up better than the GAAP figure suggests. Diluted EPS was flat at $0.22, and nine-month GAAP EPS fell to $0.39 from $0.47. The flat quarter is largely a tax story. Pre-tax earnings jumped 86% to $83.7 million, but the prior-year quarter carried a $6.3 million tax benefit tied to a non-recurring U.K. valuation allowance release, while this year's provision was $31.6 million. Operating income rose 21% to $129.9 million, and adjusted EBITDA grew 15% to $183.7 million. Net interest expense fell 12% on debt prepayments and repricings, a direct earnings tailwind. Investors should also note that the Greystone JV adjustment shrank to $4.9 million from $24.0 million as loan-loss provisions eased. That item flatters neither period's adjusted figure, but it shows how much non-operating noise sits between GAAP and adjusted results.
Beneath the headline, the business mix shifted meaningfully. Global capital markets revenue swung to +18% from -1% in the second quarter. The Americas surged 24% after falling 6%, which supports management's earlier description of a temporary 'air pocket.' Leasing still grew a healthy 15%, but that was down from 27%, and Americas leasing slowed to 19% from 35%. Services decelerated to 5% from 7%. Americas services managed just 1% as multifamily property management clients transitioned away, and management flagged another contract mix shift in the fourth quarter. Project management cooled to 10% from 20%. Regionally, the Americas carried the quarter with 18% adjusted EBITDA growth. APAC EBITDA jumped 34%. EMEA brokerage deteriorated sharply, with leasing down 8% and capital markets down 21%, and EMEA EBITDA fell 15% amid uncertainty in the U.K., France and Italy.
The balance sheet is the clearest improvement. The remaining $150 million of 2028 notes was redeemed on October 21, about eight months ahead of the mid-2027 target. That brings debt paydowns to more than $800 million since 2024 and leaves no long-term maturities before 2030. Net leverage edged down to 2.9x from 3.0x, and Moody's and S&P both upgraded the company. Management is now pivoting to balanced capital allocation: organic investment, tuck-in M&A and optional buybacks. It is still targeting investment grade and another $200-400 million of debt reduction. Cash generation is the weak link. Trailing free cash flow slid to $200 million, or 60% conversion, from $249 million and 79% in the second quarter. Nine-month operating cash flow was just $24.4 million against a sharp rise in capex. Management attributed the decline to working-capital timing, but bears have legitimate ammunition here. Margin expansion of roughly 30 basis points, with incremental margins near 11%, is also modest for a quarter with this much transactional growth.
Guidance was reaffirmed, not raised. The 2026 outlook still calls for 18-23% adjusted EPS growth, which was raised last quarter, with revenue at the mid-to-high end of 6-8%. Management struck a more confident tone on 2027, saying it was 'highly confident' in a 15-20% EPS and 6-8% revenue growth framework. It was also constructive on office, citing lengthening Class A lease terms and collapsing new supply. Risks include deal repricing and longer timelines from higher rates, multifamily capital markets softness, and a possible data center construction moratorium after the midterms, though data centers represent only about 3% of Americas leasing.
Investors were not leaning in ahead of the report. Earnings Whispers sentiment weakened from 0.12 to 0.01, slipping to roughly neutral. Shares are down 3.8% since the open after the August report. The quarter was volatile: the stock peaked at $15.66 in mid-August and fell to a 52-week low of $10.88 on October 14. It has since rebounded about 25% to $13.62, sitting just 1.8% above its 200-day moving average and 13% below the quarter's high. The internal trend readings are mixed, with momentum and AVWAP positive while the price trend remains negative.
The bottom line is that Cushman & Wakefield's quarter strengthened the earnings and balance-sheet story more than the growth story. Accelerating adjusted EPS, a genuine capital markets recovery and accelerated deleveraging give the 2027 framework credibility. Decelerating leasing and services, EMEA weakness, thin margin expansion and slipping cash conversion argue that the next leg of upside requires broader top-line momentum, not just a lighter interest bill.