Jones Lang LaSalle (JLL) Up 13.7% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Jones Lang LaSalle (JLL) reported strong third-quarter earnings, surpassing estimates and showing significant year-over-year revenue growth, indicating positive momentum leading into the next quarter [3][4][14]. Financial Performance - JLL's adjusted earnings per share for Q3 2025 were $4.50, exceeding the Zacks Consensus Estimate of $4.24 and up from $3.50 in the prior year [3]. - Total revenues reached $6.51 billion, surpassing the Zacks Consensus Estimate of $6.46 billion, reflecting a 10.9% increase from the previous year [4]. Segment Performance - Real Estate Management Services segment revenues were $4.98 billion, a 10.2% year-over-year increase, driven by strong Workplace Management performance and Project Management revenue growth [5]. - Leasing Advisory segment revenues increased by 7.3% to $741.9 million, primarily due to growth in office leasing in the U.S. and contributions from Germany and Canada [6]. - Capital Market Services segment revenues rose 22.7% to $612.1 million, with significant contributions from debt advisory and investment sales, particularly in the multifamily and retail sectors [7]. - Investment Management segment revenues grew 13.9% to $115.4 million, attributed to higher incentive fees, with assets under management (AUM) increasing to $88.5 billion from $84.6 billion year-over-year [8]. - Software and Technology Solutions segment revenues were $58.6 million, a 3.4% increase, driven by growth in software despite declines in technology solutions [9]. Balance Sheet - JLL ended Q3 2025 with cash and cash equivalents of $428.9 million, up from $401.4 million at the end of Q2 2025 [11]. - The net leverage ratio improved to 0.8 from 1.2, and corporate liquidity increased to $3.54 billion from $3.32 billion [11]. Market Outlook - Estimates for JLL have been trending upward, with a Zacks Rank of 2 (Buy), indicating expectations for above-average returns in the coming months [14]. - The company has a Growth Score of B and a Value Score of B, placing it in the top 40% for investment strategies [13]. Industry Comparison - JLL is part of the Zacks Real Estate - Operations industry, where competitor CBRE Group reported revenues of $10.26 billion for the last quarter, reflecting a year-over-year increase of 13.5% [15].