CoStar Group Shares Rebound in Europe Following Raised 2026 Profit Guidance

CoStar Group stock traded at 27.48 euros on Lang & Schwarz on November 11, 2026, following third-quarter earnings and an upgraded financial outlook for the year. The company reported that third-quarter revenue grew 14 percent year over year to 952 million US dollars. Net income reached 74 million US dollars, reversing a 31 million US dollar loss from the prior-year period.

Adjusted EBITDA doubled compared to the third quarter of last year, reaching a record 229 million US dollars. Operating strength was aided by approximately 150 million US dollars in cost reductions completed against original plans. Management identified an additional 200 million US dollars in potential cost efficiencies across procurement, organizational structure, technology, and integration over the next 12 to 18 months, supporting an adjusted EBITDA goal of 1.25 billion US dollars by 2028.

For the full year 2026, CoStar Group lifted its revenue projection to between 3.75 billion and 3.77 billion US dollars, with adjusted EBITDA forecasted at 820 million to 840 million US dollars. In the fourth quarter, the company anticipates revenue of 976 million to 996 million US dollars and adjusted EBITDA between 275 million and 295 million US dollars.

Despite higher profitability, the real estate platform faces near-term operational challenges. Annualized net new bookings declined to 37 million US dollars after sales staffing fell 10 percent year over year, notably among inside sales personnel. Chief Executive Officer Andrew Florance explained that the company is shifting sales recruitment away from Richmond to regional city hubs so that recruiters report directly to local sales leadership.

The operational shift follows widespread valuation revisions across Wall Street. Goldman Sachs lowered its price target to US$36 while maintaining a Buy rating, citing bookings pressure alongside execution risks. Keefe Bruyette reduced its target to US$30 and JPMorgan cut its target to US$44. Earlier in November, GuruFocus noted the stock stood at $30.55 on November 06, 2026, which represented a 54.6% decline year-to-date.