CoStar Group (NASDAQ:CSGP) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

CoStar Group (NASDAQ:CSGP) issued its quarterly earnings data on Tuesday. The technology company reported $0.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.04, FiscalAI reports. The firm had revenue of $900.00 million during the quarter, compared to the consensus estimate of $892.22 million. CoStar Group had a return on equity of 2.51% and a net margin of 0.23%.The company’s quarterly revenue was up 26.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.26 EPS. CoStar Group updated its Q1 2026 guidance to 0.160-0.190 EPS.

Here are the key takeaways from CoStar Group’s conference call:

• Strong FY?2025 results and upbeat 2026 guidance: Revenue rose to $3.2B (+19%) and adjusted EBITDA to $442M (+83%), and management reaffirmed 2026 guidance of $3.78B–$3.82B revenue and $740M–$800M adjusted EBITDA.
• Homes.com and new Homes AI show rapid early traction — large increases in traffic, engagement and leads (AI users spend ~17 minutes on site and submit ~7x more leads), which management expects to materially accelerate residential growth and subscriptions.
• Record bookings and commercial recovery: annual net new sales bookings hit a record $308M (+23%) as commercial fundamentals improve, with the company expanding salesforces across CoStar, LoopNet, Apartments/Homes and Matterport to capture market share.
• Capital allocation and M&A posture: 2025 acquisitions (Domain, Matterport) meaningfully contributed to growth, CoStar cut ~$120M of duplicative costs, and the board authorized a $1.5B buyback (planning $700M repurchases in 2026) while forecasting $175M–$225M CapEx for campus buildouts.
• Near?term profitability pressure in residential and FY?2026 investment drag: management expects front?loaded marketing and integration/investment spending to depress early?year residential EBITDA (negative in Q1) and leave margins uneven despite forecasted full?year EBITDA expansion.

CoStar Group Stock Down 8.9%

CSGP opened at $44.78 on Thursday. CoStar Group has a 12 month low of $43.17 and a 12 month high of $97.43. The business has a 50-day moving average of $59.23 and a two-hundred day moving average of $71.44. The company has a debt-to-equity ratio of 0.12, a current ratio of 3.12 and a quick ratio of 3.12. The stock has a market capitalization of $18.98 billion, a price-to-earnings ratio of 4,482.48, a price-to-earnings-growth ratio of 1.29 and a beta of 0.84.

Wall Street Analysts Forecast Growth

CSGP has been the subject of a number of analyst reports. BNP Paribas Exane assumed coverage on CoStar Group in a report on Wednesday, January 14th. They issued a “neutral” rating and a $64.00 price target for the company. Bank of America set a $74.00 price objective on CoStar Group in a research report on Wednesday, January 7th. BMO Capital Markets reduced their target price on shares of CoStar Group from $77.00 to $72.00 and set a “market perform” rating on the stock in a report on Thursday, January 8th. Jefferies Financial Group raised shares of CoStar Group from a “hold” rating to a “buy” rating and set a $67.00 price target on the stock in a research note on Friday, February 20th. Finally, Keefe, Bruyette & Woods lowered their price target on shares of CoStar Group from $75.00 to $70.00 and set an “outperform” rating for the company in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $74.47.

CoStar Group announced that its Board of Directors has initiated a share repurchase program on Wednesday, January 7th that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the technology company to purchase up to 5.3% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On CoStar Group

A number of institutional investors have recently bought and sold shares of CSGP. Viking Global Investors LP acquired a new position in CoStar Group during the second quarter worth approximately $258,773,000. Ion Asset Management Ltd. boosted its holdings in shares of CoStar Group by 730.3% in the 2nd quarter. Ion Asset Management Ltd. now owns 1,169,833 shares of the technology company’s stock valued at $94,055,000 after purchasing an additional 1,028,933 shares during the last quarter. Amundi grew its stake in shares of CoStar Group by 31.2% during the 4th quarter. Amundi now owns 4,114,516 shares of the technology company’s stock valued at $276,660,000 after buying an additional 979,380 shares during the period. Invesco Ltd. grew its stake in shares of CoStar Group by 18.7% during the 4th quarter. Invesco Ltd. now owns 5,387,056 shares of the technology company’s stock valued at $362,226,000 after buying an additional 849,713 shares during the period. Finally, Squarepoint Ops LLC increased 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 buying an additional 781,763 shares during the last quarter. 96.60% of the stock is currently owned by hedge funds and other institutional investors.

CoStar Group News Roundup

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

• Positive Sentiment: Company raised FY2026 guidance well above street expectations — management gave FY26 adjusted EPS of $1.220–1.330 vs. a ~1.00 consensus and revenue guidance around $3.8B vs. ~$3.6B expected; that upside to full?year results supports better forward profitability assumptions and likely drove buying interest.
• Positive Sentiment: Q4 results beat estimates — CoStar reported $0.31 EPS (vs. $0.27 consensus) and $900M revenue (vs. ~$892M est.), with double?digit revenue growth and strong bookings cited on the call, which confirms demand across its marketplaces and subscription services. CoStar Group (CSGP) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: CoStar data shows London office yield compression — Company research reports a sharp fall in London office yields in 2025 (to 5.9%), signaling improving commercial real?estate transaction activity in a major market that underpins demand for CoStar’s data, analytics and transaction services. CoStar Data Show Sharp London Office Yield Compression in 2025
• Neutral Sentiment: Apartments.com rent report shows modest U.S. rent growth — February rental data showed rents continuing to inch higher (national average ~$1,716), which supports the fundamentals for CoStar’s multifamily marketplace but is a gradual trend rather than a catalyst. Apartments.com Releases Multifamily Rent Growth Report for February 2026
• Neutral Sentiment: Corporate disclosure change — CoStar will use its website as a primary channel for investor disclosures; procedural change with limited direct impact on fundamentals but improves information access for investors. CoStar Expands Use of Website for Investor Disclosures
• Negative Sentiment: Q1 2026 guidance disappointed — CoStar gave Q1 EPS guidance of $0.160–0.190 vs. consensus ~ $0.23, and revenue guidance slightly below some estimates; the softer near?term outlook appears to have triggered profit?taking despite the stronger FY guide.
• Negative Sentiment: Analysts cut forecasts and trimmed price targets — Multiple firms (Goldman, RBC, Needham, Wells Fargo, Keefe Bruyette & Woods, others) lowered targets and adjusted models after the quarter; those downgrades amplify selling pressure and shorten the runway for near?term upside. CoStar Group Analysts Cut Their Forecasts Following Q4 Results
• Negative Sentiment: Market headlines emphasized the “weak outlook” angle — outlets noted that despite beats, the guidance mix (soft Q1, mid?range FY midpoint below some models) led to share weakness as investors refocused on near?term growth. CoStar Group beats Q4 estimates but shares dip on weak outlook

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.