CoStar Group's Q4 earnings exceeded expectations but the stock fell due to weak outlook

LootboxPhobia · 2026-02-24T22:24:30+00:00

CoStar Group's Q4 results exceeded expectations, with earnings per share of $0.31 and revenue up 27% year-over-year to $900 million. However, the company's guidance for Q1 and the full year was below market expectations, leading to a 1.3% decline in stock price. Revenue for Q1 2026 is expected to be between $890 million and $900 million, below expectations.

LootboxPhobia

2026-02-24 22:24:30

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Arlington, Virginia - CoStar Group, Inc. (NASDAQ: CSGP) reported Q4 earnings that exceeded analyst expectations, but the stock fell 1.3% due to the company’s guidance for Q1 and full-year 2026 being below Wall Street estimates.

The commercial and residential real estate market services provider posted adjusted earnings per share of $0.31 for Q4, beating the consensus estimate of $0.27. Revenue reached $900 million, up 27% year-over-year from $709 million last year, and surpassing the analyst consensus of $891.95 million. However, the company’s guidance disappointed investors. For Q1 2026, CoStar Group expects revenue of $890 million to $900 million, with a midpoint of $895 million, below the consensus estimate of $905.8 million. The company also guided for adjusted EPS of $0.16 to $0.19 for Q1, well below the analyst expectation of $0.26.

For the full year 2026, CoStar Group reaffirmed its previous revenue guidance of $3.78 billion to $3.82 billion, with a midpoint of about 17% growth. This midpoint of $3.8 billion is slightly below the market consensus of $3.809 billion. The full-year adjusted EPS guidance is $1.22 to $1.33, matching the high end of the market expectation of $1.33.

“With 59 consecutive quarters of double-digit revenue growth and an 83% year-over-year increase in adjusted EBITDA, CoStar Group is entering a period of significant earnings acceleration,” said Founder and CEO Andy Florance. “The heavy lifting of nationwide brand promotion for Homes.com is complete, and the launch of Homes AI marks the beginning of a new era for our business.”

The company’s Q4 adjusted EBITDA was $177 million, up 58% from $112 million last year. For full-year 2025, adjusted EBITDA reached $442 million, an 83% increase from $241 million in 2024. The company plans to repurchase $700 million of common stock in 2026 under the previously authorized $1.5 billion share repurchase program.

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