CoStar Group reports 18% revenue growth in Q2 2026

CoStar Group is demonstrating robust financial performance, driven by its subscription-based model for real estate information, analysis, and marketplace services. In the second quarter of 2026, the company reported revenue of $925 million, an 18% increase compared to the $781 million reported in the second quarter of 2025. Net profit for the quarter reached $55 million, with earnings per share at $0.14. The company has provided guidance for the third quarter of 2026, projecting earnings per share between $0.31 and $0.34.

Analyst sentiment remains varied. Needham recently reaffirmed a buy rating for CoStar Group with a price target of $40.00. However, the broader analyst consensus is mixed, with nine firms issuing buy ratings, nine issuing hold ratings, and two issuing sell ratings, resulting in an average price target of $40.11.

CoStar Group maintains a strong recurring revenue base, with over 95% of its earnings derived from subscriptions. Contracts with a minimum duration of twelve months show a renewal rate of 90%. The company's balance sheet is characterized by an investment-grade Fitch rating of BBB and a low debt-to-equity ratio, though analysts note risks related to $5 billion in goodwill and the execution of AI-driven platform improvements.