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Jones Lang Lasalle Inc. (JLL)
NYSE:JLL
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Jones Lang Lasalle
(NYSE:JLL)
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Rating:68Neutral
Price Target:
$342.00
▲(8.03% Upside)
Action:DowngradedDate:02/20/26
The score is driven primarily by improving financial performance and a positive earnings outlook (EBITDA growth guidance, margin progress, strong cash generation and low leverage). These positives are tempered by currently weak technical momentum and only moderate valuation support (P/E ~19 and no dividend yield data).
Positive Factors
Global, diversified business model
JLL's global footprint and broad service mix create durable revenue diversification and scale. Operating across leasing, capital markets, REMS and project services reduces single-market reliance, enabling cross‑sell, global client relationships and resilience to localized downturns over multiple quarters.
Sustained revenue and EBITDA momentum
Consistent top‑line and adjusted EBITDA growth shows improving demand and execution across leasing and capital markets. Multi‑quarter momentum signals structural recovery in commercial real estate activity and supports a higher baseline for margins and free cash flow over the medium term.
Strong cash generation and lower leverage
Record free cash flow and materially reduced net leverage increase financial flexibility for reinvestment, buybacks and cushioning downturns. Robust cash conversion provides durable optionality for capital allocation while supporting investment in tech and productivity initiatives that fuel long-term margin expansion.
Negative Factors
Cyclical margin and cash-flow volatility
JLL's earnings and cash flow have historically been cyclical, with margins swinging materially. This earnings sensitivity to macro and transaction volumes undermines predictability of profits and cash conversion, complicating capital allocation and making long‑term margin assumptions less certain.
Property-management contract turnover
Losses and active exits of low‑margin property management contracts reduce recurring revenue and suppress segment margins near term. Replacing and rehiring better‑margin business takes time; this structural churn can depress predictable recurring cash flows and margin stability for multiple quarters.
Investment-management fee volatility
Incentive fees are lumpy and tied to transaction and performance cycles; declines reduce high‑margin revenue and amplify earnings variability. Reliance on incentive fees for outsized profitability makes long‑term margin sustainability vulnerable to slower capital markets activity and fundraising cycles.
Jones Lang Lasalle (JLL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.57B
Dividend YieldN/A
Average Volume (3M)591.86K
Price to Earnings (P/E)19.3
Beta (1Y)1.21
Revenue Growth12.51%
EPS Growth32.34%
CountryUS
Employees112,100
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)8.71
Shares Outstanding46,851,470
10 Day Avg. Volume1,006,074
30 Day Avg. Volume591,859
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)2.12
Price to Sales (P/S)0.61
P/FCF Ratio16.28
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit1.25
Enterprise Value/Ebitda11.70
Forecast
1Y Price Target
$388.33Price Target Upside22.66% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Jones Lang Lasalle Business Overview & Revenue Model
Company DescriptionJones Lang LaSalle Incorporated, a professional services company, provides real estate and investment management services in Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a range of real estate services, including agency leasing and tenant representation services; and capital market services, such as debt advisory, loan sales, equity advisory, loan servicing, merger and acquisition, corporate advisory, and investment sales and advisory services. It also provides on-site management services for office, industrial, retail, multifamily residential, and specialty properties; integrated facilities management services; designing, building, management, and consulting services to tenants of leased space, owners in self-occupied buildings, and owners of real estate investments; and advisory, consulting, valuation, and energy and sustainability services. In addition, the company offers investment management services to institutional and retail investors, including high-net-worth individuals. It provides its services to real estate owners, occupiers, investors, and developers for various property types, including cultural, educational, government, healthcare, laboratory, hotel, hospitality, and sports facilities; industrial and warehouse, office, and residential properties; retail and shopping malls; critical environment, data, transportation, and sort and fulfillment centers; infrastructure projects; and military housings. The company was formerly known as LaSalle Partners Incorporated and changed its name to Jones Lang LaSalle Incorporated in March 1999. Jones Lang LaSalle Incorporated was incorporated in 1997 and is headquartered in Chicago, Illinois.
How the Company Makes MoneyJLL generates revenue through multiple streams, primarily from service fees, commissions, and management fees associated with its real estate services. Key revenue streams include property management services, where the firm charges fees based on the rental income of managed properties, and project management services, where it earns fees for overseeing construction and renovation projects. Additionally, JLL's capital markets division generates income through transaction fees from the buying and selling of properties, as well as advisory services related to investment strategies. The company also derives revenue from tenant representation and leasing services, earning commissions from landlords and tenants. Significant partnerships with institutional investors and real estate firms enhance JLL's capabilities, enabling it to participate in large-scale transactions and investments, which contribute to its overall earnings.
Jones Lang Lasalle Key Performance Indicators (KPIs)
Jones Lang Lasalle Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive momentum: strong revenue and adjusted EBITDA growth, margin achievement, record cash flow and substantially reduced leverage, robust transactional and leasing momentum, and meaningful productivity gains from proprietary data and AI. The company also highlighted targeted near-term headwinds — notably a ~$11M healthcare cost impact, elevated property-management contract turnover and a decline in incentive fees in investment management — and cautioned about tougher year‑over‑year comps and working-capital timing effects. Overall, management presented confidence in continued growth, a strong pipeline, and plans to increase capital returns, indicating that the positive developments materially outweigh the specific, manageable challenges.Q4-2025 Updates
Positive Updates
Sustained Top- and Bottom-Line Momentum
Seventh consecutive quarter of double-digit revenue gains and ninth consecutive quarter of double-digit EPS growth; full-year 2025 revenue increased 11% and fourth-quarter revenue rose 10%.
Record Adjusted EBITDA and Margin Achievement
Full-year adjusted EBITDA of $1,450,000,000, up 22% year-over-year and at the top end of guidance; company achieved its midterm margin target in 2025.
Strong Transactional Performance — Capital Markets & Leasing
Broad-based transactional strength: investment sales and related capital markets businesses accelerated (management commentary noted ~26–27% quarter-over-quarter growth in investment sales/capital markets and a 20% increase in debt advisory during the quarter). On a two-year stack, investment sales were +63% and debt advisory revenue was +90%. Leasing revenue rose 17% in Q4, with office leasing up 26% and industrial up 11%; two-year stack leasing growth accelerated to 31%.
Real Estate Management Services Growth and Pipeline
Real estate management services revenue increased 9% in the quarter and 11% for the full year, led by workplace management and double-digit project management growth; management cited a strong pipeline for continued momentum into 2026.
Cash Generation, Leverage and Capital Return
Free cash flow reached an all-time high and cash conversion was meaningfully above long-term average; net leverage improved to 0.2x at year-end (full-year average leverage 0.9x). Share repurchases totaled $80,000,000 in Q4 and $212,000,000 year-to-date (vs $80,000,000 in 2024), and management expects to increase repurchases in 2026. 2026 adjusted EBITDA guidance is $1,575,000,000–$1,675,000,000 (midpoint ≈ +12% YoY).
Technology, Data and AI Driving Productivity
Double-digit software revenue growth in both the quarter and full year; the software and tech segment achieved profitability in the quarter. Management emphasized proprietary data, AI and tech-enabled productivity gains as contributors to margin expansion and higher revenue per producer. Data center-related work doubled year-over-year across lines of business.
Leasing Quality and Market Signals
Office demand reached the highest level since 2019 according to management; large deals (≥100,000 sq ft) were up ~15% YoY, rents were up ~4% in Q4 (JLL data), and average lease durations have increased to ~8 years—signals of improving leasing fundamentals.
Negative Updates
Healthcare Cost Headwind
An approximate $11,000,000 impact in the quarter from higher U.S. healthcare actuarial costs increased pass-through costs and reduced management fees, creating a profit headwind that was largely offset by one-time/discrete cost actions.
Property Management Contract Turnover and Exits
Property management revenue growth was tempered by elevated contract turnover and active exits of low-margin contracts (notably in China), which management expects to pressure revenue through midyear before recovery later in 2026.
Investment Management Fee Pressures
Investment management revenue declined in the quarter and full year, driven by an expected reduction in incentive fees (only partially offset by higher transaction fees from increased acquisition activity).
Working Capital and Commission Dynamics
Higher accrued commissions and growth-related working capital headwinds affected cash flow timing; incremental margins in the quarter were impacted by business mix and higher commission tiers being met, and incentive compensation phasing benefited Q4 while offsetting Q3 results, complicating quarter-to-quarter comparisons.
Slower-Than-Expected Tech Top-Line and Tougher Comps Ahead
While software revenue grew double-digits and the segment reached profitability, management noted slower-than-anticipated top-line growth in technology products; additionally, tougher year-over-year comps in transactional businesses were expected to mute growth rates in parts of 2026.
Macroeconomic and Market Sensitivities
Management acknowledged recent market volatility and noted that global capital flows are sensitive to geopolitical noise, which could moderate the pace of transaction volume recovery despite an otherwise constructive backdrop.
Company Guidance
JLL’s 2026 guidance targets adjusted EBITDA of $1,575 million to $1,675 million (about 12% growth at the midpoint) with continued margin expansion while balancing investment, building on 2025 adjusted EBITDA of $1,450 million (up 22%) and full‑year revenue up 11% (Q4 revenue +10%). Management expects ongoing growth in leasing (Q4 leasing revenue +17%; office +26%, industrial +11%; two‑year stack +31%; full‑year incremental margin ~35%), in capital markets (investment sales ~+26–27% in Q4; two‑year stack +63%; debt advisory Q4 +20%, two‑year +90%), and in real estate management services (REMS +9% Q4, +11% FY), with project management momentum and near‑term property management pressure from elevated contract turnover and an ~$11 million Q4 headwind from U.S. health‑care costs. On cash and capital allocation, 2025 delivered record free cash flow and cash conversion above long‑term averages, net leverage was 0.2x at year‑end (FY average 0.9x), JLL raised $4.0 billion of private equity capital in 2025 (vs. $2.7 billion prior year), and management plans to increase share repurchases above Q4’s $80 million (YTD $212 million).Jones Lang Lasalle Financial Statement Overview
Summary
Solid and improving fundamentals into 2025: revenue growth continued, profitability recovered meaningfully from 2023 levels, and leverage looks manageable. The main constraint is cyclicality—margins and cash-flow conversion have been uneven across the cycle, which can amplify downside in weaker market periods.Income Statement
Revenue has grown steadily over the last several years, accelerating into 2024–2025 (2025 revenue up ~3.2%). Profitability has improved meaningfully from 2023’s trough (net margin ~1.1%) to 2025 (net margin ~3.0%), with operating profitability also recovering (EBIT margin ~4.2% in 2025). The main weakness is margin volatility: profitability was materially stronger in 2021 and then weakened sharply before recovering, suggesting earnings are somewhat cyclical and sensitive to operating conditions.72
Positive
Balance Sheet
Leverage appears reasonable and stable, with debt-to-equity consistently around the mid-0.4x range in recent years (about 0.45x in 2025). Equity has grown over time, and returns to shareholders improved from 2023 (~3.6% return on equity) to 2025 (~10.6%). The key downside is that returns have not yet recovered to prior peak levels (notably 2021), and the balance sheet remains meaningfully debt-funded, which can amplify downside in weaker operating periods.74
Positive
Cash Flow
Cash generation strengthened into 2024–2025, with free cash flow rising to roughly $0.98B in 2025 (up ~7.3% year over year) and free cash flow covering net income well (about 1.0x in 2025). However, cash flow has been inconsistent across the cycle—free cash flow turned slightly negative in 2022—and operating cash flow coverage of the company’s overall funding needs appears modest based on the provided coverage ratio, indicating periodic reliance on working capital swings and/or financing flexibility.70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 26.12B | 23.43B | 20.76B | 20.86B | 19.37B |
| Gross Profit | 25.86B | 12.14B | 10.69B | 11.21B | 10.88B |
| EBITDA | 1.34B | 1.25B | 1.01B | 1.20B | 1.35B |
| Net Income | 792.10M | 546.80M | 225.40M | 654.50M | 961.60M |
Balance Sheet | |||||
| Total Assets | 17.80B | 16.76B | 16.06B | 15.59B | 15.51B |
| Cash, Cash Equivalents and Short-Term Investments | 599.10M | 416.30M | 410.00M | 519.30M | 593.70M |
| Total Debt | 3.36B | 2.95B | 3.12B | 3.14B | 2.62B |
| Total Liabilities | 10.18B | 9.87B | 9.65B | 9.44B | 9.08B |
| Stockholders Equity | 7.50B | 6.77B | 6.29B | 6.02B | 6.18B |
Cash Flow | |||||
| Free Cash Flow | 978.50M | 599.80M | 388.90M | -5.90M | 796.50M |
| Operating Cash Flow | 1.19B | 785.30M | 575.80M | 199.90M | 972.40M |
| Investing Cash Flow | -336.60M | -316.80M | -290.40M | -243.10M | -805.80M |
| Financing Cash Flow | -643.20M | -451.20M | -374.30M | -13.10M | -143.80M |
Jones Lang Lasalle Technical Analysis
Negative
316.59
Price Trends
337.28
Negative
321.92
Negative
294.46
Positive
Market Momentum
-10.41
Positive
43.44
Neutral
55.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JLL, the sentiment is Negative. The current price of 316.59 is below the 20-day moving average (MA) of 326.74, below the 50-day MA of 337.28, and above the 200-day MA of 294.46, indicating a neutral trend. The MACD of -10.41 indicates Positive momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 55.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JLL.
Jones Lang Lasalle Risk Analysis
Jones Lang Lasalle disclosed 27 risk factors in its most recent earnings report. Jones Lang Lasalle reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Jones Lang Lasalle Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $14.57B | 19.29 | 11.10% | ― | 12.51% | 32.34% | |
67 Neutral | $43.14B | 38.23 | 13.38% | ― | 14.61% | 30.19% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $3.15B | 36.61 | 12.21% | ― | 6.77% | 150.72% | |
56 Neutral | $20.83B | 2,985.33 | 0.25% | ― | 14.61% | -87.93% | |
56 Neutral | $1.01B | -534.84 | -1.09% | 1.80% | 20.74% | 78.92% | |
56 Neutral | $2.66B | 25.46 | 8.08% | 0.68% | 22.22% | 94.52% |
* Real Estate Sector Average
JLL
Jones Lang Lasalle
316.59
45.65
16.85%
CBRE
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147.24
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4.66%
CSGP
CoStar Group
44.78
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MMI
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26.10
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-31.98%
NMRK
Newmark Group
14.65
0.52
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CWK
Cushman & Wakefield
13.76
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14.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.