CBRE Reaches Record Revenues as AI Fears Trigger 12% Stock Price Drop

CBRE reported double digit growth in profit and revenue for the fourth quarter of 2025, driven by surging demand for AI related infrastructure. Despite these record financials, the company's stock price plummeted 12% on Thursday as investors expressed concern that artificial intelligence could eventually replace traditional brokerage services.

By: AXL Media

Published: Feb 16, 2026, 4:18 AM EST

Source: Information for this report was sourced from Bisnow

Record Financial Performance Driven by Digital Infrastructure

The global real estate giant CBRE announced a significant increase in its financial performance for the final quarter of 2025, with revenue climbing 12% year over year. The firm delivered 818 million dollars in core adjusted net income, marking a 15% increase from the previous year. This growth was largely fueled by the rising demand for data centers and digital infrastructure, which accounted for 14% of the brokerage's total 3.3 billion dollar core earnings in 2025.

Total revenue for 2025 reached 40.6 billion dollars, a 13% increase from the prior year. Advisory services, including leasing and valuations, saw a 13% jump in the fourth quarter, with U.S. sales revenue specifically rising 27%. This surge in sales was supported by increased transaction volumes in both the office and multifamily sectors.

Wall Street Sell Off Amid Artificial Intelligence Anxiety

Despite the positive earnings report, CBRE shares experienced a sharp 12% decline by late morning on Thursday. This drop followed a broader market trend where the five major public brokerages saw their valuations slide by at least 11% earlier in the week. Investors are increasingly worried that artificial intelligence might automate or replace certain functions traditionally handled by brokerages.

Analysts from firms such as JPMorgan Chase have suggested that the market reaction may be an overreaction, characterizing the current price drop as a buying opportunity. While acknowledging the persistent pressure from AI related concerns, these analysts noted that the outlook for transactional businesses remains better than expected.