CoStar falls after an earnings beat as new bookings drop
Earnings results
- EPS beat +12.8%
Actual: $0.38 · Cons.: $0.3369 (adjusted diluted EPS)
- Revenue beat +0.7%
Actual: $0.952B · Cons.: $0.94582B (GAAP revenue)
- Guidance
Raised FY2026 adjusted EPS to $1.38–$1.41 from $1.32–$1.39; sales outlook excluding Zonda is $35 million below July.
Earnings and the stock move
CoStar reported third-quarter earnings on October 27, but net new bookings dropped to $37 million from $84 million. Management said its higher headline revenue outlook includes roughly $60 million from Zonda; without that contribution, expected revenue is $35 million below July. Our analysis: weaker future business can outweigh better current profit because subscriptions need a healthy sales pipeline to sustain growth.
Q3 2026 earnings recap
CoStar fell 12.62% to $27.97 during trading on October 28, 2026 after its earnings report revealed weaker new business. Higher current profit did not settle concerns about future growth.
- Net new bookings fell to $37 million from $84 million a year earlier. This tracks changes in subscription contracts after cancellations, making the slowdown a warning for future revenue.
- Quarterly revenue rose 14% to $952 million. Adjusted EPS, or profit per share excluding specified costs, was $0.38; reported GAAP profit per share was $0.18.
- CoStar raised its full-year revenue forecast to $3.75–$3.77 billion, but that includes about $60 million from Zonda. Excluding that addition, management said the outlook is $35 million below July.
- The company still raised its adjusted profit forecast to $1.38–$1.41 per share from $1.32–$1.39. Cost savings support earnings, but stronger sales are needed to make the recovery more durable.
- CoStar earns money from property-data subscriptions and paid marketplace listings, including Apartments.com and Homes.com. Management linked weaker residential bookings to economic pressure and insufficient sales capacity.
- The selloff breaks the recent October recovery. Late-September lows near $26.5–$27.2 are a support area to watch; recovering $29–$30.2 would help repair the chart.
Watch for a rebound in bookings and evidence that added sales capacity improves growth. Property-market weakness, spending needs and another break below support remain risks.
Financials and technicals
Charts through Oct 27, 2026. The session move above may reflect later news.
Technical setup and risks
Watch $26.5–$27.2 support from late September and $29–$30.2 resistance from the October trading range. Reclaiming resistance would help; a close below $26.5 would weaken the base. These are conditional areas.
AI-assisted research with source and calculation checks. Prices may be delayed. Technical charts use the stated completed session, which can precede the quoted intraday move. Educational information; investing involves risk.