Newmark’s Eleven-Quarter Growth Streak—Powered by Data Centers and a Broad Capital Markets Recovery

Newmark: Data Centers Drive Another Record Quarter

Newmark Group reported a genuinely strong Q2 2026, extending its run of double-digit growth. Total revenue rose 17% to $888.4 million—an all-time second-quarter record—while adjusted EPS climbed 26% to $0.39, and adjusted EBITDA grew 22% to $139.2 million. Barry Gosin, CEO, opened the call with “We have now produced double-digit year-on-year revenue growth for 11 quarters in a row in Capital Markets. 8 consecutive quarters in management and servicing and 7 straight quarters in leasing.” — Barry Gosin, Chief Executive Officer · 2026-07-29

The engine behind this growth is once again the data-center and AI complex. CFO Mike Rispoli, describing deal flow, said “We are involved in many of the large visible, high-profile opportunities... the need for compute is still enormous.” — Michael Rispoli, Chief Financial Officer · 2026-07-29 And when asked about the sustainability of the data-center financing wave, Barry added “we have a lot of large transactions in the pipeline with data centers, digital infrastructure and large deals and large office coming back, there is a need for capital, and there is an enormous amount of liquidity.” — Barry Gosin, Chief Executive Officer · 2026-07-29

The company also notched a notable milestone: it moved up to #2 in overall U.S. investment sales for 1H26, according to MSCI. COO Lou Alvarado, when asked about productivity, said “we still have a lot of running room in that sector as well as in the international sector... we're primarily Europe, but we're still looking to expand into Asia.” — Lou Alvarado, Chief Operating Officer · 2026-07-29 Affordable housing and GSE origination were called out as particular strengths, echoing the company's affordable housing push.

Despite the momentum, guidance was not raised. Lou explained: “We continue to see really strong pipeline of activity... but we're up against a little bit of a tougher comp in the second half of the year.” — Lou Alvarado, Chief Operating Officer · 2026-07-29 That conservatism likely also reflects the company's capital-allocation pivot toward M&A, as Mike noted “we were going to transition capital allocation to M&A-- so we have a nice pipeline of M&A transactions.” — Michael Rispoli, Chief Financial Officer · 2026-07-29

This is not a new theme. In Q1 2026, Barry talked about the data-center opportunity with “powered land where you were next to the grid or next to an oil or gas basin... it actually opens it up and requires people to be more expert about this.” — Barry Gosin, CEO · 2026-04-30 And in February, he framed AI as “an accelerant... having AI as an enabler for the great talent that we have to do more and to expand more.” — Barry M. Gosin, Executive (likely CEO) · 2026-02-25

I would say our debt pipeline remains really strong through the back half of the year. Hard to say what it will be next year, but the market certainly has a significant amount of maturities over the next 3 years.

The numbers back up the story. Newmark's total revenue has grown 27% year-over-year in the latest quarter reaching $847M for the quarter. The company continues to generate substantial operating leverage, with adjusted EBITDA margin improving 65 bps year-over-year despite heavy investment.

What changed this quarter?

The main shift is the scale of the data-center financing opportunity. In previous quarters, management spoke about different kinds of data-center deals and colocation conversions. Now they see a more durable wave spanning hyperscalers, neocloud, and distributed power. As Barry put it on this call, “the need for compute is still enormous. There is not a sufficient amount of power for all of the compute requirements if AI proliferates... these all need capital.” — Michael Rispoli, Chief Financial Officer · 2026-07-29 The company is also increasingly using advanced manufacturing as a complementary hook, as Barry noted in Q1, pairing chip plants with data centers to win community support.

AI is really a defining economic force of our era... It’s an accelerant that will better enable our talented professionals across the company to efficiently bring new and innovative solutions to their clients.

What to watch

Second-half comps are the key risk. The company guided to ~16% revenue growth for the full year, implying a deceleration from the first half's pace. If the data-center deal pipeline closes as promised, Newmark could exceed the midpoint; if not, the stock—which trades at 11.4x trailing earnings—might look less compelling. But the underlying white space in U.S. and Europe, plus the recurring revenue businesses that now make up a large chunk of earnings, give the firm a solid floor. With total debt volumes up 134.8% in 2Q25 (though partly due to a one-off $7B transaction), the capital markets engine remains a powerful driver.