CoStar Shares Fall 12.5% Despite Q3 Earnings Beat

CoStar Group reported third-quarter adjusted earnings of $0.38 per share and revenue of $952 million, up about 14% year over year and above analyst estimates. Adjusted EBITDA more than doubled to $229 million, exceeding company guidance, as management cited cost efficiencies; its residential business also swung to positive adjusted EBITDA. The company raised its 2026 revenue and adjusted EBITDA outlook and anticipated about $150 million in savings this year, while projecting fourth-quarter revenue of $976 million to $996 million. Despite the results and stronger outlook, shares fell 5.01% during Tuesday’s session and dropped a further 12.5% after hours as the broader market gained. The stock has lost nearly half its value since the start of the year, while the S&P 500 has advanced.