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    How CoStar’s Q3 Beat and Bookings Reacceleration Could Shape CoStar Group (CSGP) Investors

    Simply Wall St·12/08/2025 14:15:07
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    • In October 2025, CoStar Group reported better-than-expected Q3 results, marking its 58th consecutive quarter of double-digit revenue growth and renewed momentum across its Homes.com residential platform and CoStar Suite commercial offerings.
    • The reacceleration in bookings and continued expansion of its salesforce and products underline how CoStar is deepening its role as a core data and marketplace provider in global real estate.
    • Next, we’ll explore how this bookings reacceleration and platform momentum interact with CoStar’s existing investment narrative and growth assumptions.

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    CoStar Group Investment Narrative Recap

    To own CoStar Group, you need to believe it can extend its role as a must-have data and marketplace platform across commercial and residential real estate. The latest Q3 beat and bookings reacceleration support that thesis, but the post-earnings share drop highlights how tightly the market is focused on the short term trade off between heavy Homes.com investment and near term profitability, which remains the key catalyst and the biggest risk.

    Against that backdrop, CoStar’s guidance for Q4 2025, calling for continued double digit revenue growth alongside a small quarterly profit, is particularly relevant. It reinforces that management is still leaning into growth spending while aiming to keep full year losses contained, which matters for investors tracking whether strong top line momentum can eventually translate into healthier margins as Homes.com and other newer initiatives scale.

    Yet while revenue momentum looks encouraging, investors should be aware that the aggressive Homes.com build out could still...

    Read the full narrative on CoStar Group (it's free!)

    CoStar Group’s narrative projects $4.7 billion revenue and $866.2 million earnings by 2028. This requires 16.9% yearly revenue growth and about a $762 million earnings increase from $104.2 million today.

    Uncover how CoStar Group's forecasts yield a $91.94 fair value, a 35% upside to its current price.

    Exploring Other Perspectives

    CSGP Community Fair Values as at Dec 2025
    CSGP Community Fair Values as at Dec 2025

    Three members of the Simply Wall St Community value CoStar between US$67.69 and US$139.70, underlining how far apart individual forecasts can be. When you set those views against the current risk that Homes.com investments could outpace revenue progress and compress margins, it becomes even more important to weigh several perspectives on how sustainable this growth push really is.

    Explore 3 other fair value estimates on CoStar Group - why the stock might be worth over 2x more than the current price!

    Build Your Own CoStar Group Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.