10-Q · July 28, 2026
Hilton delivered Q2 revenue of $3.341 billion, up 6.4% year over year and 13.6% sequentially, while GAAP EPS increased to $2.10 from $1.84 in Q2 2025. Fee-based growth, U.S. RevPAR strength and a 6.1% net-unit-growth…
Earnings analysis · 10-Q
HLT earnings analysis
Filed October 27, 2026 · Our reading of the company's report
The latest report
Hilton produced solid operating momentum, led by 5.8% system-wide RevPAR growth, a 10.3% increase in franchise and licensing fees, and an 8.4% increase in adjusted EBITDA to $1.058 billion. However, ownership revenue…
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Hilton produced solid operating momentum, led by 5.8% system-wide RevPAR growth, a 10.3% increase in franchise and licensing fees, and an 8.4% increase in adjusted EBITDA to $1.058 billion. However, ownership revenue declined 5.6%, MEA RevPAR fell 5.6% amid geopolitical conflict, and interest expense increased 15.7% to $184 million. Liquidity remains adequate with $830 million of cash and $1.894 billion of revolver capacity, but the $13.5 billion debt balance and reduced operating cash flow create meaningful financial sensitivity.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.38
What stood out
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EPS beat despite mixed revenue performance
Reported revenue was $3.325 billion, while diluted EPS was $2.38, exceeding the $2.36 consensus estimate. Revenue was approximately 6.6% above the $3.12 billion reported in 2025 Q3.
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RevPAR growth accelerated
System-wide comparable RevPAR increased 5.8% to $124.70, supported by occupancy of 75.8%, up 1.4 percentage points, and ADR of $164.57, up 3.9%.
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Fee-based segment continued to grow
Management and franchise revenues increased to $982 million, with franchise and licensing fees up 10.3% to $815 million and management fees up 5.7% to $167 million.
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Adjusted EBITDA improved materially
Adjusted EBITDA rose to $1.058 billion from $976 million, an increase of $82 million or 8.4%, despite weaker Middle East performance and higher corporate expenses.
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Global system expansion remained strong
Hilton added 450 net hotels and 55,500 rooms during the first nine months, while its development pipeline reached 3,869 hotels and 543,100 rooms.
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Strong cash generation funded buybacks
Nine-month operating cash flow was $1.811 billion, and Hilton repurchased 8.2 million shares for $2.602 billion. The company also reported $830 million of cash and cash equivalents, including $56 million of restricted cash.
What to watch
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Middle East weakness and geopolitical exposure
MEA comparable RevPAR declined 5.6% in the quarter, with occupancy down 5.0 percentage points to 64.8%, primarily due to ongoing geopolitical conflict in the Middle East.
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Leverage and refinancing exposure
Total indebtedness was approximately $13.5 billion, while quarterly interest expense increased 15.7% to $184 million. A $1.6 billion interest-rate swap matured in March 2026, leaving no interest-rate swaps outstanding at September 30, 2026.
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Cash flow and liquidity sensitivity
Nine-month operating cash flow fell 6.0% to $1.811 billion, primarily because income tax payments increased by $401 million. Net cash used in investing activities was $149 million, and Hilton had $1.894 billion of revolver capacity after $106 million of letters of credit.
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Sanctions-related operating disruption
The company terminated its Hilton Frankfurt City Centre lease effective October 31, 2026 after the landlord was sanctioned by OFAC; revenue from that hotel was approximately $5 million from the sanction date through September 30, 2026.
Management's outlook
The 10-Q does not provide explicit numeric revenue or EPS guidance. The separate October 27, 2026 earnings release raised FY2026 diluted EPS guidance to $8.38-$8.44 from $8.22-$8.35 and provided adjusted EBITDA guidance of $4.060-$4.080 billion.
Earlier filings 4
10-Q · April 28, 2026
Hilton reported Q1 2026 results showing continued RevPAR-led operating momentum but a GAAP earnings miss versus consensus. Total revenue was $2,937.0 million and net income was $383 million (GAAP diluted EPS $1.66;…
10-K · February 11, 2026
Hilton’s 2025 10‑K reiterates an asset‑light growth strategy driven by expanding management & franchise scale, a large development pipeline (3,703 hotels / 520,500 rooms) and growth in its Hilton Honors base (243…
10-K · February 6, 2025
Hilton presents an asset-light growth strategy driven by expanding its management & franchise footprint and a large development pipeline while leveraging its Hilton Honors loyalty program (211 million members, +17% vs.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.