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Hilton beats Q3 adjusted EPS estimates, net income rises

By Reuters News


Overview

  • Hotel operator topped analysts' expectations for Q3 adjusted EPS

  • Net income rose to $536 mln from $420 mln a year earlier

  • Company repurchased 2.6 mln shares, returning $879 mln to shareholders in Q3


Outlook

  • Hilton projects 2026 system-wide RevPAR growth of 4.0%-4.5% compared to 2025

  • Company forecasts 2026 adjusted EBITDA between $4.06 bln and $4.08 bln, incorporating lower Middle East performance expectations

  • Fourth-quarter 2026 RevPAR growth seen at 3.0%-3.5%


Result Drivers

  • REVPAR GROWTH - Q3 RevPAR rose 5.8% year-on-year, driven by higher occupancy and average daily rates

  • FEE REVENUE INCREASE - Management and franchise fee revenues grew 9.5% from a year earlier

  • NET UNIT GROWTH - Company added 23,000 net additional rooms in Q3, up 6.5% sequentially, contributing to 6.0% net unit growth from a year earlier


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$3.33 bln

Q3 Adjusted EPS

Beat

$2.45

$2.36 (20 Analysts)

Q3 EPS

$2.37

Q3 Net Income

$536 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

  • Wall Street's median 12-month price target for Hilton Worldwide Holdings Inc. is $360.00, about 2.3% above its October 26 closing price of $351.89

  • The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 34 three months ago


Reuters Recommended Reads

  • Oct 26 - India's ITC Hotels posts higher quarterly profit on rising room sales

  • Oct 26 - UK hostel operator Safestay exploring more property sales to boost liquidity, shares tumble


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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