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;…
Earnings analysis · 10-Q
HLT earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
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…
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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 rate supported an estimated 25.5% operating margin and $1.054 billion of Adjusted EBITDA. Offsetting factors include the 29.5% MEA RevPAR decline from Middle East conflict, softer ownership and incentive-fee revenue, and a 21.2% rise in interest expense to $183 million on approximately $13.4 billion of debt.
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
- $2.1
- Operating margin
- 25.5%
What stood out
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Revenue and EPS rose year over year and sequentially
Q2 revenue was $3.341 billion, up $201 million (6.4%) from $3.140 billion in Q2 2025 and $401 million (13.6%) from $2.940 billion in Q1 2026. GAAP diluted EPS of $2.10 rose from $1.84 a year ago and $1.66 sequentially.
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Operating leverage expanded margins
Operating income was approximately $851 million, implying a 25.5% operating margin versus approximately $777 million and 24.7% in Q2 2025. Net income increased $40 million to $482 million, while Adjusted EBITDA grew $46 million to $1.054 billion.
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Fee-led model continued to scale
Management and franchise revenue increased $59 million to $976 million: franchise and licensing fees rose $63 million (8.5%) to $808 million, supported by $26 million of comparable franchised-hotel fee growth, $15 million from net additions and a $34 million licensing-fee increase.
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Core lodging demand and pricing improved
System-wide comparable RevPAR increased 3.9% to $125.02, driven by a 2.5% ADR increase to $166.97 and a 1.0-point occupancy gain to 74.9%. U.S. RevPAR rose 5.4% to $139.28.
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Pipeline supports asset-light growth
Net unit growth was 6.1% year over year, with 288 net hotel additions and 32,500 net room additions in the first six months. The development pipeline ended at 3,853 hotels and 541,300 rooms across 132 countries and territories.
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Operating cash flow and liquidity remained solid
Six-month operating cash flow remained strong at $1.090 billion, only $20 million below $1.110 billion a year earlier, despite a $285 million increase in tax payments. Cash and equivalents were $1.064 billion and revolver availability was $1.894 billion at June 30.
What to watch
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Middle East conflict materially pressured RevPAR
MEA comparable RevPAR fell 29.5% to $93.65 in Q2, including a 16.1-point occupancy decline to 53.0% and an 8.1% ADR decline to $176.72. Management attributed the weakness to the ongoing geopolitical conflict in the Middle East.
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Ownership revenue declined amid renovations
Ownership revenue declined $21 million (6.3%) to $311 million. On a currency-neutral basis, non-comparable ownership-hotel revenue fell $14 million, primarily because hotels were undergoing renovations.
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Debt burden and unhedged rate exposure increased
Interest expense increased $32 million (21.2%) to $183 million as recent note issuances added $37 million of expense; total indebtedness was approximately $13.4 billion. The $1.6 billion interest-rate swap matured in March 2026, leaving no interest-rate swaps outstanding at June 30.
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Incentive fees weakened in conflict-affected regions
Incentive management fees fell $6 million (8.0%) to $69 million, which management attributed primarily to conflicts in certain regions. This contrasts with the $63 million increase in franchise and licensing fees.
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No formal risk-factor update in the quarter
No material risk-factor changes were reported versus the 2025 Form 10-K. Nevertheless, the filing specifically identifies inflation, interest rates, labor and supply-chain pressures, geopolitical conflict including Iran, travel-policy barriers and indebtedness as forward-looking-statement risks.
Management's outlook
The 10-Q itself does not provide a quantitative earnings outlook. The contemporaneous earnings release guided FY2026 GAAP EPS to $8.22-$8.35, adjusted EPS to $8.89-$9.01, Adjusted EBITDA to $4.040-$4.080 billion, currency-neutral comparable RevPAR growth to 3.0%-3.5%, and net unit growth to 6.0%-7.0%. Management stated in the filing that it expects its cash position and liquidity sources to meet foreseeable requirements under current conditions.
Earlier filings 4
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.…
10-Q · October 25, 2023
Hilton reported Q3 2023 revenue of $2,673 million, up $305 million (+12.9% YoY), and diluted EPS of $1.44, up $0.18 (+14.3% YoY). Operating income increased modestly to $653 million (+4.8% YoY) but operating margin…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.