10-Q · May 6, 2026
Marriott International reported Q1 2026 earnings with revenue of $6.65 billion, missing the estimate of $6.58 billion, while EPS came in at $2.43, below the expected $2.56. Notably, the company anticipates a full-year…
Earnings analysis · 10-Q
MAR earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Marriott delivered Q2 revenue of $7.071 billion, up 4.8% year over year, and diluted EPS of $2.90, up from $2.78 in Q2 2025 and from $2.43 in Q1 2026. Fee-led growth and 3.4% worldwide RevPAR growth were strong,…
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Marriott delivered Q2 revenue of $7.071 billion, up 4.8% year over year, and diluted EPS of $2.90, up from $2.78 in Q2 2025 and from $2.43 in Q1 2026. Fee-led growth and 3.4% worldwide RevPAR growth were strong, particularly in the U.S. & Canada, but operating margin fell to 17.4% from 18.3% because of a $68 million impairment, $27 million litigation accrual, and unfavorable cost-reimbursement timing. International results remain the principal operating concern: EMEA fee revenue declined 6% and Middle East & Africa RevPAR fell 33.1% amid conflict-related disruption.
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
- $2.9
- Operating margin
- 17.4%
What stood out
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Revenue and fee growth accelerated
Q2 revenue was $7.071 billion, up $327 million (4.8%) from $6.744 billion a year earlier and up $421 million (6.3%) from Q1 2026. Net fee revenue increased $176 million (13%) to $1.547 billion, led by a $163 million (19%) increase in franchise fees.
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U.S. demand drove RevPAR growth
Worldwide comparable systemwide RevPAR increased 3.4%, driven by 3.5% ADR growth. U.S. & Canada RevPAR rose 5.0% to $150.10, with management citing broad-based brand-tier and customer-segment demand plus World Cup demand in June 2026.
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Credit-card fees provided a major lift
Franchise fees increased $163 million year over year, including $73 million of higher co-branded credit-card fees and $30 million related to rooms growth. Marriott expects its new JPMorgan Chase and American Express agreements to favorably affect future revenue.
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System and pipeline continued to expand
The system reached 10,082 properties and 1,813,698 rooms, increases of 481 properties (5%) and 77,879 rooms (4%) year over year. The development pipeline contained approximately 629,000 rooms, with 279,000 rooms, or 44%, under construction.
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Operating cash generation remained strong
Cash, cash equivalents, and restricted cash increased $101 million from year-end to $472 million at June 30, 2026. First-half operating cash flow was $1.806 billion, while capital and technology expenditures were $282 million.
What to watch
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Middle East conflict materially pressured RevPAR
Middle East & Africa comparable systemwide RevPAR fell 33.1% year over year to $80.48, including a 15.8-point decline in occupancy to 50.5%. Management expects the conflict-related travel disruption to continue into Q3, with the ultimate effect dependent on its duration and extent.
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Impairment and litigation compressed margins
Operating margin was 17.4%, down from 18.3% a year ago, as a $68 million impairment charge, a $27 million property-related litigation accrual, and a $100 million year-over-year deterioration in net cost reimbursements outweighed fee growth. Diluted EPS of $2.90 was below the prior-year $2.78 comparison only after absorbing these charges, but was below the $3.05 consensus estimate.
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Higher debt balance increased interest burden
First-half interest expense increased $40 million (10%) to $435 million, primarily from higher debt balances following Senior Notes issuance net of maturities. Marriott had $4.5 billion of revolving-credit capacity, subject to a maximum leverage covenant of 4.5-to-1.0.
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No material risk-factor updates reported
Item 1A states there were no material changes to the risk factors disclosed in the 2025 Form 10-K. Liquidity remains dependent partly on capital-market access, although management reports $472 million of cash and a $4.5 billion credit facility.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. Management expects full-year 2026 net rooms growth toward the low end of its 4.5%-5.0% range and expects 2026 capital expenditures and other investments of approximately $1.25 billion-$1.35 billion, excluding potential property or brand acquisitions.
Earlier filings 4
10-K · February 10, 2026
Marriott International reported financial growth for 2025, with revenues reaching $26.19 billion and net income totaling $2.60 billion. Although the company faced challenges with operating margins decline and slightly…
10-Q · November 4, 2025
Marriott International, Inc. reported Q3 2025 revenues of $6.49 billion, reflecting a slight decrease from $6.74 billion in Q2 2025 but a consistent performance compared to $6.26 billion in Q3 2024. EPS increased to…
10-Q · August 5, 2025
Marriott International, Inc. reported Q2 2025 revenues of $6.74 billion, representing a 4.7% increase from $6.44 billion in Q2 2024, and an EPS of $2.78, up from $2.69 in the same period last year. The company…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.