Hilton Worldwide Holdings Inc. HLT is scheduled to report third-quarter 2026 results on Oct. 27, before the opening bell.
HLT’s earnings surpassed estimates in three of the trailing four quarters and met estimates in one, with the average surprise being 4.6%.
Trend in Estimate Revision of HLT
The Zacks Consensus Estimate for the third quarter’s adjusted EPS has declined slightly in the past 30 days to $2.34 from $2.35. The revised estimated figure indicates 10.9% growth from the year-ago reported figure of $2.11 per share.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Hilton Worldwide Holdings Inc. price-eps-surprise | Hilton Worldwide Holdings Inc. Quote
For revenues, the consensus mark is pegged at nearly $3.39 billion. The metric implies an 8.5% rise from the year-ago quarter’s figure.
Factors Likely to Shape HLT’s Q3 Results
Hilton’s third-quarter 2026 performance is likely to have reflected improving travel demand across key segments, supported by strength in business-transient and group travel. The company expects system-wide comparable RevPAR to increase approximately 4% year over year on a currency-neutral basis. Business-transient demand, particularly from small and medium-sized businesses, is likely to have supported performance, while leisure demand is expected to have remained steady. Favorable calendar effects and World Cup-related demand are also expected to have contributed to RevPAR growth.
Group and business travel are expected to have been key drivers of hotel performance during the quarter. Hilton reported strengthening midweek business-transient demand and solid growth from small and medium-sized businesses entering the third quarter. These trends, alongside continued demand across leisure travel, are likely to have supported occupancy and pricing.
Hilton’s fee-based, capital-light model is expected to have supported revenue growth. Continued hotel openings, conversions and a record development pipeline are likely to have contributed to management and franchise fees. Our model predicts third-quarter revenues from Franchise and Licensing Fees to rise 12.1% year over year to $828.6 million. We expect revenues from Base and Other Management Fees to rise 8% year over year to $100.5 million.
In addition, Hilton’s focus on owner profitability and operating efficiency is likely to have supported its asset-light business model. Initiatives to reduce loyalty and program fees, along with efforts to use technology and AI to improve hotel-level operations, are intended to help owners manage costs and strengthen hotel profitability.
However, third-quarter performance is likely to have faced some headwinds. The ongoing conflict in the Middle East is expected to have weighed on performance, while significant renovations at hotels in Hilton’s ownership portfolio and timing-related items are also expected to have affected earnings. China’s demand environment remains challenging, with weaker group travel contributing to lower RevPAR. These factors are likely to have partly offset strength in other regions and travel segments.
From an earnings perspective, Hilton expects third-quarter 2026 net income between $502 million and $516 million. Adjusted EBITDA is expected to range from $1.035 billion to $1.055 billion, while adjusted earnings per share are projected between $2.28 and $2.34. The company’s guidance also reflects the expected impact of the Middle East conflict and significant renovations in its ownership portfolio.
Overall, Hilton’s third-quarter 2026 results are expected to reflect improving business-transient and group demand, continued growth from its fee-based model and a strong development pipeline. However, geopolitical uncertainty, hotel renovations and uneven demand across regions are likely to have moderated the quarterly performance.
What Our Model Says About HLT Stock
Our proven model predicts an earnings beat for Hilton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
Earnings ESP for HLT: Hilton currently has an Earnings ESP of +0.58%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hilton’s Zacks Rank: The company has a Zacks Rank #3 at present.
Other Stocks Poised to Beat on Earnings
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.
Marriott Vacations Worldwide Corporation VAC has an Earnings ESP of +10.02% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Marriott Vacations is expected to register a 45% increase in earnings for the to-be-reported quarter. VAC reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 1.3%.
Marriott International, Inc. MAR currently has an Earnings ESP of +3.43% and a Zacks Rank of 3.
MAR’s earnings for the to-be-reported quarter are expected to increase 15.4%. Marriott reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 2.5%.
Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +2.44% and a Zacks Rank of 3.
RSI’s earnings for the to-be-reported quarter are expected to increase 55.6%. Rush Street Interactive reported better-than-expected earnings in the trailing two out of four quarters, missed estimates once and reported in line once, with the average surprise being 6.3%.
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Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis Report
Marriott International, Inc. (MAR): Free Stock Analysis Report
Marriott Vacations Worldwide Corporation (VAC): Free Stock Analysis Report
Rush Street Interactive, Inc. (RSI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).