Hilton beats third-quarter earnings expectations but revenue falls short

The company projects full-year 2026 adjusted earnings of $9.07 to $9.13 per share.

Hilton reported third-quarter earnings of $2.45 per share, $0.07 above expectations. Revenue came in at $3.33 billion, below the $3.40 billion expected.

For full-year 2026, Hilton projects diluted earnings per share of $9.07 to $9.13, adjusted for special items. It expects net income of $1,909 million to $1,923 million and adjusted EBITDA, a measure of earnings before interest, taxes, depreciation and amortization, of $4,060 million to $4,080 million.

The company projects system-wide revenue per available room, or RevPAR, to rise 4.0 per cent to 4.5 per cent on a comparable, currency-neutral basis. It expects to return about $3.5 billion to shareholders during 2026. The board declared a quarterly cash dividend of $0.15 per share, payable December 29, 2026.

Chief Executive Christopher J. Nassetta said the quarter exceeded expectations on momentum across Hilton's system. He expects that momentum to continue into 2027 and to support net unit growth, the rate at which new rooms are added, near the midpoint of the 6.0 per cent to 7.0 per cent full-year range.

The forward figures matter more than the quarter. The 2026 outlook rests on RevPAR growth of 4.0 per cent to 4.5 per cent, and Nassetta's expectation for 2027 carries that view beyond the guidance year. Net unit growth near the midpoint would show whether room additions keep pace with that revenue outlook. Earnings beat expectations while revenue fell short, so the source of the earnings upside is the question to watch in the next report.