Hilton Posts Adjusted Earnings of $2.45 per Share in Q3 Despite Revenue Miss
Key Facts
Hilton reported adjusted earnings of $2.45 per share in the third quarter of 2026, beating analysts’ average estimate of $2.35, while revenue came in at $3.33 billion, below the estimate of $3.36 billion, according to Reuters coverage published on Investing.com. The results showed a split between earnings per share and sales, with the former exceeding expectations while the latter fell short. Chief Executive Christopher Nassetta said the company delivered "strong third-quarter results on both the revenue and earnings fronts that exceeded our expectations." Hilton announced the results before the market opened on October 27, then held a call to discuss them at 9:00 a.m. Eastern Time. Shares fell 2.68% in premarket trading after the results were released.
In hotel operations, systemwide comparable revenue per available room rose 5.8% in the third quarter from the same period a year earlier, on a currency-neutral basis. The company attributed the increase to improvement in both occupancy and average daily rate. The metric measures revenue generated per available room, and therefore reflects the combined effect of changes in occupancy and rates at existing hotels. Nassetta said the results were underpinned by momentum across Hilton’s system, which the company expects to continue through the rest of the year and into 2027. This operating assessment puts growth in room revenue alongside quarterly total revenue that came in below analysts’ estimate.
Hilton expects systemwide comparable revenue per available room to grow between 4.0% and 4.5% in 2026, on a currency-neutral basis compared with 2025. The company said the third quarter benefited from the World Cup and favorable calendar and holiday shifts. By contrast, it expected the fourth quarter to be affected by the midterm elections and a greater impact from the Middle East. The outlook does not on its own describe a change in the company’s fourth-quarter estimate, but identifies factors it said would affect performance. Hilton also forecast adjusted earnings per share of between $9.07 and $9.13 for the full year, and net income of between $1.91 billion and $1.92 billion.
Hilton added 27,000 rooms to its system during the third quarter, including 23,000 net rooms, bringing net unit growth to 6.0% compared with September 30, 2025. These figures show network expansion alongside improvement in comparable room revenue at existing hotels. The company announced on October 20 a plan to transfer its stock listing from the New York Stock Exchange to Nasdaq. Trading on Nasdaq under the symbol HLT is scheduled to begin at the market open on November 5, while the stock will continue trading on the New York Stock Exchange through the close on November 4. The company said shareholders do not need to take any action regarding the listing transfer.