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HLT · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
The asset-light machine at work — franchise and licensing fees +8.5% to $808M drove operating income +10% to $858M (26% margin on total revenue, but the real margin is far higher once pass-through reimbursements are netted out); net income +9% to $482M and EPS +14% to $2.10 on a shrinking share count.
Net Income
$482M
up 9.0% y/y
Total Revenues
$3,341M
up 6.5% y/y
Operating Income
$858M
up 10.3% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Franchise & Licensing Fees | $808 · +8.5% |
| Ownership | $311 · −6.3% |
| Management & Incentive Fees | $168 · −2.3% |
| Other Revenues | $72 · −6.5% |
| Cost Reimbursements | $1,982 · +9.4% · pass-through |
| Total Revenues | $3,341 · +6.5% |
| Reimbursed Expenses | $2,008 · +6.0% · pass-through |
| Ownership Expenses | $266 · −7.0% |
| G&A | $114 · +4.6% |
| D&A | $49 · +14.0% |
| Other Expenses | $46 · +76.9% |
| Operating Income | $858 · +10.3% |
| Other Non-operating, Net | $5 · FX −7 · other +12 |
| Interest Expense | $183 · +21.2% |
| Pretax Income | $680 · +8.1% |
| Income Taxes | $198 · +5.9% · 29.1% rate |
| Net Income | $482 · +9.0% · EPS $2.10 · +14% |
Verdict: the asset-light machine at work — franchise and licensing fees +8.5% to $808M drove operating income +10% to $858M (26% margin on total revenue, but the real margin is far higher once pass-through reimbursements are netted out); net income +9% to $482M and EPS +14% to $2.10 on a shrinking share count.
Cost reimbursements ($1,982M revenue vs $2,008M expense) are pass-through. Dividend $0.15/share. Shareholders' equity is a $6.3B deficit — a buyback-financed balance sheet.
Source and notation
Source: Hilton 10-Q condensed consolidated statements (SEC EDGAR).
Open as an image: HLT, Q2 2026 (PNG) ↗ · for sharing and presentations · free to reuse, CC BY 4.0
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Chart: “HLT Q2 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/hlt/q2-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/hlt/q2-2026"><img src="https://whoreportstoday.com/t/hlt/q2-2026/sankey.png" alt="HLT Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/hlt/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
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<a href="https://whoreportstoday.com/t/hlt/q2-2026">HLT Q2 2026 earnings chart (Who Reports Today)</a>
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- $1,982M of 'cost reimbursement revenues' against $2,008M of reimbursed expenses is pass-through money from franchised hotels — strip it and the fee business earned $858M of operating income on $1,359M of real revenue (~63% margin).
- Franchise & licensing fees (+8.5%) grow with unit count and RevPAR; incentive management fees fell 8% — the one soft spot, tied to owned-hotel profitability abroad.
- Interest expense +21% ($183M) — Hilton keeps releveraging to fund buybacks; equity is a $6.3B deficit by design.
- EPS +14% vs net income +9%: the share count keeps shrinking; dividends stay token ($0.15).
- Ownership segment revenue fell 6% ($311M) — Hilton continues to be a fee company, not a hotel owner.
What distorts the picture in this report and what to watch beyond the headlines.
HLT — Hilton Worldwide Holdings operates as a global hospitality company, managing and franchising hotel brands across various segments.
It is headquartered in Virginia and serves customers through a wide portfolio of lodging properties.
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