Marriott Q3 2026 earnings review
Quarter ended September 30, 2026
For information only, not investment advice. No rating or price target.
Earnings reviews · 21 slides
Not investment advice; no rating or price target.
1 · Cover · Open this slide in DeepCell
Q3 adjusted EPS beat the LSEG consensus by 6.3%, and full-year guidance rose
- 1.Adjusted diluted EPS of $3.02 beat the LSEG consensus of $2.84
- 2.Gross fee revenues rose 13.8%, with franchise fees up 15.0%
- 3.Worldwide RevPAR rose 6.5%, but Middle East & Africa RevPAR fell 5.3%
- 4.Full-year adjusted EPS guidance midpoint rose $0.38 to $12.11
- 5.Dividends and buybacks of $3,640M in Jan–Sep exceeded free cash flow
Note: RevPAR is revenue per available room. Adjusted figures are Marriott’s non-GAAP measures. RevPAR growth is systemwide, in constant dollars.Source: Marriott Form 8-K, Nov 2, 2026; Marriott Form 10-Q, Nov 2, 2026; LSEG via Reuters, Nov 2, 2026; analysis of company data
2 · Key takeaways · Open this slide in DeepCell
Q3 adjusted EPS beat the LSEG consensus by 6.3%, and total revenues beat it by 1.2%
Q3 2026 results vs consensus
| Metric | Actual | Consensus | Variance | Result |
|---|---|---|---|---|
| Adjusted diluted EPS | $3.02 | $2.84 | +$0.18 / +6.3% | Beat |
| Total revenues | $7.01B | $6.92B | +$0.09B / +1.2% | Beat |
| Adjusted diluted EPS, Zacks cross-check | $3.02 | $2.86 | +$0.16 / +5.6% | Beat |
| Total revenues, Zacks cross-check | $7.01B | $7.04B | -$0.04B / -0.5% | Miss |
Share price reaction
Not shown: the Nov 2 regular-session close was not yet available from two sources when this deck was built.
Note: Consensus is LSEG via Reuters and Zacks via Yahoo Finance, as of Nov 2, before the release. Variance is actual less consensus.Source: Marriott Form 8-K, Nov 2, 2026; LSEG via Reuters; Zacks via Yahoo Finance, Nov 2, 2026; analysis of company data
3 · Q3 versus consensus · Open this slide in DeepCell
Full-year adjusted EPS guidance sits 3.2% above the Zacks consensus after a raise
2026 guidance vs Zacks consensus
| Metric | Guidance | Consensus | Variance | vs Street |
|---|---|---|---|---|
| Q4 adjusted EPS (midpoint) | $3.175 | $3.05 | +$0.125 / +4.1% | Above |
| Full-year adjusted EPS (midpoint) | $12.105 | $11.73 | +$0.375 / +3.2% | Above |
Full-year 2026 guidance, Nov 2 vs Aug 3
| Metric | Aug 3 guidance | Nov 2 guidance | Midpoint change |
|---|---|---|---|
| Worldwide RevPAR growth | 3.0%–3.5% | 4.5%–5.0% | +150 bps |
| Adjusted EBITDA ($M) | $5,965M–$6,025M | $6,075M–$6,098M | +$92M |
| Adjusted diluted EPS | $11.64–$11.81 | $12.07–$12.14 | +$0.38 |
| Gross fee revenues ($M) | $6,025M–$6,055M | $6,137M–$6,145M | +$101M |
Note: RevPAR is revenue per available room. Variance is guidance midpoint less consensus. Zacks consensus is as of Nov 2, before the release.Source: Marriott Form 8-K, Nov 2, 2026; Marriott Form 8-K, Aug 3, 2026; Zacks via Yahoo Finance, Nov 2, 2026; analysis of company data
4 · Guidance · Open this slide in DeepCell
Total revenues rose 8.0% and adjusted EBITDA rose 12.1%
- Fees drove the quarterGross fee revenues rose 13.8% to $1,522M.
- Adjusted EPS rose faster than net incomeAdjusted diluted EPS rose 22.3%, helped by a 4.1% fall in diluted shares.
- Cost reimbursements are pass-throughCost reimbursement revenue was $5,080M of the $7,005M total.
Key figures in $M and YoY % for Q3 2026 vs Q3 2025
| $M unless noted | Q3 2025 | Q3 2026 | YoY |
|---|---|---|---|
| Total revenues | $6,489M | $7,005M | 8.0% |
| Gross fee revenues | $1,338M | $1,522M | 13.8% |
| Operating income | $1,180M | $1,274M | 8.0% |
| Net income | $728M | $794M | 9.1% |
| Adjusted EBITDA | $1,349M | $1,512M | 12.1% |
Note: Adjusted EBITDA is Marriott’s non-GAAP measure. Cost reimbursement revenue is offset by reimbursed expenses.Source: Marriott Form 8-K, Nov 2, 2026; analysis of company data
5 · Q3 at a glance · Open this slide in DeepCell
US & Canada gross fee revenues rose 12.3%, the fastest of the four segments
Gross fee revenues and segment profit by segment
$M unless noted, Q3 2026 (YoY vs Q3 2025)
| Segment | Gross fees | Fees YoY | Segment profit | Profit YoY |
|---|---|---|---|---|
| US & Canada | $831M | 12.3% | $733M | 7.8% |
| EMEA | $190M | 10.5% | $166M | 5.1% |
| Greater China | $71M | 10.9% | $50M | 13.6% |
| APEC | $92M | 7.0% | $66M | 4.8% |
| Total segments | — | n.a. | $1,015M | 7.4% |
Fees outside the segments, mainly co-branded credit card fees, were $338M
Note: EMEA is Europe, Middle East & Africa; APEC is Asia Pacific excluding China. Segment profit is as reported in the 10-Q. The Caribbean & Latin America region is not a reportable segment.Source: Marriott Form 10-Q, Nov 2, 2026; analysis of company data
6 · Segment overview · Open this slide in DeepCell
Franchise fees supplied 71.2% of the $184M gross fee revenue increase
Gross fee revenue change by fee type
$M, Q3 2026 vs Q3 2025
Franchise fees rose 15.0%, including co-branded credit card fees
Note: Bars are each fee line’s YoY change and sum to the total gross fee revenue change.Source: Marriott Form 8-K, Nov 2, 2026; analysis of company data
7 · Where fee growth came from · Open this slide in DeepCell
Asia Pacific excluding China RevPAR rose 9.3%, while Middle East & Africa RevPAR fell 5.3%
RevPAR growth by region
% change YoY, Q3 2026, constant dollars
Middle East & Africa had the largest RevPAR decline of the six regions
Note: RevPAR is revenue per available room. Asia Pacific excludes Greater China. Worldwide RevPAR rose 6.5% to $137.91. Figures are comparable systemwide hotels, in constant dollars.Source: Marriott Form 8-K, Nov 2, 2026; analysis of company data
8 · RevPAR by region · Open this slide in DeepCell
Net income rose 9.1% as operating income rose 8.0%, partly offset by interest expense
Net income
$M, Q3 2025 to Q3 2026
Interest expense rose 10.2% as debt grew
Note: Steps are YoY changes; higher interest expense is shown as a reduction. The provision for income taxes was $266M in both quarters.Source: Marriott Form 8-K, Nov 2, 2026; analysis of company data
9 · Net income bridge · Open this slide in DeepCell
Adjusted operating margin rose 110 bps to 65.8%
Operating margin and adjusted operating margin
% of revenue, Q3 2025 vs Q3 2026
Operating marginAdjusted operating margin
General, administrative and other expenses rose only 1.9%
Note: Adjusted operating margin is adjusted operating income divided by adjusted total revenues, which exclude cost reimbursement revenue.Source: Marriott Form 8-K, Nov 2, 2026; analysis of company data
10 · Margins · Open this slide in DeepCell
Dividends and buybacks of $3,640M were 129% of free cash flow in Jan–Sep
Cash flow and capital returns
$M, nine months ended Sep 30, 2026
Net debt issuance of $1,451M funded the gap
Note: Free cash flow is operating cash flow less capital and technology expenditures. Marriott does not report a discrete Q3 cash flow statement.Source: Marriott Form 10-Q, Nov 2, 2026; analysis of company data
11 · Cash flow and capital returns · Open this slide in DeepCell
Incentive management fees rose 22.3%, lifting their share of gross fee revenues
Note: Incentive management fees depend on hotel profits, so they move more than base management fees.Source: Marriott Form 8-K, Nov 2, 2026; analysis of company data
12 · Incentive fees · Open this slide in DeepCell
Net debt rose to $16,390M from $15,846M as buybacks exceeded free cash flow
Note: Net debt is total debt less cash and equivalents. The deficit reflects share buybacks held as treasury stock.Source: Marriott Form 10-Q, Nov 2, 2026; analysis of company data
13 · Balance sheet · Open this slide in DeepCell
Q4 estimates depend on Middle East & Africa RevPAR, down 5.3%, and interest expense, up 10.2%
Indicator
What to watch
Implication
Q3 reading
Note: RevPAR is revenue per available room; EMEA is Europe, Middle East & Africa. These are analytical watch points, not company targets.Source: Marriott Form 8-K, Nov 2, 2026; analysis of company data
14 · Risks to estimates · Open this slide in DeepCell
Appendix: supporting analysis for segments
| Claim | Evidence | Calculation |
|---|---|---|
| Segment profit grew in every segment | US & Canada 7.8%; EMEA 5.1%; Greater China 13.6%; APEC 4.8% | Segment profit YoY |
| Fees outside the four segments rose | Unallocated gross fees $276M in Q3 2025 to $338M in Q3 2026 | Gross fees less the four segments |
| Segment revenues include cost reimbursements | Total segment revenues were $6,162M | As reported in the 10-Q |
EMEA is Europe, Middle East & Africa; APEC is Asia Pacific excluding China. Source: Marriott Form 10-Q, Nov 2, 2026; analysis of company data
15 · Supporting analysis (1/4) · Open this slide in DeepCell
Appendix: supporting analysis for profit and margins
| Claim | Evidence | Calculation |
|---|---|---|
| Adjusted net income rose faster than net income | Adjusted net income $674M to $790M (17.2%); net income 9.1% | Company non-GAAP reconciliation |
| Fewer shares lifted EPS | Diluted shares fell from 272.5M to 261.2M | Diluted weighted average shares |
| Adjusted EBITDA rose | Adjusted EBITDA $1,349M to $1,512M (12.1%) | Company non-GAAP reconciliation |
| Operating margin was flat | Operating margin 18.2% in Q3 2025 and 18.2% in Q3 2026 | Operating income divided by total revenues |
Source: Marriott Form 8-K, Nov 2, 2026; analysis of company data
16 · Supporting analysis (2/4) · Open this slide in DeepCell
Appendix: guidance, cash flow and balance sheet support
| Claim | Evidence | Calculation |
|---|---|---|
| Q3 adjusted EPS topped the company’s own guide | Q3 adjusted EPS was 7.1% above the $2.82 high end of the August guide | Actual divided by guide high end, less one |
| Capital return guidance rose | At least $4,800M for 2026, from over $4,500M in August | As stated in the outlook |
| Investment spending guide | $1,250M to $1,350M for 2026 | As stated in the outlook |
| Buybacks continued in Q3 | Share repurchases of $1,300M in Q3 2026 | As stated in the release |
Source: Marriott Form 8-K, Nov 2, 2026; Marriott Form 10-Q, Nov 2, 2026; analysis of company data
17 · Supporting analysis (3/4) · Open this slide in DeepCell
Appendix: watch items behind guidance and risks
| Claim | Evidence | Calculation |
|---|---|---|
| Room growth is the fee base | About 20,100 net rooms added in Q3; net rooms growth 4.6% YoY | As stated in the release |
| Pipeline supports future fees | Over 634,000 rooms in the development pipeline | As stated in the release |
| International RevPAR lagged US & Canada | International RevPAR +4.4%; US & Canada RevPAR +7.4% | Systemwide, constant dollars |
| Occupancy and rate both rose | Worldwide occupancy 72.5%; average daily rate +4.8% YoY | Systemwide, constant dollars |
RevPAR is revenue per available room. Source: Marriott Form 8-K, Nov 2, 2026; analysis of company data
18 · Supporting analysis (4/4) · Open this slide in DeepCell
Appendix: revenue and adjusted earnings detail
Revenue detail, $M and YoY %
| $M unless noted | Q3 2025 | Q3 2026 | YoY |
|---|---|---|---|
| Base management fees | $314M | $334M | 6.4% |
| Net fee revenues | $1,309M | $1,489M | 13.8% |
| Owned, leased and other revenue | $420M | $436M | 3.8% |
| Cost reimbursement revenue | $4,760M | $5,080M | 6.7% |
Adjusted earnings detail, $M and YoY %
| $M unless noted | Q3 2025 | Q3 2026 | YoY |
|---|---|---|---|
| Adjusted total revenues | $1,729M | $1,925M | 11.3% |
| Adjusted operating income | $1,119M | $1,267M | 13.2% |
| Adjusted net income | $674M | $790M | 17.2% |
Note: Adjusted measures are Marriott’s non-GAAP definitions.Source: Marriott Form 8-K, Nov 2, 2026; analysis of company data
19 · Appendix: financial detail · Open this slide in DeepCell
Appendix: sources
- Filing: Marriott Form 8-K, Nov 2, 2026 — https://www.sec.gov/Archives/edgar/data/1048286/000104828626000040/mar-2026q3xex99earningsrel.htm
- Filing: Marriott Form 10-Q, Nov 2, 2026 — https://www.sec.gov/Archives/edgar/data/1048286/000104828626000043/mar-20260930.htm
- Prior guidance: Marriott Form 8-K, Aug 3, 2026 — https://www.sec.gov/Archives/edgar/data/1048286/000104828626000033/mar-2026q2xex99earningsrel.htm
- Consensus (Q3 results): Reuters citing LSEG, Nov 2 — https://www.investing.com/news/stock-market-news/marriott-raises-annual-room-revenue-growth-forecast-4991130
- Consensus (Q3 cross-check, Q4 and full year): Zacks via Yahoo Finance, Nov 2 — https://finance.yahoo.com/markets/stocks/articles/marriott-mar-q3-earnings-taking-133003210.html
Built with DeepCell / deepcell.net
20 · Sources · Open this slide in DeepCell
Important disclosures and disclaimer
For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.
No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.
Sources and accuracy. Company figures come from Marriott's Form 8-K (Exhibit 99.1) of November 2, 2026, its Form 10-Q for the quarter ended September 30, 2026, and its Form 8-K of August 3, 2026 for prior guidance. Consensus estimates (LSEG via Reuters, Zacks via Yahoo Finance) are third-party data, credited on the sources page. We have not independently verified third-party data and make no warranty that any information here is accurate, complete or timely.
Forward-looking statements. Company guidance, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.
Past performance. Past results, including those for Q3 2026, are not a reliable indicator of future results.
Non-GAAP measures. Adjusted figures follow Marriott's own definitions, which exclude cost reimbursement revenue, reimbursed expenses and certain other items. They supplement, and do not replace, GAAP results, and they may not be comparable with other companies' measures. Marriott's earnings release reconciles them to GAAP.
No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.
No affiliation. This presentation is not affiliated with, reviewed or endorsed by Marriott International, Inc. and does not represent Marriott's views. Company and brand names belong to their owners.
How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings and consult a qualified professional adviser before making any investment decision.
Date of analysis. The analysis reflects information available as of November 2, 2026. It will not be updated for later events, and views may change without notice.
Built with DeepCell / deepcell.net
21 · Important disclosures · Open this slide in DeepCell