Marriott Vacations Q2 revenue beats on contract sales growth; raises outlook

Marriott Vacations Worldwide

06/08/2026 12:40

Overview
US vacation ownership firm's Q2 revenue rose 6%, beating analyst expectations
Adjusted EPS for Q2 rose 18% and beat analyst expectations
Company raised full-year guidance for contract sales, adjusted EBITDA, and free cash flow

Outlook
Company raises 2026 contract sales outlook to $2.08 bln-$2.115 bln from $1.815 bln-$1.885 bln
Marriott Vacations Worldwide lifts 2026 adjusted EBITDA guidance to $805 mln-$830 mln from $755 mln-$780 mln
Company now sees 2026 adjusted EPS at $8.25-$9.05, up from prior $7.05-$7.80 range

Result Drivers
CONTRACT SALES GROWTH - Q2 contract sales rose 22% year over year, driven by higher average transaction size from product and operational enhancements
HIGHER MARKETING AND SALES COSTS - Segment adjusted EBITDA margin declined due to increased marketing and sales costs and higher unsold maintenance fee expense, partly offset by lower product cost as a percentage of sale
ASIA-PACIFIC PRIORITIZATION - Company reduced tours in Asia-Pacific to focus on higher profitability and cash flow, resulting in a 1% decline in reported tours

Company press release: ID:nBw2YDPPna

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.32 bln
$1.29 bln (8 Analysts)
Q2 Adjusted EPS
Beat
$2.31
$1.97 (10 Analysts)
Q2 Net Income
 
$77 mln
 
Q2 Adjusted EBITDA
Beat
$215 mln
$197.67 mln (9 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"
Wall Street's median 12-month price target for Marriott Vacations Worldwide Corporation is $96.00, about 5.6% below its August 5 closing price of $101.74
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Aug 3 - Marriott International's Q2 adj profit beats on fee growth
Aug 5 - Host Hotels Q2 revenue beats estimates on strength in leisure, group travel business
Aug 5 - Expedia raises annual forecast on resilient domestic travel demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)