MAR · Q2 2026 Earnings

Bullish

Marriott International

Reported August 3, 2026

30-second summary

Marriott delivered worldwide RevPAR +3.4% versus a +1.5–2.5% guide, adjusted EPS of $3.19 versus a $2.99–$3.06 guide, and adjusted EBITDA of $1,592M versus a $1,525–$1,550M guide — all above guide despite the Middle East headwind management flagged last quarter. The FY26 guide was raised across every line for the second consecutive quarter: worldwide RevPAR to +3.0–3.5% (from +2.0–3.0%), adjusted EPS midpoint to $11.73 (from $11.51), and capital return to over $4.5B. The narrative that took two quarters to build — that 2026 is not a repeat of 2025's flat-RevPAR grind — is now the base case, though the international-outperforms-U.S. gap has now inverted with U.S. & Canada at +5.0% and international at -0.5%.

Headline numbers

EPS

Q2 FY2026

$3.19

+3.6% vs est.

Revenue

Q2 FY2026

$7.07B

+5.0% YoY

-1.6% vs est.

Operating margin

Q2 FY2026

17.4%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$7.07B	$1.81B	+290.2%	$1.81B	+290.7%
EPS	$3.19	$2.65	+20.4%	$2.72	+17.3%
Operating margin	17.4%	65.0%	-4760bps	16.0%	+140bps

Guidance

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Adjusted EPS	Q2 FY2026	$2.99 to $3.06	$3.19	+$0.13 above guide high end	Beat
Gross fee revenues	Q2 FY2026	$1,538 to $1,553 million	$1,627 million	+$74-89M above guide	Missed
Adjusted EBITDA	Q2 FY2026	$1,525 to $1,550 million	$1,592 million	+$42-67M above guide	Beat
Worldwide RevPAR growth	Q2 FY2026	1.5% to 2.5%	3.4%	+0.9-1.9 percentage points above guide	Beat

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Adjusted EPS	FY 2026	$11.38 to $11.63	$11.64 to $11.81	+$0.26 to $0.43 (low to high end raised)	Raised
Gross fee revenues	FY 2026	$5,925 to $5,985 million	$6,025 to $6,055 million	+$40 to $130M (low to high end raised)	Raised
Adjusted EBITDA	FY 2026	$5,880 to $5,970 million	$5,965 to $6,025 million	+$85 to $145M (low to high end raised)	Raised
Worldwide RevPAR growth	FY 2026	2.0% to 3.0%	3.0% to 3.5%	+1.0 to 0.5 percentage points (low end raised 100bps, high end raised 50bps)	Raised
Capital return to shareholders	FY 2026	Over $4,400 million	Over $4,500 million	+$100M	Raised
Adjusted effective tax rate	FY 2026	26.0% to 26.5%	Withdrawn — no replacement	—	Withdrawn

Reaffirmed unchanged this quarter: Net rooms growth (Low end of 4.5% to 5%)

Segment performance

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Franchise and base management fees	$1.366B	—	+14.0%
Incentive management fees	$0.212B	—	+6.0%
Owned, leased, and other revenue, net	$0.049B	—	-37.2%

Platform metrics

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Global RevPAR growth	3.4%	—	—
Worldwide development pipeline rooms	629,000	—	—
Net rooms added in quarter	17,900	—	—
Marriott Bonvoy members	295 million	—	—
Total system rooms	1.814 million	—	—
Total system properties	10,082	—	—

Profitability

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Adjusted EBITDA	$1,592 million	$1,415 million	—
Adjusted operating margin	66.0%	—	—

Management tone

Tone analysis this quarter is limited — no transcript with prepared remarks or Q&A was available for the call. The following observations rest on the press release and guidance revisions.

The press-release qualitative statements complete the pivot back to RevPAR-led framing: "With the outperformance in the second quarter and strong broad-based demand generally expected to continue, we are raising our full year expectation to 3 to 3.5 percent global RevPAR growth." Two quarters ago the equity story was being explicitly re-anchored to net rooms growth because RevPAR wasn't going to help; this quarter it is being explicitly re-anchored to RevPAR outperformance.

The signings language sharpened further: "Development activity remained strong, with record global signings in the first six months of the year." Combined with the pipeline moving to 629k rooms, this reinforces the unit-growth flywheel narrative — but management is no longer having to lean on unit growth to cover for a weak RevPAR story. It is now additive rather than compensating.

The Chase/Amex disclosure moved from "expected latter part of this year" to "we recently executed new long-term agreements for our co-branded credit card program in the U.S. with JPMorgan Chase and American Express," with the outlook explicitly incorporating "the expected partial year incremental impact." No dollar quantification of the uplift was provided in the release.

The international reversal — from Q1's +4.6% with China raised to low-single-digit growth to Q2's -0.5% aggregate print — did surface in commentary, with management attributing it to Middle East (-43% in the region using systemwide language) more than offsetting solid RevPAR growth across other international regions.

Answers to last quarter's watch list

Whether select service RevPAR sustains positive growth, ideally holding +3.5% or better. Systemwide U.S. & Canada Composite Select was +4.4% in Q2, with Courtyard +4.3%, Residence Inn +4.6%, and Fairfield +3.9% — the select-service inflection clearly held. Status: Resolved positively

Q2 worldwide RevPAR vs. the +1.5–2.5% guide, with explicit attention to the Middle East 100–125bps drag. Worldwide RevPAR landed at +3.4% — 90bps above the guide high end — despite the Middle East drag clearly landing (international -0.5%, MEA systemwide -33.1%). Status: Resolved positively

Net rooms growth — Q2 openings need to track ~17k+ to maintain credibility on the +4.5–5% FY guide. Q2 net rooms added of 17,900 hit the mark, and FY guide was substantively reaffirmed at "low end of 4.5% to 5%" — the "low end of" phrasing is a mild qualifier vs. Q1's "4.5–5%" but not a cut. First-half FY2026 signings hit a record. Status: Resolved positively, with a mild watch on the "low end of" qualifier.

Greater China Q2 print and any updated FY trajectory. Greater China systemwide RevPAR +3.2%, with strong performance in Hong Kong, Taiwan, and Hainan and luxury outperformance. The negative international print sits in Middle East + Africa, not China. Status: Resolved positively

Concrete economic disclosure on Chase/Amex renewal — timing, structure, or any framework on incremental fee uplift. Both deals were executed, with the outlook incorporating "the expected partial year incremental impact." No dollar-value quantification. Status: Partially resolved — deals done, economics still opaque.

AI economics for owners — management cited "favorable cost benefits" without quantification. No new framework or quantification in the release. Status: Continue monitoring

What to watch into next quarter

Whether Q3 worldwide RevPAR delivers inside the +3.5–4.0% guide. The guide is meaningfully above the +3.4% Q2 print, implying management expects further acceleration. A miss here would call into question the "broad-based demand generally expected to continue" language and force a FY guide trim rather than another raise.

U.S. & Canada RevPAR — does the +5.0% Q2 print hold, or does the comparison finally get tough? A slowdown to +2–3% in Q3 would suggest the H1 strength was partially one-off rather than a sustained inflection.

International RevPAR trajectory — Q2 -0.5% needs to improve. If Middle East drag persists at Q2's implied magnitude, international will remain a drag on worldwide RevPAR, and the FY raise to +3.0–3.5% depends on U.S. continuing to over-deliver.

Chase/Amex economic disclosure. Deals are executed and in the guide as a "partial year" impact. Watch for dollar quantification or run-rate framing on the Q3 call, which would meaningfully move the 2027 EPS setup.

Net rooms growth Q3 — the "low end of 4.5% to 5%" phrasing. Watch whether the "low end of" qualifier survives Q3 or gets removed.

Sources

Marriott International Q2 2026 Earnings Release, filed August 3, 2026 — https://www.sec.gov/Archives/edgar/data/1048286/000104828626000033/mar-2026q2xex99earningsrel.htm

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