Hilton Worldwide filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $12.7 billion, which rose 8.1% on the year before. That growth rate was down 0.6 percentage points on the rate a quarter earlier.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
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| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | 9.2% | 21.2% | 17.2% |
| FY25 Q1 | 7.4% | 21.0% | 17.9% |
| FY25 Q2 | 6.3% | 21.1% | 19.6% |
| FY25 Q3 | 6.7% | 22.0% | 20.4% |
| FY25 Q4 | 7.7% | 22.4% | 16.8% |
| FY26 Q1 | 8.7% | 23.1% | 17.9% |
| FY26 Q2 | 8.7% | 23.3% | 16.3% |
| FY26 Q3 | 8.1% | 24.0% | 15.2% |
What stands out
Net income rose 2.1% over the year while free cash flow fell 19.2%, indicating that reported profit and cash are moving at different speeds.
What the company earns
Growth is coming with wider margins, so profit is rising faster than sales. The trailing operating margin was 24.0%, up 2.0 percentage points from a year earlier. The trailing net margin was 13.4%. Net income over the twelve months was $1.7 billion, which rose 2.1% on the year before.
The cash picture
Reported profit is running well ahead of the cash. Operating cash flow over the twelve months was $2.0 billion, down 19.7% on the year before. Capital spending was $83.0 million, or 0.7% of revenue. Free cash flow, operating cash flow less capital spending, was $1.9 billion, down 19.2% on the year before. Free cash flow was 15.2% of revenue (the free-cash-flow margin), down 5.1 percentage points from a year earlier.
The share base
The average diluted share count fell 4.5% over the year.
Against its own history
Set against the company’s own record: today’s free-cash-flow margin of 15.2% is higher than 53% of the company’s own past quarterly readings, which have ranged from −14.0% to 22.3%. Today’s operating margin of 24.0% is above every past reading (−14.3% to 23.9%). Today’s twelve-month revenue growth rate of 8.1% is higher than 53% of past readings (−64.4% to 103.5%).
Guidance
The company gave its full year 2026 guidance for system-wide comparable revpar of 3% to 3.5%, for diluted EPS of $8.22 to $8.35, for net income of $1,883.0 million to $1,911.0 million, and for adjusted EBITDA of $4,040.0 million to $4,080.0 million.
What it means for our valuation
These trends feed directly into what the shares are worth in our model. In our model, growth 5 percentage points lower would lower the value by 31.7%, and 5 percentage points higher would raise it by 41.2%. A free-cash-flow margin 1 percentage point lower would lower it by 6.5%.
What to watch
The next filing will show whether the trends above continue, slow or reverse.
