Travel & Leisure Co. reports results on Tuesday 27 October, before the market opens. Revenue over the twelve months to Q2 2026 was $4.1 billion, a 4.5% rise on the year before.
Source: reported quarterly EPS and aggregated third-party estimates. Historical surprises are context, not a forecast.
View chart data
| Period | Reported EPS | Analysts' estimate |
|---|---|---|
| Sep '25 | $1.80 | $1.73 |
| Dec '25 | $1.83 | $1.82 |
| Mar '26 | $1.45 | $1.31 |
| Jun '26 | $1.88 | $1.91 |
What analysts expect
For the quarter, the analysts’ average EPS estimate is $2.06, in a range from $1.98 to $2.12. The average revenue estimate for the quarter is $1.1 billion. For full-year EPS, the analysts’ average estimate is $7.56, which would be up 19.3% on last year (based on 13 analysts). That estimate has risen 0.4% over the past 90 days. Of the analysts’ recommendations, 11 are positive, 2 neutral and 0 negative.
Earnings surprise model
The model estimates EPS could land above the analysts’ average estimate by 1.2%. Its estimated chance of an EPS beat is 62.5%, based on the last 4 quarters. The model shrinks the median recent surprise toward zero and uses a neutral prior for beat frequency; this small sample is a reference estimate, not company guidance.
Track record against estimates
The company reported EPS above the analysts’ average estimate in 3 of the last 4 quarters. Last quarter, EPS of $1.88 compared with an estimate of $1.91, below it by 1.3%.
The trends going in
Profit and cash are telling different stories: cash flow grew far faster. That growth rate was up 0.3 percentage points on the rate a quarter earlier. The trailing gross margin was 92.9%, while the trailing operating margin was 13.7%, down 5.6 percentage points from a year earlier. The trailing net margin was 5.8%. Net income over the twelve months was $238.0 million, which fell 40.1% on the year before.
Cash flow
Operating cash flow over the twelve months was $545.0 million, down 8.6% on the year before. Capital spending was $103.0 million, or 2.5% of revenue. Free cash flow, operating cash flow less capital spending, was $442.0 million, down 10.7% on the year before. The free-cash-flow margin was 10.8% of revenue, down 1.8 percentage points from a year earlier. The average diluted share count fell 5.0% over the year.
In context
Measured against its own history: today’s free-cash-flow margin of 10.8% is higher than 25% of the company’s own past quarterly readings, which have ranged from 6.7% to 23.1%. Today’s operating margin of 13.7% is higher than 20% of past readings (−4.9% to 20.1%). Today’s twelve-month revenue growth rate of 4.5% is higher than 52% of past readings (−46.6% to 48.7%).
Questions this report will answer
Whether the pick-up in revenue growth continues. Whether results land above or below the analysts’ expectations set out above. Alongside that, whether margins hold at the trailing levels above. The next filing will show whether the trends above continue, slow or reverse.
What it means for value
For valuation, the figures matter through our model. In our model, growth 5 percentage points lower would lower the value by 45.7%, and 5 percentage points higher would raise it by 59.9%. A free-cash-flow margin 1 percentage point lower would lower it by 12.0%.
