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Revenue growth supports improved annual guidance
Travel + Leisure Co. (NYSE:TNL) reported second-quarter 2026 results on Wednesday that exceeded revenue expectations and prompted management to raise its full-year outlook, although adjusted earnings per share came in just below Wall Street forecasts.
The leisure travel company posted adjusted earnings per share of $1.88, narrowly missing analysts’ consensus estimate of $1.89.
Revenue increased 4% year over year to $1.06 billion, ahead of the $1.04 billion expected by analysts and up from $1.02 billion in the same quarter of 2025.
Shares edged 0.20% higher in after-hours trading following the earnings release.
Higher EBITDA reflects strength in Vacation Ownership
Travel + Leisure increased its full-year adjusted EBITDA guidance to a range of $1.065 billion to $1.085 billion. The midpoint of $1.075 billion signals management’s confidence in the company’s operating momentum through the remainder of the year.
“We delivered another strong quarter driven by a highly engaged owner base and exceptional execution across our Vacation Ownership business,” said Michael Brown, President & CEO of Travel + Leisure Co.
“Together, our operating performance and the addition of these businesses extend the growth opportunity in front of us and give us the confidence to raise our full year outlook.”
Adjusted EBITDA rose 8% year over year to $269 million, compared with $250 million in the prior-year period.
The company generated net income of $109 million, equal to $1.72 per diluted share.
Vacation Ownership offsets weakness in Travel and Membership
Growth continued to be driven by the Vacation Ownership division, where revenue increased 6% to $907 million.
Adjusted EBITDA for the segment climbed 13% to $247 million as gross vacation ownership interest sales rose 6% to $693 million. Volume per guest also improved 2% year over year to $3,318.
By contrast, the Travel and Membership business reported a weaker quarter. Revenue declined 5% to $157 million, while adjusted EBITDA fell 11% to $49 million, reflecting lower exchange transaction volumes and a greater proportion of lower-margin travel club transactions.
Company continues returning cash to shareholders
For the third quarter of 2026, Travel + Leisure expects adjusted EBITDA of between $275 million and $285 million, alongside gross vacation ownership interest sales of $700 million to $740 million.
The company also continued its capital return programme during the quarter, distributing $125 million to shareholders through $37 million in dividends and $88 million in share repurchases.
Travel + Leisure stock price
