Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Hilton Worldwide (HLT) delivered strong FY2025 revenue growth of 7.7% to $12.0B and expanded operating margins to 22.4%, though net income dipped 5.1% to $1.46B amid aggressive share buybacks that deepened negative stockholders' equity to -$5.4B.
Revenue
$12.04B
+7.74% YoY
EPS (Diluted)
$6.12
-0.33% YoY
Operating Income
$2.69B
+13.63% YoY
Source: SEC XBRL
Hilton Worldwide Holdings (HLT) reported FY2025 revenue of $12.04B, up 7.7% year over year. Operating margin was 22.4%, up 1.2 points from 21.2% a year earlier. Operating cash flow was $2.13B, up 5.8% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.29 | 2.31 | Miss -0.8% |
| Mar 2026 | 2.01 | 1.99 | Beat +1.2% |
| Dec 2025This filing | 2.08 | 2.04 | Beat +2.0% |
| Sep 2025 | 2.11 | 2.08 | Beat +1.6% |
Reported EPS of $2.08 versus the $2.04 analyst consensus — a +2.0% beat for Dec 2025.
Compiled by AI from this SEC filing
Total revenue grew 7.7% year-over-year from $11.17B to $12.04B in FY2025, reflecting sustained demand across Hilton's managed and franchised hotel portfolio. This top-line expansion underscores the resilience of travel and hospitality spending.
Source: 10-K Income Statement, Financial Data
Operating income rose 13.6% to $2.69B, pushing the operating margin from 21.2% to 22.4% — a meaningful 120 basis point improvement. This indicates Hilton is achieving operating leverage as revenues scale faster than costs.
Source: 10-K Income Statement, Financial Data
Net income fell 5.1% to $1.46B from $1.54B in the prior year, suggesting higher interest expense or tax charges offset the strong operating performance. Net margin stood at 12.1% for FY2025.
Source: 10-K Income Statement, Financial Data
Hilton returned approximately $3.18B in share buybacks and $143M in dividends in FY2025, totaling over $3.3B in capital returned to shareholders. This significantly exceeded operating cash flow of $2.13B, requiring debt financing and contributing to the deepening negative equity position.
Source: 10-K Cash Flow Statement, Financial Data
Operating cash flow increased 5.8% to $2.13B, demonstrating the asset-light franchise model's ability to generate consistent cash. Investing outflows were modest at -$190M, reflecting Hilton's capital-light strategy.
Source: 10-K Cash Flow Statement, Financial Data
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Hilton's stockholders' equity deteriorated further to -$5.39B from -$3.73B in the prior year, a 44.6% decline. This is primarily driven by share repurchases exceeding retained earnings. While common for asset-light franchise businesses with aggressive buyback programs, it signals elevated financial leverage and limits balance sheet flexibility.
Source: 10-K Balance Sheet, Financial Data
Total liabilities grew 9.4% to $22.12B while total assets grew only 1.5% to $16.77B, resulting in a debt-to-equity ratio that is deeply negative and technically not meaningful in traditional terms. The current ratio of 0.66 indicates current liabilities exceed current assets, which could create short-term liquidity pressure if cash flows deteriorate.
Source: 10-K Balance Sheet, Financial Data
Despite strong operating income growth of 13.6%, net income declined 5.1%, implying significant non-operating headwinds such as interest expense on the large debt load. Continued debt accumulation to fund buybacks could further compress net income in a rising interest rate environment.
Source: 10-K Income Statement, Financial Data
Cash and equivalents fell 29.4% to $918M from $1.30B, as financing outflows of $2.35B (driven by buybacks) significantly exceeded operating cash inflows. A lower cash buffer reduces Hilton's ability to weather unexpected downturns in travel demand.
Source: 10-K Cash Flow Statement, Financial Data
Hilton's revenue model is highly sensitive to macroeconomic conditions, consumer confidence, and global travel trends. Any significant slowdown in business or leisure travel — due to recession, geopolitical events, or health crises — could rapidly impact RevPAR and fee-based revenues across its managed and franchised portfolio.
Source: 10-K Financial Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 12.04 $B | 11.17 $B | +7.74% |
Operating Income $B | 2.69 $B | 2.37 $B | +13.63% |
Net Income $B | 1.46 $B | 1.54 $B | -5.08% |
EPS (Basic) $ | 6.18 $ | 6.20 $ | -0.32% |
EPS (Diluted) $ | 6.12 $ | 6.14 $ | -0.33% |
Answers draw on this SEC filing and the data on this page
Hilton delivered solid Q2 FY2026 growth with revenue up 6.5% to $3,341M and diluted EPS up 14.1% to $2.10, driven by higher franchise/licensing fees and RevPAR gains, though stockholders' equity remained deeply negative at -$6,303M due to aggressive share buybacks and leverage.
Hilton Worldwide delivered a strong Q1 2026 with revenue rising 9.0% YoY to $2.94B and net income surging 28.3% to $385M, driven by robust operating leverage and continued share buybacks that boosted EPS 35.0% to $1.66 diluted.
Other companies in Hotels, Resorts & Cruise Lines