AI Takeaway
HST delivered strong Q1 FY2026 results with revenue up 3.2% to $1.645B, net income nearly doubling to $494M (+99.2%), and cash surging to $1.703B, driven by improved operating leverage and likely asset disposition proceeds.
Revenue
$1.65B
++3.20% YoY
EPS (Basic)
$0.72
++105.71% YoY
Operating Income
$319M
++11.93% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue increased 3.2% year-over-year to $1.645B in Q1 FY2026 from $1.594B in the prior-year period, reflecting continued strength in hotel operating performance across HST's portfolio.
Source: Source: 10-Q Financial Data, Income Statement
Operating margin improved approximately 150 basis points to 19.4% from 17.9% in the prior year, as operating income grew 11.9% to $319M, indicating better cost management and operating leverage relative to revenue growth.
Source: Source: 10-Q Financial Data, Income Statement & Key Ratios
Net income surged 99.2% to $494M ($0.72 diluted EPS) versus $248M ($0.35) in Q1 FY2025, a gain significantly outpacing operating income growth and suggesting substantial non-operating items such as asset sale gains contributed to the result.
Source: Source: 10-Q Financial Data, Income Statement
2 more insights available
Upgrade to unlockHST's portfolio is concentrated in luxury and upper-upscale hotels, making it particularly sensitive to downturns in business travel and high-end leisure spending. Any softening in corporate travel demand or consumer discretionary spending could disproportionately impact revenue and profitability.
Source: Source: 10-Q Financial Data, Revenue & Operating Metrics
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Upgrade to unlockReported EPS of $0.72 versus the $0.45 analyst consensus — a +59.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.65B | $1.59B | +3.20% |
Operating Income | $319M | $285M | +11.93% |
Net Income | $494M | $248M | +99.19% |
EPS (Basic) | $0.72 | $0.35 | +105.71% |
EPS (Diluted) | $0.72 | $0.35 | +105.71% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $13.15B | $12.95B | +1.60% |
Total Liabilities | $6.14B | $6.16B | -0.34% |
Stockholders' Equity | $6.83B | $6.65B | +2.66% |
Cash & Equivalents | $1.7B | $428M | +297.90% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $342M | $305M | +12.13% |
Investing Cash Flow | $914M | $-83M | +1201.20% |
Financing Cash Flow | $-337M | $-327M | -3.06% |
Share Buybacks | $75M | $100M | -25.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 19.4% | 17.9% | +1.51% |
Net Margin | 30.0% | — | — |
ROE | 7.2% | — | — |
ROA | 3.8% | — | — |
Debt to Equity | $0.899 | — | — |
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HST reported Q1 FY2026 revenue of $1.645B (+3.2% YoY) and net income of $494M, nearly double the prior year's $248M, driven by operating margin expansion to 19.4% and likely significant asset sale gains. Cash and equivalents surged to $1.703B from $428M a year ago, reflecting major investing inflows of $914M. Diluted EPS of $0.72 more than doubled from $0.35 in Q1 FY2025.
HST's net income jumped 99.2% to $494M in Q1 FY2026, far outpacing the 11.9% growth in operating income to $319M, suggesting significant non-operating gains — most likely proceeds from hotel asset dispositions — contributed to the result. This is supported by investing cash flow swinging from negative $83M to positive $914M year-over-year. Investors should note this boost may not recur in future quarters.
HST's cash and equivalents surged 297.9% to $1.703B at the end of Q1 FY2026, up from just $428M a year earlier. This dramatic increase was driven by investing cash inflows of $914M, compared to an outflow of $83M in the prior-year period, strongly suggesting the company sold significant hotel assets during the quarter. The large cash balance raises questions about how management plans to redeploy this capital.
HST's financial health appears solid, with $1.703B in cash, a debt-to-equity ratio of 0.90, and operating cash flow of $342M (+12.1% YoY). Total assets stand at $13.154B against total liabilities of $6.140B, giving the company a strong equity base of $6.827B. The combination of growing operating cash flow and a large cash balance provides significant financial flexibility.
Yes, HST grew revenue 3.2% year-over-year to $1.645B in Q1 FY2026, up from $1.594B in Q1 FY2025. Operating income grew faster at 11.9% to $319M, reflecting improved cost efficiency and operating leverage across the hotel portfolio. The revenue growth, while modest, was accompanied by meaningful margin expansion.