Hotels, Restaurants & Leisure
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.
Key risk: Negative and worsening stockholders' equity
Stockholders' equity stood at -$6,303M as of the period, down 37.3% YoY from -$4,590M, driven by continued large share repurchases ($1,787M YTD) exceeding net income generation, resulting in a highly negative debt-to-equity ratio of -3.68.
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