Marriott International Inc. (NASDAQ:MAR) stock fell Monday after the hotel operator reported second-quarter 2026 results. Investors looked past an adjusted earnings beat and higher full-year guidance as revenue missed Wall Street estimates and third-quarter earnings guidance came in below expectations.

Earnings Beat, Revenue Misses

Adjusted earnings were $3.19 per share, up from $2.65 a year earlier and above the analyst estimate of $3.09. Revenue increased 5% year over year to $7.07 billion but missed the consensus estimate of $7.20 billion. Reported diluted earnings per share rose to $2.90 from $2.78.

Net income totaled $766 million, while adjusted net income increased 16% to $844 million. Adjusted EBITDA rose 13% to $1.59 billion.

Adjusted operating income climbed 12% to $1.33 billion, with the adjusted operating margin expanding to 66% from 65% a year ago. Reported operating income edged down to $1.23 billion.

Gross fee revenue increased 13% to $1.58 billion. Franchise and base management fees rose 14% to $1.37 billion, while incentive management fees increased 6% to $212 million.

U.S. Growth Offsets Middle East Weakness

Worldwide revenue per available room (RevPAR) increased 3.4%, led by 5% growth in the U.S. and Canada.

International RevPAR declined 0.5% as weakness tied to the Middle East conflict offset gains in other regions. RevPAR in Europe, the Middle East and Africa fell more than 5%, including a 43% decline in the Middle East. Asia-Pacific excluding China posted more than 5% growth, while Greater China RevPAR increased more than 3%.

Pipeline Reaches Record Level

Marriott added about 17,900 net rooms during the quarter, including roughly 11,000 outside the U.S. and Canada. The company ended the quarter with more than 10,000 properties and nearly 1.814 million rooms worldwide.

Its development pipeline grew nearly 7% to a record 4,186 properties, representing about 629,000 rooms, including more than 279,000 rooms under construction. Conversions accounted for more than one-third of room signings and 40% of first-half openings.

Marriott Bonvoy membership exceeded 295 million. The company also signed new U.S. co-branded credit card agreements with JPMorgan Chase and American Express.

Quarterly results included a $27 million property-related litigation accrual and a $68 million impairment charge tied to the sale of a hotel in the U.S. and Canada region.

Marriott ended the quarter with $500 million in cash and cash equivalents and $16.9 billion in total debt.

Outlook

Marriott forecast third-quarter adjusted earnings of $2.74 to $2.82 per share, below the analyst consensus estimate of $2.87.

The company raised its full-year adjusted EPS guidance to a range of $11.64 to $11.81 from its prior outlook of $11.38 to $11.63. The updated range brackets the consensus estimate of $11.64.

Marriott also reaffirmed its expectation for full-year RevPAR growth of 3% to 3.5% and said net room growth is expected at the low end of its 4.5% to 5% target range.

MAR Price Action: Marriott International shares were down 7.25% at $345.80 at the time of publication on Monday, according to Benzinga Pro data.

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