Travel + Leisure’s (NYSE:TNL) Q2 CY2026 Sales Top Estimates

Hospitality company Travel + Leisure (NYSE:TNL) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 4.4% year on year to $1.06 billion. Its non-GAAP profit of $1.88 per share was 1.3% below analysts’ consensus estimates.

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"We delivered another strong quarter driven by a highly engaged owner base and exceptional execution across our Vacation Ownership business. We also announced two acquisitions that add more than 100,000 owners and expand our presence in some of the most attractive leisure markets in the country. 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," said Michael Brown, President & CEO of Travel + Leisure Co.

Company Overview

Formerly known as Wyndham Destinations, Travel + Leisure (NYSE:TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Travel + Leisure’s 8.8% annualized revenue growth over the last five years was weak. This was below our standard for the consumer discretionary sector and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new property or trend. Travel + Leisure’s recent performance shows its demand has slowed as its annualized revenue growth of 3.5% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

Travel + Leisure also discloses its number of tours conducted, which reached 200,000 in the latest quarter. Over the last two years, Travel + Leisure’s tours conducted averaged 2.5% year-on-year growth. Because this number aligns with its revenue growth during the same period, we can see the company’s monetization was fairly consistent.

This quarter, Travel + Leisure reported modest year-on-year revenue growth of 4.4% but beat Wall Street’s estimates by 1.6%.

Looking ahead, sell-side analysts expect revenue to grow 2.1% over the next 12 months, similar to its two-year rate. This projection is underwhelming and indicates its products and services will see some demand headwinds.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Travel + Leisure’s operating margin has been trending down over the last 12 months and averaged 16.5% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.

This quarter, Travel + Leisure generated an operating margin profit margin of 19.8%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Travel + Leisure’s EPS grew at 23.5% compounded annual growth rate over the last five years. This performance was better than its revenue growth but doesn’t tell us much about its business quality because its operating margin improvement was less than peers.

In Q2, Travel + Leisure reported adjusted EPS of $1.88, up from $1.65 in the same quarter last year. Despite growing year on year, this print slightly missed analysts’ estimates. Over the next 12 months, Wall Street expects Travel + Leisure’s full-year EPS to grow 14.5% from $6.96 to $7.97.

Key Takeaways from Travel + Leisure’s Q2 Results

It was encouraging to see Travel + Leisure’s EBITDA guidance for next quarter beat analysts’ expectations. We were also glad its full-year EBITDA guidance exceeded Wall Street’s estimates. On the other hand, its EPS slightly missed. Overall, this print had some key positives. The stock remained flat at $73.50 immediately following the results.

So should you invest in Travel + Leisure right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).