MAR US S&P 500NASDAQ-100Russell 1000 Earnings call · transcribed from the recording
Marriott International (MAR) · Q3 2026 results and valuation
Share price: $429.18 · 2026-11-11
Marriott International is a franchisor, operator, and licensor of hotel, residential, timeshare, and other lodging properties. The company operates a portfolio of brands across various price and service points in many countries and territories. Source: 10-K annual report (2026-02-10)
Results Q3 2026 vs Q2 2026 · previous quarter · published 2 Nov 2026 and 3 Aug 2026
Net income up 3.7% on the previous quarter, guidance raised. Management sounded upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+3.7%
Net income vs Q2 2026
Guidance raised
Net income 794.0M vs 766.0M
Revenue −0.9%
2 · How management spoke
Upbeat
More upbeat than 87% of company calls
Answers to analysts: typical, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
Figure
Total gross fee revenues rose 14% year-over-year to $1.52 billion, driven by higher RevFAR, rooms growth.
Valuation
Is Marriott International undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 8.0% growth a year (3-year revenue growth), the model's fair value is $204.13 a share — the stock trades 110% above it. Today's price assumes 18.1% growth a year.
Current price
$429.18
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+18.1% for 10 yrs
Fair value / share
$204.13
Buy below
$153.10
Price vs fair value
Overvalued 110%
Price vs buy-below price
Overvalued 180%
Management expects
Growth +13% · from the Q3 2026 report: “For the full year, we are raising our growth fee guidance to an increase of around 13%, with IMS now expected to rise in the high single-digit range.”
A guidance figure for growth, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance ↑
For the full year, Marriott International is raising its growth fee guidance to an increase of around 13%, with IMS now expected to rise in the high single-digit range.
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Guidance
Marriott International now expects 4.5% to 5% global rev park growth.
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Fading
When you found yourself in a softer economic environment where there was less new build activity.
Source quote
“When you found yourself in a softer economic environment where there was less new build activity, you saw conversions... Early in my career in development, you tended to see an ebb and flow when new build ramped up, conversions receded. I don't personally believe that will be the trend going forward.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 90% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Turning to this year's financials, in the fourth quarter, gross fees could rise 13%, reflecting robust REBPAR and rooms growth, as well as strong growth in residential branding fees and...”
“For the full year, we are raising our growth fee guidance to an increase of around 13%, with IMS now expected to rise in the high single-digit range.”
“Luxury and resort hotels again led the region in the quarter, with luxury RevPAR increasing 12%, while select service RevPAR had its third quarter of solid year-over-year growth, rising over...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 7.00B | 7.07B | −0.9% | 6.49B | +8.0% |
| Operating income | 1.27B | 1.23B | +3.7% | 1.18B | +8.0% |
| Net income | 794.0M | 766.0M | +3.7% | 728.0M | +9.1% |
| EPS | 3.04 | 2.90 | +4.8% | 2.67 | +13.9% |
| P/E today 41.5 | 35.5 | 38.4 | −2.9 | 27.5 | +8.0 |
Topics
Most discussed now
- Marriott International has development teams who are specifically focused on driving conversion volume, both in the categories of…
- Incentive Management Fees, or IMFs, rose 22 percent to $181 million in the third quarter, led by a meaningful increase...
Faded since Q2 2026
- Fading Marriott International still sees very strong global demand around the world other than the Middle East.
- Fading Middle East carriers going into markets like India
- Fading Marriott International's owners are foundational to its business and the health and owner of that owner and franchisee community is of...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
The company entered into a Seventh Amended and Restated Credit Agreement with Bank of America, N.A. for a credit facility of U.S. $5,000,000,000.
- Other events · SEC 8-K
Marriott International entered into a Terms Agreement to issue $250,000,000 of 4.875% Series NN Notes due 2029 and $1,000,000,000 of 5.650% Series YY Notes due 2036.
- Results of operations · SEC 8-K
Marriott reported a diluted EPS of $2.90 and franchise and base management fees of $1,366 million, up 14 percent from $1,200 million in the year-ago quarter.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Marriott reported first-quarter 2026 franchise and base management fees of $1,211 million, an increase from $1,071 million in the first quarter of 2025.
- Other events · SEC 8-K
Marriott International entered into a Terms Agreement to issue $600,000,000 of 4.500% Series WW Notes and $850,000,000 of 5.100% Series XX Notes, with net proceeds of approximately $1.425 billion.
- Results of operations · SEC 8-K
For the full year 2025, Marriott reported a worldwide RevPAR increase of 2.0 percent, net income of $2,601 million, and returned over $4.0 billion to shareholders through dividends and share repurchases.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.
Cash & runway
Cash & equivalents
$462.0M
2026-06-30
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -3.8% YoY, -0.8% QoQ.
| Quarter | Shares |
|---|---|
| Q3 2024 | 281.5M |
| Q1 2025 | 276.9M |
| Q2 2025 | 274.2M |
| Q3 2025 | 271.8M |
| Q1 2026 | 266.1M |
| Q2 2026 | 263.9M |
Shares outstanding: 260.8M (2026-07-27)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 89 filings; 50 filings parsed.
Sold by insiders
111.3K shares
$39.8M · 14 transactions
Bought by insiders
0 shares
0 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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full year 2026
guidance range for global RevPAR growth
Source quote
“Looking ahead, as Jen will discuss further, with strong broad-based demand generally expected to continue, we are raising our full year 2026 guidance range to 3% to 3.5% global RevPAR growth.”
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later this year
first openings of Series by Marriott in Greater China
Source quote
“In June, we announced a strategic agreement to introduce Series by Marriott to Greater China, with plans to add approximately 100 hotels under this collection brand with the first openings expected later this year.”
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over the next few years
net rooms growth
Source quote
“With our growing pipeline and strong momentum in conversions, we still expect net rooms to grow in the mid-single-digit range over the next few years.”
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full year 2026
net rooms growth
Source quote
“Our full year 2026 net rooms growth is now more likely to be towards the low end of our previous 4.5% to 5% range, primarily due to construction delays in the Middle East and including our typical assumption of between 1% and 1.5% room deletions.”
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third quarter
gross fees expected to rise 10% to 11%
Source quote
“In the third quarter, gross fees are expected to rise 10% to 11%, even with residential branding fees expected to be down 15% to 20%.”