Marriott Vacations Worldwide (NYSE:VAC) Posts Earnings Results, Beats Expectations By $0.34 EPS

Marriott Vacations Worldwide (NYSE:VAC) posted its quarterly earnings results on Thursday. The company reported $2.31 EPS for the quarter, topping the consensus estimate of $1.97 by $0.34, FiscalAI reports. The company had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.30 billion. Marriott Vacations Worldwide had a negative net margin of 6.72% and a positive return on equity of 11.37%. The firm’s revenue was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.96 EPS. Marriott Vacations Worldwide updated its FY 2026 guidance to 8.250-9.050 EPS.

Here are the key takeaways from Marriott Vacations Worldwide’s conference call:

• Q2 contract sales rose 22% year over year to $545 million, while VPG increased 23% to $4,477 and adjusted EBITDA grew 6% to $215 million.
• Management raised full-year adjusted EBITDA guidance by $50 million to $805 million–$830 million and increased adjusted free cash flow guidance to $410 million–$460 million, citing strong sales momentum and expected second-half margin improvement.
• New commercial initiatives—including tour logistics, enhanced owner loyalty tiers, Premier Vacations, and Inner Circle events—are improving owner engagement, transaction sizes, and tour flow; management expects these programs to support growth into 2027 and beyond.
• Net corporate debt ended the quarter at $3.1 billion, or approximately 4.0 times leverage. The company plans to prioritize debt reduction while retaining flexibility for dividends and opportunistic share repurchases, and expects to generate $200 million from non-core asset sales by the end of 2027.
• The sales reserve increased to 13.4% of contract sales, reflecting higher financed purchase volume, while $15 million of development profit was deferred because strong late-quarter sales remained within the rescission period.

Marriott Vacations Worldwide Price Performance

VAC stock traded up $23.47 on Thursday, reaching $125.21. The company had a trading volume of 1,819,457 shares, compared to its average volume of 387,857. Marriott Vacations Worldwide has a 1 year low of $44.58 and a 1 year high of $128.01. The company has a debt-to-equity ratio of 2.80, a quick ratio of 2.77 and a current ratio of 3.30. The company’s fifty day moving average is $96.91 and its 200 day moving average is $77.19. The company has a market cap of $4.30 billion, a P/E ratio of -12.41, a PEG ratio of 2.30 and a beta of 1.23.

Marriott Vacations Worldwide Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Wednesday, May 27th were given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 2.6%. The ex-dividend date was Wednesday, May 27th. Marriott Vacations Worldwide’s payout ratio is currently -31.71%.

Key Marriott Vacations Worldwide News

Here are the key news stories impacting Marriott Vacations Worldwide this week:

• Positive Sentiment: Quarterly results exceeded expectations. Marriott Vacations Worldwide reported adjusted earnings of $2.31 per share versus the $1.97-$1.98 analyst consensus, while revenue reached $1.32 billion, ahead of the approximately $1.30 billion estimate. Earnings increased from $1.96 per share a year earlier, and revenue rose 5.9% year over year. Marriott Vacations Worldwide Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Sales momentum was particularly strong. Second-quarter contract sales increased 22% year over year to $545 million. Net income attributable to common stockholders rose to $77 million from $69 million, while reported diluted EPS increased to $2.12 from $1.77. The results suggest continued demand for the company’s vacation-ownership products. Marriott Vacations Worldwide Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised its full-year outlook. VAC now expects fiscal 2026 EPS of $8.25 to $9.05, above the roughly $7.49 consensus cited in the guidance update and the $7.32 estimate referenced in company coverage. The upgrade reinforces the market’s view that operating performance is improving. Marriott Vacations Raises 2026 Outlook on Strong Q2
• Neutral Sentiment: Management commentary and investor analysis focused on sustained sales activity. The earnings call and related coverage highlighted the strength of recent sales, supporting the rally but leaving investors focused on whether that pace can continue. Marriott Vacations Worldwide Q2 2026 Earnings Call Transcript
• Negative Sentiment: Valuation is a near-term risk. One analyst downgraded VAC after its recent rally, suggesting that much of the improved sales outlook may already be reflected in the stock price. The company also carries elevated leverage, with a debt-to-equity ratio of 2.80. Marriott Vacations Stellar Sales Activity Supports the Recent Rally Downgrade

Hedge Funds Weigh In On Marriott Vacations Worldwide

A number of institutional investors have recently made changes to their positions in the stock. Advisory Services Network LLC purchased a new stake in Marriott Vacations Worldwide during the 3rd quarter worth about $27,000. IFP Advisors Inc raised its stake in Marriott Vacations Worldwide by 1,828.0% in the 3rd quarter. IFP Advisors Inc now owns 482 shares of the company’s stock valued at $32,000 after purchasing an additional 457 shares during the last quarter. Kestra Advisory Services LLC purchased a new position in Marriott Vacations Worldwide in the 4th quarter valued at about $37,000. CIBC Private Wealth Group LLC lifted its holdings in Marriott Vacations Worldwide by 194.0% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,035 shares of the company’s stock valued at $69,000 after purchasing an additional 683 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd boosted its stake in shares of Marriott Vacations Worldwide by 39,966.7% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,202 shares of the company’s stock worth $80,000 after purchasing an additional 1,199 shares during the last quarter. 89.52% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have issued reports on VAC. Weiss Ratings restated a “sell (d)” rating on shares of Marriott Vacations Worldwide in a research note on Friday, June 12th. Mizuho set a $103.00 price target on Marriott Vacations Worldwide in a research note on Wednesday, May 6th. Zacks Research cut Marriott Vacations Worldwide from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, June 2nd. Morgan Stanley upped their price target on shares of Marriott Vacations Worldwide from $51.00 to $52.00 and gave the company an “underweight” rating in a research report on Friday, July 17th. Finally, The Goldman Sachs Group raised shares of Marriott Vacations Worldwide from a “sell” rating to a “buy” rating and set a $100.00 price objective on the stock in a research report on Monday, June 1st. Seven analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $86.70.

About Marriott Vacations Worldwide

Marriott Vacations Worldwide Corporation, headquartered in Orlando, Florida, specializes in the development, marketing and management of vacation ownership resorts and related products. Originally launched as a division of Marriott International in 1984, the company became a separate publicly traded entity in 2011. Since then, it has expanded its offerings through both organic growth and strategic acquisitions, establishing itself as a leading provider in the global timeshare industry.

The company’s core business activities include selling vacation ownership interests, managing a growing portfolio of branded resorts and operating a loyalty program that allows members to exchange or use points at affiliated properties.