Marriott Vacations Worldwide Q3 2026: EPS Beat, Revenue Miss, Guidance Raised

Marriott Vacations Worldwide posted adjusted EPS of $2.64 for the third quarter of 2026, beating the consensus estimate of $2.59. Revenue of $1.37 billion came in below the $1.41 billion analysts had expected, missing expectations and making for a mixed quarter where the bottom line told the more encouraging story.

The development business led the quarter, with contract sales up 29% to $565 million and volume per guest higher at $4,822. Development profit rose 97% to $142 million, and Vacation Ownership segment adjusted EBITDA margin widened to 29.6% from 26.1%, reflecting genuine operating leverage.

Hurricane Lowell was the main drag on results. The storm forced partial closures at five Kauai resorts and is estimated to have shaved $16 million from adjusted EBITDA. Rental profit fell 40% to $12 million as higher inventory costs compounded the storm's disruption. General and administrative expenses also rose by $18 million, largely on higher incentive compensation.

Despite those headwinds, management raised its full-year 2026 adjusted EPS guidance to a range of $8.65 to $9.15, up from a prior range of $8.25 to $9.05. Full-year adjusted EBITDA guidance was set at $810 million to $830 million, and the full-year contract sales target was raised to $2,120 million to $2,140 million. Lifting guidance while absorbing a known hurricane hit is the detail most worth noting.

Looking at the recent EPS history, the quarter continues a pattern of generally beating estimates, with the notable exception of Q4 2025, when reported EPS of $0.63 came in well below the $1.61 consensus. The Q3 2026 result, combined with the guidance raise, suggests management treats that quarter as an anomaly. The board also extended a $322 million share repurchase authorization through December 31, 2027, adding a modest capital-return signal alongside the earnings report.