H World Group Ltd

H World Group closed out Q3 2025 with a decisive beat on both the top and bottom lines, reporting revenue of $6.96 billion, up 8.1% year-over-year and ahead of the $6.75 billion consensus by 3.13%, while adjusted diluted EPS of $4.76 per ADS edged past the $4.76 estimate. The headline driver was the company's accelerating shift toward an asset-light model, with manachised and franchised revenue surging 27.2% year-over-year to $3.31 billion, well above the company's own guided range of 20%-24% growth, and helping lift operating margin to 29.4% from 26.7% a year ago. That structural pivot is drawing attention from <a href="https://247wallst.com/investing/2025/10/27/wall-street-is-pounding-the-table-over-hon-goog-aapl-msft-bkng-and-tsla/">analysts watching growth stocks</a> closely, with Benchmark raising its price target to $52 post-results. Some softness persisted in China's domestic lodging market, where same-hotel RevPAR for mature Legacy-Huazhu properties slipped 4.7% year-over-year, though aggressive network expansion, 749 new hotel openings in the quarter alone, more than offset that pressure. For Q4 2025, management guided total revenue growth of 2%-6%, with M&F revenue growth of 17%-21%.