Marriott Vacations Worldwide (NYSE:VAC) Announces Earnings Results

Marriott Vacations Worldwide (NYSE:VAC) posted its earnings results on Thursday. The company reported $2.31 earnings per share for the quarter, topping analysts’ consensus estimates of $1.97 by $0.34, FiscalAI reports. The company had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.30 billion. Marriott Vacations Worldwide had a positive return on equity of 12.27% and a negative net margin of 6.47%.Marriott Vacations Worldwide’s revenue was up 5.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.96 earnings per share. 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 Trading Down 1.1%

NYSE VAC opened at $123.36 on Friday. Marriott Vacations Worldwide has a 12-month low of $44.58 and a 12-month high of $131.34. The company has a fifty day simple moving average of $97.68 and a two-hundred day simple moving average of $77.51. The company has a current ratio of 3.56, a quick ratio of 2.77 and a debt-to-equity ratio of 2.65. The stock has a market cap of $4.24 billion, a P/E ratio of -12.67, a P/E/G ratio of 2.39 and a beta of 1.23.

Marriott Vacations Worldwide Announces Dividend

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

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Deutsche Bank Aktiengesellschaft boosted their price target on Marriott Vacations Worldwide from $92.00 to $119.00 and gave the stock a “buy” rating in a research report on Tuesday, June 30th. Zacks Research lowered Marriott Vacations Worldwide from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, June 2nd. Morgan Stanley boosted their target price on shares of Marriott Vacations Worldwide from $51.00 to $52.00 and gave the stock an “underweight” rating in a report on Friday, July 17th. Weiss Ratings reiterated a “sell (d)” rating on shares of Marriott Vacations Worldwide in a report on Friday, June 12th. Finally, Mizuho set a $103.00 price target on shares of Marriott Vacations Worldwide in a research report on Wednesday, May 6th. Seven research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $97.80.

Hedge Funds Weigh In On Marriott Vacations Worldwide

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

Key Stories Impacting Marriott Vacations Worldwide

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

• Positive Sentiment: Second-quarter results exceeded expectations. Marriott Vacations reported earnings of $2.31 per share, above the roughly $1.97-$1.98 consensus, while revenue reached $1.32 billion versus estimates of $1.30 billion. Revenue increased 5.9% year over year and earnings improved from $1.96 per share in the prior-year quarter. Marriott Vacations Worldwide Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Sales momentum was especially strong. Contract sales rose 22% year over year to $545 million, while net income attributable to common shareholders increased to $77 million from $69 million and diluted EPS rose to $2.12 from $1.77. Marriott Vacations Worldwide Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised or reaffirmed an optimistic 2026 outlook. Full-year EPS guidance of $8.25-$9.05 is above the approximately $7.49 analyst consensus, supporting the case for continued earnings growth. Marriott Vacations Raises 2026 Outlook on Strong Q2
• Positive Sentiment: A Zacks screen identified VAC as a fast-momentum stock that still appears reasonably valued, which could attract investors seeking growth at a discount. Despite Fast-paced Momentum, Marriott Vacations Worldwide Is Still a Bargain Stock
• Negative Sentiment: Wells Fargo raised its price target but maintained an “underweight” rating. The new $101 target remains materially below the recent share price, signaling that the bank views the strong rally as excessive relative to fundamentals. Wells Fargo Price Target Update
• Negative Sentiment: A Seeking Alpha analysis downgraded the stock, arguing that stellar sales activity may already be reflected in the valuation. This caution, combined with the elevated post-earnings share price, is likely limiting the positive reaction to VAC’s results. Marriott Vacations Stellar Sales Activity Supports the Recent Rally

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.