It has been about a month since the last earnings report for Hilton Worldwide Holdings Inc. (HLT Quick QuoteHLT - Free Report) . Shares have added about 0.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Hilton Worldwide due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Hilton's Q2 Earnings Surpass Estimates, Revenues Rise Y/Y

Hilton reported second-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.

Hilton delivered strong bottom-line performance in the quarter, underscoring the strength and resilience of its business model. However, top-line results were modestly impacted by unfavorable holiday and calendar shifts, reduced government spending, softer international inbound travel and broader economic uncertainty. Despite these temporary headwinds, the company remains optimistic about the economic outlook. With improving travel demand and limited industry supply growth, Hilton expects stronger RevPAR performance in the upcoming periods.

Hilton’s Q2 Results in Detail

Hilton reported adjusted earnings per share (EPS) of $2.20, which beat the Zacks Consensus Estimate of $2.04. In the year-ago quarter, it reported an adjusted EPS of $1.91.

Total revenues of $3.14 billion beat the consensus mark of $3.08 billion, and increased 6.3% on a year-over-year basis.

The quarter’s franchise and licensing fees improved year over year to $745 million from $689 million reported in the prior-year quarter. Our estimate for the metric was $745 million.

Base and other management fees increased year over year to $97 million from $93 million reported in the prior-year quarter. Incentive management fees were up 10.3% year over year to $75 million. Our model projected base and other management and incentive management fees to be $92.8 million and $67.8 million, respectively.

Ownership revenues were $332 million compared with the year-ago quarter’s level of $337 million. We expected the metric to be $329.5 million.

Hilton’s RevPAR & Adjusted EBITDA

In the second quarter, the system-wide comparable RevPAR declined 0.5% year over year (on a currency-neutral basis), owing to occupancy declines.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $1 billion, up 9.9% year over year. Our estimate for adjusted EBITDA was $958.7 million.

Balance Sheet of Hilton

As of June 30, 2025, Hilton’s total cash and cash equivalents were $448 million compared with $807 million as of March 31, 2025. As of the second quarter, the long-term debt outstanding (including current maturities) was $10.9 billion, compared with $11.15 billion as of Dec. 31, 2024.

In second-quarter 2025, the company repurchased 3.2 million of its common stock for $235.36 per share. It paid dividends worth $36 million during the quarter.

Management declared a quarterly cash dividend of 15 cents per share, which will be payable on Aug. 29, 2025, to its shareholders of record as of Sept. 30.

Hilton’s Business Updates

In the second quarter of 2025, Hilton added 221 hotels, comprising 26,100 rooms and achieved net room growth of 22,600. The company continued to expand its portfolio of luxury and lifestyle brands. Key openings included the Sax Paris, LXR Hotels & Resorts — marking the brand’s debut in central Paris — the Marcus Portrush under the Tapestry Collection by Hilton in Northern Ireland, and Hotel Astoria Vienna, Curio Collection by Hilton.

Hilton also expanded its luxury and lifestyle pipeline with new signings such as NoMad Detroit and NoMad Singapore. In July, the company opened its first LivSmart Studios by Hilton in Tullahoma, TN, and celebrated the much-anticipated reopening of the iconic Waldorf Astoria New York.

As of June 30, 2025, Hilton's development pipeline comprised 3,636 hotels representing 510,600 rooms across 128 countries and territories, including 29 countries and territories where it had no existing hotels. For 2025, the company expects net unit growth to be in the range of 6-7%.

Hilton’s Q3 & 2025 Outlook

For third-quarter 2025, Hilton anticipates net income to be in the range of $453-$467 million. Adjusted EBITDA is expected to be between $935 million and $955 million. It predicts adjusted EPS between $1.98 and $2.04.

For the third quarter of 2025, management forecasts system-wide RevPAR (on a currency-neutral basis) to remain flat on a year-over-year basis.

For 2025, Hilton estimates net income to be in the range of $1.64-$1.68 billion compared with the previous expectation of $1.70 billion and $1.75 billion. Adjusted EBITDA is expected to be between $3.65 billion and $3.71 billion. It predicts general and administrative expenses to be in the range of $420-$430 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Hilton Worldwide has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Hilton Worldwide has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.