Marriott 2025 Q3 Earnings Strong Performance with 24.7% Net Income Growth

Marriott International (MAR) reported third-quarter 2025 earnings that exceeded expectations, with net income rising 24.7% to $728 million and revenue up 3.7% to $6.49 billion. The company reaffirmed its guidance for fiscal 2025, projecting mid-single-digit growth in global net rooms and a 1.5%-2.5% increase in RevPAR. Strategic initiatives, including technology upgrades and pipeline expansion, underscore its long-term resilience.

Revenue

Marriott’s total revenue reached $6.49 billion in Q3 2025, reflecting a 3.7% year-over-year increase. Base management fees contributed $314 million, while franchise fees accounted for $876 million, the largest segment. Incentive management fees added $148 million, though contract investment amortization showed a negative $29 million. Owned, leased, and other revenue totaled $420 million, with cost reimbursement revenue reaching $4.76 billion. The diversified revenue streams highlight the company’s asset-light model and operational efficiency.

Earnings/Net Income

Marriott’s earnings per share (EPS) surged 28.8% to $2.68, driven by a 24.7% year-over-year increase in net income to $728 million. The strong performance underscores the company’s ability to leverage cost management and franchise growth. The robust EPS and net income reflect sustained profitability and operational discipline.

Price Action

Marriott’s stock edged up 2.97% during the latest trading day, 2.56% for the week, and 1.75% month-to-date.

Post-Earnings Price Action Review

The stock’s positive momentum post-earnings aligns with improved investor sentiment, fueled by the company’s strong financial results and strategic clarity. While short-term volatility remains, the upward trajectory suggests confidence in Marriott’s ability to navigate macroeconomic challenges and deliver shareholder value.

CEO Commentary

Anthony Capuano, President and CEO, emphasized, “Our third-quarter results demonstrate continued strong execution of our growth strategy and the cash flow benefits of our asset-light business model.” He highlighted the power of Marriott’s brand portfolio and the expansion of its development pipeline, which now exceeds 596,000 rooms. Capuano’s tone was optimistic, noting the company’s resilience amid regional RevPAR challenges and its focus on technology-driven customer experiences.

Guidance

Marriott reaffirmed its full-year adjusted EBITDA guidance, projecting a 7%-8% increase to $5.35 billion–$5.38 billion. For Q4, the company anticipates 4%-5% growth in gross fee revenues and a 1%-2% year-over-year RevPAR increase. These targets reflect confidence in its asset-light model and strategic investments in global expansion.

Additional News

1. Credit Card Program Renewal: Ongoing negotiations for the Marriott Bonvoy co-brand credit card program are expected to enhance fee revenue, with membership doubling since inception.


2. Shareholder Returns: The company returned $3.1 billion to shareholders year-to-date through dividends and buybacks, including $800 million in share repurchases during Q3.


3. Debt Issuance: Marriott issued $6.8 billion in new debt over three years, though its Altman Z-Score of 3.55 and strong EBITDA margins indicate manageable leverage.

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