Hotel franchising company Wyndham (NYSE: WH) missed Wall Street’s revenue expectations in Q2 CY2026, with sales falling 5.5% year on year to $375 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $1.49 billion at the midpoint. Its non-GAAP profit of $1.48 per share was 4.9% above analysts’ consensus estimates.
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Wyndham (WH) Q2 CY2026 Highlights:
- Revenue: $375 million vs analyst estimates of $403.1 million (5.5% year-on-year decline, 7% miss)
- Adjusted EPS: $1.48 vs analyst estimates of $1.41 (4.9% beat)
- Adjusted EBITDA: $212 million vs analyst estimates of $206.8 million (56.5% margin, 2.5% beat)
- Management raised its full-year Adjusted EPS guidance to $4.77 at the midpoint, a 1.3% increase
- EBITDA guidance for the full year is $740 million at the midpoint, in line with analyst expectations
- Operating Margin: 46.4%, up from 37.8% in the same quarter last year
- RevPAR: $47.01 at quarter end, down 1.1% year on year
- Market Capitalization: $5.67 billion
Company Overview
Established in 1981, Wyndham (NYSE: WH) is a global hotel franchising company with over 9,000 hotels across nearly 95 countries on six continents.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Wyndham grew its sales at a weak 1.1% compounded annual growth rate. This was below our standards and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new property or trend. Wyndham’s recent performance shows its demand has slowed as its revenue was flat over the last two years. 
We can better understand the company’s revenue dynamics by analyzing its revenue per available room, which clocked in at $47.01 this quarter and is a key metric accounting for daily rates and occupancy levels. Over the last two years, Wyndham’s revenue per room averaged 2.4% year-on-year growth, which is quite underwhelming. Because this number is better than its revenue growth, we can see its room bookings outperformed its sales from other areas like restaurants, bars, and amenities. 
This quarter, Wyndham missed Wall Street’s estimates and reported a rather uninspiring 5.5% year-on-year revenue decline, generating $375 million of revenue.
Looking ahead, sell-side analysts expect revenue to grow 8.1% over the next 12 months. Although this projection implies its newer products and services will catalyze better top-line performance, it is still below the sector average.
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Operating Margin
Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.
Wyndham’s operating margin has shrunk over the last 12 months and averaged 34.6% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.
In Q2, Wyndham generated an operating margin profit margin of 46.4%, up 8.6 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.
Wyndham’s EPS grew at 22.7% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 1.1% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.
In Q2, Wyndham reported adjusted EPS of $1.48, up from $1.33 in the same quarter last year. This print beat analysts’ estimates by 4.9%. Over the next 12 months, Wall Street expects Wyndham’s full-year EPS to grow 3.4% from $4.83 to $4.99.
Key Takeaways from Wyndham’s Q2 Results
It was good to see Wyndham beat analysts’ EPS expectations this quarter. We were also happy its EBITDA outperformed Wall Street’s estimates. On the other hand, its revenue missed. Overall, this was a mixed quarter. The stock remained flat at $75.47 immediately following the results.
The latest quarter from Wyndham’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
