Hilton Has Spent $2.6 Billion On Buybacks This Year, And Its Stockholder Deficit Is Now $6.6 Billion
Nine-month operating cash flow slipped as repurchases pushed the deficit wider, and about $2.2 billion of buyback authorization remains.
Hilton Worldwide repurchased about 8.2 million shares for $2,602 million in the first nine months of 2026, and its total stockholders' deficit widened to $6,593 million from $5,388 million at the end of 2025, according to its 10-Q filed Tuesday. Operating cash flow over the period fell to $1,811 million from $1,926 million a year earlier.
Buybacks outrun earnings
Treasury stock, the cost of shares the company has bought back, rose to $17,044 million from $14,428 million at December 31. The accumulated deficit narrowed to $208 million from $1,508 million as profit built up, but buybacks and dividends more than absorbed the gain in the broader equity measure.
At the end of the second quarter, the prior quarterly filing showed 5.6 million shares repurchased for $1,757 million. Remaining authorization stood at about $2.2 billion on September 30, down from about $3.0 billion at June 30.
Net income for the nine months was $1,401 million, up from $1,163 million. Diluted earnings per share were $6.13, against $4.84.
A tax timing hit to cash flow
The 10-Q attributes the drop in operating cash flow to a $401 million increase in income tax payments, which it says reflects timing. Net tax payments were $566 million, compared with $165 million a year earlier. Fee growth from franchised and managed hotels partly offset the hit.
Hilton, which runs and licenses hotels and earns most of its revenue from fees paid by third-party owners, had $13.5 billion of total debt at September 30. A $600 million 4.875% note due April 2027 is now classed as a current maturity. The company says it believes it has the liquidity and debt-market access to address it at or before maturity.
Shares and the Nasdaq move
Hilton shares traded at $335.82 in Tuesday trading, down about 4.57% from the prior close of $351.89, the day Hilton reported its third-quarter results. The company said in an 8-K that it will move its listing to Nasdaq, with trading there beginning at market open on November 5.
Hilton said in its earnings release that it projects full-year capital return of about $3.5 billion.
Sources
- 10-Q Filing — Hilton Worldwide (HLT) — SEC EDGAR
- 10-Q Filing — Hilton Worldwide (HLT), Q2 FY2026 filed 2026-07-28 (comparison basis) — SEC EDGAR
- 8-K Filing — Hilton Worldwide, filed 2026-10-20 (Items 3.01, 7.01, 9.01) — SEC EDGAR
- Earnings release (8-K Item 2.02, q32026earningsrelease.htm) — Hilton Worldwide, filed 2026-10-27 — SEC EDGAR
- Hilton raises full-year revenue per room forecast in Q3 2026 earnings — qz.com
- Hilton Raises FY Outlook After World Cup Boosts 3Q Results — MarketWatch
- Hilton Reports Third Quarter Results – Company Announcement - FT.com — Financial Times
- Hilton shares drop as investors weigh results, full-year outlook (HLT:NYSE) | Seeking Alpha — seekingalpha.com
- Hilton Lifts Sales Forecast but Elections, Iran War Could Hurt 4Q -- Update — MarketWatch
