GET DAILY SIGNALSTravel + Leisure Co. (TNL) Posts Q3 2026 Results: Revenue +5%, EPS +23%
Key Takeaways
- Third quarter 2026 net revenue reached $1.1 billion, up 5% year over year and ahead of the roughly $1.08 billion consensus estimate.
- Adjusted earnings per share (EPS, or profit allocated to each share) came in at $2.21, up 23% from $1.80 a year earlier and above the roughly $2.05–$2.06 Wall Street consensus.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 6% to $283 million, with about 20 basis points of margin expansion.
- Gross vacation ownership interest (VOI) sales increased 6%, while tours rose 7%, supported by recent acquisitions and healthy new-owner demand.
- Management raised its full-year 2026 guidance for adjusted EBITDA and gross VOI sales for the second consecutive quarter.
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Understanding the Earnings Context
Travel + Leisure Co. operates one of the world's largest vacation ownership and membership travel businesses, so its quarterly results offer a timely read on consumer appetite for discretionary leisure spending. The third quarter of 2026 was particularly significant because it marked the first full reporting period incorporating two acquisitions—Yes& Vacations and Spinnaker Resorts—that management has positioned as immediate contributors to earnings. Investors were watching closely to see whether travel demand remained firm, whether the company's timeshare receivables portfolio continued to perform, and whether integration costs stayed contained. A strong print would reinforce the company's multi-brand growth strategy, while any softness in tour flow, volume per guest, or credit quality could signal broader pressure on the leisure consumer. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Q3 Numbers
Travel + Leisure Co. reported third quarter 2026 net revenues of $1.1 billion, a 5% increase from $1.04 billion in the prior-year period and above the consensus estimate of roughly $1.08 billion. Adjusted EPS rose 23% to $2.21, topping the approximately $2.05–$2.06 consensus, while adjusted EBITDA climbed 6% to $283 million with about 20 basis points of margin expansion.
Within the core vacation ownership segment, gross VOI sales grew 6% year over year on top of the 13% growth reported in the third quarter of 2025. Tours increased 7%, while reported volume per guest (VPG) of $3,286 declined 1% due to mix dilution from the Spinnaker Resorts acquisition, which closed ahead of schedule on August 1. New owners represented 33% of gross VOI sales, consistent with the company's targeted balance. The Travel and Membership segment posted revenue of $150 million and EBITDA of $51 million, in line with expectations.
Management also raised full-year 2026 guidance, now calling for adjusted EBITDA of $1.070 billion to $1.085 billion, gross VOI sales of $2.625 billion to $2.675 billion, and VPG of $3,325 to $3,375. Credit quality continued to improve, with the loan loss provision rate declining about 150 basis points year over year. From what I see, the steady credit metrics add meaningful support to the overall picture.
Market Reaction and Investor Sentiment
Heading into the report, sentiment was constructive but measured, with analysts expecting the company to continue its run of steady execution amid questions about the durability of leisure travel demand. The results largely validated that optimism. An earnings beat on both revenue and adjusted EPS, combined with a second consecutive increase to full-year guidance, reinforced the view that consumer travel behavior remains resilient and that the company's acquisition-driven growth platform is compounding effectively.
Investors also appeared to weigh the quality of the beat favorably. The improvement in consumer-finance credit metrics, including lower loan loss provisions and strong weighted-average FICO scores above 740, addressed one of the key risk factors analysts had been monitoring. Continued capital returns—roughly 1.1 million shares repurchased for $75 million during the quarter—and a recommended fourth-quarter dividend of $0.60 per share further supported the bullish interpretation of the print.
Forward Outlook and Key Factors to Monitor
Following this earnings event, the company's updated full-year guidance provides a clearer near-term roadmap, but several factors will shape the story into 2027. Investors will want to track whether the integration of Yes& Vacations and Spinnaker Resorts continues to deliver the roughly $15 million to $20 million of 2026 accretion management has guided to, and whether full cost synergies materialize within the targeted first 12 months.
Credit performance is another area to watch. The company improved its full-year provision outlook from approximately 21% to closer to 20%, reflecting better-than-expected delinquency and default trends. Any reversal in that trajectory would be an important signal for the vacation ownership financing model. I'm watching this closely as it could influence how the market values the business going forward.
Finally, the multi-brand strategy remains a key growth driver. Management highlighted momentum in brands such as Margaritaville Vacation Club, Accor Vacation Club, Eddie Bauer Adventure Club, and Sports Illustrated Resorts, which together are expected to approach roughly 10% of total sales mix in 2026. The pace of new resort openings and brand commercialization, alongside cost actions expected to generate about $16 million in annualized savings in the Travel and Membership segment, will be central to sustaining margin expansion and earnings growth in the quarters ahead.
Exploring AI Tools for Portfolio Insights
In my analysis of names like Travel + Leisure Co., I often turn to Tickeron’s AI Screener to quickly compare technical patterns and fundamentals across the leisure sector. It helps surface comparable setups without spending hours on manual work, which keeps my research process efficient.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
TNL's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for TNL turned positive on September 24, 2026. Looking at past instances where TNL's MACD turned positive, the stock continued to rise in 43 of 51 cases over the following month. The odds of a continued upward trend are 84%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where TNL's RSI Oscillator exited the oversold zone, 16 of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 73%.
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on TNL as a result. In 64 of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 70%.
Following a +0.30% 3-day Advance, the price is estimated to grow further. Considering data from situations where TNL advanced for three days, in 203 of 298 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
TNL moved below its 50-day moving average on October 23, 2026 date and that indicates a change from an upward trend to a downward trend.
The 50-day moving average for TNL moved below the 200-day moving average on September 29, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TNL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
TNL broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TNL entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 3 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 8 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 47 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (-3.946) is normal, around the industry mean (0.572). P/E Ratio (17.268) is within average values for comparable stocks, (24.303). Projected Growth (PEG Ratio) (0.050) is also within normal values, averaging (1.617). Dividend Yield (0.037) settles around the average of (0.190) among similar stocks. P/S Ratio (1.027) is also within normal values, averaging (2.686).
The Tickeron Profit vs. Risk Rating rating for this company is 52 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating fairly steady price growth. TNL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a provider of vacation property ownership, exchange, and rental services
Industry ConsumerSundries
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