What Happened?

Shares of hospitality company Travel + Leisure (NYSE: TNL) jumped 7.8% in the afternoon session after the company reported fourth-quarter 2025 results that beat Wall Street's expectations and provided a strong outlook for 2026. The hospitality company's revenue increased 5.7% year-on-year to $1.03 billion, exceeding analyst forecasts. Its adjusted earnings per share of $1.83 and adjusted EBITDA of $272 million also came in ahead of consensus estimates. Furthermore, Travel + Leisure guided for full-year 2026 adjusted EBITDA to be higher than analysts had projected. Despite the company's operating margin turning negative for the quarter, investors appeared to focus on the better-than-expected results and positive outlook.

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What Is The Market Telling Us

Travel + Leisure’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock gained 15.3% on the news that the company reported third-quarter results that topped Wall Street's expectations for profit and revenue. 

The leisure travel company posted adjusted earnings of $1.80 per share on revenue of $1.04 billion. These figures surpassed the consensus estimates, which called for earnings of $1.71 per share on revenue of $1.03 billion. The company's sales grew by 5.1% compared to the same period in the previous year. Furthermore, Travel + Leisure provided a full-year adjusted EBITDA guidance with a midpoint of $975 million, which was in line with analyst expectations. The positive report sent the company’s stock to a new 12-month high.

Travel + Leisure is up 8.5% since the beginning of the year, and at $78.14 per share, has set a new 52-week high. Investors who bought $1,000 worth of Travel + Leisure’s shares 5 years ago would now be looking at an investment worth $1,470.

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