Hotel franchising company Wyndham (NYSE: WH) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 3.5% year on year to $327 million. The company expects the full year’s revenue to be around $1.49 billion, close to analysts’ estimates. Its non-GAAP profit of $0.96 per share was 11.7% above analysts’ consensus estimates.

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"We delivered a strong start to the year, highlighted by record-level first-quarter openings and a continued expansion of our development pipeline," said Geoff Ballotti, president and chief executive officer.

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

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, Wyndham’s sales grew at a weak 3.8% compounded annual growth rate over the last five years. This fell short of our benchmark for the consumer discretionary sector 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 annualized revenue growth of 1.8% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

Wyndham also reports revenue per available room, which clocked in at $38.53 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 2.9% year-on-year growth, which is quite underwhelming. This number doesn’t surprise us as it’s in line with its revenue growth. It is sometimes the strategy of hotels to grow ancillary revenues because they are price takers in room revenues.

This quarter, Wyndham reported modest year-on-year revenue growth of 3.5% but beat Wall Street’s estimates by 1.8%.

Looking ahead, sell-side analysts expect revenue to grow 4.3% over the next 12 months. While this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average.

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Operating Margin

Wyndham’s operating margin has shrunk over the last 12 months and averaged 33.7% 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.

This quarter, Wyndham generated an operating margin profit margin of 34.9%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

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 39.4% compounded annual growth rate over the last five years, higher than its 3.8% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

In Q1, Wyndham reported adjusted EPS of $0.96, up from $0.86 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Wyndham’s full-year EPS of $4.68 to grow 6.5%.

Key Takeaways from Wyndham’s Q1 Results

It was good to see Wyndham beat analysts’ EPS expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. On the other hand, its adjusted operating income missed. Zooming out, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 4.3% to $80.36 immediately after reporting.

So do we think Wyndham is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).