How does Hilton (HLT) make money?

Hilton (HLT) generates revenue primarily from Reimbursement Revenue, which accounted for 65.6% of total revenue in TTM through Q2 2026. The company reported $12.5B in revenue and converted 12.7% of it into net profit, equivalent to roughly $1.58B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Hilton (HLT)?

Hilton (HLT) reported a gross profit margin of 44.1% in TTM through Q2 2026, equivalent to $5.5B in gross profit on $12.5B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Hilton (HLT)?

Hilton (HLT) reported an operating profit margin of 23.3% in TTM through Q2 2026, equivalent to $2.92B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Hilton (HLT)?

Hilton (HLT) reported a net profit margin of 12.7% in TTM through Q2 2026, equivalent to $1.58B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Hilton (HLT) profitable?

Yes. Hilton (HLT) reported $1.58B in net income for TTM through Q2 2026, with a net profit margin of 12.7%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Hilton (HLT) spend on capital expenditures?

Hilton (HLT) spent $102M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 0.8% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Hilton (HLT) generate?

Hilton (HLT) generated $2.01B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 16.1%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Hilton (HLT)?

Hilton (HLT) had an effective tax rate of 29.2% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Hilton (HLT)?

Hilton (HLT) reports revenue across 5 reportable product segments, led by Reimbursement Revenue at 65.6% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Hilton Makes Money: 2026 Visual Revenue Map

Hilton (HLT) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 28, 2026).

Hilton discloses geographic revenue only in annual filings. to view the full breakdown.

Hilton (HLT) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Hilton (HLT), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Reimbursement Revenue	$8.19B	65.6%
Management and Franchise	$3.23B	25.9%
Management Service, Base	$427M	3.4%
Management Service, Incentive	$345M	2.8%
Hotel, Other	$296M	2.4%
Total	$12.5B	100%

Reimbursement Revenue$8.19B
Management and Franchise$3.23B
Management Service, Base$427M
Management Service, Incentive$345M
Hotel, Other$296M
Total$12.5B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Hilton (HLT) reports revenue across 5 reportable product segments; the largest segment was Reimbursement Revenue at 65.6%, followed by Management and Franchise (25.9%) and Management Service, Base (3.4%).

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