What Happened?
Shares of hospitality company Travel + Leisure (NYSE: TNL) jumped 5.7% in the afternoon session after the company reported strong second-quarter 2025 financial results that showed resilient consumer demand in its core Vacation Ownership business.
The leisure travel company posted second-quarter revenue of $1.02 billion, which surpassed analyst expectations. While adjusted earnings per share of $1.65 slightly missed consensus estimates, investors focused on the strength in the company's largest segment. Revenue from Vacation Ownership interests (VOIs) grew 6% year-over-year to $853 million. This performance was driven by a 7% increase in Volume Per Guest (VPG), a key metric indicating that customers spent more on average. The company also reaffirmed its full-year guidance, signaling confidence in its outlook. In a sign of its healthy financial position, Travel + Leisure also noted it returned $107 million to shareholders through dividends and stock buybacks during the quarter.
Is now the time to buy Travel + Leisure? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Travel + Leisure’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock dropped 8.4% on the news that the company reported weak second-quarter earnings. The number of tours it conducted fell short of estimates, but it seemed to benefit from some pricing this quarter given its revenue only slightly missed. On the other hand, EPS came in ahead. Overall, it was a mixed but weaker quarter for the company.
Travel + Leisure is up 24.4% since the beginning of the year, and at $62.07 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 $2,067.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
