Vail Resorts Cuts Fiscal 2026 Outlook After Q2 EPS Misses by 3.1%
Vail Resorts reported Q2 adjusted EPS of $5.87, missing estimates by 3.1%, and net revenues of $1.08 billion, 4.7% below prior year and 2.7% under consensus. Historic low snowfall drove an 11.9% drop in skier visits, prompting a fiscal 2026 net income outlook cut to $144 M–$190 M from $201 M–$276 M.
1. Q2 Financial Performance
In the second quarter, Vail Resorts reported adjusted EPS of $5.87, missing the consensus estimate by 3.1%, and net revenues of $1.08 billion, down 4.7% year over year and 2.7% below analyst projections. Mountain segment revenue declined 4.8% to $1.01 billion, while lodging revenue fell 3.2% to $71.6 million.
2. Weather Impact and Visitor Trends
The Rockies experienced the lowest snowfall in over 30 years and unseasonably warm temperatures, leading to an 11.9% decrease in skier visits and a 3.6% drop in lift revenue. Ancillary businesses also suffered, with ski school revenue down 9.3%, dining down 8.6%, and retail/rental revenue off 6.8%.
3. Revised Fiscal 2026 Guidance
Due to weather headwinds, the company lowered its fiscal 2026 net income guidance to $144 million–$190 million from $201 million–$276 million and trimmed resort EBITDA outlook to $745 million–$775 million. The Resource Efficiency Transformation initiative is expected to deliver $42 million in cost savings this year, up from $38 million, with over $106 million annual savings by 2027.