Expedia raises 2026 forecast as Q3 profit tops estimates
Expedia raised its 2026 revenue forecast to $16.37 billion to $16.43 billion. Adjusted EPS of $9.39 topped the $9.07 consensus estimate, and revenue of $4.94 billion topped the $4.83 billion estimate.
Key takeaways
- Expedia Group (EXPE) reported third-quarter adjusted earnings per share of $9.39, topping the $9.07 consensus estimate, and revenue of $4.94 billion, topping the $4.83 billion estimate. It raised its full-year 2026 revenue forecast to $16.37 billion to $16.43 billion.
Expedia Group (EXPE) topped third-quarter estimates and raised its full-year 2026 forecast, the company said in its results release on Nov. 4.
Adjusted earnings per share of $9.39 topped the $9.07 consensus estimate. Revenue of $4.94 billion topped the $4.83 billion estimate.
Expedia Group is a global travel marketplace with three flagship consumer brands, Expedia, Hotels.com and Vrbo, and what the company calls the largest B2B travel business.
Here's how the company did:
- Adjusted EPS: $9.39, vs. $7.57 a year earlier
- Diluted GAAP EPS: $8.42, vs. $7.33 a year earlier
- Revenue: $4.94 billion, vs. $4.41 billion a year earlier
- Gross bookings: $34.01 billion, vs. $30.73 billion a year earlier
- Adjusted EBITDA, or adjusted earnings before interest, taxes, depreciation and amortization: $1.69 billion, vs. $1.45 billion a year earlier
- Net income attributable to Expedia Group: $1.03 billion, vs. $959 million a year earlier
Revenue grew 12% from a year earlier, driven by the B2B business, where revenue rose 23%. Gross bookings grew 11%, with B2B up 19% and B2C up 7%. Booked room nights rose 7%.
Net income swung from a loss of $6 million in the first quarter of 2026 to a profit of $878 million in the second quarter, according to its SEC filings.
Full-year guidance
The company raised its full-year 2026 forecasts.
| Metric | Previous | Current |
|---|---|---|
| Gross bookings | $129.5 billion to $130.8 billion | $131.4 billion to $131.9 billion |
| Revenue | $16.05 billion to $16.22 billion | $16.37 billion to $16.43 billion |
| Adjusted EBITDA margin expansion | 1.5 to 1.75 points | 1.8 to 2.0 points |
For the fourth quarter, the company expects gross bookings of $27.9 billion to $28.4 billion, revenue of $3.69 billion to $3.75 billion and adjusted EBITDA of $830 million to $880 million.
“We exceeded the high end of our guidance in the quarter, reflecting resilient travel demand and strong execution,” said CEO Ariane Gorin.
Segment results
B2B revenue rose 23% to $1.71 billion. B2C revenue rose 6% to $3.07 billion.
B2C adjusted EBITDA margin was 43.5%, up from 40.7% a year earlier. B2B margin was 27.5%, down from 28.9%. The company’s earnings presentation cited partner mix and acquisition consolidation as pressure on the B2B margin.
Cash and capital returns
Expedia repurchased about 2 million shares for $576 million in the third quarter. Free cash flow was negative $1.40 billion, compared with negative $686 million a year earlier.
The company declared a quarterly dividend of 48 cents per share, matching the 48 cents it paid on Sept. 17. The dividend is payable Dec. 10 to holders of record as of Nov. 18.