Key Highlights

  • Adjusted Earnings Per Share rose 24% to USD 9.39 from USD 7.57, while GAAP Diluted Earnings per Share rose 15% to USD 8.42 from USD 7.33 in the third quarter of 2026.
  • Revenue was USD 4,938 million, up 12%, and gross bookings reached USD 34,008 million, up 11%, with business-to-business bookings growing 19% and business-to-consumer bookings growing 7%.
  • Adjusted EBITDA increased 17% to USD 1,689 million, with the Margin widening 135 basis points to 34.2% from 32.9%.
  • Expedia Group repurchased about 2 million shares for USD 576 million in the quarter and declared a Dividend of USD 0.48 per share, payable December 10, 2026.

B2B Strength Drives Beat on Guidance

Expedia Group (NASDAQ:EXPE) reported third-quarter results on November 4, 2026. Management said the quarter exceeded the high end of its guidance, citing resilient travel demand. Booked room nights grew 7% to 115.7 million, and lodging gross bookings grew 10%. Business-to-business Revenue climbed 23% to USD 1,708 million, while business-to-consumer revenue grew 6% to USD 3,065 million. GAAP Net Income attributable to the company was USD 1,030 million against USD 959 million, up 7%, and Operating Income rose 28% to USD 1,326 million. The company runs three flagship consumer brands, including Expedia and Vrbo, a large business-to-business travel unit and an Advertising network. Non-lodging gross bookings rose 14% to USD 9,133 million, and advertising revenue from its own brands grew 7% to USD 206 million. Trivago advertising revenue grew 20% to USD 165 million, and other revenue, which includes insurance, car rental and cruise, grew 28% to USD 483 million.

Higher Full-Year Guidance and a Softer Fourth Quarter

The company raised its 2026 outlook. Gross bookings are now guided to USD 131.4 billion to USD 131.9 billion, up from USD 129.5 billion to USD 130.8 billion, and revenue to USD 16.37 billion to USD 16.43 billion, up from USD 16.05 billion to USD 16.22 billion. Adjusted EBITDA margin expansion is guided to 1.8 to 2.0 points, against 1.5 to 1.75 points before. For the fourth quarter, it forecasts gross bookings of USD 27.9 billion to USD 28.4 billion, up 3.3% to 5.2%, and revenue of USD 3.69 billion to USD 3.75 billion, up 4.0% to 5.7%. That implies slower growth than the third quarter. Management did not provide a reconciliation for the adjusted EBITDA forecast, saying items such as currency and minority Investment gains or losses cannot be predicted without unreasonable effort. The fourth-quarter adjusted EBITDA range is USD 830 million to USD 880 million.

Negative Free Cash Flow and Air Weakness

Cash flow was the weak spot. Net cash used in Operating Activities was USD 1,157 million against USD 497 million, and free cash flow was negative USD 1,399 million versus negative USD 686 million. The extract gives no reason for the swing. Booked air tickets fell 6% to 13.6 million, and air revenue fell 7% to USD 93 million. Provision for income taxes rose to USD 264 million from USD 167 million, and diluted shares fell to 122.3 million from 131.0 million, which amplified per-share growth. Nine-month diluted earnings per share were USD 15.43 against USD 8.18.

Where Things Stand

Yes, the outlook was raised, though growth is expected to cool. Expedia Group (NASDAQ:EXPE) lifted full-year gross bookings guidance to USD 131.4 billion to USD 131.9 billion and revenue to USD 16.37 billion to USD 16.43 billion after adjusted earnings per share jumped 24%. The fourth-quarter range points to mid-single-digit growth, and cash flow was negative in the quarter. Next markers are the December 10 dividend payment and the fourth-quarter report. The release contains no share price reaction.