Expedia Q3 revenue rises 12% to $4.94 billion; Q4 guidance trails estimates

What Expedia reported

Expedia Group (NASDAQ: EXPE) said on Nov. 4, 2026 that third-quarter revenue rose 12% to $4.94 billion and gross bookings rose 11% to $34.0 billion, and it raised its 2026 outlook. Fourth-quarter revenue guidance of $3.69 billion to $3.75 billion came in slightly below analyst expectations, and the stock fell in extended trading.^[1][2]

For the quarter ended Sept. 30, diluted earnings per share were $8.42, up 15% from $7.33 a year earlier, and adjusted EPS was $9.39, up 24% from $7.57. Net income attributable to the company rose 7% to $1.03 billion, operating income rose 28% to $1.33 billion, and adjusted EBITDA rose 17% to $1.69 billion with 135 basis points of margin expansion, according to the company's earnings release. Reuters, citing LSEG data, put analysts' estimates at $4.74 billion for revenue and $8.89 for adjusted EPS.^[1][2]

Business-to-business gross bookings grew 19% to $11.1 billion and B2B revenue grew 23% to $1.71 billion, while consumer gross bookings grew 7% to $22.9 billion. Booked room nights rose 7% to 115.7 million. Booked air tickets fell about 6% to 13.6 million from 14.4 million, a decline calculated from the figures in the release's trended metrics table. Lodging revenue rose 11% to $3.99 billion.^[1]

The quarter's operating cash flow was negative $1.16 billion, compared with negative $497 million a year earlier, and free cash flow was negative $1.40 billion. Expedia repurchased about 2 million shares for $576 million in the quarter.^[1]

Why the fourth-quarter forecast disappointed

Expedia guided fourth-quarter revenue to $3.69 billion to $3.75 billion, which is 4.0% to 5.7% above the $3.55 billion it reported in the fourth quarter of 2025. The midpoint of $3.72 billion is below the $3.74 billion average analyst estimate compiled by LSEG, Reuters reported. Gross bookings are guided to $27.9 billion to $28.4 billion, up 3.3% to 5.2% from $27.0 billion a year earlier.^[1][2]

Chief Financial Officer Derek Andersen said on the post-earnings call that the moderation reflects the U.S. midterm elections and unrest in the EMEA region, according to Reuters. Andersen said events in the Middle East and Europe were disrupting demand and hurting long-haul routes within those regions. Reuters reported that Booking Holdings and hotel operators Hilton and Marriott have also cited Middle East disruption and the elections as a drag on their fourth-quarter results.^[2][3]

Chief Executive Ariane Gorin told Reuters that U.S. demand was strong in the quarter, both for domestic travel and for trips to Europe and Asia, and said affluent customers prioritized travel despite elevated airfares. Reuters' two versions of the story gave different size estimates for the extended-trading drop in Expedia shares: 9% in one and about 6% in the other. The final move depends on the Nov. 5 trading session.^[2][3]

What the raised 2026 guidance says

Expedia raised full-year gross bookings guidance to $131.4 billion to $131.9 billion, from $129.5 billion to $130.8 billion, and full-year revenue guidance to $16.37 billion to $16.43 billion, from $16.05 billion to $16.22 billion. The company now expects adjusted EBITDA margin expansion of 1.8 to 2.0 percentage points, up from 1.5 to 1.75 points. Analysts had expected annual gross bookings of $130.22 billion, according to LSEG data cited by Reuters.^[1][3]

Expedia declared a quarterly dividend of $0.48 per share on Nov. 4, payable Dec. 10, 2026 to stockholders of record at the close of business on Nov. 18.^[1]

What happens next

Expedia shares resume regular trading on Nov. 5, when the market will show how investors weigh the fourth-quarter guidance against the raised annual outlook. The company's next scheduled milestone is the dividend record date of Nov. 18, followed by payment on Dec. 10. Fourth-quarter results will show whether the election and Middle East effects Andersen described reduced bookings as much as the guidance assumes.^[1][2]