Expedia Group Inc (NASDAQ:EXPE, ETR:E3X1) reported robust financial results for the third quarter, with revenue and profit growth surpassing Wall Street expectations, sending the stock up 17% in early Friday trading.
The company posted revenue of $4.41 billion, up 9% year-over-year, exceeding consensus estimates of $4.28 billion.
Adjusted earnings per share were up 23% at $7.57, topping estimates of $7.21.
Gross bookings increased 12% to $30.73 billion, attributed to strong performance across both business-to-business (B2B) and business-to-consumer (B2C) segments.
Expedia reported that room nights grew 11% year-over-year, marking the fastest US growth in over three years, with continued international strength.
Lodging gross bookings rose 13%, led by a 15% increase in hotel bookings, fueled by both B2B partnerships and Expedia-branded offerings.
During the quarter, Expedia repurchased approximately 2.3 million shares for $451 million, bringing total year-to-date buybacks to 7.9 million shares valued at $1.4 billion. The company also declared a quarterly dividend of $0.40 per share.
Following the strong quarterly performance, Expedia raised its full-year 2025 guidance. The company now expects sales growth of 6.5% at the midpoint, up from a prior forecast of 4%, and anticipates adjusted core profit margin growth of 2%, doubling its earlier guidance.
“Our strong third quarter results exceeded both our top and bottom-line expectations, reflecting an improved demand environment, disciplined execution and tangible progress on our strategic priorities,” Expedia CEO Ariane Gorin said in a statement.
“Notably, we grew room nights in the US at the fastest pace in over three years, delivered our 17th consecutive quarter of double-digit growth in B2B—up 26%—and grew consumer bookings by 7%.”
Balanced risk/reward, analysts say
Wedbush maintained a Neutral rating with a 12-month price target of $250, noting that gross bookings and adjusted EBITDA came in above expectations and that US travel demand remained resilient, with room night growth surpassing forecasts by roughly 450 basis points.
The firm highlighted that Expedia’s Hotels.com and Vrbo platforms showed sequential improvement and positive year-over-year room night growth, and that international performance was encouraging across EMEA and other regions.
Wedbush also cited management’s guidance for Q4 gross bookings growth of 6% to 8%, above Street expectations, and anticipated margin expansion driven by cost management and operating leverage, particularly within B2C marketing spend and fixed overhead.
“We continue to see a balanced risk/reward given the company's outsized exposure to the US demand environment, which has demonstrated the greatest signs of uncertainty and softer consumer spend in the near-term,” Wedbush concluded.
Bank of America reiterated a ‘Buy’ rating and raised its price target to $285.
The analysts highlighted that Expedia’s Q3 results beat Street estimates across bookings, revenue, and EBITDA, aided by marketing efficiency and room night share gains.
They noted that while B2C revenue growth still lags peers, improving execution on platforms such as Vrbo and Hotels.com, alongside more efficient marketing spend, signaled progress.
“Under (relatively) new management Expedia is improving B2C performance, while continuing to execute with B2B and advertising,” they wrote.
Bank of America also highlighted Expedia’s guidance for Q4 revenue and EBITDA above consensus, the potential for 2026 growth from easier first-half comparisons and World Cup-related travel, and the opportunity for the stock to close its valuation gap with peers given strong operational execution.