Shares of Airbnb Inc (NASDAQ:ABNB, XETRA:6Z1) rose nearly 7% on Friday morning after the vacation rental platform reported fourth-quarter revenue that beat Wall Street expectations and issued a stronger-than-expected outlook for the start of 2026.
Airbnb reported fourth-quarter earnings per share of $0.56, below analysts’ expectations of $0.66. But revenue rose 12% year-over-year to $2.78 billion, topping the $2.71 billion consensus estimate.
Gross booking value (GBV) climbed 16% from a year earlier to $20.4 billion, while nights and experiences booked increased 9.8% year-over-year. The company said the acceleration was driven in part by product updates, including its “Reserve Now, Pay Later” feature and a simplified fee structure, which together contributed more than 500 basis points to GBV growth.
For the first quarter of 2026, Airbnb forecast revenue between $2.59 billion and $2.63 billion, above analysts’ estimates of $2.54 billion. The company said it expects bookings to rise in the low teens year-over-year and projected revenue growth of 14% to 16% for the quarter.
For the full year, Airbnb expects revenue growth to accelerate to at least low double digits, compared with consensus forecasts for high-single-digit expansion. Adjusted EBITDA margins are expected to remain stable year-over-year.
The company said adoption of its “Reserve Now, Pay Later” feature exceeded 70% among eligible US guests, helping drive bookings growth to its highest level in more than two years, with only a modest 1% increase in cancellation rates. Airbnb plans to expand the feature globally through 2026.
Airbnb is also investing heavily in artificial intelligence, rolling out an AI assistant that already handles about one-third of North American customer service tickets, significantly reducing resolution times.
In a note to clients, analysts at Wedbush Securities cited improving execution and signs that recent initiatives are gaining traction. “The reacceleration in Q4 was largely supported by the ‘Reserve Now, Pay Later’ offering, which bolstered bookings growth to the highest level in over two years,” analysts wrote.
While the stock trades at a premium to peers in the online travel sector, Wedbush said Airbnb could drive more sustainable growth over the intermediate term as it scales new offerings and expands further into international markets.