Key Highlights

  • Adjusted EPS jumped 24% to USD 9.39, up from USD 7.57, while GAAP diluted EPS rose 15% to USD 8.42 from USD 7.33 during the third quarter of 2026.
  • Revenue reached USD 4,938 million, a 12% gain, while gross bookings hit USD 34,008 million, an 11% gain; B2B bookings expanded 19% and B2C bookings 7%.
  • Adjusted EBITDA rose 17% to USD 1,689 million, and the Margin widened 135 basis points to 34.2% from 32.9% during the period.
  • Share repurchases totaled roughly 2 million shares, worth USD 576 million, during the quarter, and the company set a USD 0.48 payout per share due December 10, 2026.

Business Travel Unit Powers the Beat

On November 4, 2026, Expedia Group (NASDAQ:EXPE) released third-quarter numbers. Leadership characterized the period as landing above the upper end of its guidance, crediting steady travel demand. Booked room nights increased 7% to 115.7 million, and lodging gross bookings advanced 10%. Revenue from business-to-business operations surged 23% to USD 1,708 million, whereas business-to-consumer revenue rose 6% to USD 3,065 million. Attributable GAAP Net Income came in at USD 1,030 million, up 7% from USD 959 million, and Operating Income jumped 28% to USD 1,326 million. Three flagship consumer brands sit in the group, Expedia and Vrbo among them. Alongside them, the portfolio includes a sizeable B2B travel arm and an Advertising network. Non-lodging gross bookings climbed 14% to USD 9,133 million, while own-brand advertising revenue rose 7% to USD 206 million. Trivago advertising revenue rose 20% to USD 165 million, and other revenue (insurance, car rental, cruise and similar) reached USD 483 million, a 28% rise.

Guidance Lifted for 2026, Fourth-Quarter Slowdown Ahead

The 2026 outlook moved higher. Full-year gross bookings now sit between USD 131.4 billion and USD 131.9 billion, versus an earlier USD 129.5 billion to USD 130.8 billion, while revenue expectations shifted to USD 16.37 billion to USD 16.43 billion from USD 16.05 billion to USD 16.22 billion. The margin expansion target for adjusted EBITDA is now 1.8 to 2.0 points, versus 1.5 to 1.75 points previously. For the fourth quarter, gross bookings are forecast between USD 27.9 billion and USD 28.4 billion, which is growth of 3.3% to 5.2%, and revenue between USD 3.69 billion and USD 3.75 billion, growth of 4.0% to 5.7%. That path implies slower expansion than in the third quarter. No reconciliation was supplied for the adjusted EBITDA forecast, because management says currency effects and minority Investment results cannot be estimated without unreasonable effort. Adjusted EBITDA for the final quarter is expected between USD 830 million and USD 880 million.

Cash Burn and Weaker Air Demand

Cash flow was the soft spot. Operating Activities consumed USD 1,157 million, up from USD 497 million, and free Cash Flow turned to negative USD 1,399 million from negative USD 686 million. The extract does not explain why the swing happened. Air ticket bookings declined 6%, reaching 13.6 million, and air revenue dropped 7% to USD 93 million. Tax provisions climbed to USD 264 million from USD 167 million, while the diluted share count dropped to 122.3 million from 131.0 million, a change that boosted per-share growth. Over nine months, diluted EPS totaled USD 15.43, compared with USD 8.18 in the prior-year period.

Where Things Stand

Yes. Management lifted the year's outlook, though the fourth-quarter range suggests a slower pace. Expedia Group (NASDAQ:EXPE) now sees gross bookings of USD 131.4 billion to USD 131.9 billion and revenue of USD 16.37 billion to USD 16.43 billion, after adjusted EPS climbed 24%. Cash flow was negative during the quarter, and the final period's range implies mid single-digit growth. Upcoming items include the payout due December 10 and the fourth-quarter report. No share price reaction is included in the release.