Expedia Group beats Q2 guidance as revenue climbs 14%, B2B segment grows

Expedia Group reported strong second-quarter 2026 financial results, surpassing the high end of its guidance on the strength of growth across its consumer brands and continued momentum in its business-to-business (B2B) operations.

For the quarter ended June 30, the online travel company posted gross bookings of $33.9 billion, up 12 per cent year over year, while revenue increased 14 per cent to $4.3 billion.

Lodging gross bookings rose 11 per cent and booked room nights grew six per cent to 111.5 million.

B2B continued to outpace the consumer business, with gross bookings increasing 21 per cent compared to an eight per cent increase in B2C gross bookings.

Revenue from the B2B segment climbed 23 per cent.

"We exceeded the high end of our guidance in the quarter, driven by growth in our consumer brands, sustained B2B momentum, and disciplined execution," said Ariane Gorin, CEO of Expedia Group, in a press release. "We continued to strengthen our marketplace through more personalized consumer product experiences and expanded supply across our business, while leveraging AI as a force multiplier to innovate faster and operate more efficiently.”

“Our results reinforce the strength of our strategy and the differentiation of our platform for travelers, partners, and shareholders."

Profitability improves

Profitability also improved significantly during the quarter.

GAAP net income rose 166 per cent to $878 million, while adjusted net income increased 29 per cent. Operating income climbed 65 per cent to $800 million.

Diluted GAAP earnings per share increased 188 per cent to $7.16, while adjusted earnings per share rose 36 per cent to $5.76. Adjusted EBITDA reached $1.12 billion, up 23 per cent, with margin expansion of 196 basis points.

Expedia also generated strong cash flow, reporting $1.48 billion in net cash provided by operating activities, a 32 per cent increase, while free cash flow grew 39 per cent to $1.28 billion.

During the quarter, the company repurchased approximately 880,000 shares for $200 million.

It also paid a quarterly dividend of $0.48 per share on June 18 and declared another quarterly dividend of $0.48 per share, payable Sept. 17 to shareholders of record as of Aug. 27.

Outlook raised for 2026

Following the stronger-than-expected second quarter, Expedia increased its full-year financial outlook.

The company now expects 2026 gross bookings of between $129.5 billion and $130.8 billion, representing growth of eight to nine per cent, up from its previous guidance of $127 billion to $129 billion.

Revenue guidance was also raised to between $16.05 billion and $16.22 billion, reflecting expected growth of nine to 10 per cent, compared with previous guidance of $15.6 billion to $16 billion.

Expedia also increased its forecast for adjusted EBITDA margin expansion to between 1.5 and 1.75 percentage points, up from its previous expectation of one to 1.25 percentage points.

For the third quarter, the company expects gross bookings of between $32.2 billion and $32.8 billion, representing year-over-year growth of five to seven per cent.

Revenue is projected to reach between $4.65 billion and $4.75 billion, up five to eight per cent, with adjusted EBITDA expected to range from $1.51 billion to $1.56 billion.

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