EXPE

When you buy through links on our articles, Future and its syndication partners may earn a commission. Stocks were mixed at the beginning of a big week for the AI trade and long-term monetary policy, with an uneasy stalemate holding in the Middle East and a trade war widening in North America. Relatively few management teams are scheduled to report financial results and offer guidance this week, but the biggest company in the world by market cap is among them. We'll also hear from Fed Chair Kevin Warsh on Friday. At the closing bell, the blue-chip Dow Jones Industrial Average was up 0.3% at 53,417. But the broad-based S&P 500 was down 0.3% to 7,652, and the tech-heavy Nasdaq Composite had declined 0.8% to 25,980. This week will be defined by the earnings calendar, with Nvidia (NVDA, -2.9%) reporting fiscal 2027 second-quarter results and management sharing its vision of where the artificial intelligence (AI) revolution goes from here after the closing bell on Wednesday. "Geopolitics, oil prices, high yields, and tech volatility all contributed to last week's stock market pullback, and they all look to be in play this week, too," writes E*TRADE from Morgan Stanley Managing Director Chris Larkin. Larkin notes that U.S. economic sanctions on Iran, the Treasury's attempts to lower long-term yields and incoming data, including the Federal Reserve's preferred inflation gauge, may shape sentiment. "But," he concludes," Nvidia and other tech earnings are positioned to be a major weight on the market's momentum scale." At the same time, with Treasury yields across the maturity spectrum trending higher, the week could be redefined by the economic calendar, beginning on Friday at 10 am Eastern Standard Time. Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day. That's when Warsh makes his first keynote speech as the leader of the most important central bank in the world at the Kansas City Fed's annual Jackson Hole Economic Symposium. The yield on the 2-year Treasury inched up to 4.240% vs 4.234% on Friday. The 2-year yield was 3.379% on February 27, the day before the war in the Middle East between the U.S. and Iran began. The 10-year Treasury yield ticked down to 4.706% from 4.738%, but is up from 3.960% on February 27. The 30-year Treasury yield declined to 5.235% vs 5.276% last week and 4.630% before the war. Marvell Technology (MRVL, -3.3%) follows fellow semiconductor stock Nvidia in the reporting-season order when it steps up after the closing bell on Thursday. But Marvell is ahead of Nvidia when it comes to year-to-date share-price performance, with MRVL up 179.3% vs 15.3% for NVDA (and 13.0% for the S&P 500) through Friday. Wall Street expects MRVL management to report year-over-year earnings growth of 39% on revenue growth of 35%, pale compared to 99% and 97% growth anticipated for NVDA. Of course, much of Marvell's run is rooted in a $2 billion investment from Nvidia announced on March 31. And there is significant demand elsewhere for its custom application-specific chips, and Wall Street is bullish. Indeed, Wells Fargo analyst Aaron Rakers reiterated his Outperform (Buy) rating and raised his 12-month target price on the tech stock from $240 to $310, citing its opportunity in custom silicon. Track all markets on TradingView Meanwhile, Morgan Stanley analyst Joseph Moore maintained his Equal Weight (Hold) rating but raised his 12-month target price from $195 to $224. The iShares Semiconductor ETF (SOXX, -2.7%), up 72.9% through Friday, was also down on Monday, as investors, traders and speculators continue to moderate their optimism with incoming data and updated guidance from Nvidia on the way. Micron Technology (MU, -5.8%), which was up nearly 240% year to date through Friday, and Advanced Micro Devices (AMD, -3.5%), up 121% in 2026, posted big red numbers. Expedia (EXPE, +5.4%) was the top-performing S&P 500 stock on Monday after Evercore ISI analyst Mark Mahaney reiterated his Outperform (Buy) rating and raised his 12-month target price for the online travel agency from $375 to $430. Mahaney had reiterated his rating and raised his target from $350 to $375 on August 6 following a beat-and-raise second-quarter report from management of the consumer discretionary stock. His current target is now the highest among 35 analysts who provide one. Track all markets on TradingView Since hitting a 52-week low of $185.34 intraday on February 23, EXPE is up more than 70%, far outpacing a gain of about 14% for the S&P 500. Mahaney still sees upside of almost 30% from here. The travel stock has split the Wall Street analyst community, reflected in 17 Buy ratings vs 20 Holds and 1 Sell. The average 12-month target price through August 21 was $336.23. 33 Stocks That Could Rally 33% or More 5 Undervalued Stocks to Buy in This Market The Best Vanguard Bond Funds to Buy

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at consumer internet stocks, starting with Expedia (NASDAQ:EXPE). The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible. The 44 consumer internet stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 3% below. While some consumer internet stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results. Originally founded as a part of Microsoft, Expedia (NASDAQ:EXPE) is one of the world’s leading online travel agencies. Expedia reported revenues of $4.32 billion, up 14% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and revenue guidance for next quarter slightly topping analysts’ expectations. Interestingly, the stock is up 1.6% since reporting and currently trades at $324.91. Is now the time to buy Expedia? Access our full analysis of the earnings results here, it’s free. Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube. Alphabet reported revenues of $119.8 billion, up 24.2% year on year, outperforming analysts’ expectations by 2.2%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $340.83. Is now the time to buy Alphabet? Access our full analysis of the earnings results here, it’s free. Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions. Coinbase reported revenues of $1.22 billion, down 18.5% year on year, falling short of analysts’ expectations by 5.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates. Interestingly, the stock is up 5.5% since the results and currently trades at $172.63. Read our full analysis of Coinbase’s results here. Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America. MercadoLibre reported revenues of $10.17 billion, up 49.8% year on year. This number beat analysts’ expectations by 4.5%. It was an exceptional quarter as it also logged a solid beat of analysts’ EBITDA estimates and impressive growth in its users. The company reported 89 million daily active users, up 25.4% year on year. The stock is flat since reporting and currently trades at $1,920. Read our full, actionable report on MercadoLibre here, it’s free. Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network. Snap reported revenues of $1.60 billion, up 18.9% year on year. This print topped analysts’ expectations by 3.8%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts’ EBITDA estimates. The stock is up 3.6% since reporting and currently trades at $5.22. Read our full, actionable report on Snap here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET Vice President Investor Relations - Rob Bevegni Chief Executive Officer - Ariane Gorin Chief Financial Officer - Derek Andersen Operator: Good day, everyone. Welcome to the Expedia Group Q2 2026 financial results teleconference. My name is Holly. I will be the operator for today's call. If you wish to ask a question at the end of the presentation, please press star followed by the number one on your telephone keypad. If you change your mind, please press star followed by one again to cancel your request. For opening remarks, I will now turn the call over to VP Investor Relations, Rob Bevegni. Rob Bevegni, please go ahead. Rob Bevegni: Good afternoon. Welcome to Expedia Group's second quarter 2026 earnings call. I'm pleased to be joined on today's call by our CEO, Ariane Gorin, and our CFO, Derek Andersen. As a reminder, our commentary today will include references to certain non-GAAP measures. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in our earnings release. Unless otherwise stated, all growth rates are on a year-over-year basis. Any reference to expenses exclude stock-based compensation. We'll also be making forward-looking statements during the call, which are predictions, projections, and other statements about future events. These statements are based on current expectations and assumptions, which are subject to risks and uncertainties that are difficult to predict. Actual results could materially differ due to factors discussed during this call and in our most recent Forms 10-Q, Forms 10-K, and other filings with the SEC. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. This call is being webcast on the investor relations section of our website at ir.expediagroup.com. A replay will be archived on our site. A slide presentation containing financial highlights has also been posted to our website. Starting this quarter, we expanded the presentation to provide additional context on our performance. For today's call, Ariane Gorin will begin with a review of our second quarter results. Derek Andersen will then provide additional detail on our financial performance, as well as our third quarter and full-year guidance. After our prepared remarks, we will turn the call over to the operator to begin the Q&A portion of our call. With that, let me turn the call over to Ariane Gorin. Ariane Gorin: Thanks, Rob Bevegni. Good afternoon, everyone. We had a solid second quarter, delivering strong financial results while making tangible progress on our strategic priorities. We exceeded the high end of both our top and bottom-line expectations for the fifth quarter in a row, growing bookings 12%, revenue 14%, and adjusted EBITDA 23%. We delivered new product experiences, expanded supply across our marketplace, and took an important step in building our one-stop B2B travel shop. Based on our first half results and the ongoing trends we're seeing, we're raising our full-year guidance. Derek Andersen will cover that shortly. Turning back to the second quarter, consumer spending was healthy, in particular in the U.S. Consumers continued to prioritize travel with longer lengths of stay and longer booking windows, even as air ticket and hotel prices rose. The World Cup generated modest incremental demand late in the quarter. A lot of bookings happened after the tournament began, a pattern we anticipated and were well-positioned to capture. Total booked room nights were up 6%, with mid-single digits in the U.S., low single digits in EMEA, and low double digits in the rest of the world. Europe remained pressured, particularly outbound travel, as macro headwinds and reduced air capacity weighed on demand. APAC rebounded from the disruption related to the Middle East. Our market-leading B2B team delivered its 20th consecutive quarter of double-digit growth, underscoring the durability and the momentum of this business. Consumer bookings were up 8%, driven by our fastest U.S. growth in 15 quarters. Active loyalty members increased low single digits with faster growth in our higher tiers. Over the last two years, we've executed on our three strategic priorities. One, delivering more value to travelers. Two, investing in our biggest growth opportunities. Three, driving operating efficiency and margin expansion. As a result, we've accelerated our consumer business, expanded margins by four points, and more than doubled our trailing 12-month free cash flow over that same period. We continued to progress these priorities in the second quarter. First, delivering more value to travelers. It starts with product experiences that make it easy for travelers to plan and book their perfect trip. AI is unlocking new ways to make these experiences simpler and more personalized. Last quarter, we launched new and updated conversational experiences, introducing natural language search on the Vrbo homepage and updating Property Expert and AI Compare in the hotel shopping flow. Our AI-powered personalization and recommendations keep getting smarter across all three of our consumer brands. On Expedia, our fastest-growing brand, this translated into another quarter of record attach rates. Travelers are getting even more value from booking their trips with us. Traveler value also comes from having the best assortment and price. We recently achieved a few big milestones. In July, we became the first OTA to distribute Allegiant flights and achieve full coverage of U.S. commercial airlines. This partnership further reinforces our position as the most complete travel marketplace in the U.S. On lodging, we expanded our supplier-funded promotions. More than 40% of Vrbo bookings last quarter included partner-funded offers, and our May sale was the first campaign to exceed $1 billion in bookings for participating properties. These are clear proof points of the strength of our two-sided marketplace, where travelers get better value and our supply partners capture incremental demand across rooms, seats, and cars. Turning to our second pillar, investing where we see the greatest opportunity to drive growth. In our consumer business, our sharper measurement and targeting capabilities are allowing us to invest in the highest return opportunities and leverage our marketing spend. We're investing in newer surfaces like AI and social platforms, where more consumers are starting their trip planning. AEO and social are two of our fastest-growing channels. While agentic traffic remains small, it's a promising channel with high purchase consideration. We're deepening our partnerships with leading AI platforms. During the quarter, we're an early adopter of ChatGPT's latest ad product and expanded our work across Google's newer AI services. Last week, we announced the acquisition of Layla, an AI conversational planning app, allowing us to capture new types of travelers while bringing learnings into our core business. In B2B, alongside investing in our existing partnerships, we continue building toward our vision of a one-stop travel shop for partners, in May, announced our intent to acquire CarTrawler, the leading B2B car rental and insurance platform. Moving to our third pillar, driving operating efficiencies and margin expansion. We expanded margins by nearly two points in the quarter, driven by tight expense management and the consumer marketing leverage I just mentioned. Importantly, we're continuing to deploy AI to innovate faster and operate more effectively. On Vrbo, we launched an agentic voice solution to support partner inquiries previously handled by human agents. Early results are promising, with faster resolution and lower contact propensity. More broadly, our agentic technology stack is allowing us to design and ship products faster, ultimately unlocking new capabilities for both travelers and partners. As we scale these capabilities, we're managing token costs thoughtfully while giving broad access to our teams. In closing, we delivered strong second quarter results and are raising our full year outlook. I want to thank our teams for their hard work and our partners and travelers for their continued trust in us. With that, I'll turn it over to Derek Andersen. Derek Andersen: Thank you, Ariane Gorin, good afternoon, everyone. I've had an exciting first quarter as part of the Expedia Group team and look forward to engaging with you all in the quarters ahead. Before I walk through our financials, you'll see that we've expanded the earnings presentation this quarter to provide additional details in an easier-to-access format. I'll focus my remarks here on the headline financials and guidance so we can get to your questions a little faster. Our second quarter performance exceeded the high end of our guidance, reflecting a healthy macro environment, continued momentum in our B2B segment, improved consumer marketing returns, ongoing cost discipline. Gross bookings increased 12% year-over-year, this was driven primarily by 6% room night growth, as well as 5% ADR growth on an FX neutral basis. Revenue increased 14%, which exceeded our expectations entering the quarter. Foreign exchange was a tailwind for the business, contributing nearly half a point to bookings growth four points to revenue growth. Adjusted EBITDA was $1.1 billion in Q2, representing a margin of 25.9%, which is an improvement of nearly two points compared to the prior year. The margin expansion was driven by a combination of cost efficiencies, consumer marketing leverage, the flow-through of higher volume. Adjusted EPS grew 36% year-over-year, which reflects strong earnings growth as well as the accretive impact of share repurchases over the past year. We continue to generate strong free cash flow, which reached $4.5 billion on a trailing 12-month basis, this has fueled the return of capital to shareholders. During the quarter, we repurchased roughly 880,000 shares for $200 million at an average price of $226 a share. This brought our year-to-date share repurchases to $900 million, which is roughly in line with the first half of last year. Our capital allocation priorities remain unchanged, including investing organically in the business, pursuing disciplined M&A in support of our strategic priorities, and returning cash to shareholders in the form of dividends and opportunistic share repurchases. For our third quarter outlook, we expect gross bookings of $32.2 billion-$32.8 billion, representing growth of approximately 5%-7% year-over-year. This assumes that growth in bookings and room nights moderates relative to Q2, reflecting tougher comparisons as we lap faster growth in the second half of last year and an estimated one point FX headwind at current rates. We expect revenue of $4.65 billion-$4.75 billion, representing growth of approximately 5%-8% year-over-year, including an estimated one point FX benefit at current rates. We expect adjusted EBITDA of $1.51 billion-$1.56 billion, implying a margin of 32.5%-32.8%. Margin expansion is expected to moderate in Q3 due to the lapping of prior year cost actions, ongoing investment in B2B growth, and unfavorable net FX impacts. We expect the pace of margin expansion to improve in Q4 as some of these pressures ease and as we continue to drive operating efficiency across the business. Based on the strength of the first half and our assumptions for the third quarter, we are raising our full year guidance. We now expect gross bookings of $129.5 billion-$130.8 billion, representing growth of 8%-9%, and revenue of $16.05 billion-$16.22 billion, representing growth of 9%-10%. Our guidance continues to assume foreign exchange tailwinds of approximately a point for gross bookings and two points for revenue. We are also raising our margin guidance for the full year and now expect adjusted EBITDA margin expansion of 150-175 basis points versus last year. With that, let's open the line to take your questions. Operator: As a reminder, if you would like to ask a question, please press star followed by the number one on your keypad. If you would like to retract your question, please press star followed by one again. Your first question comes from the line of Eric Sheridan with Goldman Sachs. Eric, your line is now open. Please go ahead. Eric Sheridan: Thanks so much for taking the question. Maybe just one, building on the prepared remarks. Would love to go as deep as you're willing to go on how you're thinking about the interplay between AI native channels away from the platform, some of the efforts you're making to build AI solutions that are consumer facing on the platform and traditional advertising channels, in terms of thinking about driving return on ad spend and conversion over the medium to long term. Thanks so much. Ariane Gorin: Sure. I'll take that. I'll start with what we're doing in our product, and I really think about it sort of in two categories. There's what are we doing with AI in our product right now that is delivering results in our core business? The second is, what are we doing in our product that's not necessarily delivering conversion right now, but we know is helping us better understand travelers and is going to have compounding benefits over time? In that first bucket, it's using AI for better recommendations, for better ranking, for personalizing the UX and the content. There, we are seeing immediate impacts, and it's not only just improving conversion, but you can imagine, as we're getting traffic, whether it's direct traffic or paid traffic, that is improving. In addition, I would say, just as an aside, is all the work we're doing in using AI in our technology teams in order to increase our cycle time is allowing us to innovate a lot faster. That's what we're doing in the product to increase conversion now. Also in the product, we're introducing these natural language experiences like Vrbo natural language search on the homepage, or these agents like Property Expert or AI Compare. Those are not driving conversion right now, but what we're finding is that you get over 60% more information about traveler intent, and that allows us to deepen the relationships with the traveler. Over time, I believe that's going to drive deeper conversion. That's what we're doing in our product. I also believe there's a big growth opportunity in getting access to travelers who are starting outside of our brands in these AI experiences. As a reminder, two-thirds of our bookings in our consumer brands come direct. Of the third that is coming through paid channels, obviously AI experiences, whether they are with ChatGPT or Claude or Google's new experiences, are new opportunities for our brands to show up there. It is early days. I would say that's an area that's fast-moving. The algorithms, the search UXs, all of that is moving really quickly, and so we're staying close to it and vigilant. We are testing and participating everywhere that things are evolving, and I see that over time as opportunities to bring more travelers into our business. There's a lot of complexity of how do you understand what the prompts are so that you can land them well in our product, again, I see that as a big opportunity. Eric Sheridan: Thanks so much. Operator: Your next question comes from the line of Justin Post with Bank of America. Justin, your line is now open. Please go ahead. Justin Post: Great. Thank you. Just on the B2B side, there could be some more competition coming down. Could you talk about the advantages you offer your partners and also the stickiness of the contracts that you have? Obviously lapping some of really good marketing efficiencies that started in the third quarter, how do you think about the potential for further marketing efficiencies from here? Thank you. Ariane Gorin: Well, I'll take the first one, then I'll hand it over to Derek Andersen for the second one. The thing about the B2B space is it's always been competitive. I've been in it for over a decade, it's always been a competitive space. The good news is there's a very large addressable market for B2B partners. When I think about what we bring to the table, obviously we have great supply and content, strong technology, really great servicing, great partner accompaniment sort of as we think about the integrations. Obviously I'm not going to talk about individual partners, but some relationships are exclusive, some are not exclusive. My view is we have to be proving day in and day out to our partners that they can trust us to build their business on top of us. I think it's been important for us for many years that it's a standalone business, a standalone P&L that has resources that it can invest on its own. I'm excited about the investments we're making to build out the one-stop shop value proposition so that we can offer all components that a partner might need to build their travel program. That was the announcement of CarTrawler this quarter, the acquisition we did of Tiqets. It's really so that we can have that complete one-stop travel shop from supply to technology to servicing and beyond. Derek Andersen: Interesting. As it pertains to the contribution of marketing to the operating leverage and margins overall, you're right, we did make substantial progress over the last year in terms of driving margins. We are going to begin lapping that in the second half of the year. We had the substantial reductions in marketing spend and driving out inefficient spend, but also redirecting spend to more productive channels. That's been a big contribution over the last year, and you can see that in the margins. We also made progress on overhead as well, so it's a broader picture than just marketing. As we go into the third quarter and the quarter ahead in the second half of the year, we will begin lapping those things. However, the structural improvements that we've made on the marketing program are going to endure and give us a base to drive further efficiencies off going forward. We've also continued to make incremental progress on the rest of the cost structure, and I'd just point to the fact that overheads were flat year-over-year in the most recent quarter, even as revenue rose 14%. We're committed to continuing to drive our strategic pillar of operating efficiency and scaling out margins as we go forward. I think you'll see that reflected in the update that we made to the full year guide, where we took the EBITDA margin expansion range up to 150 to 175 basis points for the full year. Justin Post: Great. Thank you. Operator: Your next question comes from the line of Douglas Anmuth with JPMorgan. Douglas Anmuth, your line is open. Please go ahead. Douglas Anmuth: Great. Thanks much for taking the questions. I have two. Can you just talk about how some of your views just around geos have changed over the past few months? In particular, you mentioned Europe remains pressured, especially outbound. Also, what you're seeing with APAC, given some of the rebound there from the Middle East disruption. Then, Derek Andersen, if you could also just walk through some of those back half dynamics on margin expansion where you talked about moderation in Q3 and then stronger Q4. Thanks. Ariane Gorin: Sure. I'll take the first part. Then Derek Andersen can take the second one. Just in terms of the geo trends, the good news is we have a geographically balanced business. Certainly, our consumer business is two-thirds in the U.S., a third outside of the U.S., and our B2B business is really the inverse. We have supply that is able to respond to whatever the traveler demand is. Obviously, we're going to lean in more where we see the most demand. So where we see the greatest returns. My view is, what we've always seen is, over time, demand rebounds across the world. We'll take advantage when there's strength in one geo versus another. We have a long-term North Star with continuing to grow our business in the areas we're strongest, and then identifying some geographies where our consumer brands have relevance, but haven't yet, in our mind, gotten to our fair share. Derek Andersen: As it pertains to the go-forward margin side of things, number one, I would reiterate we remain committed to our strategic pillar of driving operating efficiency and expanding margins over time. In Q3 specifically, there are a few factors that will weigh on the margins in the very near term. One, as you mentioned, that we're going to lap some very substantial reductions in the cost structure from a year ago. That'll weigh a little bit on the margins in the near term. The other is we'd also made progress not just on marketing, but overheads there. We have some FX net headwinds that'll impact us in Q3 that are really a factor on the margin as well. That said, if you look at what I shared earlier about the update to the full year margin expansion guidance of 150-175 basis points, that implies that in Q4, at the midpoint, we'd be expanding by about 50 basis points there. That we'll see some of the pressures that are specific to Q3 ease there, but we'll also see the ongoing benefits of our efficiency initiatives continue to build over time. The margin expansion won't always be perfectly linear, but it is a very important part of the strategy and something that we're committed to continuing to drive out. Douglas Anmuth: Thank you both. Operator: Your next question comes from the line of Jed Kelly with Oppenheimer. Jed Kelly, your line is open. Please go ahead. Jed Kelly: Hey, great. Thanks for taking my question. Just circling back on B2B, getting a lot more investor comp questions just on competition. Can you just talk about where we are in the competitive landscape? Just on a follow-up on B2B, seems like that overhead expense increased a decent amount in the B2B segment. Was there anything there to call out? Thank you. Ariane Gorin: Sure. I'll talk about competition. As I said, it's a big target addressable market. If you think about the travel business, it's over $3 trillion. If you exclude hotel, airline direct, and the three big OTAs, there's still a lot of space there. For us, we just look at whether it's in offline retail, other online travel agents, loyalty programs, corporate travel agencies. Where are all of the places that people are looking for when they look to travel beyond our core consumer brands, how do we make sure that we're showing up well? I think competition forces you to be better, whether it's be better with having more service offerings, having better service levels, and the like. Our focus is just making sure that we've got a great value proposition. In fact, Derek Andersen can talk about it, but I assume some of the expense you're seeing is related to the build-out of our additional lines of business. Because that business today is very lodging-focused. We do sell other lines of business, but over time, we want to become that one-stop travel shop. Derek Andersen: Yes, Jed Kelly. First, in terms of the margin point, Ariane's exactly correct. There's investments going into the B2B segment to drive that one-stop shop and build out our lines of business. One aspect of that is that we had the digestion of Tiqets and that acquisition in Q2, that would have weighed a little bit on the cost that you're seeing. The other is a little bit of the geography of the FX hedging and where that shows up in the P&L, you're seeing a little bit of that show up on that line item and impacting the margin as you pointed out. Hopefully that context helps. Jed Kelly: Thank you. Operator: Your next question comes from the line of Ken Gawrelski with Wells Fargo. Ken Gawrelski, your line is open. Please go ahead. Ken Gawrelski: Thank you very much. Two, if I may, please. First, could you maybe talk about your approach to the marketing landscape? There's been some changes on the search side, SEO has been called out from many companies in the consumer landscape. Could you just talk about what you're seeing there first, maybe? Then second, if I may, as you think about your second half outlook, maybe, I apologize if I may have missed this, but could you talk about your outlook for ADRs and maybe the environment we might be in as we think about the difference between bookings and nights growth? Thank you. Ariane Gorin: Sure. I'll take the first one, and then Derek Andersen can take the second one. When I think about organic traffic, and I'm going to bucket together SEO and AEO, for us, organic search traffic is stable to slightly up. Now, as I mentioned in my prepared remarks, AEO is one of our fastest-growing channels, and SEO has remained a bit soft, but it's stabilized over the last few quarters, and I think it's due to the great work that our team has done. A number of quarters ago, we organized a small team to look at organic across the board, AEO and SEO, and they've increased testing velocity, both technical and content. As I said, they've been doing more tests. They've been using AI across the board in order to improve our performance in that channel. Now that being said, as I said earlier, it's a fast-changing space. We're seeing algorithms and search page changes more prevalent and happening faster than they have in the past, which is why we're staying vigilant. We're monitoring, we're reacting to them. Today, we think we're getting at least our fair share, but organic is an important thing to us, so we're making sure that we're staying on top of it. Derek Andersen: In terms of the second half guidance on bookings and so on, we're assuming that the healthy demand trends that we have seen through Q2 and to begin Q3 here persist, and that's led by a particularly strong U.S. and domestic market. We do, of course, see an environment where the conflict in the Middle East is having some impacts. The sort of direct impacts in that region, our business there is relatively small, and so the impact is lighter. However, there are secondary impacts impacting jet fuel prices, which have an impact on airline prices and ticket prices. There are some secondary impacts, but the strength overall and the resiliency in the travel market and consumers continuing to prioritize travel has led to a relatively resilient environment. That informs our guide for Q3 and the updates we made to our full-year guidance. As it pertains to bookings and room nights specifically, we do have much tougher comps in the second half of the year, and so we've incorporated that into the guide for Q3 and the update that we've made for the full year. We do expect the growth rates to decelerate as we see those comps, although probably more so on the booking side, a little less so on the room night side, but we will face much tougher comps on both of those numbers. Ken Gawrelski: Thank you. Operator: Your next question comes from the line of Lloyd Walmsley with Mizuho. Lloyd, your line is now open. Please go ahead. Lloyd Walmsley: Thanks. Derek Andersen, great to be interacting with you again in a new forum. I wanted to just get your sense of anything that surprised you the most, or where do you see the most opportunity as you dive into a new business? Was the first one. Then, just a second one, as you all look at the AEO channel, it sounds like it's more meaningful for you all and growing faster than what some of your peers are seeing. Is there anything you can elaborate? Do you think it's a bigger consumer activity in the U.S., or you guys are just sort of approaching it in a unique way? Do you think it's likely to be meaningful anytime soon? Anything more you could help us understand would be great. Thanks. Ariane Gorin: Sure. Why don't I start with that one, then Derek Andersen can take your first question. Look, AEO is still a small channel. As I said, it's one of our fastest-growing channels. I believe we were early in organizing ourselves around it and understanding not only what visibility were we getting in prompts and answer and AI search, but also how do we make sure we're getting the right visibility. It's a combination of work we're doing in our brands, the brand value propositions, obviously a lot of technical work. What I find exciting about it is it's changing really quickly. It's figuring out how do we make sure our brands show up either completely organically? Are there opportunities with these connectors or micro apps, for example, in Claude and ChatGPT? It's fascinating to see there are some cases in which we can control a bit more what the interface is, where our brand shows up, and others where we can't. I think it's too early to declare anyone's getting a lot more versus less. I can just tell you that we have a team focused on it, and that it's not just the technology of it's also all the work we're doing on our brand value propositions, on making sure that we have great, full and complete content, and making sure that your travelers understand that when they come to Expedia or Hotels.com or Vrbo, they're going to get a complete shop. They're going to get a loyalty program. They're going to be able to have payments in all different currencies. Just it's really that full value proposition that we need to make sure comes through. Derek Andersen: Lloyd Walmsley, look, it's great to be engaged with you and your team again as well. Before joining Expedia, I'd say that I was really excited about what I saw and the opportunity in the travel market. The scale of the industry is immense, the total opportunity set is huge. For this business specifically, I was excited about the leading consumer brands in some of the most important markets in the world, and the opportunity for us to continue to grow beyond that. The B2B business as a leading B2B platform in the world as well. It gives the business a lot to work with. I spent a lot of time looking at how well the team has executed over the last couple of years and the results that they've been able to drive to build momentum in the business is really impressive. It was exciting coming in. I think that what's more exciting is that after a couple of months in the building and working with the team, most of what I hoped would be true on the way in the door has proven to be true. I'm particularly pleased with the quality of the team here and the consistent focus on operational execution. I think probably the last thing I'd mention is just that it's exciting how much of what lies ahead of us in terms of opportunity is something we can capture through our own execution and scaling this business efficiently. I'm excited to dig in with the team and capitalize on that. Lloyd Walmsley: All right. Thank you. Operator: Your next question comes from the line of Deepak Mathivanan with Cantor Fitzgerald. Deepak, your line is open. Please go ahead. Cameron: Thank you. This is Cameron on for Deepak Mathivanan. Just one quickly on B2C. Seems like there is some nice margin expansion there this quarter. Can you just give some more color on the drivers of margin expansion here? What does the runway look like into 2027? Ariane Gorin: As you rightly say, we had nice margin expansion. We grew our bookings 8% while leveraging marketing spend, which was only up 1%. That came from our fastest U.S. growth in 15 quarters and a healthy environment. I would say it came from really pulling on all of the levers of the marketplace, improvements in the product, whether that is recommendations, ranking, improvements all along the funnel. For example, optimizing the checkout in Vrbo. It came from growth in our supply footprint. As I said, the May sale was a record-breaking sale for us, making sure that travelers know that when they come, they are going to be able to find what they are looking for, driving attach in supply. The performance of our top tier loyalty members, so silver and above, did really well both in bookings and then also in retention. In marketing, as you saw, yes, we've had good marketing leverage. It's not just that measurement that allows us to better understand incrementality and returns. The team is also doing some really fantastic work around using technology to be more effective. They're developing these agentic systems to create personalized ads at scale, both using our technology and using third-party technology. I look at it and of course, I see all of the areas that we can do better, but I also see so much good work that the team is doing. I'm just really pleased to see that margin expansion. Operator: Your next question comes from the line of Mark Mahaney with Evercore ISI. Mark, your line is open. Please go ahead. Mark Mahaney: Two questions, please. One on advertising revenue. Just an update on the traction you're seeing there. I think over time you've been trying to thoughtfully roll out advertising revenue to more surfaces like Vrbo. Just an update on that. Secondly, I think you touched on it briefly, but the impact of World Cup in Q2 and Q3, was it material at all to Expedia? Thank you very much. Derek Andersen: Hi, Mark Mahaney. On the advertising business, growth was stable relative to Q1 and Q2. As we look at the future growth opportunities for the business, we see a lot of opportunity to sustain healthy growth there. Some of the drivers you pointed out, more geographical reach, extending our existing ad solutions into our B2B and Vrbo business lines. Also monetizing on more areas of our sites. On Vrbo specifically, it's very early there, but we are excited about the opportunity to build on that over time, but it's early. We got a new leader there also. This is a business that I personally am familiar with, so I'm excited to dig in with them and help build this out over time. To your question on the World Cup, as Ariane Gorin mentioned in prepared remarks, we did see bookings related to that come in late, and the impact of that on the quarter was relatively modest overall. We saw it show up more in ADRs than we did in room nights, and the impact of the quarter overall from a bookings perspective was modest. Mark Mahaney: Okay. Thank you, Derek Andersen. Operator: Your next question comes from the line of Kevin Kopelman with TD Cowen. Kevin, your line is open. Kevin Kopelman: Thanks a lot. Could you just give us some more color on how you've seen U.S. and Mexico trips progress as we've gotten further away from the security incident that you called out last quarter? Thanks. Ariane Gorin: Yeah. I would say we've seen a normalization. Yeah. We've seen a normalization. Kevin Kopelman: Okay, great. Could you just touch on B2B sales and marketing? It looks like that ticked down year-over-year for the first time since you started disclosing that. What are the key drivers there, and how are you thinking about the second half? Thanks. Derek Andersen: Sure. On B2B margins, first, we're really pleased with what we're seeing in the growth on that business. In the very immediate term, the big drivers on B2B margins include partner mix and the pace of our own investments in the long-term growth of that business. On partner mix, we've continued to see strong partner promotional activity. We saw that in Q1. It persisted throughout Q2. That's a big driver, is that some of our larger partners are active in that space. In addition, we are prioritizing the growth of that business long term, given how significant the opportunity is. We're investing in building out and/or acquiring, in the case of Tiqets, new lines of business to support our one-stop travel shop, enhancing our product capabilities to better support our existing partners, and also in our partnership and sales to grow our partner base. We have over 70,000 partners today, looking to grow that and through lines of business to deepen our partnerships and business over time. That's shaping the drivers of the business in the near term, both from a mix and margin perspective. Hopefully that gives some context. I would just reiterate, we can invest and continue to make progress on margins. If you think about our strategic pillar around efficiency and margin expansion, we're committed to that and are driving that across the business. Kevin Kopelman: Thank you. Operator: Your next question comes from the line of Naved Khan with B. Riley Securities. Naved Khan, your line is open. Please go ahead. Naved Khan: Great. Thanks a lot. Two questions from me. One, Ariane Gorin, as you mentioned, you're seeing good attach rates in Expedia. Maybe just talk about what are the products that are seeing the most attach rates, where you're seeing the most success. The second question I had is just around the Uber partnership. Any early read or any color you can share in terms of how that's rolling out, and what are you contemplating in your guidance in terms of contribution from this new partnership? Thank you. Ariane Gorin: Sure. I'll take the second one first because it's going to be quick, which is we don't comment on individual partners. I'm not going to comment, and it's not going to be material to our guidance. On the first point on attach, it really depends on does the trip start with a flight, in which case we're more likely to attach a lodging, a hotel, or a vacation rental or a car? Does it start with a hotel, in which case we might attach a car or insurance? Actually, part of what's behind the record attach rates is the personalization we're able to drive by understanding what is the next best thing to recommend to a traveler. As I said, if they've taken a flight, they've already booked a flight and it's in a certain destination, we might know, okay, actually, the next best thing to propose is a hotel, and it's one of these three properties. It can be based on the trip and information we have on the trip, or it can be based on what we know about that traveler. The team has really been honing in and optimizing those recommendations. In addition, they've done a great job really optimizing the UX and the design, figuring out where is it that we put the attach messaging, where is it in the app, where is it in the post-sale communications. It's really a combination of all of the above. Naved Khan: Maybe just to kind of drill into that, what kind of runway do you see ahead in terms of continuing to drive attach rates higher? Where are we in the innings? Ariane Gorin: Yeah. I would say there's still quite a bit of runway. We have good stats that tell us of people who book one trip element with us, how likely are they to have another trip element somewhere else. Without going into what exactly those numbers are, I can tell you I certainly see additional runway to have more multi-item trips, even if I believe right now we're best in class, but there's still upside ahead of us. Naved Khan: Thanks, Ariane Gorin. Operator: We have reached the end of the Q&A session. I will now turn the call back to Ariane Gorin for closing remarks. Ariane Gorin: Well, thank you all for joining our call. Thank you for your questions. As you saw, we delivered strong results ahead of our expectations as consumers continue to prioritize travel. As we look ahead, we remain confident in our strategy and our ability to execute and drive long-term value for travelers, partners, and shareholders. Finally, a big thank you again to our team. Operator: This concludes today's call. You may now disconnect your lines. Have a nice day. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Expedia (EXPE) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Expedia Group EXPE reported second-quarter 2026 adjusted earnings of $5.76 per share, up 36% year over year. The figure surpassed the Zacks Consensus Estimate by 5.69%.Revenues increased 14% year over year to $4.32 billion and beat the consensus mark by 3.13%. Sustained B2B momentum, stronger consumer-brand performance and disciplined cost management drove the results. In the second quarter, total gross bookings climbed 12% year over year to $33.93 billion. Lodging gross bookings increased 11% to $24.60 billion, while non-lodging gross bookings advanced 12% to $9.33 billion.Merchant gross bookings grew 14% to $20.61 billion, outpacing an 8% increase in agency gross bookings to $13.32 billion. Average daily rate booked rose 5% to $220.60, partly supporting the higher booking value. Booked air tickets, however, declined 5% to 14.2 million. Booked room nights rose 6% to 111.5 million. Expedia Group, Inc. price-consensus-eps-surprise-chart | Expedia Group, Inc. Quote In the second quarter, B2B revenues surged 23% year over year to $1.49 billion, supported by double-digit growth across all regions and elevated marketing activity from some large partners. B2B gross bookings increased 21% to $10.74 billion.B2C revenues rose 8% to $2.68 billion, while gross bookings increased 8% to $23.19 billion. Management noted that the consumer business benefited from sustained U.S. momentum, with the market growing at its strongest pace in 15 quarters. Second-quarter adjusted EBITDA increased 23% year over year to $1.12 billion. The adjusted EBITDA margin expanded 196 basis points to 25.9%, reflecting disciplined cost management, favorable revenue mix and marketing leverage.B2C adjusted EBITDA rose 22% to $889 million, with margin expanding 380 basis points to 33.2%. B2B adjusted EBITDA increased 12% to $369 million, though margin contracted 258 basis points to 24.8% because of partner mix and acquisition consolidation. In the reported quarter, adjusted cost of revenues increased 7% to $399 million but declined 61 basis points as a percentage of revenues to 9.2%. The improvement reflected continued efficiencies in payments.Direct selling and marketing expenses rose 10% to $2.12 billion. B2C direct marketing costs increased only 1% to $1.10 billion and declined 31 basis points as a percentage of B2C gross bookings to 4.7%, indicating improved returns across marketing channels. As of June 30, 2026, cash and cash equivalents and short-term investments were $7.13 billion, up from $5.79 billion as of March 31, 2026.Long-term debt was $5.46 billion as of June 30, 2026, up from $4.47 billion as of March 31, 2026.The company repurchased approximately 880,000 shares for $200 million during the quarter. Through the first six months of 2026, purchases of treasury stock totaled $1.06 billion.Expedia Group also declared a quarterly cash dividend of 48 cents per share, payable Sept. 17, 2026.Net cash provided by operating activities rose 32% to $1.48 billion in the quarter. Free cash flow grew 39% to $1.28 billion, underscoring the company’s ability to convert improved operating performance into cash. For the third quarter of 2026, Expedia Group expects gross bookings between $32.2 billion and $32.8 billion, representing growth of 5-7%. Revenues are projected in the range of $4.65 billion to $4.75 billion, implying growth of 5-8%.Adjusted EBITDA is expected between $1.51 billion and $1.56 billion. The outlook factors in slower top-line growth than in the second quarter, while maintaining a strong level of adjusted profitability.Expedia Group raised its 2026 gross bookings forecast to $129.5-$130.8 billion from $127-$129 billion. The revised range represents projected growth of 8-9%, compared with the prior expectation of 6-8%.The company now anticipates revenues of $16.05-$16.22 billion, up from its earlier range of $15.6-$16 billion. Adjusted EBITDA margin expansion is expected to reach 1.5-1.75 percentage points, compared with the prior outlook of 1-1.25 points. Expedia Group currently carries a Zacks Rank #3 (Hold).Take-Two Interactive TTWO, Newsmax Inc. NMAX and American Public Education APEI are some better-ranked stocks that investors can consider in the broader Consumer Discretionary sector.Take-Two Interactive sports a Zacks Rank #1 (Strong Buy), while Newsmax and American Public Education carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Take-Two Interactive is scheduled to report its first-quarter fiscal 2027 results on Aug. 7, 2026. Meanwhile, Newsmax is set to announce its second-quarter 2026 earnings on Aug. 13, followed by American Public Education, which will report its second-quarter 2026 results on Aug. 10. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report Newsmax Inc. (NMAX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Expedia Group, Inc.? Here are five stocks we like better. Expedia exceeded expectations in Q2, with gross bookings up 12%, revenue up 14% and adjusted EBITDA up 23%. Room nights increased 6%, while adjusted EBITDA reached $1.1 billion and free cash flow totaled $4.5 billion over the trailing 12 months. Growth remained broad but uneven: U.S. consumer bookings rose 8% and B2B delivered its 20th consecutive quarter of double-digit growth, while Europe faced macroeconomic and air-capacity pressures. Expedia also cited improving marketing efficiency and early conversion benefits from AI-powered search and personalization tools. The company raised its full-year outlook to $129.5 billion–$130.8 billion in gross bookings, $16.05 billion–$16.22 billion in revenue and 150–175 basis points of adjusted EBITDA margin expansion. Expedia repurchased about $200 million of shares during the quarter and $900 million year to date. Uber's Annual Product Showcase Reveals It Is Coming for Airbnb and Booking Expedia Group (NASDAQ:EXPE) reported second-quarter results above the high end of its outlook, citing healthy consumer travel demand, continued momentum in its business-to-business segment and improved marketing efficiency. The company also raised its full-year guidance for gross bookings, revenue and adjusted EBITDA margin expansion. CEO Ariane Gorin said gross bookings rose 12% year over year, revenue increased 14%, and adjusted EBITDA grew 23%. The company has exceeded the high end of its top- and bottom-line expectations for five consecutive quarters, she said. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Affirm: A Solid Footing or More Volatility Ahead? “Consumers continued to prioritize travel with longer lengths of stay and longer booking windows, even as air ticket and hotel prices rose,” Gorin said. She added that the World Cup created modest incremental demand late in the quarter, with many bookings occurring after the tournament began. Total booked room nights increased 6% during the second quarter. Growth was in the mid-single digits in the U.S., low single digits in Europe, the Middle East and Africa, and low double digits in the rest of the world. → 3 Drone Stocks That Should Soar After the Summer Slump MarketBeat Week in Review – 03/23 - 03/27 Gorin described the U.S. consumer environment as healthy, with Expedia’s consumer bookings increasing 8% and U.S. growth reaching its fastest pace in 15 quarters. Active loyalty members rose by a low-single-digit percentage, with faster growth among higher-tier members. Europe remained pressured, especially for outbound travel, as macroeconomic headwinds and reduced air capacity weighed on demand. Asia-Pacific rebounded from disruption connected to the Middle East, according to Gorin. She also said U.S.-Mexico travel had normalized following a security incident discussed during the prior quarter. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure The company’s B2B operation posted its 20th consecutive quarter of double-digit growth. Gorin said Expedia continues to pursue a strategy of becoming a “one-stop travel shop” for partners, providing supply, technology and servicing across travel categories. To support that effort, Expedia previously announced its intent to acquire B2B car rental and insurance platform CarTrawler. CFO Derek Andersen said the company’s earlier acquisition of Tiqets contributed to B2B expenses during the quarter as Expedia integrates the business and builds out additional lines of business. Andersen said second-quarter gross bookings growth was driven primarily by 6% room-night growth and a 5% increase in average daily rates on an FX-neutral basis. Foreign exchange contributed nearly half a percentage point to gross bookings growth and four percentage points to revenue growth. Adjusted EBITDA was $1.1 billion, representing a 25.9% margin. Adjusted EBITDA margin improved by nearly two percentage points from the prior year. Adjusted earnings per share rose 36% year over year. Trailing 12-month free cash flow reached $4.5 billion. The margin improvement reflected cost efficiencies, marketing leverage and higher volumes, Andersen said. He noted that overhead costs were flat year over year despite a 14% increase in revenue. During the quarter, Expedia repurchased approximately 880,000 shares for $200 million, or an average price of $226 per share. Year-to-date share repurchases totaled $900 million. Andersen said the company’s capital-allocation priorities remain organic investment, disciplined mergers and acquisitions, dividends and opportunistic share repurchases. Gorin highlighted product and operational initiatives involving artificial intelligence. Expedia launched natural-language search on the Vrbo homepage and updated tools including Property Expert and AI Compare in its hotel-shopping flow. She said AI-driven recommendations, rankings and personalization are producing immediate conversion benefits. Conversational tools that are not yet driving conversion are providing more information about traveler intent, according to Gorin. She said these experiences can generate more than 60% additional information about traveler intent, which Expedia expects could support deeper customer engagement over time. The company is also investing in AI-based search and social channels. Gorin said answer engine optimization, or AEO, is among Expedia’s fastest-growing channels, although it remains small. Traditional search engine optimization has been soft but has stabilized in recent quarters, she said, while organic traffic overall was stable to slightly higher. Expedia recently acquired Layla, an AI conversational planning app, and has expanded work with AI platforms including ChatGPT and Google services. The company also deployed an agentic voice solution on Vrbo for partner inquiries, with early results showing faster resolutions and lower contact propensity, Gorin said. On supply, Expedia became the first online travel agency to distribute Allegiant flights in July, giving it full coverage of U.S. commercial airlines, according to Gorin. More than 40% of Vrbo bookings included supplier-funded offers during the quarter, while the company’s May sale generated more than $1 billion in bookings for participating properties. For the third quarter, Expedia expects gross bookings of $32.2 billion to $32.8 billion, representing year-over-year growth of approximately 5% to 7%. The company expects revenue of $4.65 billion to $4.75 billion, up about 5% to 8%, and adjusted EBITDA of $1.51 billion to $1.56 billion. The company expects bookings and room-night growth to moderate from the second quarter as it faces tougher comparisons from the second half of the prior year. Its third-quarter outlook assumes an approximately one-point foreign-exchange headwind to bookings growth and an approximately one-point benefit to revenue growth. For the full year, Expedia raised its outlook to gross bookings of $129.5 billion to $130.8 billion, representing 8% to 9% growth, and revenue of $16.05 billion to $16.22 billion, representing 9% to 10% growth. The company now expects adjusted EBITDA margin expansion of 150 to 175 basis points from the prior year. Andersen said margin expansion is expected to moderate in the third quarter due to tougher comparisons against prior-year cost actions, B2B investments and unfavorable net foreign-exchange effects. He said the pace of expansion should improve in the fourth quarter as some of those pressures ease and efficiency initiatives continue. Expedia Group (NASDAQ: EXPE) is a global travel technology company that operates an online marketplace connecting consumers, travel suppliers and third‑party partners. The company's platform enables search, comparison and booking of travel products and services, including hotels, airline tickets, vacation rentals, car rentals, cruises and packaged travel. Its portfolio comprises consumer-facing travel brands as well as corporate travel solutions and technology services that serve both leisure and business travelers. Key offerings include consumer booking platforms and mobile apps that aggregate inventory from hotels, vacation rental managers, airlines and car rental companies, alongside ancillary travel services such as trip insurance and activities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Expedia Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Expedia (EXPE) reported $4.32 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 14%. EPS of $5.76 for the same period compares to $4.24 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $4.18 billion, representing a surprise of +3.13%. The company delivered an EPS surprise of +5.69%, with the consensus EPS estimate being $5.45. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Expedia performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Gross bookings - Agency: $13.32 billion compared to the $13.15 billion average estimate based on six analysts. Gross bookings - Total: $33.93 billion versus $33.05 billion estimated by six analysts on average. Gross bookings - Merchant: $20.61 billion compared to the $19.9 billion average estimate based on six analysts. Gross bookings by product - Lodging: $24.6 billion compared to the $23.96 billion average estimate based on six analysts. Revenue- Non-U.S. points of sale: $1.75 billion compared to the $1.75 billion average estimate based on two analysts. The reported number represents a change of +17.7% year over year. Revenue- U.S. points of sale: $2.57 billion versus the two-analyst average estimate of $2.43 billion. The reported number represents a year-over-year change of +11.6%. Revenue- Expedia Group (excluding trivago): $4.17 billion compared to the $4.05 billion average estimate based on five analysts. The reported number represents a change of +13.1% year over year. Revenue- B2B: $1.49 billion compared to the $1.42 billion average estimate based on five analysts. The reported number represents a change of +23.5% year over year. Revenue- B2C: $2.68 billion compared to the $2.63 billion average estimate based on five analysts. The reported number represents a change of +8% year over year. Revenue by Service Type- Lodging: $3.43 billion versus the four-analyst average estimate of $3.34 billion. The reported number represents a year-over-year change of +12.8%. Revenue- Trivago: $145 million versus the four-analyst average estimate of $125.37 million. The reported number represents a year-over-year change of +48%. Revenue by Service Type- Other: $444 million versus $432.28 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +23% change. View all Key Company Metrics for Expedia here>>> Shares of Expedia have returned +15.6% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Exceeded guidance with 12% Gross Bookings and 14% revenue growth y/yExpanded Adj. EBITDA margins y/yIncreases full year guidance SEATTLE, August 05, 2026--(BUSINESS WIRE)--Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the second quarter ended June 30, 2026. Second Quarter Highlights (All comparisons year-over-year) Booked Room Nights grew 6%. Total Gross Bookings grew 12%, while B2B Gross Bookings grew 21% and B2C Gross Bookings grew 8%. Lodging Gross Bookings grew 11%. Revenue grew 14%, driven by B2B, which grew 23%. GAAP net income increased 166% while Adjusted net income grew 29%. Adjusted EBITDA increased 23% with 196 basis points of margin expansion. Diluted GAAP earnings per share increased 188% while Adjusted earnings per share increased 36%. Repurchased approximately 880 thousand shares for $200 million in the second quarter. Paid quarterly dividend of $0.48 per share on June 18, 2026 and declared quarterly dividend of $0.48 per share on August 5, 2026. "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. "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." Quarterly Dividend Expedia Group’s Executive Committee, acting on behalf of its Board of Directors, has declared a quarterly cash dividend of $0.48 per share of outstanding common stock, payable on September 17, 2026 to stockholders of record as of the close of business on August 27, 2026. Conference Call Expedia Group will webcast a conference call to discuss second quarter 2026 financial results and certain forward-looking information on Wednesday, August 5, 2026 at 1:30 p.m. Pacific Time (PT). The webcast will be open to the public and available via ir.expediagroup.com. Expedia Group expects to maintain access to the webcast on the IR website for approximately twelve months subsequent to the initial broadcast. An earnings presentation containing financial and other statistical information supporting the prepared remarks on the call, together with reconciliations of the non-GAAP financial measures used, will be available on the "Investors" section of Expedia Group's website at ir.expediagroup.com beginning at approximately 1:00 p.m. PT on the same date and will remain available following the call. About Expedia Group Expedia Group, Inc. is the global travel marketplace with one purpose: to help travelers explore the world, one journey at a time. Expedia Group™ connects travelers, partners, and advertisers through its trusted brands, leading technology, and rich first-party data, delivering predictive, personalized experiences that shape the future of travel. Expedia Group’s ecosystem includes three flagship consumer brands – Expedia®, Hotels.com®, and Vrbo® – the largest B2B travel business, and a premier advertising network. Guided by an experienced and passionate global team, Expedia Group helps millions of travelers in more than 70 countries explore the world with confidence and ease. © 2026 Expedia, Inc., an Expedia Group company. All rights reserved. Expedia Group and the Expedia Group logo are trademarks of Expedia, Inc. CST: 2029030-50. Expedia Group, Inc.Trended Metrics(All figures in millions, except ADR booked) The metrics below are intended to supplement the financial statements in this release and in our filings with the SEC, and do not include adjustments for one-time items, acquisitions, foreign exchange or other adjustments. The definition or methodology of any of our supplemental metrics are subject to change, and such changes could be material. We may also discontinue certain supplemental metrics as our business evolves over time. In the event of any discrepancy between any supplemental metric and our historical financial statements, you should rely on the information included in the financial statements filed with or furnished to the SEC. Notes & Definitions: Booked Room Nights: Represents booked hotel room nights and property nights. Booked hotel room nights include both merchant and agency hotel room nights. Property nights are related to our alternative accommodation business. Average Daily Rate (ADR) Booked: Represents the average paid rate per booked room night, calculated as total lodging gross bookings divided by booked room nights. Booked Air Tickets: Includes both merchant and agency air bookings. Gross Bookings: Generally represent the total retail value of transactions booked, recorded at the time of booking reflecting the total price due for travel by travelers, including taxes, fees and other charges, adjusted for cancellations and refunds. Lodging Metrics: Reported on a booked basis except for revenue, which is on a stayed basis. Lodging consists of both merchant and agency model hotel and alternative accommodations. B2C: The B2C segment provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, Hotwire.com, and CarRentals.com. B2B: The B2B segment fuels a wide range of travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management and financial institutions, who leverage our leading travel technology and tap into our diverse supply to augment their offerings and market Expedia Group rates and availabilities to their travelers. trivago: The trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its localized hotel metasearch websites. Non-GAAP Measures Expedia Group reports Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted EPS, Free Cash Flow and Adjusted Expenses (non-GAAP cost of revenue, non-GAAP selling and marketing, non-GAAP technology and content and non-GAAP general and administrative), all of which are supplemental measures to GAAP and are defined by the SEC as non-GAAP financial measures. These measures are among the primary metrics by which management evaluates the performance of the business and on which internal budgets are based. Management believes that investors should have access to the same set of tools that management uses to analyze our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS have certain limitations in that they do not take into account the impact of certain expenses to our consolidated statements of operations. We endeavor to compensate for the limitation of the non-GAAP measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP measures. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS also exclude certain items related to transactional tax matters, which may ultimately be settled in cash. We urge investors to review the detailed disclosure regarding these matters in the Management Discussion and Analysis and Legal Proceedings sections, as well as the notes to the financial statements, included in the Company's annual and quarterly reports filed with the Securities and Exchange Commission. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization) is defined as net income (loss) attributable to Expedia Group adjusted for: (1) net income (loss) attributable to non-controlling interests;(2) provision for income taxes;(3) total other expenses, net;(4) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans;(5) acquisition-related impacts, including         (i) amortization of intangible assets and goodwill and intangible asset impairment,        (ii) gains (losses) recognized on changes in the value of contingent consideration arrangements;        (iii) upfront consideration paid to settle employee compensation plans of the acquiree; and        (iv) related transaction fees;(6) certain other items, including restructuring;(7) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g. hotel and excise taxes), related to court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings;(8) that portion of gains (losses) on revenue hedging activities that are included in other, net that relate to revenue recognized in the period; and(9) depreciation. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items is unpredictable, not driven by core operating results and renders comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA is a useful measure for analysts and investors to evaluate our future on-going performance as this measure allows a more meaningful comparison of our performance and projected cash earnings with our historical results from prior periods and to the results of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. In addition, we believe that by excluding certain items, such as stock-based compensation and acquisition-related impacts, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of our business, from which capital investments are made and debt is serviced. Trailing Twelve Month Financial Information. Expedia Group includes certain unaudited financial information for the trailing twelve months ("TTM") ended June 30, 2026, which is calculated as the twelve months ended June 30, 2026. This presentation is not in accordance with GAAP. However, we believe that this presentation provides useful information to investors regarding our recent financial performance, and we view this presentation of the four most recently completed fiscal quarters as a key measurement period for investors to assess its historical results. Adjusted Net Income (Loss) generally captures all items on the statements of operations that occur in normal course operations and have been, or ultimately will be, settled in cash and is defined as net income (loss) attributable to Expedia Group plus the following items, net of tax(a): (1) stock-based compensation expense, including compensation expense related to equity plans of certain subsidiaries and equity-method investments;(2) acquisition-related impacts, including;        (i) amortization of intangible assets, including as part of equity-method investments, and goodwill and intangible asset impairment;        (ii) gains (losses) recognized on changes in the value of contingent consideration arrangements;        (iii) upfront consideration paid to settle employee compensation plans of the acquiree; and        (iv) gains (losses) recognized on non-controlling investment basis adjustments when we acquire or lose controlling interests;(3) currency gains or losses on U.S. dollar denominated cash;(4) the changes in fair value of equity investments;(5) certain other items, including restructuring charges;(6) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g., hotel occupancy and excise taxes), related court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings, including as part of equity method investments;(7) discontinued operations;(8) the non-controlling interest impact of the aforementioned adjustment items; and(9) unrealized gains (losses) on revenue hedging activities that are included in other, net. During the fourth quarter of 2025 and first quarter of 2026, an adjustment for the loss related to the conversion option on our Convertible Notes, including amortization of the debt discount and change in fair value of the embedded derivative, was excluded from net income to calculate Adjusted Net Income. We believe Adjusted Net Income (Loss) is useful to investors because it represents Expedia Group's combined results, taking into account depreciation, which management believes is an ongoing cost of doing business, but excluding the impact of certain expenses and items not directly tied to the core operations of our businesses. (a) We use a long-term projected tax rate in the calculation of Adjusted Net Income as we believe this tax rate provides better consistency across reporting periods and produces results that are reflective of Expedia Group’s long-term effective tax rate. This long-term projected tax rate is a total tax rate, and eliminates the effects of non-recurring and period-specific income tax items which can vary in size and frequency. We apply this tax rate to pretax income, as adjusted commensurate with our Adjusted Net Income definition. In 2024 and through the second quarter of 2025, we applied a 21.5% long-term projected tax rate to compute Adjusted Net Income. We adjusted our long-term projected tax rate to 20.0% to consider the net effect of U.S. tax law enacted in the third quarter of 2025. Adjusted EPS is defined as Adjusted Net Income (Loss) divided by adjusted weighted average shares outstanding, which, when applicable, include dilution from our convertible debt instruments per the treasury stock method for Adjusted EPS. The treasury stock method assumes we would elect to settle the principal amount of the debt for cash and the conversion premium for shares. If the conversion prices for such instruments exceed our average stock price for the period, the instruments generally would have no impact to adjusted weighted average shares outstanding. This differs from the GAAP method for dilution from our convertible debt instruments, which include them on an if-converted method. We believe Adjusted EPS is useful to investors because it represents, on a per share basis, Expedia Group's consolidated results, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other items which are not allocated to the operating businesses such as interest expense, taxes, foreign exchange gains or losses, and minority interest, but excluding the effects of certain expenses not directly tied to the core operations of our businesses. Adjusted Net Income (Loss) and Adjusted EPS have similar limitations as Adjusted EBITDA. In addition, Adjusted Net Income (Loss) does not include all items that affect our net income (loss) and net income (loss) per share for the period. Therefore, we think it is important to evaluate these measures along with our consolidated statements of operations. Free Cash Flow is defined as net cash flow provided by operating activities less capital expenditures. Management believes Free Cash Flow is useful to investors because it represents the operating cash flow that our operating businesses generate, less capital expenditures but before taking into account other cash movements that are not directly tied to the core operations of our businesses, such as financing activities, foreign exchange or certain investing activities. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, it is important to evaluate Free Cash Flow along with the consolidated statements of cash flows. Adjusted Expenses exclude stock-based compensation related to expenses for stock options, restricted stock units and other equity compensation under applicable stock-based compensation accounting standards. Expedia Group excludes stock-based compensation from these measures primarily because they are non-cash expenses that we do not believe are necessarily reflective of our ongoing cash operating expenses and cash operating income. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting applicable stock-based compensation accounting standards, management believes that providing non-GAAP financial measures that exclude stock-based compensation allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies, as well as providing management with an important tool for financial operational decision making and for evaluating our own recurring core business operating results over different periods of time. There are certain limitations in using financial measures that do not take into account stock-based compensation, including the fact that stock-based compensation is a recurring expense and a valued part of employees' compensation. Therefore, it is important to evaluate both our GAAP and non-GAAP measures. See the Notes to the Consolidated Statements of Operations for stock-based compensation by line item. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These forward-looking statements are based on assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. The use of words such as "believe," "estimate," "expect" and "will," or the negative of these terms or other similar expressions, among others, generally identify forward-looking statements. However, these words are not the exclusive means of identifying such statements. In addition, any statements that refer to our outlook, expectations, projections or other characterizations of future events or circumstances are forward-looking statements and may include statements relating to future gross bookings; revenues; expenses; margins and margin expansion, including adjusted EBITDA margin expansion; profitability; net income (loss); earnings per share and other measures of results of operations and the prospects for future growth of Expedia Group’s business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others: intense competition from online travel agencies, suppliers, search engines, B2B businesses offering competing travel technology solutions and services, and emerging AI-powered platforms; declines or disruptions in the travel industry due to economic conditions, geopolitical events, or public health issues; dependence on relationships with travel suppliers and other B2B partners; dependence on search engines and changes to search algorithms or traffic acquisition costs; costs of maintaining brand awareness and marketing effectiveness; payment processing risks, fraud, and third-party payment provider dependencies; reliance on third-party business partners and service providers; challenges in international operations and regulatory compliance; risks from acquisitions, investments, divestitures, and commercial arrangements; ability to retain and attract qualified personnel and key executives; execution risks from strategic initiatives and operational transformations; counterparty risks and foreign exchange exposure; regulatory risks in alternative accommodations and evolving legal requirements; tax law changes and interpretation uncertainties; litigation and unfavorable legal outcomes; intellectual property protection and infringement risks; technology system failures, cybersecurity breaches, and data protection compliance; privacy regulation compliance across multiple jurisdictions; liquidity constraints and limited access to capital markets; substantial indebtedness and covenant restrictions; concentrated voting control and potential conflicts of interest; ESG-related costs, risks, and stakeholder expectations; climate change impacts on travel and operations; and stock price volatility. For more information about risks and uncertainties associated with Expedia Group’s business, please refer to the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of our most recently filed periodic reports on Form 10-K and Form 10-Q, which are available on our investor relations website at ir.expediagroup.com and on the SEC website at www.sec.gov. All information provided in this release is as of August 5, 2026. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in Expedia Group’s expectations unless required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805756029/en/ Contacts Investor Relations [email protected] Communications [email protected]

Online travel agency Expedia (NASDAQ:EXPE) reported Q2 CY2026 results topping the market’s revenue expectations , with sales up 14% year on year to $4.32 billion. Guidance for next quarter’s revenue was better than expected at $4.70 billion at the midpoint, 0.7% above analysts’ estimates. Its non-GAAP profit of $5.76 per share was 9.7% above analysts’ consensus estimates. Is now the time to buy Expedia? Find out in our full research report. Revenue: $4.32 billion vs analyst estimates of $4.17 billion (14% year-on-year growth, 3.5% beat) Adjusted EPS: $5.76 vs analyst estimates of $5.25 (9.7% beat) Adjusted EBITDA: $1.12 billion vs analyst estimates of $1.04 billion (25.9% margin, 8% beat) Revenue Guidance for Q3 CY2026 is $4.70 billion at the midpoint, roughly in line with what analysts were expecting Operating Margin: 18.5%, up from 12.8% in the same quarter last year Free Cash Flow Margin: 29.6%, down from 109% in the previous quarter Room Nights Booked: 111.5 million, up 6 million year on year Market Capitalization: $38.37 billion Originally founded as a part of Microsoft, Expedia (NASDAQ:EXPE) is one of the world’s leading online travel agencies. A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Regrettably, Expedia’s sales grew at a mediocre 8.6% compounded annual growth rate over the last three years. This fell short of our benchmark for the consumer internet sector and is a poor baseline for our analysis. This quarter, Expedia reported year-on-year revenue growth of 14%, and its $4.32 billion of revenue exceeded Wall Street’s estimates by 3.5%. Company management is currently guiding for a 6.5% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 5.1% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and indicates its products and services will see some demand headwinds. WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE. As an online travel company, Expedia generates revenue growth by increasing both the number of stays (or experiences) booked and the commission charged on those bookings. Over the last two years, Expedia’s room nights booked, a key performance metric for the company, increased by 8.1% annually to 111.5 million in the latest quarter. This growth rate is decent for a consumer internet business and indicates people enjoy using its offerings. In Q2, Expedia added 6 million room nights booked, leading to 5.7% year-on-year growth. The quarterly print was lower than its two-year result, suggesting its new initiatives aren’t accelerating booking growth just yet. Average revenue per booking (ARPB) is a critical metric to track because it not only measures how much users book on its platform but also the commission that Expedia can charge. Expedia’s ARPB has been roughly flat over the last two years. This isn’t great, but the increase in room nights booked is more relevant for assessing long-term business potential. We’ll monitor the situation closely; if Expedia tries boosting ARPB by taking a more aggressive approach to monetization, it’s unclear whether bookings can continue growing at the current pace. This quarter, Expedia’s ARPB clocked in at $38.70. It grew by 7.8% year on year, faster than its room nights booked. We were impressed by how significantly Expedia blew past analysts’ EBITDA expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 2.5% to $322.45 immediately following the results. Indeed, Expedia had a rock-solid quarterly earnings result, but is this stock a good investment here? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

Expedia (EXPE) came out with quarterly earnings of $5.76 per share, beating the Zacks Consensus Estimate of $5.45 per share. This compares to earnings of $4.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.69%. A quarter ago, it was expected that this online travel company would post earnings of $1.41 per share when it actually produced earnings of $1.96, delivering a surprise of +39.01%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Expedia, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $4.32 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.13%. This compares to year-ago revenues of $3.79 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Expedia shares have added about 10.2% since the beginning of the year versus the S&P 500's gain of 13%. While Expedia has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Expedia was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $8.42 on $4.69 billion in revenues for the coming quarter and $19.90 on $16.03 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Trip.com (TCOM), another stock in the same industry, has yet to report results for the quarter ended June 2026. This travel services company is expected to post quarterly earnings of $0.98 per share in its upcoming report, which represents a year-over-year change of -3%. The consensus EPS estimate for the quarter has been revised 8.1% lower over the last 30 days to the current level. Trip.com's revenues are expected to be $2.29 billion, up 10.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Trip.com Group Limited Sponsored ADR (TCOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research