Expedia Group (NASDAQ:EXPE) Announces Quarterly Earnings Results, Beats Expectations By $0.46 EPS

Key Points

• Expedia beat Q4 expectations, reporting EPS of $3.78 (vs. $3.32 est.) and revenue of $3.55B (vs. $3.41B), with adjusted EBITDA of $848M, ~$5.7B in cash, $3.1B FCF for the year, ongoing buybacks and a 20% dividend increase.
• B2B and advertising drove growth — B2B bookings and revenue grew ~24% and advertising rose ~19%, and management raised FY‑2026 revenue guidance to $15.6–$16.0B, signaling durable higher‑margin demand from business clients.
• Management is reinvesting savings into growth (notably AI and B2B hires), which pressured B2B EBITDA margins by about one point and left near‑term EPS/guidance unclear, creating some margin and headline uncertainty despite the strong print.

Expedia Group (NASDAQ:EXPE - Get Free Report) issued its earnings results on Thursday. The online travel company reported $3.78 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.32 by $0.46, Briefing.com reports. The firm had revenue of $3.55 billion for the quarter, compared to analysts' expectations of $3.41 billion. Expedia Group had a net margin of 9.66% and a return on equity of 64.15%. Expedia Group's revenue was up 11.4% on a year-over-year basis. During the same quarter last year, the company posted $2.39 earnings per share.

Here are the key takeaways from Expedia Group's conference call:

• Expedia outperformed guidance in Q4 with bookings and revenue up ~11%, adjusted EBITDA of $848M and ~4 points of margin expansion, plus $5.7B cash, $3.1B FCF for the year, ongoing buybacks and a 20% dividend increase.
• B2B and advertising showed strong momentum — B2B bookings grew ~24% (revenue +24%) and advertising revenue was up ~19%, with product rollouts (video ads) and a Tiqets acquisition to broaden experiences.
• Management plans to reinvest savings into growth (notably B2B and AI hires), which pressured B2B EBITDA margins (~1 point decline) and could modestly weigh on near-term margin expansion.
• Expedia is accelerating AI and product work — sites/apps are ~30% faster, improved checkout and personalization increased attach rates, and the company is experimenting with GenAI integrations to capture upstream trip discovery.
• Supply and traveler experience improvements are driving value — lodging properties grew >10% YoY, partner-funded promotions exceeded 30% of bookings, Vrbo Care and servicing upgrades raised self-service and reduced agent wait times.

Expedia Group Stock Performance

Shares of NASDAQ EXPE opened at $227.24 on Friday. Expedia Group has a 1 year low of $130.01 and a 1 year high of $303.80. The firm has a market cap of $27.84 billion, a P/E ratio of 21.75, a PEG ratio of 0.72 and a beta of 1.41. The stock has a fifty day moving average price of $274.41 and a two-hundred day moving average price of $239.82. The company has a debt-to-equity ratio of 1.72, a quick ratio of 0.74 and a current ratio of 0.74.

Key Headlines Impacting Expedia Group

Here are the key news stories impacting Expedia Group this week:

• Positive Sentiment: Q4 earnings beat one estimate — Zacks reports adjusted Q4 EPS of $3.78 vs. a $3.46 consensus, showing solid year‑over‑year improvement. Read More.
• Positive Sentiment: Company forecasts 2026 gross bookings and revenue above Street expectations, citing strong demand from business clients — a driver for durable B2B revenue growth. Read More.
• Positive Sentiment: Management highlighted B2B strength — WSJ notes the B2B segment drove ~11% sales growth in Q4, supporting higher‑margin, recurring revenue opportunities. Read More.
• Positive Sentiment: Company raised its dividend and touted strong full‑year results in its earnings release, which can support investor confidence and income investors’ interest. Read More.
• Positive Sentiment: FY‑2026 revenue guidance was raised to $15.6B–$16.0B versus a ~$15.3B consensus, implying revenue upside for the year (management forecasted higher full‑year top line).
• Neutral Sentiment: Q1 revenue guidance was given at ~$3.3B–$3.4B versus a ~$3.4B consensus — essentially in line to slightly below expectations; EPS guidance was not clearly specified in releases, leaving near‑term profit expectations uncertain.
• Neutral Sentiment: Company released the conference call materials and slide deck for investors to review the details behind results and guidance. Read More.
• Neutral Sentiment: Analyst commentary ahead of/after the print is mixed — some bullish takes (Truist), while comparative writeups and previews debate AI risks versus B2B strength. Read More.
• Negative Sentiment: Another headline source reported a Q4 EPS miss (MarketBeat showing $3.10 vs. $3.32 consensus), creating conflicting headlines and investor confusion over which measure to use — that ambiguity likely pressured the stock. Read More.
• Negative Sentiment: Missing/unclear EPS guidance for Q1 and FY left investors with uncertainty on margins and near‑term profitability, amplifying volatility despite the stronger B2B story.

Insiders Place Their Bets

In related news, CAO Lance A. Soliday sold 849 shares of the firm's stock in a transaction that occurred on Friday, November 21st. The shares were sold at an average price of $248.08, for a total transaction of $210,619.92. Following the completion of the sale, the chief accounting officer directly owned 11,662 shares in the company, valued at approximately $2,893,108.96. This trade represents a 6.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Madhumita Moina Banerjee sold 1,000 shares of Expedia Group stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $258.00, for a total transaction of $258,000.00. Following the completion of the transaction, the director owned 2,916 shares in the company, valued at approximately $752,328. This trade represents a 25.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 9.13% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Expedia Group

A number of large investors have recently made changes to their positions in the company. Windacre Partnership LLC raised its holdings in shares of Expedia Group by 9.2% during the third quarter. Windacre Partnership LLC now owns 3,682,100 shares of the online travel company's stock worth $787,049,000 after acquiring an additional 309,900 shares in the last quarter. AQR Capital Management LLC increased its position in Expedia Group by 25.0% in the 3rd quarter. AQR Capital Management LLC now owns 3,645,732 shares of the online travel company's stock worth $779,275,000 after purchasing an additional 728,063 shares during the last quarter. Invesco Ltd. raised its stake in shares of Expedia Group by 8.0% during the 3rd quarter. Invesco Ltd. now owns 3,122,842 shares of the online travel company's stock worth $667,507,000 after purchasing an additional 230,176 shares in the last quarter. Wellington Management Group LLP lifted its holdings in shares of Expedia Group by 24,899.5% during the 3rd quarter. Wellington Management Group LLP now owns 1,808,466 shares of the online travel company's stock valued at $386,560,000 after buying an additional 1,801,232 shares during the last quarter. Finally, Federated Hermes Inc. grew its stake in shares of Expedia Group by 7.4% in the 4th quarter. Federated Hermes Inc. now owns 674,820 shares of the online travel company's stock valued at $191,183,000 after buying an additional 46,596 shares in the last quarter. Institutional investors and hedge funds own 90.76% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Royal Bank Of Canada increased their target price on Expedia Group from $260.00 to $290.00 and gave the stock a "sector perform" rating in a research report on Wednesday, December 17th. Wells Fargo & Company lifted their price objective on shares of Expedia Group from $272.00 to $329.00 and gave the company an "equal weight" rating in a research report on Friday, January 9th. BMO Capital Markets boosted their target price on shares of Expedia Group from $205.00 to $250.00 in a research note on Friday, November 7th. Cantor Fitzgerald lifted their price target on Expedia Group from $220.00 to $285.00 and gave the company a "neutral" rating in a report on Friday, November 7th. Finally, Evercore increased their price objective on Expedia Group from $280.00 to $350.00 and gave the stock an "outperform" rating in a report on Tuesday, November 25th. Fourteen investment analysts have rated the stock with a Buy rating and twenty have assigned a Hold rating to the stock. According to data from MarketBeat, Expedia Group currently has a consensus rating of "Hold" and a consensus target price of $292.23.

Expedia Group Company Profile

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.