Expedia Group (NASDAQ:EXPE) Announces Quarterly Earnings Results, Beats Expectations By $0.54 EPS

Key Points

• Expedia beat quarterly expectations: EPS came in at $5.76 versus the $5.22 consensus, while revenue reached $4.32 billion, up 14% year over year and ahead of estimates.
• The company raised its full-year outlook for gross bookings, revenue and adjusted EBITDA margin expansion, citing resilient U.S. travel demand, stronger loyalty performance and improved marketing returns.
• Near-term growth is expected to moderate: Expedia cited tougher comparisons, ongoing B2B investment, foreign-exchange headwinds and continued pressure on European outbound travel.

Expedia Group (NASDAQ:EXPE - Get Free Report) released its quarterly earnings data on Wednesday. The online travel company reported $5.76 EPS for the quarter, topping the consensus estimate of $5.22 by $0.54, FiscalAI reports. The company had revenue of $4.32 billion during the quarter, compared to the consensus estimate of $4.17 billion. Expedia Group had a return on equity of 84.33% and a net margin of 9.81%.Expedia Group's revenue for the quarter was up 14.0% on a year-over-year basis. During the same period last year, the company earned $4.24 EPS.

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

• Q2 results exceeded expectations, with gross bookings up 12%, revenue up 14%, adjusted EBITDA up 23% to $1.1 billion, and adjusted EPS up 36% year over year.
• Expedia 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.
• The B2B business delivered its 20th consecutive quarter of double-digit growth, while Expedia continues expanding its one-stop travel shop through investments and acquisitions including Tiqets and the proposed CarTrawler deal.
• Consumer demand remained resilient, particularly in the U.S., supported by longer stays and booking windows, stronger loyalty-member performance, improved marketing returns, AI-driven personalization, and higher product attach rates.
• Expedia expects Q3 growth and margin expansion to moderate because of tougher comparisons, lapping prior cost reductions, continued B2B investment, and unfavorable foreign-exchange impacts; Europe, especially outbound travel, also remains pressured by macroeconomic conditions and reduced air capacity.

Expedia Group Price Performance

Shares of EXPE traded up $7.60 during trading hours on Wednesday, reaching $319.66. 3,007,399 shares of the stock traded hands, compared to its average volume of 1,561,594. The company has a market cap of $39.17 billion, a P/E ratio of 28.14, a price-to-earnings-growth ratio of 0.81 and a beta of 1.22. The company has a current ratio of 0.73, a quick ratio of 0.73 and a debt-to-equity ratio of 2.43. The company's 50-day moving average price is $257.56 and its two-hundred day moving average price is $243.87. Expedia Group has a 52-week low of $181.58 and a 52-week high of $326.99.

Expedia Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Thursday, May 28th were paid a dividend of $0.48 per share. The ex-dividend date was Thursday, May 28th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 0.6%. Expedia Group's payout ratio is 16.90%.

Insider Activity

In related news, CAO Lance A. Soliday sold 940 shares of Expedia Group stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $221.86, for a total transaction of $208,548.40. Following the sale, the chief accounting officer owned 14,083 shares of the company's stock, valued at approximately $3,124,454.38. This trade represents a 6.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Robert J. Dzielak sold 4,702 shares of Expedia Group stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $233.00, for a total transaction of $1,095,566.00. Following the sale, the insider owned 105,448 shares in the company, valued at approximately $24,569,384. The trade was a 4.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 5.20% of the company's stock.

Institutional Investors Weigh In On Expedia Group

A number of hedge funds have recently bought and sold shares of EXPE. Wellington Management Group LLP lifted its holdings in shares of Expedia Group by 24,899.5% in 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 acquiring an additional 1,801,232 shares during the last quarter. AQR Capital Management LLC lifted its position in shares of Expedia Group by 25.0% during the third 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. First Trust Advisors LP grew its stake in Expedia Group by 594.0% in the 4th quarter. First Trust Advisors LP now owns 583,830 shares of the online travel company's stock worth $165,405,000 after acquiring an additional 499,706 shares in the last quarter. Voloridge Investment Management LLC increased its holdings in Expedia Group by 465.6% during the 3rd quarter. Voloridge Investment Management LLC now owns 452,867 shares of the online travel company's stock worth $96,800,000 after purchasing an additional 372,798 shares during the period. Finally, Corient Private Wealth LLC grew its position in shares of Expedia Group by 664.4% during the 4th quarter. Corient Private Wealth LLC now owns 397,165 shares of the online travel company's stock worth $112,521,000 after buying an additional 345,210 shares in the last quarter. Hedge funds and other institutional investors own 90.76% of the company's stock.

Analyst Ratings Changes

A number of analysts have recently commented on the stock. Susquehanna lifted their price target on shares of Expedia Group from $240.00 to $250.00 and gave the stock a "neutral" rating in a research note on Monday, May 11th. Citigroup restated a "neutral" rating on shares of Expedia Group in a research report on Monday, May 18th. The Goldman Sachs Group restated a "buy" rating and issued a $330.00 target price on shares of Expedia Group in a report on Monday, July 20th. BTIG Research reaffirmed a "buy" rating and issued a $330.00 target price on shares of Expedia Group in a research report on Tuesday, June 9th. Finally, Truist Financial boosted their target price on shares of Expedia Group from $246.00 to $309.00 and gave the company a "hold" rating in a research note on Monday. Seventeen analysts have rated the stock with a Buy rating and twenty-two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $292.67.

Key Expedia Group News

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

• Positive Sentiment: Quarterly earnings and revenue beat estimates: Expedia reported second-quarter earnings of $5.76 per share, up from $4.24 a year earlier and above analyst estimates ranging from $5.22 to $5.45. Revenue rose 14% year over year to $4.32 billion, exceeding the roughly $4.17 billion consensus. Expedia Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Full-year revenue outlook raised: Expedia now expects 2026 revenue of approximately $16.1 billion to $16.2 billion, above its previous $15.6 billion-to-$16.0 billion range and slightly ahead of the roughly $16.0 billion analyst consensus. Expedia Raises Revenue View on Higher Profit, Revenue
• Positive Sentiment: Demand trends remain favorable: Management raised its annual forecast as domestic travel demand stayed resilient, suggesting continued support for bookings and revenue growth. Expedia Raises Annual Forecast on Resilient Domestic Travel Demand
• Positive Sentiment: Near-term revenue outlook is in line with expectations: Expedia projected third-quarter revenue of $4.7 billion to $4.8 billion, consistent with the consensus estimate, while its updated full-year revenue forecast exceeded expectations.
• Positive Sentiment: Analyst sentiment was supportive: Truist Financial indicated that Expedia’s stock was expected to rise, adding to the positive reaction surrounding the earnings report. Truist Analyst Expects Expedia Stock to Rise

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.

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 contact@marketbeat.com.

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