Expedia lifts 2026 outlook after strong Q2

Expedia Group delivered a solid second quarter of 2026, reporting adjusted earnings per share of $5.76 and revenue of $4.32 billion. The performance reflected robust travel demand across the platform and set the stage for a more confident full-year view. Management pointed to both consumer and partner trends as supportive of continued growth through the rest of the year.

Gross bookings in the quarter reached $33.9 billion, an increase of 12% from the prior-year period. Booked room nights rose 6%, indicating higher transaction volumes, while average daily rates increased about 5% on a currency-neutral basis, contributing to revenue growth. These metrics together illustrate both more trips being booked and travelers paying higher prices per stay.

Profitability also strengthened, with adjusted EBITDA of roughly $1.1 billion. This translated into a margin of 25.9%, nearly 2 percentage points higher than a year earlier. The combination of higher bookings, firmer pricing and operating leverage supported this margin expansion, providing room for the company to lift its full-year targets.

Reflecting the strong first-half performance and underlying demand trends, Expedia raised its full-year 2026 outlook. The company now expects gross bookings in a range of $129.5 billion to $130.8 billion. This updated range signals confidence in sustaining elevated travel activity over the remainder of the year.

Revenue guidance was also increased, with the company now projecting between $16.05 billion and $16.22 billion for 2026. In addition, Expedia raised its expectation for adjusted EBITDA margin expansion to 150 to 175 basis points versus the prior year. The higher margin ambitions suggest continued focus on efficiency and scale benefits alongside top-line growth.

Management cited resilient U.S. domestic travel demand as a core driver behind the outlook upgrade. The company also underscored sustained momentum in its B2B segment, which includes partnerships and white-label travel services. Together, these factors are expected to support both growth in gross bookings and improved profitability.

The improvement in both volume and pricing highlights continued consumer willingness to spend on travel, even with higher hotel prices and airfares. Rising room nights point to ongoing interest in trips, while higher average daily rates suggest that accommodations providers have been able to maintain or increase pricing.

The B2B business has emerged as an important contributor to Expedia’s growth profile. Momentum in this area complements the core consumer travel brands by broadening the company’s reach through partners. This diversified mix, alongside solid domestic travel demand, provides the backdrop for the company’s upgraded 2026 guidance on bookings, revenue and margins.