Expedia Group raised its 2026 revenue outlook to as much as $16.22 billion after Q2 revenue increased 14% year-over-year to $4.315 billion, with strong B2B growth, margin expansion and higher cash generation allowing management to lift several components of its full-year forecast.
Expedia now expects full-year revenue of $16.05 billion to $16.22 billion, representing 9% to 10% growth. Its previous guidance called for $15.6 billion to $16 billion and 6% to 9% growth.
Full-year gross bookings guidance was also increased to $129.5 billion to $130.8 billion, representing growth of 8% to 9%, compared with the previous range of $127 billion to $129 billion.
The company also raised its profitability outlook. Expedia now expects adjusted EBITDA margin expansion of 150 to 175 basis points for the year, up from the prior expectation of 100 to 125 basis points.
Q2 gross bookings increased 12% to $33.93 billion, while booked room nights increased 6% to 111.5 million. Lodging gross bookings increased 11%.
B2B continued to be one of Expedia’s largest growth drivers. B2B gross bookings increased 21%, compared with 8% growth for B2C, while B2B revenue increased 23%.
Geographic diversification also contributed to growth. Revenue from non-U.S. points of sale increased 18% to $1.745 billion, while U.S. revenue rose 12% to $2.57 billion.
Profitability increased much faster than revenue. Operating income climbed 65% to $800 million, net income attributable to Expedia increased 166% to $878 million and diluted GAAP EPS jumped 188% to $7.16.
Adjusted EBITDA increased 23% to $1.119 billion, with 196 basis points of margin expansion, while adjusted EPS increased 36% to $5.76.
Free cash flow reached $1.279 billion, up 39%, while operating cash flow increased 32% to $1.478 billion. Expedia also repurchased approximately 880,000 shares for $200 million during the quarter.
Management is also using AI to improve personalization, accelerate product innovation and increase operating efficiency across the marketplace, potentially adding another lever for future margin expansion.
KEY QUOTES:
“We exceeded the high end of our guidance in the quarter, driven by growth in our consumer brands, sustained B2B momentum, and disciplined execution.”
“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.”
Ariane Gorin, CEO of Expedia Group
