Expedia Q2 2026: revenue up 14%, EPS $7.16, full-year guidance raised
Expedia closed fiscal 2026's second quarter with a broad beat: revenue of $4.32 billion rose 14.0%, GAAP EPS of $7.16 nearly tripled and adjusted EPS of $5.76 beat the $5.34 consensus. Management raised full-year revenue and margin guidance. The wobble is mix: B2B is now the growth engine but earns thinner margins, and shareholder equity is thin against debt.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $7.16 was up 188% from $2.48, and adjusted EPS of $5.76 was up 36% and roughly $0.42 above the $5.34 consensus. The gap between the two is a $280 million gain on minority equity investments, which flatters the GAAP number but is stripped out of adjusted EPS. Expedia also repurchased $200 million of stock and paid a $0.48 dividend.
Revenue of $4.32 billion rose 14.0% from $3.79 billion, with gross margin of 90.7% — for a marketplace, almost everything that comes in is profit before marketing. Lodging supplied $3.43 billion of it, B2B revenue grew 23.0% to $1.49 billion and trivago advertising grew 48.0%. Volumes and price both helped: booked room nights rose 6% and average daily rate rose 5%.
Management raised full-year revenue guidance to $16.05–$16.22 billion from $15.6–$16.0 billion and lifted expected adjusted EBITDA margin expansion to 1.5–1.75 points from 1.0–1.25 points. Third-quarter revenue is guided to $4.65–$4.75 billion, growth of 5%–8%, with adjusted EBITDA of $1.51–$1.56 billion. Last quarter's revenue guide was beaten by about 4.0%, so the pattern here reads as conservative targets rather than stretched ones.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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