Expedia raises price target after strong Q2 earnings

THE NEWS: Expedia Group raised its full‑year 2026 revenue forecast to $16.05‑$16.22 billion after reporting Q2 2026 results that showed 14% revenue growth, a 12% rise in gross bookings and $1.10 billion adjusted EBITDA, up 23% year‑over‑year.

DETAILS:

WHY IT MATTERS: The upgraded forecast signals confidence in Expedia’s growth trajectory, but analyst concerns about valuation suggest investors should weigh the strong performance against potential overpricing.

FAQ

What is Expedia’s new full‑year revenue forecast for 2026?
Expedia Group raised its full‑year 2026 revenue outlook to a range of $16.05 billion to $16.22 billion, up from the previously disclosed range, following a strong second‑quarter performance. The adjustment reflects 14% revenue growth and robust booking trends reported for the quarter.

How much did Expedia’s adjusted EBITDA increase in Q2 2026?
Adjusted EBITDA for Q2 2026 was $1.10 billion, representing a 23% year‑over‑year increase, underscoring the company’s improving profitability amid rising bookings and revenue. This profit boost came as gross bookings grew 12% and consumer bookings rose 8% thanks to AI‑driven personalization.

How long has Expedia’s B2B segment been growing consecutively?
Expedia’s B2B segment has posted growth for 20 consecutive quarters, highlighting sustained demand from travel partners and agencies even as consumer bookings increased 8% in the quarter. The continued expansion reflects the platform’s broadening reach and the effectiveness of its AI‑powered personalization tools.

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