Airbnb jumps 11% in after-hours trading after raising 2026 revenue growth outlook
Key Facts
Airbnb shares rose 11% in after-hours trading on November 5, after the company reported third-quarter results and raised its revenue growth outlook for 2026, according to Reuters. The move followed a close of $170.13 in the regular session, according to EL7 data. The company reported quarterly revenue of $4.87 billion, up approximately 19% year over year. Revenue exceeded analysts’ average estimate of $4.75 billion. Diluted earnings per share were $3.16, compared with $2.21 in the same period a year earlier.
Bookings bolstered revenue growth, with gross booking value rising 21% year over year to $27.7 billion in the quarter. Nights and seats booked increased 16% from the same period a year earlier. Airbnb said growth in gross booking value was driven by strong demand and a modest increase in average daily rates. In North America, booked nights grew at their fastest pace in four years. The company said all regions posted double-digit growth in nights, with growth accelerating in its five core markets: the United States, France, the United Kingdom, Canada and Australia.
The results showed a broadening customer base, with bookings by first-time customers accelerating to 13% annual growth. Airbnb said this was the fastest pace for that growth since early 2022, and that Gen Z was the fastest-growing group among them. The company described third-quarter revenue growth as its fastest in more than three years. It also posted net income of $1.9 billion for the quarter. Adjusted EBITDA rose 22% to $2.5 billion, with a margin of 52%.
Airbnb raised its full-year revenue growth outlook to the high teens, from previous guidance for growth of at least the mid-teens, according to Reuters. The company said it expects its adjusted EBITDA margin for 2026 to rise to about 36%. For the fourth quarter, it set a revenue outlook of $3.22 billion to $3.28 billion. That implies expected year-over-year growth of 16% to 18%. The company also expects fourth-quarter gross booking value to grow at a rate in the mid-teens.
The company pointed to operational factors it said were supporting performance, including a reduction of more than 17% in customer support costs per booking in the third quarter. About 40% of support issues were resolved without human intervention, compared with a third of issues in the second quarter. Airbnb said it launched more than 50 products and features during the quarter, an increase of about 70% from the same period a year earlier. It also announced a new authorization to repurchase up to an additional $12 billion of Class A shares. These figures combine booking growth, improvements in some operating indicators and capital allocation to shareholders.
On demand, Airbnb said global travel demand remained healthy and that it was monitoring developments in Europe and the Middle East. Reuters quoted the chief financial officer as saying the company does not expect a material impact in the current quarter from unrest in France or the conflict in the Middle East. She added that the company is tracking trends in both regions. This places the company’s announced growth outlook alongside its monitoring of developments that could affect travel markets. The company also said strong demand and a modest increase in average daily rates contributed to the rise in gross booking value during the quarter.
The company’s technology plans extend to trip planning, with an intelligent agent to help guests that it intends to begin rolling out in the first half of 2027. Airbnb said the rollout will begin with guests during that period. The announcement follows the company’s statement that it launched more than 50 products and features in the third quarter. The company said the pace of launches was about 70% higher than a year earlier. In the near term, the company is looking to deliver on its fourth-quarter revenue outlook and mid-teens gross booking value growth forecast.