Airbnb Raises Revenue Growth Outlook to High Teens; Shares Jump More Than 10%
Key Facts
Airbnb shares jumped more than 10% on Friday, November 6, after the company raised its 2026 annual revenue growth outlook to the “high teens,” citing continued global demand for leisure travel. The move came in extended trading after the results were announced. The stock had closed at $170.13 on November 5, down from $176.37 in the previous session, according to EL7 data. The company reported third-quarter results on November 5, posting revenue of $4.9 billion, up 19% year over year. Airbnb said this was its fastest revenue growth in more than three years. Reuters linked the upbeat outlook to resilient global demand for leisure travel, as other travel companies voiced caution about industry challenges.
Diluted earnings per share were $3.16 in the quarter ended September 30, compared with $2.21 a year earlier, according to Reuters’ coverage. Revenue reached $4.87 billion, exceeding the analyst consensus of $4.75 billion. Booking indicators grew faster than revenue: gross booking value rose 21% year over year to $27.7 billion. Nights and seats booked increased 16% over the same period. The company attributed the rise in gross booking value to strong demand and a modest increase in average daily rates, reflecting contributions from both activity and pricing.
Airbnb raised its fiscal 2026 revenue growth outlook to the “high teens,” from its previous expectation of at least the “mid-teens.” After the second quarter, it had raised its outlook to “at least 15%,” compared with the “low-to-mid teens” range announced after the first quarter. The company expects an annual adjusted EBITDA margin of about 36%. In the third quarter, net income was $1.9 billion, while adjusted EBITDA rose 22% year over year to $2.5 billion, with a 52% margin. The company also authorized up to $12 billion in additional Class A share repurchases.
Nights booked grew across all regions, recording double-digit growth in each region in the third quarter, according to Airbnb. Growth accelerated in the company’s five core markets: the United States, France, the United Kingdom, Canada and Australia. In North America, nights booked recorded their fastest growth in four years. Growth in first-time bookers also accelerated to 13% year over year for the first time, its highest level since early 2022. The company said Gen Z was the fastest-growing group among first-time bookers, adding to evidence of a widening user base.
The third-quarter results followed a 17% increase in second-quarter revenue to $3.6 billion, when gross booking value rose 16% to $27.2 billion and nights and seats booked increased 10%. Chief Executive Brian Chesky said on the earnings call that the company was “back on a growth trajectory,” pointing to accelerating demand across regions and continued momentum in newer markets. This trajectory contrasts with recent comments from Booking Holdings, Expedia and Tripadvisor, which cited challenges related to higher airfares caused by the Iran war and disruptions in parts of Europe, according to Reuters. Airbnb said it was monitoring developments in Europe, the Middle East and Africa, along with global demand momentum and leisure travel. The divergence puts the company’s upbeat outlook against travel-cost pressures cited by industry competitors.
Airbnb expects fourth-quarter revenue of between $3.22 billion and $3.28 billion, equivalent to year-over-year growth of between 16% and 18%, including a roughly two-percentage-point positive foreign-exchange impact after hedging. It also expects gross booking value growth in the mid-teens, supported by at least low-teens growth in nights and seats booked and a modest increase in average daily rates. On operating efficiency, the company said about 40% of customer-support issues in the third quarter were resolved without human agent involvement, compared with one-third in the second quarter. Customer-support cost per booking fell more than 17% year over year. The company plans to begin rolling out an AI-powered travel agent for guests in the first half of 2027 to help them plan and book trips.