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Expedia Group (EXPE) is taking a trip higher following its Q3 results last night, as the online travel agency delivered its largest EPS upside in over three years, with revenue up 8.7% yr/yr to $4.41 bln, nicely above expectations. Adding to the enthusiasm, management raised FY25 revenue growth to 6-7% (from 3-5%), or roughly $14.5-14.6 bln, and lifted bookings growth to 7% (from 3-5%), signaling sustained demand momentum across both consumer and partner channels.

• Booked room nights increased 11%, led by its strongest U.S. night growth in over three years and acceleration across core regions and brands. Total bookings rose 12%, a notable pickup from +5% in Q2.
• The results reflect a broadly improved demand environment, with management citing longer booking windows and lengths of stay, as well as healthy demand at both the premium and value tiers.
• B2B bookings surged 26%, marking the 17th consecutive quarter of double-digit growth, while Advertising revenue rose 16% on record partner participation.
• On the consumer side, Brand Expedia bookings climbed 7%, accelerating from Q2 and supported by double-digit international growth alongside stronger U.S. trends. Hotels.com grew at its fastest pace in over two years following its relaunch.
• Management highlighted ongoing benefits from its AI integration and platform unification, which are driving improved conversion, personalization, and margin efficiency.
• Looking ahead, management noted continued momentum in October, though the Q4 guidance of 6-8% bookings growth reflects tougher yr/yr comparisons. It also expects further margin expansion in FY26.

Briefing.com Analyst Insight

This was an impressive report from Expedia, lifting shares to new all-time highs. Bookings and room nights accelerated, with U.S. growth the strongest in over three years and international demand remaining robust. As mentioned in the preview, U.S. travel commentary was a key focus, and it came in notably positive, with management calling the market healthy and citing longer booking windows and stays. The continued momentum into October and raised FY25 guidance, alongside expectations for further margin expansion in FY26, point to sustained strength. With a healthier travel backdrop, strong B2B and ad momentum, and expanding AI-driven efficiencies, EXPE looks well positioned to extend its momentum into 2026.