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Expedia Group (EXPE) is taking a trip south despite beating expectations on the top and bottom line in its Q4 report last night. Revenue increased 11.4% yr/yr to $3.55 bln, its strongest growth in over two years. Additionally, Q1 revenue guidance was above expectations at $3.32-3.37 bln, while the midpoint of FY26 revenue guidance of $15.6-16.0 bln was modestly ahead of expectations.

• Booked room nights increased 9% yr/yr, above its prior guidance but below Q3's 11%, driven by high single-digit growth in the U.S. and low-double-digit growth in EMEA and rest of world.
• Gross bookings increased 11% yr/yr, slightly slower than Q3's 12%, though management reiterated consumer spending remained healthy, with longer booking windows and longer stays.
• B2B remained a standout as bookings and revenue increased 24% yr/yr to $8.7 bln and $1.3 bln, respectively, with continued double-digit growth across all regions. Advertising revenue increased 19% yr/yr.
• Consumer brand bookings rose 5%, with double-digit growth outside the U.S., and Brand Expedia, Hotels.com, and Vrbo all delivered yr/yr bookings growth for the second consecutive quarter.
• Adj. EBITDA margin expanded about 4 pts to 24% on expense leverage, and EXPE expects another 100-125 bps of expansion in FY26 while selectively reinvesting, including in AI.
• On AI search risk, it is not seeing a material traffic impact as Google (GOOG) and others roll out more AI travel features, and views GenAI integrations as an opportunity to reach more travelers over time.
• Q1 gross bookings are expected to increase 10-12%, keeping the recent double-digit pace but staying relatively stable, while FY26 bookings are guided to grow 6-8%, with the low end reflecting a more cautious stance amid macro uncertainty, as it saw some softness in Asia-related travel corridors.

Briefing.com Analyst Insight

This was another strong quarter from EXPE, with solid growth across gross bookings and room nights and a healthy demand backdrop. Continued strength in the U.S. and sequential acceleration in EMEA were encouraging, and management noted consumers are still booking earlier and staying longer. B2B and advertising also stood out again, helping reinforce that its growth vectors are working. That said, the stock's reaction likely reflects expectations getting ahead of themselves. Results and guidance read more steady than accelerating, and management's FY26 outlook leans cautious at the low end amid macro uncertainty and some softness in Asia-related travel corridors. EXPE also addressed AI-search risk, noting no material traffic impact yet, but recognizing AI-driven discovery could reshape how travelers start planning over time. For now, it's an overhang but also an opportunity, and execution on product, loyalty, and direct engagement will be key to sustaining momentum.