Expedia Surges on Blowout Earnings and Raised Outlook

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•  07 Nov 2025
 

•   EXPE  
   
  -0.20%

$EXPE just delivered the kind of quarter that makes investors take notice. The stock popped over 17% after reporting third-quarter results that crushed expectations across the board, and more importantly, raised guidance in a way that suggests this momentum isn't slowing down.

The headline numbers were impressive. Adjusted earnings hit $7.57 per share, beating estimates by $0.62 and up 23% year-over-year. Revenue came in at $4.41 billion, $150 million above consensus. But what really matters for the growth story is what's happening with bookings. Total bookings reached $30.7 billion, up 12% from last year, with the B2B segment absolutely crushing it at 26% growth marking the 17th straight quarter of double-digit expansion in that segment.

CEO Ariane Gorin made it clear the company is firing on all cylinders. Lodging bookings jumped 13%, and room nights booked increased 11%, the strongest US performance in three years. EBITDA surged 16% to $1.45 billion with a 33% margin, and the company expanded operating margins by more than 2 percentage points while growing the top line. That's the kind of operating leverage investors dream about.

The guidance revision is where things get really interesting. Expedia raised full-year booking growth expectations to around 7%, up from the previous 3-5% forecast. Revenue growth guidance moved to 6-7% from 3-5%. Most telling, adjusted operating margin is now expected to expand 5-6% versus the prior estimate of roughly 3%. For Q4, the company is guiding to 6-8% growth in both revenue and bookings with continued margin improvement.

What's driving this? Americans are traveling more and booking further in advance. Business travel continues its strong recovery. The company's AI investments are showing up in real margin expansion, not just promises. And with $6.2 billion in cash, $3 billion in trailing free cash flow, and an active buyback program, Expedia has the financial flexibility to keep investing in growth while rewarding shareholders.

The stock is up roughly 48% over the past year and 39% year-to-date. After this earnings beat and guidance raise, the momentum looks sustainable. Travel demand is strong, Expedia is taking share, and margins are expanding. Sometimes the best opportunities are the most obvious ones, and right now, $EXPE is making a pretty compelling case for itself in the travel recovery trade.

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