Expedia (1EXPE) Q2 2026 Earnings Report

The call conveyed a predominantly positive view: strong Q2 operational and financial outperformance (bookings +12%, revenue +14%, adjusted EBITDA +23%), robust cash generation and capital returns, continued B2B momentum, and product/AI milestones that support future growth. Management raised full‑year guidance and increased margin expansion targets. Offsetting factors included regional softness in Europe, near‑term margin moderation in Q3 due to lapping and FX, B2B investment-related cost pressure, SEO softness, and tougher second-half comps. Overall, the positives (beat results, raised guidance, strong cash flow and strategic progress) materially outweigh the noted headwinds.

Expedia raised its outlook, guiding Q3 gross bookings of $32.2B–$32.8B (≈+5%–7% YoY, ~1 point FX headwind at current rates), Q3 revenue of $4.65B–$4.75B (≈+5%–8% YoY, ~1 point FX tailwind), and Q3 adjusted EBITDA of $1.51B–$1.56B (implying a 32.5%–32.8% margin, with margin expansion moderating in Q3 due to lapping prior cost actions, B2B investments and FX), while raising full‑year guidance to gross bookings of $129.5B–$130.8B (+8%–9% YoY) and revenue of $16.05B–$16.22B (+9%–10% YoY) (full‑year FX tailwinds of ~1 point to bookings and ~2 points to revenue) and now expects adjusted EBITDA margin expansion of 150–175 basis points versus last year (with Q4 margin improvement expected to pick up, roughly ~50 bps at the midpoint).