Expedia Group Inc.

Expedia Group reported second-quarter 2026 results with sales of US$4.32 billion and net income of US$878 million, while raising its full-year 2026 revenue guidance to US$16.05 billion to US$16.22 billion. The company also confirmed third-quarter revenue guidance of US$4.65 billion to US$4.75 billion, affirmed a US$0.48 quarterly dividend, and completed a US$4.33 billion share buyback program that reduced its share count by just over 20%. Management highlighted confidence in cash generation and business momentum, though the article notes that rising dependence on paid search and promotional spend could still pressure margins. The piece frames the results within an investment narrative built around AI, B2B partnerships, and loyalty growth, and notes that some optimistic analysts had already assumed revenue could reach about US$20.6 billion and earnings US$3.9 billion.

The next phase of the AI trade may reward companies that use AI to cut costs and lift profits rather than the chipmakers and infrastructure builders that led the first leg. Travel platforms Airbnb, Booking Holdings, and Expedia have surged nearly 40% at the median since May 19, while hotels are roughly flat, as AI begins to show up in measurable business results. Airbnb says nearly 45% of customer issues that begin with its AI assistant are resolved without a human, and customer support cost per booking has fallen roughly 16% from a year ago. Booking reports customer service cost per booking falling at a double-digit rate with AI investments already producing a positive return. Choice Hotels and Wyndham are also reporting hard AI gains, including a 360-basis-point lift in group-request conversion and a more than 500-basis-point boost in direct contribution at participating hotels, yet both stocks are down since May 19 and trade around 15 times forward earnings with analyst estimates down about 7% over the past three months.

Expedia reported second-quarter revenue of $4.32 billion, up 14% year on year and exceeding analyst estimates of $4.17 billion. Adjusted earnings per share came in at $5.76, beating the consensus of $5.25 by 9.7%, while adjusted EBITDA of $1.12 billion topped expectations of $1.04 billion. The company guided for third-quarter revenue of $4.70 billion at the midpoint, slightly above analyst forecasts. Room nights booked rose to 111.5 million from 105.5 million a year earlier, and operating margin expanded to 18.5% from 12.8%. CEO Ariane Gorin highlighted AI-powered personalization and marketplace expansion, including becoming the first online travel agency to distribute Allegiant flights, as key growth drivers.

Expedia Group Inc. reported second-quarter 2026 results that were stronger than market expectations, with adjusted earnings per share of 5.76 US dollars, 11.9 percent above the Bloomberg Consensus estimate. Total revenue came in at 4.32 billion US dollars, up 14 percent from the same period last year and 3.4 percent above analyst forecasts. The main growth driver was the Business-to-Business segment, where revenue rose 23 percent, pushing total gross bookings up 12 percent to 33.9 billion US dollars. Adjusted EBITDA increased 23 percent to 1.12 billion US dollars. On the back of the strong performance, the company raised its full-year 2026 revenue guidance to a range of 16.05 to 16.22 billion US dollars and lifted its EBITDA margin growth target. For Thai investors looking to invest in Expedia Group, they can do so through a Depositary Receipt referencing Expedia shares in the US market, namely EXPE06, which trades on the Stock Exchange of Thailand. The latest reference share price for EXPE US is 319.66 US dollars, while the DR EXPE06 price is 4.18 baht.

Allegiant Travel Company guided for full-year 2026 earnings per share of greater than $6 for the combined entity following a record second quarter. The combined company posted $943.5 million in revenue and a consolidated operating margin of 9.2%, with pretax income of $64.5 million and earnings per share of $2.19. CEO Gregory Anderson noted that both Allegiant and Sun Country achieved year-over-year TRASM improvement of more than 20%, and the company expects third-quarter unit revenue growth in line with the second quarter's 24.6% increase. The outlook assumes fuel at $3.75 per gallon for the rest of the year, while management flagged near-term headwinds from elevated pilot attrition at Sun Country and volatile fuel prices. The company also announced a new Expedia partnership and plans to debut a premium Allegiant First product on select aircraft in 2027.

Zacks Investment Research highlights five must-see earnings charts for the week, including Sandisk, SpaceX, Advanced Micro Devices, Expedia, and Berkshire Hathaway. Sandisk is expected to report full-year earnings growth of 2,111% for fiscal 2026, with shares up 502% year-to-date. SpaceX will release its first-ever earnings report, with a Zacks Consensus loss estimate of $0.26 per share. Advanced Micro Devices is projected to grow second-quarter earnings by 235% year-over-year, while Expedia is expected to see a 28.5% increase. Berkshire Hathaway, sitting on about $400 billion in cash, is forecast to post just a 1.4% earnings rise.

Expedia has beaten earnings estimates in its last two quarters by an average of 24.13%, and analysts see another beat as possible when it reports next on August 5, 2026. The online travel company posted earnings of $1.96 per share in its most recent quarter, topping the $1.41 consensus by 39.01%, after a 9.25% surprise the prior quarter. Expedia currently holds a Zacks Rank #2, or Buy, and a positive Earnings ESP of +7.86%, a combination that research shows produces a positive surprise nearly 70% of the time.

Expedia Group has signed a 12-month exclusive agreement to distribute Allegiant Travel Company flights across 566 routes in 124 U.S. cities through its U.S. brands. The deal comes as Expedia's stock has returned 40.96% over the past year and 9.98% over the last 30 days, though its year-to-date return stands at 6.36%. A widely followed narrative pegs Expedia's fair value at $345.94, implying the stock is 23.4% undervalued compared with its last close of $264.94.

Expedia is generating a free-cash-flow yield of 12.7%, more than double the 4.6% return on U.S. government bonds, even as the stock trades 13% below its 52-week high around $265.63 a share. The company’s three-year average free-cash-flow yield stands at 11.4%, supported by a durable model that converts 27% of revenue into free cash flow with net debt to equity of -0.03. Revenue grew 10% over the past twelve months, accelerating from a 7.9% three-year average, driven in part by a 22% increase in gross bookings in its B2B segment, which recently became the exclusive hotel partner for Uber. Management noted a challenging macro environment in March that led to elevated traveler cancellations, but said cancellation rates stabilized in early April and booking activity reaccelerated, with second-quarter gross bookings growth expected at 7% to 9%. The next earnings report is scheduled for August 5, 2026.

Expedia Group has become the first authorized online travel agent for Allegiant Travel Company under an exclusive 12-month agreement. The partnership integrates Allegiant's network of nonstop routes across 124 U.S. cities into Expedia's U.S. brands, allowing travelers to book Allegiant flights and compare options with other carriers on the Expedia platform. With the addition of Allegiant, Expedia now offers 100% coverage of U.S. commercial passenger airlines, establishing itself as one of the most comprehensive travel marketplaces. Expedia Group Vice President Golan Shakéd called the deal a significant milestone in building a complete and trusted travel marketplace. Shares of Expedia Group were higher on Tuesday, while Allegiant faced pressure amid rising oil futures.

Uber Chief Product Officer Sachin Kansal outlined the company’s expansion into travel, its evolving autonomous-vehicle strategy, and its selective approach to financial services in an interview with TechCrunch. Uber recently added hotel bookings through a partnership with Expedia, along with boat rentals in Europe and a “shop for me” concierge feature, framing travel as the third pillar after rides and delivery. On the autonomy front, Kansal confirmed that Uber and Waymo mutually ended a small-scale pilot in Phoenix while scaling to hundreds of cars in Austin and Atlanta, and he detailed a new AV Labs unit that will equip hundreds of sensor-laden vehicles to collect millions of miles of driving data for autonomy partners. He also said Uber is selling data-labeling services to generative-AI companies through its earner base, though he stressed that no in-ride conversations are recorded. Kansal noted that Uber Eats is now independently profitable, that the Uber One membership program has 51 million members and drives cross-usage between mobility and delivery, and that the company is not trying to be “everything for everyone,” preferring to partner with experts for services like buy-now-pay-later.

Expedia Group has signed a deal to acquire Ireland-based B2B car-rental platform CarTrawler, aiming to expand its mobility offerings and deepen technology support for travel partners. The acquisition is part of Expedia's broader pivot toward higher-margin B2B services, AI tooling, and mobility, as it seeks to offset softness in its core U.S. consumer business and competition from direct booking channels. The move complements Expedia's AI-powered B2B tools and Rapid API expansion, testing whether the company can convert its technology stack into stickier, higher-margin relationships with airlines, hotels, and travel brands. Some analysts project Expedia could reach $18.7 billion in revenue and $2.8 billion in earnings by 2029, requiring 7.3% annual revenue growth, while more bullish estimates see $20.6 billion in revenue and $3.9 billion in earnings. However, rising direct booking channels and supplier loyalty programs remain a threat to Expedia's take rates and long-term margins.

Expedia Group stock has returned 129.7% over three years, yet valuation checks suggest it remains undervalued. The company trades at a P/E of about 20.6x, below the Hospitality industry average of roughly 23.6x and a peer group average around 26.5x. Simply Wall St's fair P/E estimate of 29.5x indicates a meaningful discount, with the stock screening as undervalued in five of six valuation tests. The discount hinges on whether the market underestimates earnings power from a more integrated travel platform, though competitive and execution risks persist.

The 46 consumer internet stocks tracked reported a satisfactory first quarter, with revenues beating analysts' consensus estimates by 1.2% while next quarter's revenue guidance came in 0.6% below. Expedia posted revenues of $3.43 billion, up 14.7% year on year and exceeding expectations by 2.2%, with EBITDA also beating estimates and next-quarter revenue guidance slightly topping forecasts. Sea delivered the biggest beat, with revenues of $7.33 billion up 43.2% year on year and outperforming expectations by 10.1%, alongside strong EBITDA and user growth to 72.6 million. Shutterstock was the weakest, with revenues of $199.2 million down 17.9% year on year and missing estimates by 10.1%, accompanied by a significant EBITDA miss. ACV Auctions reported revenues of $204.2 million up 11.8% year on year, beating by 1.1%, but next-quarter EBITDA guidance missed significantly. Coupang's revenues of $8.50 billion rose 7.5% year on year, slightly missing estimates by 0.6%, though EBITDA beat solidly, and active buyers grew 2.1% to 23.9 million.

Uber Technologies stock has declined 20.18% over the past 52 weeks, but improving operating metrics such as monthly active platform customers and gross bookings suggest a buying opportunity. Congresswoman Nancy Pelosi recently purchased 200 call options on Uber with a $50 strike price expiring March 19, 2027. The company reported fiscal year 2025 revenue growth of 18% year-over-year to $52 billion, with adjusted EBITDA of $6.5 billion and free cash flow of $6.9 billion. Uber One membership reached 50 million as of March 2026, and the company is expanding into hotel booking through a partnership with Expedia Group and beauty delivery with Ulta Beauty. Analysts have a consensus Strong Buy rating on the stock with a mean price target of $106.28, implying 46.8% upside.