Expedia Group (EXPE) Stock Gains as Third Quarter Earnings Top Estimates

**Expedia Upgrades 2025 Revenue Forecast After Strong Q3 Earnings Beat**

Expedia Group (NASDAQ: EXPE) delivered a robust third-quarter earnings report, surpassing Wall Street expectations and prompting management to revise its 2025 revenue growth forecast upward. The company now projects revenue growth between 6% and 7% for 2025, up from previous guidance of 3% to 5%.

**Earnings Smash Expectations**

For the third quarter, Expedia reported adjusted earnings of $7.57 per share, easily beating analyst expectations of $6.92 per share. This result came in nearly 10% above consensus estimates. Revenue for the quarter reached $4.41 billion, a notable increase from $4.06 billion the year before and ahead of projections.

The strong quarterly report sparked a positive investor reaction, with Expedia shares jumping 16% in pre-market trading following the announcement.

**Strong Performance in B2B and Consumer Segments**

Expedia’s business-to-business (B2B) segment drove impressive results, with bookings climbing 26% to $9.38 billion. This division caters to corporate travel managers, offline agents, and financial institutions, reflecting ongoing recovery in business travel.

The direct-to-consumer segment also posted healthy growth, with bookings rising 7% to $21.34 billion. Bookings across platforms like Hotels.com and Vrbo contributed to combined gross bookings of $30.73 billion for the quarter—a 12% increase year-over-year.

Expedia has now beaten earnings forecasts in three of the past four quarters and exceeded revenue estimates in three of those periods as well.

**Regional Booking Trends Show Varied Recovery**

Regionally, Expedia saw different growth rates across markets. U.S. domestic bookings grew at their fastest pace in three years, with room nights up by high single digits. International operations enjoyed even stronger momentum, especially in Asia, where room night growth exceeded 20% year-over-year. These figures highlight the uneven pace of recovery in global travel markets.

**Stock Performance and Forward-Looking Estimates**

Despite rallying after the earnings beat, Expedia stock is up 14.8% year-to-date, slightly lagging behind the S&P 500’s 15.6% gain over the same period.

Looking ahead, analysts project adjusted earnings of $2.85 per share and revenue of $3.27 billion for the upcoming quarter. Full-year estimates call for earnings of $14.33 per share on revenue of $14.34 billion.

Expedia currently holds a Zacks Rank #2, indicating expectations for near-term outperformance based on positive earnings momentum. Notably, this marks the third time in four quarters that Expedia has delivered an earnings surprise.

**Investor Focus: Guidance and Recovery Landscape**

As management prepares for the earnings call, investors will focus on commentary surrounding the raised revenue outlook and detailed regional booking trends. The company’s ongoing monitoring of the government shutdown and its impact on business is also likely to be a topic of interest.

Overall, Expedia’s strong Q3 results and upgraded guidance underscore its resilience and strategic positioning amid ongoing recovery in global travel demand.
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