Airbnb Shares Jump Over 10% as Third-Quarter Earnings Beat Forecasts and Travel Bookings Accelerate

Airbnb (NASDAQ:ABNB) reported stronger-than-expected third-quarter financial results, supported by accelerating travel demand, higher booking volumes and improved pricing. The accommodation platform delivered its fastest revenue growth in more than three years and raised its full-year outlook, sending its shares more than 10% higher in premarket trading on Friday.

At 04:07 ET, Airbnb shares were up more than 10% following Thursday’s earnings announcement, as investors responded to results that exceeded Wall Street forecasts across several key financial and operating measures.

The company reported diluted earnings per share of $3.16, surpassing analysts’ expectations of $2.85. Revenue increased 19% year over year to $4.87 billion, ahead of the consensus forecast of $4.75 billion.

The revenue increase represented a significant acceleration from the 10% growth recorded in the corresponding quarter of 2025, reflecting stronger performance in both established markets and regions targeted for expansion.

Booking Growth and Higher Rates Support Revenue Performance

Airbnb recorded substantial increases in booking activity during the quarter, supported by resilient consumer demand for travel.

Gross booking value (GBV), which represents the total value of reservations made through the platform, climbed 21% to $27.7 billion.

The number of nights and seats booked increased 16% to 155 million, while average daily rates rose 4% from the previous year to $179.

The improvement in average pricing reflected both higher accommodation rates and changes in the mix of reservations.

The combination of increased booking volumes and stronger pricing contributed to Airbnb’s revenue growth, demonstrating continued demand across different regions and customer categories.

BTIG analyst Jake Fuller highlighted the company’s performance and improved financial outlook.

“Airbnb delivered a clear earnings beat and raised its guidance at a time when competitors have been providing more cautious forecasts, supporting higher expectations for 2027,” Fuller said.

He also acknowledged that the company had exceeded his previous expectations regarding its ability to balance investment spending with profitability and expansion.

“Earlier this year, we questioned whether Airbnb could successfully balance margins, investment and growth. Management has demonstrated that it can, and our assessment of the business has become more positive,” he added.

Net Income Rises 38% as Profit Margins Expand

Airbnb’s profitability improved alongside its stronger revenue performance.

Net income increased 38% to $1.89 billion, compared with $1.37 billion in the third quarter of the previous year.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 22% to $2.51 billion.

The adjusted EBITDA margin expanded to 52%, up from 50% a year earlier, indicating that the company converted a larger proportion of revenue into operating earnings.

The results reflected a combination of higher booking activity, improved pricing and continued cost management.

Analysts at Truist attributed the earnings outperformance primarily to stronger revenue generation.

“As with the second-quarter earnings beat, we believe the better-than-expected results were mainly driven by revenue exceeding forecasts,” the analysts said.

Airbnb also pointed to product improvements and operating discipline as contributors to its financial performance.

North American Bookings Strengthen as First-Time Customers Increase

Travel demand improved across Airbnb’s major markets, with the company reporting accelerating growth in all five of its core countries.

The United States, France, the United Kingdom, Canada and Australia each recorded stronger growth during the quarter.

In North America, nights booked increased at their fastest pace in four years, suggesting an improvement in demand within one of Airbnb’s most established regions.

The company also reported stronger customer acquisition.

Growth in first-time bookers accelerated to 13%, its highest level since early 2022.

The increase suggests that Airbnb continued to attract new customers alongside repeat users, supporting the platform’s ability to expand its booking activity.

Management attributed the improvement to resilient global travel demand and enhancements to the company’s products and services.

Artificial Intelligence Reduces Customer Support Costs

Airbnb identified artificial intelligence as an increasingly important part of its strategy to improve customer service and operating efficiency.

During the third quarter, its AI-powered customer support assistant resolved approximately 40% of customer service issues without requiring intervention from a human representative.

That compared with approximately one-third of cases in the second quarter, indicating an improvement in the system’s ability to handle customer inquiries independently.

The company reported that customer support costs per booking declined by more than 17% year over year.

The reduction demonstrated how AI-based automation is contributing to lower operating expenses while allowing the platform to manage a growing volume of reservations.

Airbnb is also investing in hotels, travel-related services and partnerships as it seeks to expand its business beyond traditional accommodation bookings.

These initiatives are intended to create additional opportunities for growth while strengthening the company’s position in the broader travel industry.

Airbnb Raises 2026 Outlook Following Strong Third Quarter

Following the stronger-than-expected results, Airbnb increased its full-year expectations for revenue growth and adjusted EBITDA margin.

For the fourth quarter, the company forecast revenue between $3.22 billion and $3.28 billion.

The guidance represents anticipated year-over-year growth of approximately 16% to 18%, indicating that management expects demand to remain strong through the final months of 2026.

For the full year, Airbnb now expects revenue growth in the high teens and an adjusted EBITDA margin of approximately 36%.

The revised outlook reflects continued booking momentum, improved pricing and operating efficiencies across the business.

The company also expects its investments in technology and new travel services to support future expansion.

Company Authorises Additional $12 Billion Share Buyback

Alongside its earnings announcement, Airbnb approved an additional $12 billion share repurchase authorisation.

The programme provides the company with further flexibility to return capital to shareholders while continuing to invest in growth opportunities.

During the third quarter, Airbnb repurchased approximately $700 million of its Class A common shares.

The expanded authorisation signals management’s confidence in the company’s financial position and longer-term prospects.

Airbnb’s combination of accelerating revenue growth, higher profitability and increased shareholder returns contributed to the positive market reaction following its earnings announcement.

Investors will continue to monitor booking trends, international expansion, AI-driven cost savings and the company’s ability to sustain its improved financial performance into 2027.

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