Expedia said it expects 2026 gross bookings and annual revenue to top Wall Street estimates, pointing to stronger-than-anticipated demand from business clients as a principal driver. The Vrbo-parent set a gross bookings range of $127 billion to $129 billion for the year, exceeding analysts' average estimate of $125.95 billion as compiled by LSEG.
The company highlighted gains in its business-to-business segment, which it said includes customers such as airlines, offline travel agents and financial institutions. Expedia noted the B2B arm has expanded through the addition of new clients, and that during the fourth quarter it recorded a record number of active travel agencies using its platform for bookings.
Expedia credited its agent loyalty program with supporting growth in the business segment. The program allows independent agents to partner with the company and earn commissions on trips booked through the platform, and company executives said it helped buoy transaction volumes.
Performance in the fourth quarter showed a meaningful divergence between channel segments. Gross bookings in the B2B division rose 24% in the quarter, while the direct-to-consumer unit posted 5% growth. The company also described strong partner engagement around promotional periods, saying it had 70% more partners participating in its Black Friday sales than in any prior year. Expedia reported that 30% of its fourth-quarter bookings were sourced from inventory that included deals.
For full-year 2026, Expedia gave a revenue outlook in the range of $15.6 billion to $16 billion. The midpoint of that range is above analysts' consensus estimate of $15.69 billion, according to the data the company cited.
On results for the fourth quarter ended December 31, Expedia reported adjusted earnings per share of $3.78, up from $2.39 a year earlier. Total revenue for the quarter increased 11.4% to $3.54 billion.
Summary
Expedia forecasts higher-than-expected 2026 gross bookings of $127 billion to $129 billion and revenue between $15.6 billion and $16 billion, driven largely by growth in its B2B division and elevated partner participation in promotional sales. The company also reported stronger fourth-quarter adjusted profit and revenue year-over-year.
Key points
- Expedia projects 2026 gross bookings of $127 billion to $129 billion, above analysts' average estimate of $125.95 billion.
- The business-to-business segment posted 24% growth in gross bookings in the fourth quarter, compared with 5% growth in the direct-to-consumer channel.
- Fourth-quarter adjusted profit was $3.78 per share and total revenue rose 11.4% to $3.54 billion; company guidance calls for 2026 revenue of $15.6 billion to $16 billion.
Sectors impacted
- Travel and leisure - through platform booking volumes and consumer deal activity.
- B2B travel services - including airlines, travel agencies and institutional customers that use Expedia's platform.
- Hospitality - hotels and accommodations that supply inventory for promotional offerings and agent bookings.
Risks and uncertainties
- The companys 2026 outlook rests on sustained demand from business customers and continued additions of new clients to its B2B platform; any slowdown in that demand could affect results.
- Expedia's growth in the fourth quarter was assisted by increased partner participation in promotional sales - for example, 70% more partners on Black Friday - and 30% of Q4 bookings coming from inventory with deals, indicating some reliance on discount-led demand.
- Divergence between the B2B division's 24% booking growth and the 5% increase in the direct-to-consumer unit highlights sensitivity to channel mix, which could influence revenue and margin outcomes.
Expedia's forecasts and reported results underline a business strategy leaning on partnerships, agent engagement and promotional inventory to expand bookings and revenue. The company positioned its agent loyalty program and expanded agency participation as central to recent gains, while offering guidance that sits above analyst expectations for 2026.