Expedia 2025 Q3 Earnings Beats Expectations with 40.9% Net Income Growth

Expedia Group (EXPE) reported Q3 2025 earnings that exceeded expectations, with revenue rising 8.7% to $4.41 billion and net income growing 40.9% to $964 million. The company raised its full-year revenue guidance to 6-7% from 3-5%, driven by strong B2B bookings and international demand.

Revenue

Expedia’s total revenue surged to $4.41 billion, reflecting robust performance across segments. B2C revenue reached $2.88 billion, while B2B contributed $1.39 billion. Ancillary services, including Trivago, added $194 million, and other revenue streams totaled $137 million. Corporate & elimination adjustments reduced the total by $57 million, but the final tally remained at $4.41 billion, underscoring the company’s diversified revenue model.

Earnings/Net Income

Earnings per share (EPS) rose 47.0% year-over-year to $7.76, with net income expanding to $964 million. This marks a significant acceleration in profitability, driven by cost discipline and higher-margin bookings. The EPS growth aligns with the company’s strategic focus on high-impact digital initiatives and operational efficiency.

Post-Earnings Price Action Review

The strategy of buying EXPE following earnings beats and holding for 30 days has historically yielded a 25.8% gain, leveraging positive momentum and fundamental strength. This approach emphasizes long-term holding to capture sustained appreciation post-earnings, with fundamental analysis playing a critical role in identifying well-performing stocks.

CEO Commentary

CEO Peter Kern highlighted accelerated international travel growth, particularly in Asia-Pacific and Latin America, alongside record ancillary revenue. While acknowledging macroeconomic challenges like fuel costs and geopolitical tensions, Kern emphasized investments in AI-driven personalization and loyalty programs as key differentiators.

Guidance

Expedia did not provide explicit forward-looking revenue targets but expressed confidence in sustaining momentum through disciplined capital allocation and digital innovation. Management cited strong booking trends and seasonal demand visibility as tailwinds for the remainder of 2025.

Additional News

1. Guidance Revision: Expedia raised its 2025 revenue forecast to 6-7% from 3-5%, reflecting confidence in sustained demand and operational execution.

2. B2B Segment Surge: The B2B segment saw a 26% increase in bookings, driven by corporate travel recovery and financial institution partnerships.

3. AI and Loyalty Investments: The CEO emphasized strategic bets on AI-powered personalization and loyalty program enhancements to capture long-term customer value, aligning with broader digital transformation trends.