Trip.com 1.5% 20270701 S4167043 2025Q2 Earnings Preview Upside Ahead on Strong International Momentum

Forward-Looking Analysis
Analysts anticipate strong performance for Trip.com’s Q2 2025 earnings, with expectations aligned with the company’s Q1 momentum. Revenue is expected to grow at a similar pace, building on the 16% year-over-year increase seen in Q1. The company’s international business, which surged 60% in Q1, is expected to continue driving growth. Adjusted EBITDA improved to RMB4.2 billion in Q1, signaling solid operating leverage. However, rising sales and marketing expenses—up 30% year-over-year—pose margin risks. For Q2, consensus EPS estimates remain cautious, reflecting the need to balance aggressive growth with cost discipline.

Historical Performance Review
In Q1 2025, Trip.com reported net revenue of $12.46 billion, representing a 16% year-over-year increase. The company maintained robust profitability with net income of $4.31 billion and an EPS of $6.48. Gross profit reached $11.12 billion, demonstrating efficient cost management across its travel segments. The strong performance was driven by international expansion and a rebound in outbound travel demand.

Additional News
Trip.com continued its international expansion strategy in Q1 2025, with international OTA platform reservations rising over 60% year-over-year. Inbound travel bookings surged 100% YoY, while outbound bookings surpassed 120% of pre-COVID levels. The company repurchased 1.6 million ADSs for US$84 million through mid-May 2025, reinforcing its commitment to shareholder value. No major product launches, M&A activities, or CEO announcements were reported in the period.

Summary & Outlook
Trip.com’s Q1 results reflect strong revenue growth, stable net income, and improved adjusted EBITDA, underpinned by a rebound in international travel. The company’s liquidity remains robust, with over US$12.8 billion in cash and equivalents. While rising sales and marketing costs may pressure margins, international demand and outbound travel recovery remain key catalysts. With Q2 expected to follow a similar trend, Trip.com appears well-positioned for sustained growth. A bullish outlook is justified as long as international momentum and cost discipline are maintained.