Expedia topped Q1 estimates but issued weaker-than-expected Q2 and 2026 revenue forecasts, weighing on investor sentiment.
Expedia reported Q1 earnings and revenue that surpassed analyst expectations, driven by strong travel demand and cost controls. Adjusted EPS reached $2.10 on revenue of $2.9 billion, exceeding consensus estimates of $1.85 and $2.8 billion, respectively.
Despite the beat, the company’s Q2 and 2026 revenue guidance fell short of market expectations. Expedia projected Q2 revenue growth of 5-7%, below the 8% consensus, while its 2026 outlook suggested slower long-term expansion than investors anticipated.
Shares dropped 6% in after-hours trading as concerns over future growth overshadowed the positive Q1 performance.