Expedia Shares Fall 12% on Q4 Outlook

Expedia Group raised its full-year 2026 outlook after third-quarter revenue rose 12% to $4.94 billion, beating expectations, while gross bookings and adjusted EBITDA also increased. Growth was led by its business-to-business segment, where bookings rose 19% and revenue climbed 23%; the company also cited resilient travel demand and improved operating efficiency. However, Expedia forecast fourth-quarter revenue of $3.69 billion to $3.75 billion, signaling a marked slowdown, and its adjusted EBITDA outlook was roughly level with the prior year. Management pointed to election-related softness, geopolitical disruption and tougher comparisons as headwinds. The cautious forecast sent Expedia shares sharply lower and raised questions about whether weakness will spread to rivals, though analysts described the slowdown as potentially temporary and other hotel-industry results had shown continued demand.