Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Room nights growth | 7% | Up from 5% in Q2 |
| Adjusted EBITDA | $4.6 billion | Up 9% year-over-year |
| Adjusted EPS | $4.66 per share | Up 17% year-over-year |
| Total gross bookings | 10% growth | 11% on a constant currency basis |
| Adjusted revenue | 9% growth | 10% on a constant currency basis |
Guidance and outlook
- Q4 room nights are expected to increase between 1% and 3%.
- Q4 gross bookings are expected to increase between 2% and 4%, or 4% to 6% on a constant currency basis.
- Q4 adjusted revenue is expected to increase between 0% and 2%, or 2% to 4% on a constant currency basis.
- Q4 adjusted EBITDA is expected to be flat year-over-year, or up 2% on a constant currency basis.
- Full year expectations remain for gross bookings, adjusted revenue, and adjusted EBITDA to be up high single digits, with adjusted EPS up low to mid-teens.
How management sounded
Positive (+6 on our -10 to +10 scale). Management reported results exceeding the high end of guidance while emphasizing AI-driven efficiency and long-term growth, though they noted near-term demand moderation. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
AI Progress
Asked: Doug Anmuth from JPMorgan asked about tangible top-line benefits from AI.
Answer: Management noted four key areas of improvement: higher engagement, higher conversion rates, higher booking values, and increased incrementality from new channels.
B2B Marketing
Asked: Mark Mahaney from Evercore ISI asked about marketing deleverage in the B2B segment.
Answer: Management explained that the B2B business is growing and commission structures are based on revenue share, which is a healthy economic trade-off.
AI Agents
Asked: Matt Cost from Morgan Stanley asked if AI agents are removing friction or creating incremental demand.
Answer: Management views AI agents as a new way to acquire business by reducing friction, potentially leading to higher conversion rates over time.
Genius Loyalty
Asked: Benjamin Black from Deutsche Bank asked how to evolve the Genius program without relying solely on supplier-funded discounts.
Answer: Management intends to improve the program by providing additional value to both travelers and partners to create a stronger flywheel effect.
What to watch before the next call
- The impact of the Middle East conflict on travel demand and airfares through the end of the year.
- Regulatory developments in Europe regarding AI agents and data access, including the DMA and EU AI Act.
- The performance and scaling of new AI-native platforms like Vayo and Lola.
