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Airbnb Jumps After Hours as Growth Beats Forecasts

Airbnb reported its fastest revenue growth in more than three years, beat third-quarter forecasts, raised its 2026 outlook and announced a new $12bn buyback, sending the shares sharply higher after hours.

Airbnb (NASDAQ: ABNB) reported third-quarter earnings of $3.16 a share on revenue of $4.87bn, both ahead of analyst forecasts. The shares rose 11.7% after hours on Thursday.

The stock had closed Thursday’s regular session down 3.5% at $170.13. The results came after the US close, so the after-hours jump is the market’s first response to them.

ABNB.US

Airbnb’s third-quarter shareholder letter showed revenue rose 19% year on year, or 16% excluding currency effects, to $4.9bn. That is its fastest growth in more than three years. Yahoo Finance consensus was $4.75bn for revenue and $2.85 for earnings per share, so earnings beat by $0.31.

Net income rose 38% to $1.9bn, a 39% margin. Adjusted EBITDA, a measure of operating profit before interest, tax, depreciation and amortisation, rose 22% to $2.5bn, a 52% margin.

Growth was broad. Every region posted double-digit growth in nights booked, and all five core markets (the US, France, the UK, Canada and Australia) accelerated. North America grew at its fastest pace in four years. Nights and seats booked rose 16% to 155.0 million, and gross booking value rose 21% to $27.7bn. First-time booker growth was 13%, the highest since early 2022.

Airbnb also authorised the repurchase of up to an additional $12bn of Class A common stock. For the fourth quarter it guided to revenue of $3.22bn to $3.28bn, up 16% to 18% including a tailwind of about two percentage points from currency. Yahoo Finance’s Q4 consensus average was $3.16bn, and the bottom of the guided range matches the highest analyst estimate of $3.22bn.

Full-year revenue growth is now expected in the high teens, with an Adjusted EBITDA margin of about 36%. Both were raised. Airbnb said fourth-quarter margin will dip slightly from a year earlier, partly on marketing timing.

The company said “Airbnb is back in growth mode.” It also said: “Although we’re closely monitoring ongoing developments in EMEA, underlying global travel demand remains healthy, and our product and growth initiatives continue to deliver results.”

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.

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