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TRIP's latest negative EPS revisions earn the stock a Zacks Rank #5 (Strong Sell).
The online travel giant is struggling against SEO and AI search headwinds and more.
Tripadvisor, Inc. (TRIP - Free Report) is an online travel platform titan that helps users find hotels, experiences, restaurants, and more through its core Tripadvisor brand and beyond.
TRIP’s earnings outlook has tumbled over the past year as AI disruptions continue to dent Tripadvisor’s traffic. Tripadvisor missed our adjusted Q3 earnings estimates by 29% when it reported on November 5, and it provided another round of disappointing guidance.
Tripadvisor’s downbeat earnings revisions picture lands it a Zacks Rank #5 (Strong Sell) right now.
Should Investors Avoid TRIP Stock Right Now?
Tripadvisor is part of the vanguard of the internet travel planning and booking industry. TRIP generates revenue primarily from advertising, bookings, and experiences. The firm posted strong revenue growth in its early years as a public company and its quickly rebounded after the Covid-induced decline to post three straight years of booming sales expansion between 2021 and 2023.
The rapid expansion of artificial intelligence has disrupted its original travel planning and booking business. Tripadvisor is attempting to shift its focus toward its higher-growth Experiences (via Viator) unit while managing a declining Hotels & Other segment that historically relied heavily on search-driven traffic.
Image Source: Zacks Investment Research
Despite its overall success, TRIP struggled to turn profits even before AI shook up its core business. Now the situation is far worse. Its Q3 revenue dropped 11%, and it posted a large GAAP net loss of roughly $317 million (or about -$2.70 per share), reflecting a non-cash goodwill impairment charge of $369.5 million tied to the Hotels & Other segment.
Management attributed the impairment largely to sustained declines in performance and reduced future profitability expectations, “largely due to the multi-period acceleration of traffic headwinds resulting from changes in the search landscape.”
Meanwhile, its adjusted EPS came in at $0.37, missing the Zacks consensus estimate by 29%. Its Hotels & Other revenue fell 23%, and Experiences revenue declined 3%.
The company also announced that CEO Matt Goldberg will step down in mid-February 2027 and CFO Mike Noonan will depart at the end of 2026, adding to the uncertainty as it pursues a restructuring expected to deliver roughly $40 million in annualized savings.
Image Source: Zacks Investment Research
Tripadvisor cut its earnings outlook, with its adjusted Q4 estimate down from $0.21 before its release to $0.14. TRIP’s adjusted fiscal 2026 earnings are projected to drop 30% on 17% lower sales. Worse still, its most accurate fourth-quarter estimate calls for TRIP to report an adjusted loss of -$0.14 a share. Plus, its most accurate estimate for FY26 came in 47% below its already reduced outlook.
Tripadvisor’s recent downward EPS revisions earn it a Zacks Rank #5 (Strong Sell). On top of that, it is part of the Internet-Commerce industry that is facing broad pressure from evolving search and AI dynamics.
View the Zacks #1 Rank List
Bear of the Day: Tripadvisor, Inc. (TRIP)
Key Takeaways
Tripadvisor, Inc. (TRIP - Free Report) is an online travel platform titan that helps users find hotels, experiences, restaurants, and more through its core Tripadvisor brand and beyond.
TRIP’s earnings outlook has tumbled over the past year as AI disruptions continue to dent Tripadvisor’s traffic. Tripadvisor missed our adjusted Q3 earnings estimates by 29% when it reported on November 5, and it provided another round of disappointing guidance.
Tripadvisor’s downbeat earnings revisions picture lands it a Zacks Rank #5 (Strong Sell) right now.
Should Investors Avoid TRIP Stock Right Now?
Tripadvisor is part of the vanguard of the internet travel planning and booking industry. TRIP generates revenue primarily from advertising, bookings, and experiences. The firm posted strong revenue growth in its early years as a public company and its quickly rebounded after the Covid-induced decline to post three straight years of booming sales expansion between 2021 and 2023.
The rapid expansion of artificial intelligence has disrupted its original travel planning and booking business. Tripadvisor is attempting to shift its focus toward its higher-growth Experiences (via Viator) unit while managing a declining Hotels & Other segment that historically relied heavily on search-driven traffic.
Image Source: Zacks Investment Research
Despite its overall success, TRIP struggled to turn profits even before AI shook up its core business. Now the situation is far worse. Its Q3 revenue dropped 11%, and it posted a large GAAP net loss of roughly $317 million (or about -$2.70 per share), reflecting a non-cash goodwill impairment charge of $369.5 million tied to the Hotels & Other segment.
Management attributed the impairment largely to sustained declines in performance and reduced future profitability expectations, “largely due to the multi-period acceleration of traffic headwinds resulting from changes in the search landscape.”
Meanwhile, its adjusted EPS came in at $0.37, missing the Zacks consensus estimate by 29%. Its Hotels & Other revenue fell 23%, and Experiences revenue declined 3%.
The company also announced that CEO Matt Goldberg will step down in mid-February 2027 and CFO Mike Noonan will depart at the end of 2026, adding to the uncertainty as it pursues a restructuring expected to deliver roughly $40 million in annualized savings.
Image Source: Zacks Investment Research
Tripadvisor cut its earnings outlook, with its adjusted Q4 estimate down from $0.21 before its release to $0.14. TRIP’s adjusted fiscal 2026 earnings are projected to drop 30% on 17% lower sales. Worse still, its most accurate fourth-quarter estimate calls for TRIP to report an adjusted loss of -$0.14 a share. Plus, its most accurate estimate for FY26 came in 47% below its already reduced outlook.
Tripadvisor’s recent downward EPS revisions earn it a Zacks Rank #5 (Strong Sell). On top of that, it is part of the Internet-Commerce industry that is facing broad pressure from evolving search and AI dynamics.