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Sabre Shares Soar 22% as Q1 Earnings and Revenues Crush Estimates
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Key Takeaways
SABR posted Q1 adjusted EPS of 6 cents, beating estimates for a 5 cent loss.
Sabre revenues rose 8% to $760.3M on higher air bookings and favorable rates.
SABR expects 2026 pro-forma revenue growth in the low-to-mid-single-digit range.
Sabre Corporation (SABR - Free Report) shares were trading 22% higher during the pre-market session today after the company reported better-than-expected results for the first quarter of 2026. SABR reported adjusted earnings of 6 cents per share for the first quarter, while the Zacks Consensus Estimate was pegged at a loss of 5 cents. The bottom-line results also compared favorably with the year-ago quarter’s earnings of a penny.
Sabre reported revenues of $760.3 million for the quarter ended March 31, 2026, which beat the Zacks Consensus Estimate of $737.3 million. The figure rose 8% year over year on higher air bookings and increased rates.
Sabre’s Q1 in Detail
Marketplace segment revenues rose 9% to $618 million, driven by an increase in transaction-based revenues, primarily due to a surge in distribution bookings and a favorable rate impact. The Airline Technology segment’s revenues grew 7% year over year to $142 million, driven primarily by revenues that were previously deferred being recognized.
Sabre reported normalized adjusted EBITDA of $169 million, which improved 21% from the year-ago quarter’s $140 million. It also surpassed management’s previous guidance of $130 million. The normalized adjusted EBITDA margin improved 230 basis points year over year to 22.2% in the first quarter of 2026.
Sabre Corporation Price, Consensus and EPS Surprise
Sabre exited the March-end quarter with cash, cash equivalents and restricted cash of $665 million compared with the previous quarter’s $910 million. At the end of the first quarter, the company had net debt (total debt, less cash and cash equivalents) of approximately $3.8 billion.
During the first quarter, the company used cash of $134.2 million for operating activities and had a negative free cash flow of $155.4 million.
Sabre Updates Guidance for FY26
For 2026, Sabre now expects its pro-forma (which excludes the last year’s divested Hospitality Solutions business) revenues to grow in the low-to-mid-single-digit percentage range, instead of the earlier projection of a mid-single-digit percentage range. Pro-forma adjusted EBITDA is still projected to be approximately $585 million. The company still expects to end 2026 with a negative pro-forma free cash flow of approximately $70 million.
Sabre initiated guidance for the second quarter. SABR anticipates pro-forma revenue growth in the flat-to-nominal range. It expects pro-forma adjusted EBITDA to be around $130 million.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has been revised upward by a penny to $58.37 per share in the past 30 days, suggesting an increase of 604.1% from fiscal 2025’s reported figure. Micron Technology shares have surged 131.6% year to date (YTD).
The Zacks Consensus Estimate for Broadcom’s fiscal 2026 earnings has moved northward by 9 cents to $11.45 per share over the past 30 days and calls for a year-over-year jump of 67.9%. Broadcom shares have soared 22.8% YTD.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 earnings has moved upward by 4 cents to $8.07 per share in the past 30 days, implying a year-over-year improvement of approximately 69.2%. NVIDIA shares have risen 11.1% YTD.
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Sabre Shares Soar 22% as Q1 Earnings and Revenues Crush Estimates
Key Takeaways
Sabre Corporation (SABR - Free Report) shares were trading 22% higher during the pre-market session today after the company reported better-than-expected results for the first quarter of 2026. SABR reported adjusted earnings of 6 cents per share for the first quarter, while the Zacks Consensus Estimate was pegged at a loss of 5 cents. The bottom-line results also compared favorably with the year-ago quarter’s earnings of a penny.
Sabre reported revenues of $760.3 million for the quarter ended March 31, 2026, which beat the Zacks Consensus Estimate of $737.3 million. The figure rose 8% year over year on higher air bookings and increased rates.
Sabre’s Q1 in Detail
Marketplace segment revenues rose 9% to $618 million, driven by an increase in transaction-based revenues, primarily due to a surge in distribution bookings and a favorable rate impact. The Airline Technology segment’s revenues grew 7% year over year to $142 million, driven primarily by revenues that were previously deferred being recognized.
Sabre reported normalized adjusted EBITDA of $169 million, which improved 21% from the year-ago quarter’s $140 million. It also surpassed management’s previous guidance of $130 million. The normalized adjusted EBITDA margin improved 230 basis points year over year to 22.2% in the first quarter of 2026.
Sabre Corporation Price, Consensus and EPS Surprise
Sabre Corporation price-consensus-eps-surprise-chart | Sabre Corporation Quote
Sabre’s Balance Sheet and Cash Flow
Sabre exited the March-end quarter with cash, cash equivalents and restricted cash of $665 million compared with the previous quarter’s $910 million. At the end of the first quarter, the company had net debt (total debt, less cash and cash equivalents) of approximately $3.8 billion.
During the first quarter, the company used cash of $134.2 million for operating activities and had a negative free cash flow of $155.4 million.
Sabre Updates Guidance for FY26
For 2026, Sabre now expects its pro-forma (which excludes the last year’s divested Hospitality Solutions business) revenues to grow in the low-to-mid-single-digit percentage range, instead of the earlier projection of a mid-single-digit percentage range. Pro-forma adjusted EBITDA is still projected to be approximately $585 million. The company still expects to end 2026 with a negative pro-forma free cash flow of approximately $70 million.
Sabre initiated guidance for the second quarter. SABR anticipates pro-forma revenue growth in the flat-to-nominal range. It expects pro-forma adjusted EBITDA to be around $130 million.
Sabre’s Zacks Rank and Stocks to Consider
Currently, SABR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader Zacks Computer and Technology sector are Micron Technology (MU - Free Report) , Broadcom (AVGO - Free Report) and NVIDIA (NVDA - Free Report) . Micron Technology sports a Zacks Rank #1 (Strong Buy) at present, while Broadcom and NVIDIA each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has been revised upward by a penny to $58.37 per share in the past 30 days, suggesting an increase of 604.1% from fiscal 2025’s reported figure. Micron Technology shares have surged 131.6% year to date (YTD).
The Zacks Consensus Estimate for Broadcom’s fiscal 2026 earnings has moved northward by 9 cents to $11.45 per share over the past 30 days and calls for a year-over-year jump of 67.9%. Broadcom shares have soared 22.8% YTD.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 earnings has moved upward by 4 cents to $8.07 per share in the past 30 days, implying a year-over-year improvement of approximately 69.2%. NVIDIA shares have risen 11.1% YTD.