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Airbnb Q1 Earnings Miss Estimates, Revenues Rise Y/Y, Shares Up
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Key Takeaways
ABNB Q1 revenue rose 17.8% Y/Y to $2.68B, topping estimates despite an earnings miss.
Airbnb saw nights booked rise 9% as app bookings jumped 22% and first-time booker growth hit 10%.
ABNB raised its 2026 outlook, targeting low-to-mid teens revenue growth and 35% EBITDA margin.
Airbnb (ABNB - Free Report) posted first-quarter 2026 diluted earnings of 26 cents per share, which missed the Zacks Consensus Estimate by 15.23%. Earnings improved 8.3% from 24 cents in the year-ago quarter.
Revenues were $2.68 billion, up 17.8% year over year and 15% on a forex-neutral basis. The top line beat the Zacks Consensus Estimate by 2.16%.
Demand remained healthy, highlighted by Gross Booking Value of $29.2 billion and Nights and Seats Booked of 156.2 million in the quarter.
ABNB’s implied take rate (revenue divided by Gross Booking Value) was 9.2% in the quarter, roughly in line with 9.3% in the prior-year period. Management attributed some variability to timing effects from Reserve Now, Pay Later, which can shift guest payments closer to the stay date.
ABNB shares are up 13.30% while writing this blog.
ABNB’s Demand Held Up Despite Higher Cancelations
ABNB saw nights and seats booked rise 9% year over year to $186.8 million, even as management cited an approximate 100-basis-point headwind tied to elevated cancellations from the conflict in the Middle East. The company noted that, absent the conflict, growth would have been closer to 10%.
Momentum also continued to shift toward mobile. Nights booked on the app increased 22% year over year and represented 63% of total nights booked, up from 58% a year ago. First-time booker growth accelerated to 10%, with particularly strong trends cited in Brazil, Japan and India.
Airbnb’s Q1 Operating Details
In the first quarter of 2026, total costs and expenses as a percentage of revenues decreased 150 basis points (bps) year over year to 96.8% in the reported quarter. Cost of revenues decreased 60 bps year over year. Product development declined 120 bps while sales and marketing expenses increased 330 bps. Operations and support, and general and administrative, as a percentage of revenues, decreased 120 bps and 190 bps, respectively.
Adjusted EBITDA was $519 million, up 24% year over year, with an adjusted EBITDA margin of 19%.
The first quarter of 2026 operating margin contracted 150 bps year over year to 3.2%.
ABNB’s Balance Sheet & Cash Flow
As of March 31, 2026, cash and cash equivalents, short-term investments, and restricted cash totaled $12.1 billion compared with $11 billion as of Dec. 31, 2025. ABNB had $10.6 billion of funds held on behalf of guests.
Net cash provided by operating activities was $1.7 billion in the first quarter of 2026, up from $526 million reported in the fourth quarter of 2025.
ABNB produced $1.70 billion in free cash flow in the quarter, representing a 64% free cash flow margin. Over the trailing 12 months, free cash flow totaled $4.54 billion, equating to a 36% margin, though management noted working-capital impacts tied to the continued expansion of Reserve Now, Pay Later.
Airbnb repurchased $1.1 billion of stock during the first quarter of 2026.
Airbnb’s Outlook Signals Confidence in 2026 Growth
For the second quarter of 2026, Airbnb expects revenues in the range of $3.54-$3.60 billion, implying year-over-year growth of 14-16%, inclusive of an approximate 3% foreign-exchange tailwind after hedging. The company expects Gross Booking Value to rise in the low double digits, driven by growth in nights and seats booked and a moderate increase in Average Daily Rate.
Airbnb also raised its 2026 view, saying it now expects year-over-year revenue growth to accelerate to the low-to-mid teens. On profitability, management is targeting an adjusted EBITDA margin of at least 35% for 2026, while continuing to reinvest in efficient marketing, international expansion and AI initiatives.
Shares of Analog Devices have gained 50.7% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.
Applied Materials shares have gained 59.8% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.
Audioeye shares have lost 19% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.
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Airbnb Q1 Earnings Miss Estimates, Revenues Rise Y/Y, Shares Up
Key Takeaways
Airbnb (ABNB - Free Report) posted first-quarter 2026 diluted earnings of 26 cents per share, which missed the Zacks Consensus Estimate by 15.23%. Earnings improved 8.3% from 24 cents in the year-ago quarter.
Revenues were $2.68 billion, up 17.8% year over year and 15% on a forex-neutral basis. The top line beat the Zacks Consensus Estimate by 2.16%.
Demand remained healthy, highlighted by Gross Booking Value of $29.2 billion and Nights and Seats Booked of 156.2 million in the quarter.
ABNB’s implied take rate (revenue divided by Gross Booking Value) was 9.2% in the quarter, roughly in line with 9.3% in the prior-year period. Management attributed some variability to timing effects from Reserve Now, Pay Later, which can shift guest payments closer to the stay date.
Airbnb, Inc. Price, Consensus and EPS Surprise
Airbnb, Inc. price-consensus-eps-surprise-chart | Airbnb, Inc. Quote
ABNB shares are up 13.30% while writing this blog.
ABNB’s Demand Held Up Despite Higher Cancelations
ABNB saw nights and seats booked rise 9% year over year to $186.8 million, even as management cited an approximate 100-basis-point headwind tied to elevated cancellations from the conflict in the Middle East. The company noted that, absent the conflict, growth would have been closer to 10%.
Momentum also continued to shift toward mobile. Nights booked on the app increased 22% year over year and represented 63% of total nights booked, up from 58% a year ago. First-time booker growth accelerated to 10%, with particularly strong trends cited in Brazil, Japan and India.
Airbnb’s Q1 Operating Details
In the first quarter of 2026, total costs and expenses as a percentage of revenues decreased 150 basis points (bps) year over year to 96.8% in the reported quarter. Cost of revenues decreased 60 bps year over year. Product development declined 120 bps while sales and marketing expenses increased 330 bps. Operations and support, and general and administrative, as a percentage of revenues, decreased 120 bps and 190 bps, respectively.
Adjusted EBITDA was $519 million, up 24% year over year, with an adjusted EBITDA margin of 19%.
The first quarter of 2026 operating margin contracted 150 bps year over year to 3.2%.
ABNB’s Balance Sheet & Cash Flow
As of March 31, 2026, cash and cash equivalents, short-term investments, and restricted cash totaled $12.1 billion compared with $11 billion as of Dec. 31, 2025. ABNB had $10.6 billion of funds held on behalf of guests.
Net cash provided by operating activities was $1.7 billion in the first quarter of 2026, up from $526 million reported in the fourth quarter of 2025.
ABNB produced $1.70 billion in free cash flow in the quarter, representing a 64% free cash flow margin. Over the trailing 12 months, free cash flow totaled $4.54 billion, equating to a 36% margin, though management noted working-capital impacts tied to the continued expansion of Reserve Now, Pay Later.
Airbnb repurchased $1.1 billion of stock during the first quarter of 2026.
Airbnb’s Outlook Signals Confidence in 2026 Growth
For the second quarter of 2026, Airbnb expects revenues in the range of $3.54-$3.60 billion, implying year-over-year growth of 14-16%, inclusive of an approximate 3% foreign-exchange tailwind after hedging. The company expects Gross Booking Value to rise in the low double digits, driven by growth in nights and seats booked and a moderate increase in Average Daily Rate.
Airbnb also raised its 2026 view, saying it now expects year-over-year revenue growth to accelerate to the low-to-mid teens. On profitability, management is targeting an adjusted EBITDA margin of at least 35% for 2026, while continuing to reinvest in efficient marketing, international expansion and AI initiatives.
ABNB’s Zacks Rank & Stocks to Consider
Airbnb currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices (ADI - Free Report) , Applied Materials (AMAT - Free Report) , and Audioeye (AEYE - Free Report) . Each stock currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have gained 50.7% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.
Applied Materials shares have gained 59.8% in the year-to-date period. Applied Materials is scheduled to report its second-quarter 2026 results on May 14.
Audioeye shares have lost 19% in the year-to-date period. Audioeye is set to report its first-quarter 2026 results on May 13.