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Airbnb Q3 Earnings Beat Estimates as Booking Demand Accelerates

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Key Takeaways

  • Airbnb's Q3 earnings rose 43% to $3.16 per share, while revenues increased 18.9% to $4.87 billion.
  • ABNB's bookings surged 16% to 155 million, driven by strong regional demand and rising mobile adoption.
  • Airbnb raised its 2026 revenue growth outlook to the high teens and adjusted EBITDA margin target to 36%.

Airbnb (ABNB - Free Report) reported third-quarter 2026 GAAP earnings of $3.16 per share, up 43% year over year from $2.21 in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate by 10.49%.

Revenues increased 18.9% year over year to $4.87 billion, beating the consensus mark by 2.52%. Growth was driven by strong nights stayed and a moderate increase in Average Daily Rate (ADR). Nights and Seats Booked increased 16% year over year to 155 million, reflecting accelerating travel demand across all regions.

ABNB Booking Trends Gain Momentum

Gross Booking Value (GBV) increased 21% year over year to $27.7 billion, both on a reported and foreign-exchange-neutral basis. ADR reached $179, increasing 4% year over year and 5% excluding foreign-exchange effects.

Mobile adoption remained a key growth driver. Nights booked through Airbnb’s app increased 29% year over year and represented 66% of total nights booked, up from 62%. Growth among first-time bookers accelerated to 13%, the highest level since early 2022.

Airbnb, Inc. Price, Consensus and EPS Surprise

Airbnb, Inc. Price, Consensus and EPS Surprise

Airbnb, Inc. price-consensus-eps-surprise-chart | Airbnb, Inc. Quote

Nights and Seats Booked benefited from a 3% net lift from the expansion of Reserve Now, Pay Later. Excluding this impact, bookings grew approximately 13%, reflecting continued underlying travel demand.

Airbnb Sees Broad-Based Regional Strength

North America recorded low-double-digit growth in Nights and Seats Booked, its fastest expansion in four years. EMEA delivered mid-teens growth, supported by improving demand across major European markets.

Latin America and Asia Pacific each reported more than 20% growth in Nights and Seats Booked. Brazil's origin net nights booked increased more than 30%, while India posted growth exceeding 60%.

Expansion markets continued gaining momentum, with origin net nights booked growing at their fastest pace in nearly three years. India's first-time bookers increased more than 80%, while Japan recorded approximately 35% growth.

ABNB's Profitability Improves on Operating Leverage

Total costs and expenses increased 15.3% year over year to $2.85 billion from $2.47 billion. However, costs represented approximately 58.5% of revenues compared with 60.3% in the year-ago quarter. Product development expenses, as a percentage of revenues, declined approximately 70 basis points (bps), while sales and marketing expenses increased about 5 bps. Operations and support and general and administrative expenses, as a percentage of revenues, decreased approximately 84 bps and 30 bps, respectively.

Adjusted EBITDA increased 22.3% year over year to $2.51 billion. Adjusted EBITDA margin improved to 52% from 50%.

Operating income increased 24.4% year over year to $2.02 billion, while operating margin expanded approximately 180 basis points to 41.5%.

Airbnb’s AI Push Strengthens Operating Efficiency

Airbnb continued integrating artificial intelligence (AI) across its platform to improve guest experiences, host productivity and customer support. The company introduced more than 50 products and features during the quarter, nearly 70% more than a year earlier.

ABNB’s AI assistant, available in more than 50 languages, helped resolve approximately 40% of all customer support issues without human intervention, up from roughly one-third in the preceding quarter. Customer support cost per booking declined more than 17% year over year.

Airbnb also introduced AI-powered search, listing summaries, comparison tools and dynamic pricing capabilities. The company is developing a specialized AI travel agent designed to help guests plan and book trips, with an initial rollout expected in the first half of 2027.

Meanwhile, Airbnb expanded its hotel offerings to thousands of boutique and independent properties across more than 60 destinations. Hotels continued growing faster than the core homes business, creating additional opportunities for customer acquisition.

ABNB Maintains Strong Cash Generation

Airbnb ended Sept. 30, 2026, with $12.6 billion in cash and cash equivalents, short-term investments and restricted cash.

Net cash provided by operating activities increased 11.2% year over year to $1.51 billion. Free cash flow increased 5.7% year over year to $1.43 billion, representing a 29% margin. 

Trailing-12-month free cash flow reached $4.90 billion, reflecting a 35% margin. Reserve Now, Pay Later continued affecting working capital by shifting guest payments closer to the stay date.

Airbnb repurchased approximately $700 million of common stock during the quarter. The company also announced a new $12 billion share repurchase authorization, supplementing the $2.7 billion remaining under its existing program.

Airbnb Raises Its 2026 Outlook

For the fourth quarter of 2026, Airbnb expects revenues between $3.22 billion and $3.28 billion, implying year-over-year growth of 16-18%, including an approximately 2-percentage-point foreign-exchange benefit.

Management anticipates mid-teens GBV growth, supported by at least low-double-digit growth in Nights and Seats Booked and a modest increase in ADR.

Adjusted EBITDA is expected to increase year over year, although adjusted EBITDA margin is projected to decline slightly due partly to the timing of marketing expenditures.

For 2026, Airbnb raised its revenue growth outlook to the high teens from at least the mid-teens. The company also increased its adjusted EBITDA margin expectation to approximately 36% from at least 35.5%, reflecting stronger revenue growth and operating leverage.

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 Cisco Systems (CSCO - Free Report) , Analog Devices (ADI - Free Report) and NVIDIA (NVDA - Free Report) . Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cisco Systems shares have gained 24.3% year to date. Cisco Systems is set to report first-quarter fiscal 2027 results on Nov. 12.

Shares of Analog Devices have risen 33.2% year to date. Analog Devices is set to report fourth-quarter fiscal 2026 results on Nov. 24.

NVIDIA shares have declined 2.6% year to date. NVIDIA is set to report third-quarter fiscal 2027 results on Nov. 17.

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