Airbnb beats estimates as bookings accelerate and 2026 outlook rises

Airbnb revenue and bookings accelerated in the third quarter

Airbnb reported third-quarter 2026 GAAP diluted earnings of $3.16 per share, up 43% from $2.21 a year earlier, and revenue of $4.87 billion, an 18.9% annual increase. The earnings figure was 10.49% above the Zacks Consensus Estimate, while revenue exceeded that estimate by 2.52%, according to Zacks Equity Research.

Demand indicators also improved. Nights and Seats Booked increased 16% to 155 million, gross booking value rose 21% to $27.7 billion on both reported and foreign-exchange-neutral bases, and average daily rate reached $179, up 4% year over year. The booking increase benefited from a 3 percentage-point net lift from the expansion of Reserve Now, Pay Later; excluding that effect, bookings grew approximately 13%.

Regional and mobile demand showed broad gains

North American Nights and Seats Booked grew at a low-double-digit rate, the fastest in four years. EMEA grew at a mid-teens rate, while Latin America and Asia Pacific each exceeded 20%. Brazil's origin net nights booked rose more than 30%, and India's increased by more than 60%; first-time bookings in India grew more than 80%, while Japan recorded approximately 35% growth.

Nights booked through Airbnb's mobile app increased 29% and represented 66% of total nights booked, up from 62%. First-time bookers increased 13%, the highest rate since early 2022.

Profitability improved alongside higher revenue

Total costs and expenses rose 15.3% to $2.85 billion, but declined to approximately 58.5% of revenue from 60.3% a year earlier. Product development expenses fell by roughly 70 basis points as a share of revenue, while sales and marketing expenses increased by about 5 basis points. Operations and support and general and administrative expenses decreased by approximately 84 and 30 basis points, respectively.

Operating income increased 24.4% to $2.02 billion, and operating margin expanded by about 180 basis points to 41.5%. Adjusted EBITDA rose 22.3% to $2.51 billion, lifting the adjusted EBITDA margin to 52% from 50%.

Airbnb raised its annual outlook

Airbnb now expects 2026 revenue growth in the high teens and a full-year adjusted EBITDA margin of approximately 36%. For the fourth quarter, the company forecast revenue of $3.22 billion to $3.28 billion, representing growth of 16% to 18%.

The company also said its board authorized a new $12 billion share-repurchase program and that it repurchased $700 million of stock during the third quarter. These authorizations and the quarterly repurchase are distinct from the earnings and operating results.

AI deployments accompanied the earnings improvement

Airbnb continued integrating artificial intelligence across its platform for guest experiences, host productivity and customer support. It introduced more than 50 products and features during the quarter, nearly 70% more than a year earlier.

The company's AI assistant, available in more than 50 languages, helped resolve approximately 40% of customer-support cases without a human agent, while support costs per booking declined by more than 17%. The reviewed reporting did not establish that AI integration alone caused the quarter's financial or demand improvement.

The next measurable point is Airbnb's fourth-quarter outlook: the company expects revenue of $3.22 billion to $3.28 billion, along with full-year revenue growth in the high teens and an adjusted EBITDA margin of about 36%.