Expedia quarterly revenue climbs 11% to $3.55B; shares fall 3%

Expedia Group delivered a strong fourth quarter in 2025, surpassing Wall Street’s expectations with robust revenue growth and continued momentum from its B2B segment. The Seattle-based travel giant reported revenue of $3.55 billion, marking an 11% increase year-over-year, alongside adjusted earnings per share (EPS) of $3.78—well above the analyst consensus of $3.41 billion in revenue and $3.37 in EPS.

Gross bookings also saw a healthy 11% rise, reaching $27 billion for the quarter. A standout driver of this growth was Expedia’s B2B division, which posted a 24% surge in gross bookings compared to the same period last year. This performance significantly outpaced the company’s consumer-facing B2C segment, which grew by a more modest 5%. The B2B arm’s strong showing underscores Expedia’s strategic push to diversify revenue streams and capitalize on the growing demand for travel technology solutions among partners and third-party providers.

Expedia CEO Ariane Gorin attributed the positive results to “disciplined execution of our strategic priorities in a healthy demand environment.” Her remarks highlight the company’s focus on balancing growth with operational efficiency, even as it navigates a competitive and evolving travel landscape.

However, the earnings report comes amid internal changes. Expedia recently announced layoffs affecting 162 workers in Washington state as part of a broader workforce reduction initiative. The move reflects the company’s ongoing efforts to streamline operations and optimize costs, even as it posts strong financial results.

Looking ahead, Expedia provided optimistic guidance for the first quarter of 2026. The company expects gross bookings to land between $34.6 billion and $35.2 billion, representing a 10% to 12% year-over-year increase. Revenue is projected to range from $3.32 billion to $3.37 billion, up 11% to 13% compared to the prior year. Full-year guidance aligns with market estimates, signaling confidence in sustained growth.

Despite the upbeat financial performance, Expedia’s stock dipped more than 3% in after-hours trading. The decline may reflect investor reactions to broader market conditions or concerns about the company’s cost-cutting measures, including the recent layoffs.

Expedia’s ability to exceed expectations while maintaining a strong B2B growth trajectory positions it well for the year ahead. As the travel industry continues to recover and evolve, the company’s strategic focus on diversification and operational discipline will be key to sustaining its momentum.

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