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Investing.com -- Airbnb shares surged over 8% in premarket trading Friday after the vacation rental company topped Wall Street estimates for the second quarter and raised its full-year outlook, helped by strong travel demand, accelerating bookings and higher average daily rates.
The company reported earnings per share of $1.37, beating analysts’ estimate of $1.26. Revenue rose 17% year over year to $3.61 billion, ahead of the consensus estimate of $3.58 billion.
The travel demand has remained resilient despite macroeconomic uncertainty, with growth accelerating across several core markets and expansion regions. Airbnb said demand accelerated in several of its largest markets, including the United States, France, the United Kingdom and Australia, while product improvements and AI-driven features helped drive stronger engagement and booking growth.
For the third quarter, Airbnb forecast revenue of $4.69 billion to $4.77 billion, above analysts’ consensus estimate of $4.605 billion. The company expects gross booking value growth in the mid-teens and adjusted EBITDA margin to be slightly lower than a year earlier due to the timing of investments.
Airbnb also raised its full-year 2026 outlook, saying it now expects revenue growth of at least the mid-teens, supported by accelerating Nights and Seats Booked, product initiatives and continued strong travel demand. It also forecast a full-year adjusted EBITDA margin of at least 35.5%.
The company pointed to AI-driven product improvements, expanded services and stronger guest engagement as key factors behind its improved outlook, signaling confidence that booking momentum will continue through the second half of 2026.
"ABNB delivered a beat & raise, pointing to accelerating 2H room nights & we come away with estimates up," BTIG analysts said in a post-earnings note.
"While certainly encouraged by trends & step-up in #s, we continue to see valuation as relatively full," they wrote.
Airbnb said that its gross booking value increased 16% to $27.2 billion during the quarter, while Nights and Seats Booked climbed 10% to 148.3 million. Net income rose to $816 million from $642 million a year earlier, and adjusted EBITDA increased 21% to $1.26 billion.
Vahid Karaahmetovic contributed to this report.
