Airbnb (NASDAQ:ABNB) Releases Earnings Results, Beats Expectations By $0.31 EPS

Airbnb (NASDAQ:ABNB) posted its earnings results on Thursday. The company reported $3.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.85 by $0.31, FiscalAI reports. The company had revenue of $4.87 billion for the quarter, compared to analysts’ expectations of $4.75 billion. Airbnb had a return on equity of 33.38% and a net margin of 20.45%. Airbnb’s quarterly revenue was up 18.9% on a year-over-year basis. During the same period last year, the firm earned $2.21 earnings per share.

Here are the key takeaways from Airbnb’s conference call:

• Airbnb reported 19% revenue growth to $4.9 billion, with gross booking value up 21% and nights and seats booked up 16%. Reserve Now, Pay Later contributed an estimated 3 percentage points to nights growth; excluding it, growth was still about 13% and accelerated from Q2.
• Management raised its full-year outlook to high-teens revenue growth and an adjusted EBITDA margin of approximately 36%. Q4 revenue is forecast to grow 16%–18%, though the company expects a slight year-over-year decline in Q4 margin and is monitoring geopolitical developments in Europe and the Middle East.
• Adjusted EBITDA rose 22% to $2.5 billion, with margin expanding to 52%, while Q3 free cash flow was $1.4 billion. Airbnb also announced a new $12 billion share repurchase authorization, in addition to $2.7 billion remaining under its existing program.
• Airbnb said AI helped it ship more than 50 products and features in Q3, and its support assistant resolved about 40% of customer-support issues without a human agent. Customer-support cost per booking fell more than 17% year over year, and the company plans to begin rolling out its travel-focused AI agent in the first half of 2027.
• Hotels are growing faster than Airbnb’s core business, and about 35% of guests whose first Airbnb booking is a hotel return to book a home within a year. Management also highlighted expansion in services and partnerships as growth opportunities, while describing its expectation of “multiple billions” in future hotel revenue as a longer-term opportunity rather than a near-term forecast.

Airbnb Stock Down 3.5%

Shares of ABNB stock traded down $6.24 during trading hours on Thursday, hitting $170.13. 9,159,212 shares of the company’s stock traded hands, compared to its average volume of 3,505,975. The stock’s fifty day simple moving average is $168.96 and its two-hundred day simple moving average is $147.42. Airbnb has a 12-month low of $110.81 and a 12-month high of $193.45. The stock has a market cap of $101.87 billion, a price-to-earnings ratio of 38.67, a PEG ratio of 2.02 and a beta of 1.26. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.32.

Key Airbnb News

Here are the key news stories impacting Airbnb this week:

• Positive Sentiment: Q3 results topped expectations: Airbnb reported earnings of $3.16 per share and revenue of $4.87 billion, exceeding analyst estimates. Revenue grew 18.9% year over year, while nights and experiences booked rose 16%, pointing to resilient travel demand and stronger-than-expected business momentum. Airbnb lifts annual revenue growth forecast
• Positive Sentiment: Full-year outlook raised: The company now expects annual revenue growth in the high teens, up from its previous mid-teens forecast, reflecting stronger demand across global markets. Fourth-quarter revenue guidance of $3.2 billion to $3.3 billion was broadly in line with consensus. Airbnb raises outlook
• Positive Sentiment: Large buyback authorization: Airbnb authorized an additional $12 billion in share repurchases, a substantial potential source of shareholder returns and support for per-share metrics, though actual purchases may occur over time. Airbnb authorizes another $12 billion in buybacks
• Neutral Sentiment: AI product planned: Airbnb said it expects to launch an AI travel agent in the first half of 2027. It could improve trip planning and customer engagement, but the financial impact is not yet clear. Airbnb plans an AI travel agent

Analysts Set New Price Targets

Several brokerages have recently issued reports on ABNB. Rosenblatt Securities initiated coverage on Airbnb in a research report on Tuesday, September 1st. They issued a “buy” rating and a $220.00 target price for the company. Bank of America lifted their price target on Airbnb from $160.00 to $175.00 in a research report on Friday, August 7th. Susquehanna upped their price target on Airbnb from $170.00 to $200.00 and gave the stock a “positive” rating in a research note on Friday, August 7th. Citigroup reiterated a “market outperform” rating on shares of Airbnb in a report on Friday, September 18th. Finally, Truist Financial raised their price objective on Airbnb from $134.00 to $161.00 and gave the company a “hold” rating in a research report on Thursday, September 10th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $182.65.

Insider Buying and Selling

In other Airbnb news, insider Nathan Blecharczyk sold 13,615 shares of Airbnb stock in a transaction on Monday, October 26th. The stock was sold at an average price of $170.81, for a total transaction of $2,325,578.15. Following the completion of the transaction, the insider owned 20,567 shares in the company, valued at approximately $3,513,049.27. The trade was a 39.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO David Bernstein sold 1,756 shares of Airbnb stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $167.38, for a total value of $293,919.28. Following the transaction, the chief accounting officer owned 43,899 shares of the company’s stock, valued at $7,347,814.62. The trade was a 3.85% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 1,283,723 shares of company stock worth $230,764,440. Insiders own 27.21% of the company’s stock.

About Airbnb

Airbnb, Inc operates a global online marketplace that connects guests seeking accommodations and travel activities with hosts and service providers. Its platform enables users to search for, book and review a broad range of stays, including private rooms, entire homes, apartments and other distinctive properties.

In addition to lodging, Airbnb offers experiences and activities hosted by local individuals and businesses. The company also provides tools and services that help hosts create listings, manage bookings, communicate with guests and receive payments.