TLDR
- Airbnb (ABNB) stock jumped 2% in extended trading Thursday after Q4 revenue of $2.78 billion beat estimates of $2.72 billion
- Earnings missed expectations at 56 cents per share versus 66 cents expected as profit fell to $341 million from $461 million
- Q1 2026 revenue guidance of $2.59 billion to $2.63 billion exceeded Wall Street forecasts of $2.53 billion
- Nights and seats booked rose 10% to 121.9 million while gross booking value surged 16% to $20.4 billion
- The company expects full-year revenue growth of at least low double digits versus analyst estimates of 10.2%
Airbnb shares rose approximately 2% after hours Thursday following fourth-quarter results that exceeded revenue expectations despite an earnings miss.
The vacation rental company reported Q4 revenue of $2.78 billion. That topped the LSEG consensus estimate of $2.72 billion.
Earnings per share landed at 56 cents, below the 66 cent analyst forecast. Net income decreased to $341 million compared to $461 million in the year-ago quarter.
The profit decline came from a $90 million charge for non-income tax matters. Increased spending on new growth initiatives also weighed on earnings.
Booking Metrics Exceed Expectations
Revenue climbed 12% year-over-year driven by more nights booked and higher average daily rates. This marks the 20th revenue beat in the past 21 quarters for Airbnb, according to FactSet data.
The platform recorded 121.9 million nights and seats booked during the quarter. That represented 10% growth from last year and beat the StreetAccount estimate of 117.6 million.
Gross booking value reached $20.4 billion, up 16% year-over-year. Analysts had projected $19.4 billion for the metric.
Total costs and expenses increased 22% as the company invests in its Experiences product and geographic expansion. Airbnb announced plans at the start of 2025 to invest up to $250 million in new business launches.
Latin America showed the fastest booking growth by region. Asia Pacific and Europe, Middle East and Africa followed. North America posted the slowest growth.
Company Issues Bullish 2026 Outlook
Airbnb guided first-quarter revenue between $2.59 billion and $2.63 billion. Wall Street had expected $2.53 billion for the period.
For the full year, the company projects revenue growth of at least low double digits. Analyst consensus stands at 10% growth for 2026.
The company reported adjusted EBITDA of $786 million in the fourth quarter. Management said Airbnb finished 2025 with strong momentum.
Airbnb recently hired Ahmad Al-Dahle as chief technology officer. He previously led generative artificial intelligence efforts at Meta. Al-Dahle replaced Ari Balogh, who departed in December after seven years with the company.
The platform is expanding its hotel partnerships and bringing more properties onto the site. These initiatives are part of the company’s push into new market segments beyond traditional home rentals.
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