Airbnb Shares Jump 12% After Third-Quarter Revenue Grows 19%

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Airbnb Shares Jump 12% After Third-Quarter Revenue Grows 19%

Airbnb shares jumped after third-quarter revenue grew 19% and earnings beat analysts' estimates. Management raised its full-year outlook and the board authorized a new $12 billion buyback. The stock is not cheap, though, and the take rate slipped slightly.

Airbnb shares jumped by 12% on Friday after the company reported third-quarter results that beat expectations. The stock is now just under its 52-week high and has gained 40% so far in 2026.

Revenue and bookings top estimates

Airbnb's revenue grew 19% year-over-year, or 16% excluding currency effects. Earnings per share were $3.16, compared to the $2.85 expectation among Wall Street analysts.

Bookings also rose. Nights and seats booked reached 155 million, up 16%, and gross booking value grew 21% to $27.7 billion. Airbnb has generated $4.9 billion in free cash flow over the past 12 months, and adjusted EBITDA increased by 22%.

Looking ahead, management expects fourth-quarter revenue of $3.22-$3.28 billion, representing 17% growth at the midpoint.

A $12 billion buyback

The board authorized a new $12 billion share repurchase program, on top of the $2.7 billion left under the existing authorization. Even after Friday's pop, the new buyback alone represents more than 10% of Airbnb's market value.

AI as a tailwind

There have been lingering worries that AI agents could disrupt online travel stocks by letting people book trips without visiting Airbnb's app. Management disagrees. According to the shareholder letter: "AI is the best thing to ever happen to Airbnb."

The article's author points to some supporting evidence. Airbnb's AI customer service assistant now resolves 40% of issues without any human involvement, and support costs per booking fell by about 17%.

Take rate slips and valuation stays high

Not every number was perfect. Airbnb's take rate slipped slightly in the third quarter, hurt by the new Reserve Now, Pay Later option, which delays revenue. The stock also trades at about 34 times forward earnings after the post-earnings pop.

Source: The Motley Fool

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