Expedia rises on stronger-than-expected third-quarter results and raised revenue guidance

What happened

Expedia (EXPE) rose 10.5% on November 4, 2026, after reporting third-quarter results that beat expectations and raising its full-year revenue guidance. The company reported earnings per share of $9.39 versus $8.85 expected, 6.1% above estimates, and said revenue grew 12% in the quarter. Trading volume was 2.9 times its 20-day average as investors reacted to the earnings release.

How big was the move

The stock closed at $315.88, a session move described as 3.4 times a typical daily move for this stock. It opened 3.3% above the previous close and rose 14.6% over the last five sessions, while the S&P 500 over five sessions fell 0.7%. The Consumer Cyclical sector median rose 4.9% on the day, leaving the stock 5.6 percentage points better than the sector median. The stock’s market sensitivity is a beta of 1.18, meaning the stock tends to move more than the market.

The technical picture

The stock traded well above its key moving averages: the stock was 10.6% above its 20-day moving average, 11.1% above its 50-day moving average and 21.8% above its 200-day moving average. The 50-day average sat above the 200-day average, a sign of an established uptrend, and the stock had been above the 200-day average for 20 consecutive trading days. Short-term momentum showed a one-month change that rose 21.5% and a three-month change that rose 3.0%, while the Relative Strength Index (14 days) was 63, in a neutral range between 30 and 70. The stock finished the session 7.6% below its 52-week high, and its 60-day annualized volatility of 50% is higher than 72% of its own readings over five years.

Fundamentals and valuation

Over the four quarters through September 30, 2026, Expedia reported revenue of $16.23 billion, up 12.9% from a year earlier, and diluted earnings per share of $17.13, which rose 63.9% versus a year earlier. Gross margin was 90.5% compared with 89.9% a year earlier, and operating margin widened to 19.4% from 12.7% a year earlier. Free-cash-flow margin was 26.9% and return on invested capital was 25.9%, supported by a balance sheet showing net cash of $5.61 billion and a share count that decreased by 6.7% over one year.

Valuation measures indicated the stock was trading at 18.4 times trailing earnings and 15.0 times expected forward earnings, with a free-cash-flow yield of 13.4%. The trailing P/E was lower than 95% of its own readings over the past five years, where the five-year median was 23.3 times earnings. That combination — faster earnings growth and a valuation below most of its recent history — helps explain why investors pushed the stock higher after the quarter. PromtFinance scores ranked Expedia highly for Quality at 100 and Growth at 91, with strong marks for Value and Momentum.

Earnings and analyst expectations

Expedia’s November 4, 2026, report delivered GAAP earnings per share of $9.39 versus $8.85 expected, the company’s seventh consecutive quarter beating estimates. Management raised full-year 2026 revenue guidance to $16.37 billion–$16.43 billion from $16.05 billion–$16.22 billion, while noting that growth may moderate in the fourth quarter because of travel disruptions, harder year-over-year comparisons and the timing impact of a planned promotion. Across the last four reports the average surprise was 17.1% above estimates, and the company’s typical two-day market reaction after recent reports was a rise of 2.5%.

The quarter showed strength across bookings: Booked Room Nights were up 7%, Total Gross Bookings rose 11%, B2B Gross Bookings climbed 19% and Lodging Gross Bookings increased 10% as reported. Analysts’ consensus price target was $336.24, 6.4% above the closing price, based on ratings from 76 analysts; 47% of those rated the stock Buy or Strong Buy while the consensus rating was Hold. That mix of momentum in the business, strong margins and a still-modest multiple underpinned investor enthusiasm.

What to watch

• November 5, 2026: next report
• Full-year 2026 revenue guidance range of $16.37 billion–$16.43 billion versus the prior range of $16.05 billion–$16.22 billion
• Booked Room Nights up 7% and Total Gross Bookings up 11% in the quarter; B2B Gross Bookings up 19% and Lodging Gross Bookings up 10% as reported
• Trading volume at 2.9 times its 20-day average and volatility 50% annualized over 60 days, higher than 72% of its own readings over five years
• Similar sessions in the past five years: seven sessions with a gain of at least 10.5%, where twenty trading days later the median result was a decline of 5.0% and three of seven were higher