Expedia (EXPE) is an American online travel conglomerate. Over time, the company has evolved into a massive ecosystem of travel brands, including names like Expedia.com, Vrbo, and Hotels.com. Expedia Group operates through four main segments: Core OTA (Online Travel Agency), Trivago, Vrbo, and its quickly expanding B2B segment that helps provide travel infrastructure to airlines and banks.
Founded in 1996 as a division of Microsoft (MSFT), the company became independent in 1999 and is now headquartered in Seattle, Washington.
Expedia’s stock enjoyed a fruitful 2025, gaining 52%, but has faced some pressure in the first quarter of 2026, trading 20% below year-to-date (YTD) and 13% since its quarterly results. This pullback reflects investors’ cautiousness regarding the company’s outlook. However, despite the dip, Expedia has performed strongly over the years, providing a 36% return in 52 weeks, 71% in two years, and 152% in the last three years.
In comparison to the S&P 500 Consumer Discretionary Index ($SRCD), Expedia has underperformed in early 2026. The benchmark index has declined roughly 9% YTD against Expedia’s 20% in the same time. This suggests investors be cautious of travel-based stocks, citing global travel challenges.
Expedia reported stellar fourth-quarter results in February 2026, with revenue touching $3.55 billion, delivering an 11.4% increase year-over-year (YoY). On the other hand, adjusted EPS came to $3.78, jumping 58% YoY and easily surpassing analyst estimates of $3.36 per share.
The report was headlined by its B2B segment, which saw bookings surge by 24% to $8.7 billion, marking its 18th consecutive double-digit quarterly growth. This helped adjusted EBITDA reach $848 million, a 32% spike from the same quarter last year, while margins expanded to 23.9%.
However, despite the strong financial beat, management provided a cautious 2026 outlook, expecting revenue growth at 6-9% with margin expansion capped at 100-125 basis points. This deceleration comes as the company shifts towards reinvesting in AI, machine learning, and B2B expansion. Nevertheless, the company instilled confidence in its cash flow generation by raising dividends by 20% to $0.48 per share, and with $3.1 billion in annual cash flow and a $240 billion travel backlog, it enters its second quarter on high margins.
