Expedia Group stock declined 7.6% following the company's fourth-quarter 2025 earnings report released on February 12. While the company beat expectations with adjusted EPS of $3.78 versus $3.36 consensus and revenue of $3.55 billion versus $3.42 billion expected, shares fell 13% from February 11 to February 20. The primary driver of the decline was Expedia's cautious full-year 2026 margin outlook, guiding adjusted EBITDA margin expansion of only 100 to 125 basis points, well below the 240 basis points delivered in 2025. The company attributed the margin deceleration to lapping benefits from 2025 headcount reductions and marketing cost cuts, with selective reinvestment into AI, machine learning talent, and B2B growth initiatives. Multiple analysts subsequently reduced price targets, including J.P. Morgan, Piper Sandler, Jefferies, Susquehanna, and Citigroup.
Read full analysisExpedia Group stock declined 7.6% following the company's fourth-quarter 2025 earnings report released on February 12. While the company beat expectations with adjusted EPS of $3.78 versus $3.36 consensus and revenue of $3.55 billion versus $3.42 billion expected, shares fell 13% from February 11 to February 20. The primary driver of the decline was Expedia's cautious full-year 2026 margin outlook, guiding adjusted EBITDA margin expansion of only 100 to 125 basis points, well below the 240 basis points delivered in 2025. The company attributed the margin deceleration to lapping benefits from 2025 headcount reductions and marketing cost cuts, with selective reinvestment into AI, machine learning talent, and B2B growth initiatives. Multiple analysts subsequently reduced price targets, including J.P. Morgan, Piper Sandler, Jefferies, Susquehanna, and Citigroup.
Expedia Group operates major online travel platforms including Expedia.com, Hotels.com, and Vrbo, generating revenue by connecting travelers with lodging, flights, and rental cars. The company also runs a fast-growing B2B business — with bookings surging 24% in Q4 — supplying travel inventory to other platforms. Its heavy reliance on consumer search-driven travel booking makes it particularly exposed to the AI disruption fears and margin guidance disappointment driving its extended selloff.