Airbnb (NASDAQ: ABNB) beat third-quarter estimates on both lines Thursday as revenue rose 19 percent to $4.87 billion, the platform’s fastest growth in more than three years. The board also authorized a new $12 billion share repurchase program on top of $2.7 billion remaining under the existing plan.
What happened in Airbnb’s third quarter
Airbnb reported diluted earnings of $3.16 per share, 31 cents above the $2.85 consensus. Revenue of $4.87 billion topped expectations near $4.75 billion. Growth accelerated from 10 percent in the year-earlier quarter, with strength across all five core markets: the United States, France, the United Kingdom, Canada and Australia.
Key numbers from the quarter
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | $4.87 billion | $4.10 billion | +19% |
| Diluted EPS | $3.16 | $2.21 | +43% |
| Gross booking value | $27.7 billion | – | +21% |
| Nights and seats booked | 155 million | – | +16% |
| Net income | $1.89 billion | $1.37 billion | +38% |
| Adjusted EBITDA | $2.51 billion | – | +22% |
Adjusted EBITDA margin expanded to 52 percent from 50 percent a year earlier. Net income benefited from a $135 million reduction in the provision for income taxes. Average daily rates rose 4 percent to $179.
Why the results stand out
First-time booker growth reached 13 percent, its highest level since early 2022. North America recorded its strongest nights growth in four years. An AI-powered customer support assistant resolved roughly 40 percent of all support issues without human involvement, up from one-third last quarter, and support costs per booking fell more than 17 percent year over year.
The company raised its full-year outlook to high-teens revenue growth from at least mid-teens, with an adjusted EBITDA margin of approximately 36 percent. Management attributed the acceleration to product changes and disciplined spending rather than a one-time travel surge.
Outlook and capital returns
| Item | Detail |
|---|---|
| Q4 revenue guidance | $3.22 to $3.28 billion (+16% to +18%) |
| Full-year 2026 revenue growth | High teens |
| Full-year adjusted EBITDA margin | ~36% |
| Free cash flow in Q3 | $1.4 billion |
| Stock repurchased in Q3 | $700 million |
| New repurchase authorization | $12 billion |
For the fourth quarter, Airbnb guided gross booking value growth in the mid-teens. The two-point foreign exchange tailwind after hedging pads the revenue outlook, but bookings growth carries most of the forecast.
What to watch
- Whether booking acceleration carries into the fourth quarter at mid-teens gross booking value growth.
- The pace of buybacks against the new $12 billion authorization.
- Margin durability near the 36 percent level as marketing spending shifts into the fourth quarter.
Income-focused investors will note that Airbnb pays no dividend. The cash return story here runs through repurchases, which shrink the share count and grow per-share earnings instead.
What the buyback means mechanically
Repurchases retire shares, which spreads the same profit across fewer shares and lifts earnings per share. Airbnb repurchased $700 million of stock in the third quarter against $1.4 billion of free cash flow, a pace it can fund without borrowing.
Common mistakes growth investors make
- Betting the quarter’s beat repeats: one strong report is a data point, not a trend line.
- Ignoring seasonality: travel bookings slow after the summer peak in most markets.
- Confusing an authorization with actual repurchases: board permission is not a promise to buy.
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