TLDR
- Airbnb (ABNB) stock traded near $190 premarket Friday, up about 12% after a down day Thursday
- Q3 EPS of $3.16 beat the $2.85 estimate, and revenue grew 19% to $4.87B
- Adjusted EBITDA margin widened to 52% as AI cut support costs per booking by 17%
- Airbnb raised its 2026 outlook and approved a new $12B buyback
- Mizuho set a $245 target, above the prior Street high of $220
Airbnb (ABNB) stock was trading near $190.25 in Friday premarket action, up about 12%. It closed Thursday at $170.13, down 3.54%.
Friday brought a very different mood. The company reported third-quarter earnings of $3.16 per share, ahead of the $2.85 estimate.
Revenue rose 19% to $4.87 billion, topping the $4.75 billion consensus. That was the fastest growth in more than three years.
A year earlier, revenue growth was 10%. The faster pace showed up in both established and newer markets.
Net income climbed 38% to $1.89 billion, up from $1.37 billion. Adjusted EBITDA rose 22% to $2.51 billion.
The adjusted EBITDA margin widened to 52% from 50%. Airbnb credited demand, product upgrades and cost discipline.
Cheaper Support, More Bookings
Airbnb’s AI support assistant resolved about 40% of customer issues without a human. That is up from one-third in the second quarter.
Support costs per booking fell more than 17% from a year ago. The company called AI a key driver of both product and cost gains.
Gross booking value rose 21% to $27.7 billion. Nights and seats booked grew 16% to 155 million.
Average daily rates rose 4% to $179. First-time booker growth hit 13%, the best since early 2022.
North America posted its fastest nights-booked growth in four years. The U.S., France, the U.K., Canada and Australia all picked up speed.
Guidance, Buyback and Price Targets
For the fourth quarter, Airbnb expects revenue of $3.22 billion to $3.28 billion. That implies growth of 16% to 18%.
For the full year, it now sees high-teens revenue growth and an adjusted EBITDA margin near 36%. It also approved another $12 billion buyback.
The company bought back $700 million of Class A stock in the third quarter. That came before the new authorization.
BTIG analyst Jake Fuller called the report a “clean beat-&-raise” at a time when peers have guided light. Truist said the upside came mainly from stronger revenue.
Goldman Sachs lifted its target to $185 from $165 and kept a Neutral rating. Mizuho went higher, raising its target to $245 from $200 with an Outperform rating.
Mizuho’s number sits above the prior Street high of $220. The firm also named Airbnb its top internet pick, citing a possible hotel business and AI expansion.
