Expedia Group (EXPE) delivered its fifth consecutive beat and raise in Q2, with full-year guidance raised on all three lines, as the business-to-consumer segment continues to see solid top-line improvement and stronger margin expansion, Wedbush Securities said Thursday.
Geopolitical headwinds from Q1 normalized, though Europe remains the soft spot, while agentic traffic is still small but showing high intent without materially disrupting ownership of the transaction, according to the note.
The underlying levers for marketing improvements include AI-driven ranking, recommendations and personalization resulting in record attach rates on the Expedia brand, Vrbo checkout optimization with over 40% of bookings including partner-funded offers, and the May sale becoming the first campaign to exceed $1 billion in bookings for participating properties, the brokerage said.
Wedbush expects Q3 revenue of $4.75 billion, up from its prior estimate of $4.68 billion. It now expects earnings per share of $8.28 versus $7.90 previously.
For 2026, the brokerage now expects revenue of $16.2 billion and EPS of $19.60, up from $16.0 billion and $16.12, respectively.
Wedbush kept an outperform rating on Expedia and raised its price target to $417 from $334.
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