Expedia sees higher first-quarter margin, muted 2026

Group 1 - Expedia forecasts a higher first-quarter adjusted core profit margin, driven by one-time gains and strong demand from business clients, but remains cautious on the full-year outlook [1][2] - The company expects adjusted core profit margin to grow by 3 to 4 percentage points in Q1 2026, compared to a rise of 1.05 percentage points in 2025, but anticipates a slowdown for the full year to a rise of 1 to 1.25 percentage points [3] - Despite a weak margin forecast, Expedia's full-year gross bookings projection of $127 billion to $129 billion exceeds analysts' average estimate of $125.95 billion [4] Group 2 - The B2B segment has seen a 24% increase in gross bookings in Q4, significantly outperforming the 5% growth in the direct-to-consumer unit [4] - Online travel agencies are benefiting from cost-conscious travelers, with a notable increase in partners participating in promotional sales, leading to 30% of Q4 bookings coming from discounted inventory [5] - Expedia's adjusted profit for Q4 was $3.78 per share, up from $2.39 per share a year earlier, surpassing analysts' expectations of $3.36 [6]