Airbnb reported third quarter revenue of 4.87 billion dollars, up 19 percent from 4.10 billion dollars a year earlier and above both its own guidance range of 4.69 billion to 4.77 billion dollars and the analyst consensus near 4.75 billion dollars. The company called it the fastest revenue growth in more than three years. Gross booking value rose 21 percent to 27.7 billion dollars, and nights and seats booked rose 16 percent to 155 million.
Profitability followed the top line. Net income rose 38 percent to 1.89 billion dollars, a 39 percent margin, and diluted earnings per share rose to 3.16 dollars from 2.21 dollars, against a consensus estimate of 2.85 dollars. Adjusted EBITDA rose 22 percent to 2.5 billion dollars, a margin of about 52 percent, while free cash flow was about 1.4 billion dollars.
Management raised the full year outlook alongside the print. Airbnb now expects full year 2026 revenue growth in the high teens and an adjusted EBITDA margin of approximately 36 percent. For the fourth quarter it guided revenue of 3.22 billion to 3.28 billion dollars, up 16 to 18 percent year over year, including about two points of currency help.
The capital return was the second headline. The board authorised repurchases of up to an additional 12 billion dollars of Class A common stock, after about 700 million dollars of buybacks in the quarter itself. The shares jumped more than 10 percent in after hours trading on November 5, having fallen 3.54 percent in the regular session as the broader market sold off.