Expedia’s Q4 Net Income Rises 52%, Baird Boosts Target to $282
Baird raised its Expedia price target by 0.7% to $282 after the company reported Q4 adjusted net income of $478 million, up 51.7% year-over-year, and EPS of $3.78 versus a $3.37 consensus. Lodging gross bookings grew 13% to $27.0 billion with a 24.3% B2B bookings surge, while cost ratios improved.
1. Baird Raises Target Price
On February 13, Baird increased its price target on Expedia by 0.7% to $282 and reiterated an Outperform rating following updates to its financial model.
2. Q4 2025 Financial Results
Expedia’s Q4 adjusted attributable net income jumped 51.7% to $478 million and diluted EPS rose 58.2% to $3.78, significantly outperforming the $3.37 street consensus.
3. Segment Growth and Cost Efficiency
Lodging gross bookings climbed 13% to $27.0 billion, driven by a 24.3% B2B bookings increase. Room nights rose 9.3% to 94 million at a 4.0% higher ADR, while cost of revenue, marketing and overhead ratios declined by 77, 48 and 214 basis points respectively.