Airbnb’s growth engine gets a boost from bookings, AI and a higher outlook

Airbnb, Inc. (NASDAQ:ABNB) put acceleration at the centre of its third-quarter results, reporting 16% growth in Nights and Seats Booked and lifting its full-year 2026 revenue outlook to the high teens. Revenue rose 19% year on year to US$4.869 billion, while Gross Booking Value climbed 21% to US$27.7 billion.

The quarter also brought a substantial jump in reported profit. Net income reached US$1.890 billion, up from US$1.374 billion a year earlier, while Adjusted EBITDA, a non-GAAP measure, increased 22% to US$2.509 billion. Adjusted EBITDA margin improved to 52% from 50%; the GAAP net income margin rose to 39% from 34%.

Bookings and Regional Demand Accelerate

Airbnb recorded 155.0 million Nights and Seats Booked in the three months to September 30, compared with 133.6 million in the prior-year quarter. Average daily rate rose 4% to US$179, or 5% on an ex-FX basis. The company said demand strengthened across all regions, with growth above 20% in both Latin America and Asia Pacific, mid-teens growth in EMEA and low-double-digit growth in North America.

The figures also point to stronger customer acquisition. First-time bookers grew 13%, the fastest rate since early 2022, while nights booked through Airbnb’s app rose 29% and represented 66% of total nights. India and Brazil were particular standouts in the company’s regional disclosures, although those figures relate to specific origin markets rather than the platform as a whole.

Higher Guidance Meets a Large Capital Return Plan

Airbnb now expects full-year 2026 revenue growth in the high teens and an Adjusted EBITDA margin of approximately 36%, citing resilient travel demand and execution across its product roadmap. For the December quarter, it forecasts revenue of US$3.22 billion to US$3.28 billion, representing 16% to 18% year-on-year growth, including an estimated two percentage-point foreign exchange tailwind.

Cash generation gives the guidance upgrade financial weight. Third-quarter operating cash flow was US$1.508 billion and free cash flow, a non-GAAP measure, was US$1.426 billion. Airbnb repurchased US$0.7 billion of Class A stock during the quarter and authorised a further US$12 billion program, taking the available authorisation to US$14.7 billion including the previously unused amount. The program is discretionary and may be modified, suspended or ended.

AI Moves from Support Tool to Travel Agent

AI is already being used to reduce support costs: around 40% of customer-support issues were resolved without a human agent in the quarter, up from roughly one-third in the second quarter, while support cost per booking fell more than 17% year on year. New guest tools include natural-language search, AI-generated listing summaries and side-by-side comparisons; hosts are being offered dynamic pricing, earnings insights and quality recommendations.

The more ambitious project is a specialised travel-planning agent that Airbnb says will help users explore, compare and book homes, hotels, services and experiences inside a custom interface. The company plans to begin rolling it out in the first half of 2027. That timetable makes adoption, conversion and any effect on the company’s economics the more important tests than the breadth of the feature list.

Hotels and Services Broaden the Marketplace

Airbnb said boutique and independent hotels now number in the thousands across more than 60 destinations, although hotels remain a single-digit percentage of total nights booked. Approximately 35% of guests whose first Airbnb booking was a hotel later returned to book a home, according to the company’s cohort analysis covering October 2024 to September 2025.

The company is also expanding car rentals, grocery delivery and other services, alongside a new American Express partnership that places more than one million Airbnb listings on Amex Travel for eligible US cardholders. These initiatives may widen Airbnb’s reach, but the filing does not quantify their current contribution to revenue or profit. Meanwhile, the company’s US$0.10-per-stay contribution to Airbnb.org is expected to provide US$500 million over five years, funded by Airbnb rather than hosts or guests.