Airbnb lifted its 2026 revenue guidance on Thursday, buoyed by a strong first quarter in which bookings jumped 19% year-over-year. The company now anticipates annual revenue growth in the low-to-mid teens, an upgrade from its prior forecast of at least low double digits. This optimistic revision comes despite headwinds from the ongoing Middle East conflict, which has led to higher cancellations across Europe, the Middle East, Africa, and Asia Pacific.
Q1 Financial Highlights
For the quarter ended March 31, Airbnb reported revenue of $2.678 billion, an 18% increase from the prior year. Gross booking value reached $29.2 billion, up 19%. Net income came in at $160 million, or $0.26 per diluted share, falling short of analyst expectations of $0.30 per share. Adjusted EBITDA rose 24% to $519 million. Nights and Seats Booked grew 9% to 156.2 million.
The results presented a mixed picture relative to Wall Street forecasts. While earnings per share missed the consensus estimate of $0.30, revenue surpassed the $2.62 billion projection. Gross bookings also exceeded expectations, reflecting resilient travel demand.
Regional Performance and Conflict Impact
Airbnb highlighted robust demand across the Americas, which helped offset disruptions from the Middle East war. North America posted high-single-digit growth in Nights and Seats Booked, while Latin America and Asia Pacific saw high-teens growth. Europe, the Middle East, and Africa managed mid-single-digit growth, but conflict-related cancellations tempered results. The company noted that cancellations were higher than normal across these regions and expects a 100 basis point drag on second-quarter Nights and Seats Booked growth due to the conflict.
The Middle East situation has also affected other travel companies. Expedia CEO Ariane Gorin told Reuters that the company began seeing fallout in March, with cancellations across Europe and Asia. Booking Holdings CFO Ewout Steenbergen flagged disrupted routes linking Europe and Asia, and Booking now expects annual revenue growth in the high single digits, down from earlier projections.
Strategic Initiatives and Outlook
Airbnb is expanding beyond home stays, experimenting with services and experiences in select cities and adding boutique and independent hotel inventory. For the 2026 FIFA World Cup, the company has listed over 100,000 homes across all 16 host cities, a first since October. The company also noted that first-time bookings grew 10%, the fastest rate since early 2022, and that 63% of bookings now come through its app, up from 58% a year ago.
Looking ahead, Airbnb projects second-quarter revenue between $3.54 billion and $3.60 billion, representing 14% to 16% growth. The full-year adjusted EBITDA margin is expected to be at least 35%. Marketing, international expansion, and artificial intelligence remain key spending priorities. The company warned that year-over-year comparisons will become more challenging later this year following the launch of the Reserve Now, Pay Later option, and that the Middle East conflict continues to pose a risk to cross-border bookings.
