Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Airbnb's Q2 FY2026 results reflected robust travel demand, with revenue rising 17% year-over-year led by a 10% increase in Nights and Seats Booked and modest ADR growth. Net income surged 27% to $816 million, boosted by a $77 million tax benefit, as operating expenses grew at a slower 15% pace. However, sales and marketing spending jumped 27%, driven by investments in emerging markets, while interest expense increased sharply due to newly issued debt. The company generated $1.3 billion in free cash flow and repurchased $1.1 billion in shares, though higher capital returns were partly funded by new borrowings.
Revenue
$3.61B
+16.54% YoY
Operating Income
$758M
+23.86% YoY
Source: SEC XBRL
Airbnb (ABNB) reported Q2 FY2026 revenue of $3.61B, up 16.5% year over year. Operating margin was 21.0%, up 1.2 points from 19.8% a year earlier. ABNB's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.37 | 1.28 | Beat +7.3% |
| Mar 2026 | 0.26 | 0.30 | Miss -11.9% |
| Dec 2025 | 0.56 | 0.67 | Miss -16.4% |
| Sep 2025 | 2.21 | 2.39 | Miss -7.5% |
Compiled by AI from 10-Q Item 2 of this filing
RNPL (Pay Later) adoption is growing, allowing guests to pay closer to check-in instead of at booking, which has led to higher cancellation rates and a decoupling of GBV growth from operating cash flow generation.
Source: 10-Q Item 2 MD&A
The provision for income taxes decreased $56 million in Q2, primarily due to a $77 million benefit from recently published guidance impacting prior year taxes, lowering the effective tax rate to 9%.
Source: 10-Q Item 2 MD&A
Sales and marketing expense rose 27% to $875 million, with brand and performance marketing up 30% due to higher paid growth initiatives in emerging markets and partnerships, while field operations and policy increased 21%.
Source: 10-Q Item 2 MD&A
Operations and support expense increased only 9% despite higher headcount, as a $17 million decrease in third-party service provider costs was achieved due to increased use of artificial intelligence in community support.
Source: 10-Q Item 2 MD&A
Airbnb issued $2.5 billion in senior notes in March 2026, using $2.0 billion to repay maturing convertible notes, which contributed to a $31 million increase in quarterly interest expense to $37 million.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 0 high, 3 medium, 2 low
The conflict in the Middle East has impacted booking trends, and ongoing macroeconomic pressures including inflation, interest rates, and potential decreased consumer spending could adversely affect future travel demand. The future impact remains uncertain.
Source: 10-Q Item 2 MD&A
The company's aggressive investment in brand and performance marketing, particularly in emerging markets, increased sales and marketing expense to 24% of revenue in Q2. Sustained high spending may erode profitability if not offset by revenue growth.
Source: 10-Q Item 2 MD&A
The issuance of $2.5 billion in senior notes has significantly increased the company's debt load, with quarterly interest expense surging to $37 million. Higher interest costs could weigh on net income, especially if revenue growth slows.
Source: 10-Q Item 2 MD&A
The growth of Pay Later bookings, which require no payment at booking, has been associated with higher cancellation rates. If this trend persists, it could lead to revenue recognition volatility and reduced cash flow predictability.
Source: 10-Q Item 2 MD&A
With a significant portion of operations outside the U.S., the strengthening of the U.S. dollar against major currencies like the Euro and British Pound reduced cash balances by $146 million in the first half of FY2026, and constant currency revenue growth was lower than reported.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.61 $B | 3.10 $B | +16.54% |
Cost of Revenue $M | 633.00 $M | 544.00 $M | +16.36% |
Operating Income $M | 758.00 $M | 612.00 $M | +23.86% |
Net Income $M | 816.00 $M | 642.00 $M | +27.10% |
R&D Expense $M | 672.00 $M | 610.00 $M | +10.16% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Airbnb delivered strong Q1 FY2026 revenue growth of 17.9% to $2.68B, with operating income more than doubling YoY to $86M, though net income grew only modestly to $160M amid elevated R&D spending and increased investing outflows.
Airbnb delivered 10.3% revenue growth to $12.2B in FY2025, but net income declined 5.2% to $2.5B as surging R&D investment and higher costs compressed margins, while the company eliminated all long-term debt and returned $3.8B to shareholders via buybacks.
Other companies in Hotels, Resorts & Cruise Lines