Highlights

  • Expedia Group shows 95.23% basic EPS growth, a P/E of 17.96 and PEG of 0.78.
  • Second quarter revenue was $4,315 million, against $3,786 million a year earlier.
  • Second quarter net income attributable to Expedia Group was $878 million, against $330 million.
  • Expedia Group repurchased $900 million of shares in six months; $5.7 billion remains authorized.

An undervalued growth stock pairs earnings growth with its P/E and PEG ratios, and Expedia Group (NASDAQ:EXPE) shows all three: basic earnings per share grew 95.23% over one year, the trailing twelve-month P/E ratio is 17.96 and the PEG ratio, on an expected basis, is 0.78, with shares trading at USD 277.22 on October 28, 2026, down 0.31%. Alongside those figures, the global travel marketplace issued $1 billion of 5.5% senior notes due 2036 in April, authorized an additional $5 billion share repurchase program in May, and reported second quarter 2026 revenue of $4,315 million in its quarterly report filed in early August.

Based in Seattle, Washington, and incorporated in Delaware, Expedia Group describes itself as a global travel marketplace connecting travelers, partners and advertisers. Its reportable segments are B2C, which runs the Expedia.com, Hotels.com and Vrbo brands, B2B, which supplies travel and non-travel companies, and trivago, a hotel metasearch business that is separately listed on the Nasdaq Global Select Market. At June 30, 2026, its lodging marketplace had approximately 3.9 million properties available.

Growth: Second Quarter Earnings, Revenue and Gross Bookings

Net income attributable to Expedia Group was $878 million in the second quarter against $330 million a year earlier, and $872 million for the first six months against $130 million. Second quarter basic earnings per share were $7.30 against $2.61, and diluted earnings per share were $7.16 against $2.48.

Revenue of $4,315 million rose 14%. B2C revenue was $2,677 million, up 8%, B2B revenue was $1,493 million, up 23%, and trivago third-party revenue was $145 million, up 48%. Gross bookings were $33,928 million, up 12%, with room nights booked up 6% and average daily rates booked up 5%.

Operating income was $800 million against $485 million, up 65%, which the company said primarily reflected revenue growth in excess of operating costs.

Valuation: P/E of 17.96, PEG of 0.78 and Cash Generation

The P/E ratio of 17.96 is measured on trailing twelve-month earnings, and the PEG ratio of 0.78 on expected growth. Net cash provided by operating activities was $5,409 million for the first six months against $4,073 million.

The effective tax rate was 14.8% against 23.9%, which the company said was primarily due to nontaxable mark-to-market gains. On the second quarter call, Chief Financial Officer Derek Andersen said the company continues to generate free cash flow and that it funds the return of capital to shareholders.

Capital Returns, Debt and Liquidity

Expedia Group repurchased 4.2 million shares for $900 million in the first six months at an average price of $214.86 per share. The Audit Committee authorized the additional $5 billion program in May 2026, and $5.7 billion remained authorized under the 2023 and 2026 programs at June 30, 2026.

The company declared quarterly dividends of $0.48 per share in February and May, and in August declared a further $0.48 per share payable September 17, 2026 to stockholders as of August 27, 2026. Cash and cash equivalents were $6,682 million at June 30, 2026 against $5,413 million at December 31, 2025, with restricted cash of $2,402 million. A $2.5 billion revolving credit facility, entered in March 2026 and maturing in March 2031, had no borrowings outstanding.

Disclosed Risks and Third Quarter and Full-Year 2026 Outlook

The company said events in the Middle East and Mexico late in the first quarter negatively affected the travel industry and that the pressure continued into the second quarter, particularly in Europe. Air revenue was $91 million against $105 million, down 13%, and booked air tickets decreased 5%.

Expedia Group also disclosed that tax authorities are in various stages of inquiry or audit, some requiring prepayment of assessed taxes before a challenge. On June 18, 2026, the court in the Echevarria II Helms Burton case stayed it pending the appeal in Echevarria I.

On the second quarter call, management raised its full-year 2026 guidance to gross bookings of $129.5 billion to $130.8 billion and revenue of $16.05 billion to $16.22 billion, with adjusted EBITDA margin expansion of 150 to 175 basis points. For the third quarter, it expects gross bookings of $32.2 billion to $32.8 billion, revenue of $4.65 billion to $4.75 billion and adjusted EBITDA of $1.51 billion to $1.56 billion, and said margin expansion is expected to moderate in that quarter.