Expedia Group Inc. (NASDAQ: EXPE) shares surged 18% in intra-day trading on Friday after the online travel company posted third-quarter results that beat expectations and raised its full-year outlook amid strong travel demand.

The company reported adjusted earnings per share of $7.57 for the quarter ended September 30, 2025, beating analyst forecasts of $6.98. Revenue came in at $4.41 billion, ahead of the $4.28 billion consensus and up 9% year over year.

Booked room nights climbed 11% from a year ago, marking the fastest U.S. growth in three years. Total gross bookings increased 12%, supported by a 26% surge in business-to-business (B2B) bookings and a 7% gain in consumer (B2C) bookings.

Adjusted EBITDA rose 16% to $1.45 billion, while margins expanded by 208 basis points. The company also returned $451 million to shareholders through the repurchase of 2.3 million shares.

Following the strong results, Expedia raised its full-year 2025 forecast, now expecting gross bookings growth of 7%, up from 3-5% previously, and revenue growth of 6-7%, compared with the prior 3-5% outlook. The company also raised its adjusted EBITDA margin expansion guidance to 2% from 1%.

For the fourth quarter, Expedia projected gross bookings and revenue growth of 6-8%.