Earnings Update: Airbnb, Inc. (NASDAQ:ABNB) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

Last week, you might have seen that Airbnb, Inc. (NASDAQ:ABNB) released its quarterly result to the market. The early response was not positive, with shares down 4.7% to US$121 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$4.1b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.8% to hit US$2.21 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Airbnb after the latest results.

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After the latest results, the 42 analysts covering Airbnb are now predicting revenues of US$13.3b in 2026. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 11% to US$4.80. Before this earnings report, the analysts had been forecasting revenues of US$13.2b and earnings per share (EPS) of US$4.78 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Airbnb

The analysts reconfirmed their price target of US$139, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Airbnb at US$180 per share, while the most bearish prices it at US$98.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Airbnb's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Airbnb's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 9.1% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% annually. Factoring in the forecast slowdown in growth, it looks like Airbnb is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Airbnb going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.