10:44 AM EDT, 03/27/2026 (MT Newswires) -- Expedia ( EXPE ) reported stronger-than-expected Q4 earnings and better-than-anticipated guidance for 2026, prompting upward revisions to bookings and profit forecasts, Morgan Stanley said in a Friday note.

Morgan Stanley raised its 2027 bookings forecast by 4% and lifted its 2027 adjusted earnings before interest, taxes, depreciation, and amortization and earnings per share estimates by 15% and 18%, citing improved operating leverage and cost efficiencies.

The estimate increases were also driven by the upper end of Expedia's ( EXPE ) fiscal 2026 margin guidance, which signals roughly 125 basis points of margin expansion and suggests 2026 adjusted EBITDA could come in about 6% higher than its earlier projections, Morgan Stanley said.

The analysts said Expedia ( EXPE ) is achieving solid fixed-cost leverage and improving efficiency across key expense areas, though they noted they would need clearer signs of sustainably faster growth before taking a more constructive stance on the stock.

Morgan Stanley maintained its equal weight rating on the stock and raised its price target to $290 from $270.

Expedia ( EXPE ) shares were down 2.8% in Friday trading.

Price: 225.48, Change: -7.36, Percent Change: -3.16