09:21 AM EST, 11/07/2025 (MT Newswires) -- Expedia Group's ( EXPE ) business-to-business growth in the third quarter shows that management has successfully changed the travel booking platform's narrative, RBC Capital Markets said in a client note emailed Friday.

The company reported late Thursday adjusted earnings of $7.57 per share for the September quarter, up from $6.13 the year before, while revenue grew 9% to $4.41 billion. Both metrics topped Wall Street's estimates.

Gross bookings advanced 12% to $30.73 billion for the third quarter, buoyed by a 26% jump in B2B, which accelerated by 900 basis points sequentially amid contributions from new and existing partners, RBC said. Expedia's ( EXPE ) shares spiked 15% in the most recent premarket activity.

"We think B2B continues to be a unique driver for Expedia ( EXPE ) versus peers and a big reason for the recent re-rate," RBC analyst Brad Erickson said. "B2B upside and strong margin flow-through should continue to reinforce that the relatively newer management team has changed the narrative for the better."

During an earnings call late Thursday, Expedia ( EXPE ) Chief Financial Officer Scott Schenkel told analysts the company now anticipates revenue and gross bookings growth of 6% to 8% for the ongoing three-month period, according to a FactSet transcript. For the full year, revenue growth is pegged at 6% to 7%, while bookings are set to increase by 7%.

RBC now projects Expedia ( EXPE ) to report revenue of $3.4 billion and bookings of $26.21 billion for the fourth quarter, up from its previous forecast of $3.28 billion and $24.51 billion. For 2025, the brokerage estimates revenue and bookings of $14.59 billion and $118.79 billion, respectively, compared with its prior projections of $14.31 billion and $115.57 billion.

Booked room nights inclined 11% in the third quarter, outpacing rivals Booking Holdings (BKNG) and Airbnb (ABNB), which posted growth of 8% and 9%, respectively, according to RBC. Acceleration in the US contributed to this performance, with B2B operations likely generating the strongest comparative advantage, the brokerage added.

RBC lifted its price target on the stock to $260 from $200 and maintained a sector perform rating.