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Airbnb shares gain as investors cheer revenue forecast raise, AI payoff
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Airbnb shares gain as investors cheer revenue forecast raise, AI payoff
Aug 7, 2026 5:35 AM

Aug 7 (Reuters) - Airbnb ( ABNB ) shares rose 9% in premarket trading on Friday as the vacation-rental firm's raised annual revenue forecast eased worries over the fallout on global travel demand from the conflict in the Middle East.

As the war in Iran enters its sixth month, hotel operators and online travel agencies are banking on steady leisure demand and a host of upcoming international sporting events to help offset any likely impact.

"Despite the ongoing conflict in the Middle East, we continue to see strong underlying demand globally," said finance chief Elinor Mertz on Thursday, adding that the company did not assume any significant impact in its current quarter.

Meanwhile, Airbnb ( ABNB ) also highlighted its success in using AI tools after the rise of the technology had sparked fears of disruptions to traditional travel firms. Earlier this week, Booking noted that it was seeing a positive return on its AI investments.

Airbnb ( ABNB ) expects full-year revenue growth of at least the mid-teens, up from its previous forecast of low- to mid-teens, citing resilient travel demand.

"In addition to building out services and experiences, Airbnb ( ABNB ) is growing hotel supply, such that room nights grew at three times the rate of homes. We see these verticals adding billions in incremental bookings through the end of the decade," said Morningstar analyst Dan Wasiolek.

Airbnb ( ABNB ) reported second-quarter revenue of $3.61 billion, beating estimates of $3.57 billion, according to data compiled by LSEG.

D.A. Davidson analysts dubbed Airbnb ( ABNB ) the "best-positioned online travel agency" to weather regional geopolitical turmoil, an inflationary environment and AI traffic risks, citing its sizable U.S. revenue exposure and wide variety of lodging types and geographic listings breadth.

NO RESERVATIONS ABOUT AI

"AI is the best thing to ever happen to Airbnb ( ABNB )," CEO Brian Chesky said on a post-earnings call.

Company executives noted that customer support costs per booking declined about 16% year-over-year, driven in part by improvements to its AI assistant.

Needham analysts noted Airbnb ( ABNB ) has been rebuilding itself to move faster with AI, while Wedbush said such initiatives were speeding up product launch cadence and driving cost efficiencies.

(Reporting by Anshuman Tripathy in Bengaluru; Editing by Sriraj Kalluvila)

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