Airbnb shares jumped on Friday after the travel platform reported third-quarter revenue growth of 19% and authorised a new share buyback of up to $12 billion.

A beat on revenue and profit

The company reported third-quarter revenue of $4.87 billion for the quarter ended September 30, up 19% on a year earlier and above analysts' average expectation of $4.75 billion. Diluted earnings per share came in at $3.16, compared with $2.21 a year earlier and ahead of the $2.85 analysts had expected. Net income rose 38% to $1.89 billion, while adjusted earnings before interest, tax, depreciation and amortisation climbed 22% to $2.5 billion.

Bookings accelerate

Nights and seats booked rose 16% to 155 million, driving gross booking value up 21% to $27.7 billion. Reuters reported that bookings in North America grew at a low-double-digit rate, while Europe, the Middle East and Africa grew at a mid-teens rate. Free cash flow rose 29% to $1.4 billion in the quarter.

Outlook raised and cash returned

Airbnb raised its full-year 2026 revenue growth forecast to the high teens, from at least mid-teens previously, and lifted its adjusted earnings margin outlook to about 36%. It guided fourth-quarter revenue to between $3.22 billion and $3.28 billion, growth of 16% to 18%. The board authorised up to an additional $12 billion of Class A share repurchases, on top of $2.7 billion remaining under the old plan, after buying back $700 million of shares in the quarter. Shares rose about 10% in extended trading on Thursday, according to Reuters, and then climbed 11.67% in Friday's regular session to close at $189.99, their highest since November 2021.