Airbnb delivered robust Q1 2026 results with revenue growing 18% year-over-year to $2.7 billion, exceeding the high end of outlook by two percentage points. The company raised its 2026 guidance, now expecting year-over-year revenue growth to accelerate to low to mid-teens and anticipating adjusted EBITDA margin to be at least 35%. CEO Ellie Mertz highlighted that over 55% of people who book a hotel on the platform come back to book a home, demonstrating strong cross-category customer retention. The platform's nights booked grew 22% year-over-year, with nights booked in the app now accounting for 62% of total nights booked, up from 58% a year ago.
Airbnb's India operations continue to demonstrate exceptional momentum, with bookings surging 50% for two consecutive quarters according to the company's Q1 2026 results. The platform has also seen first-time bookers grow 75% year-on-year, up from 60% in the previous quarter. This growth is primarily driven by domestic travelers, with 80% of bookings in India being domestic in 2025, marking a complete reversal from pre-pandemic patterns when 70% of bookings were for international stays. The company has successfully built supply from approximately 15,000 listings pre-2017 to around 115,000 currently, with listings growing from about 15,000 to 115,000 over the past 15 years.
Airbnb's expansion strategy is showing significant results across markets, with net nights for expansion markets growing at roughly twice the rate of core markets. The company implemented 16 local marketing campaigns in Q1 capturing local zeitgeist and cultural moments to drive awareness. CEO Ellie Mertz noted that Brazil, Japan, and India are showing the highest growth rates in first-time bookers, with Brazil now consistently ranking among the top 3-5 markets globally after being barely in the top 10 just a couple of years ago. The platform's World Cup initiative has attracted an incremental 100,000 listings across 16 host cities, with management expecting the World Cup to become Airbnb's largest-ever event by guest count and supply addition.
AI is significantly accelerating Airbnb's innovation capabilities, with nearly 60% of the code engineers produce now written by AI, which CEO Ellie Mertz estimates is about twice the industry average. The company's cost per booking decreased about 10% year-over-year in Q1 2026, while over 40% of customer issues are now resolved through AI assistant without human intervention, up from about a third in Q4. The upcoming Summer Release on May 20 is expected to debut further feature enhancements, including AI-driven personalization and differentiated hotel offerings. Airbnb has also expanded Reserve Now, Pay Later to more markets, with roughly 20% of global GBV now coming from Reserve Now, Pay Later bookings.
Despite strong growth, Airbnb faces ongoing challenges including conflict-related cancellations across EMEA and APAC that resulted in a 100-basis-point drag on nights booked. The company experienced a one-time tax adjustment of approximately $70 million due to changes in U.S. corporate alternative minimum tax. However, CEO Ellie Mertz emphasized the platform's resilience, noting that Airbnb's model is able to deliver consistent results even in challenging environments due to its global presence and flexible pricing structure. The company maintains its focus on expanding hotels to mature markets and scaling Experiences globally, with early results showing that nearly 90% of Gen Z travelers are open to booking experiences on the platform.
