Airbnb Beats Revenue Estimates But Iran War Hits Middle East Bookings

CNBC reported Thursday that Airbnb delivered a mixed first-quarter earnings report, clearing Wall Street’s revenue bar while falling short on profit. The Iran war is now weighing on bookings across key international markets.

Revenue Climbs but Earnings Miss the Mark

Airbnb posted first-quarter revenue of $2.68 billion, up 18% year-over-year and above analyst expectations of $2.62 billion. Net income reached $160 million, or 26 cents per share. That trailed the 29-cent consensus estimate from LSEG.

Adjusted EBITDA came in at $519 million, ahead of the $485 million forecast. Gross booking value jumped 19% to $29.2 billion, topping analyst estimates by a wide margin. Nights and seats booked grew 9% to 156.2 million, also beating expectations.

Iran War Casts Shadow Over EMEA and Asia Pacific

The company flagged that the ongoing conflict in Iran contributed to elevated cancellations across Europe, the Middle East, Africa and Asia Pacific. Airbnb expects a 100-basis-point drag on nights and seats booked in the second quarter. Management noted in its shareholder letter that the pattern resembles last year’s tariff-driven softness, when weakness in some corridors was partially offset by demand gains elsewhere. The company argued its global scale and broad price range give it resilience that more narrowly focused travel operators lack.

Background: A Platform Built for Disruption

Airbnb has navigated repeated demand shocks since its pandemic-era recovery, from geopolitical flare-ups to currency volatility and shifting consumer budgets. The company launched its Reserve Now, Pay Later feature in 2025, which management expects to create tougher year-over-year comparisons in the second half of 2026. First-time booker growth hit its highest level since 2022 last quarter, driven by expansion in Brazil, Japan and India.

Also Read: CoreWeave Revenue More Than Doubles in First Quarter

FIFA World Cup Fuels Summer Optimism

Looking ahead, Airbnb raised its full-year revenue growth outlook to low-to-mid-teens, up from a prior 12% forecast. Second-quarter revenue guidance of $3.54 billion to $3.60 billion also surpassed the $3.46 billion analyst consensus.

The company is positioning aggressively for the FIFA World Cup this summer across 16 cities in Canada, Mexico and the United States. More than 100,000 properties have joined the platform since outreach began last October. Airbnb separately launched a $750 incentive program for new hosts earlier this year to build inventory ahead of peak tournament demand. The Milano Cortina Winter Olympics drew roughly 200,000 guests through the platform in the first quarter, with local supply rising by nearly a third.

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