Airbnb Leads Wave of Q3 Earnings Beats With Revenue of $4.87B and New $12B Buyback

Airbnb delivered one of the strongest results in a busy after-hours earnings session, posting Q3 revenue of $4.87 billion against estimates of $4.75 billion, with EPS of $3.16 beating the $2.85 consensus by 11%. Gross booking value rose 21% year over year to $27.7 billion, nights and seats booked grew 16% to 155 million, and adjusted EBITDA reached $2.5 billion at a 52% margin, up 200 basis points from a year earlier. The company authorized an additional $12 billion in share repurchases and committed $500 million over five years to fund free housing, targeting 1 million free housing nights annually. For Q4, Airbnb guided revenue of $3.22 billion to $3.28 billion, ahead of the $3.16 billion estimate, with gross booking value growth expected in the mid-teens. First-time booker growth accelerated to 13% in the quarter, the highest since early 2022, and the company said it is building its own AI travel-planning agent with a rollout planned to start in the first half of 2027.

Kratos Defense posted Q3 revenue of $471.8 million, in line with estimates, but adjusted EPS of $0.24 beat the $0.20 consensus by 20% and adjusted EBITDA surged 65% year over year to $50.9 million. The defense contractor reported a book-to-bill ratio of 2.2 to 1.0, bookings of $1.04 billion, and a record backlog of $2.65 billion against a bid-and-proposal pipeline of $15.5 billion. Kratos raised its full-year 2026 revenue guidance to $1.78 billion to $1.81 billion and issued an initial 2027 forecast of $2.1 billion to $2.2 billion in revenue with adjusted EBITDA of $230 million to $240 million. The company also disclosed plans for jet engine production of up to 3,000 units in 2027 and potentially up to 5,000 additional engines in 2028.

Atlassian beat on both lines for its fiscal first quarter, reporting revenue of $1.77 billion versus the $1.71 billion estimate and adjusted EPS of $1.65 against a $1.43 consensus. Remaining performance obligations grew 44% year over year to $4.7 billion and free cash flow came in at $463 million. The company guided Q2 revenue of $1.83 billion to $1.84 billion, above the $1.82 billion estimate, and projected full-year fiscal 2027 revenue growth of 13.75% with cloud growth of 26%. Its MCP Server platform now counts more than 220 tools, 2 million monthly users, and over 15 million daily tool calls.

Innodata reported Q3 revenue of $95.6 million, well above the $83.3 million estimate, with EPS of $0.29 beating the $0.17 consensus. Revenue grew 53% year over year and the company raised its full-year 2026 revenue growth guidance to 42% or more, up from 40% or more previously. Innodata announced an approximately $18 million additional Q4 customer program, five hyperscaler wins, and the launch of a motion capture lab for physical AI work that it said could yield roughly $7 million in 2027.

SoundHound AI posted Q3 revenue of $62.4 million, beating the $61.7 million estimate, and raised full-year 2026 revenue guidance to $250 million to $260 million from the prior $238 million consensus. It issued a 2027 revenue target of $350 million to $400 million and said it expects to reach sustained adjusted EBITDA profitability within the second half of 2027. The LivePerson acquisition, closed September 4, adds top-90 accounts representing more than $100 million in annualized recurring revenue, and the company disclosed $120 million in annualized cost synergies with more than $80 million expected to be realized before January 1, 2027.

TransMedics beat substantially on both lines, reporting Q3 revenue of $203 million against a $178 million estimate and EPS of $0.46 versus the $0.29 consensus. The company raised its full-year 2026 revenue guidance to $764 million to $774 million, above the prior $744 million estimate, and noted that FDA protocol now permits 90 additional patients in its ENHANCE Heart trial alongside the first European transplant logistics tender in Italy.

Sweetgreen reported Q3 revenue of $176 million, beating the $169 million estimate, but same-store sales fell 6.4% and restaurant-level margin contracted 270 basis points year over year to 10.4%. The company guided full-year same-store sales of negative 5.5% and adjusted EBITDA of negative $23 million to negative $20 million, while noting that comparable sales turned positive in October. Lyft reported Q3 revenue of $1.82 billion, missing the $1.92 billion estimate, though results included a $117.9 million impact from legal, tax, and regulatory reserve changes. Adjusted EBITDA of $203.9 million beat the $194 million estimate, and the company launched Lyft Go at $9.99 per month bundled with DashPass memberships. Corsair Gaming beat with revenue of $367 million against a $336.6 million estimate and raised full-year revenue guidance to $1.456 billion to $1.486 billion. Akamai matched on revenue at $1.12 billion but beat on adjusted EPS at $1.77 versus the $1.67 estimate, while guiding Q4 revenue of $1.15 billion to $1.17 billion, below the $1.20 billion consensus.