Citi has issued a research note indicating that Trip.com Group-S (ASX: 09961) reported first-quarter 2026 results where revenue grew 17% year-over-year to RMB 16.2 billion, surpassing both the bank's and market expectations by 2%. The non-GAAP adjusted operating profit margin reached 28.6%, slightly higher than the bank's forecast of 27.8%, primarily driven by robust revenue growth and effective control over sales and marketing expenses.

The bank maintains its "Buy" rating, with the target price for Trip.com Group Limited (ASX: TCOM) ADRs remaining unchanged at $82.

Breakdown by Business Segment

Accommodation booking revenue increased 17% year-over-year to RMB 6.5 billion, aligning with the bank's expectations. Transportation ticketing revenue grew 12% to RMB 6.1 billion, exceeding expectations by 1%. Travel and vacation package revenue rose 19% to RMB 1.1 billion, while corporate travel management revenue increased 20% to RMB 690 million.

Key Performance Metrics

The global OTA platform's total gross bookings in the first quarter grew over 65% year-over-year, with inbound travel bookings surging approximately 90%.

Outlook for the Next Quarter

Looking ahead to the second quarter, Trip.com has guided that total net revenue growth is expected to decelerate to a range of approximately 3% to 8% year-over-year. This slowdown is attributed primarily to soaring oil prices and the impact of business rectifications following an investigation by the State Administration for Market Regulation, which aligns with market expectations.

Citi suggests investors should focus on the latest developments regarding the investigation, the effects of rectifications related to gold and special-classified hotels, and the potential long-term impact on the company's fundamental business health.