Expedia Group (EXPE) posted better-than-expected Q4 results and issued strong Q1 guidance while signaling steady demand, despite near-term risks that could pressure results, Wedbush Securities said in a note on Friday.

The analyst noted that the company expects Q1 gross booking to grow 10% to 12%, above the consensus for a 7.8% increase. Revenue growth is guided at 11% to 13%, higher than the Wall Street estimate for 8%. The company sees a 3% to 4% increase in margins on earnings before interest, taxes, depreciation, and amortization or EBITDA, also above Street estimates.

Despite some near-term pressures, Wedbush raised its Q1 estimates to gross bookings to 11% up by 3%, adjusted EBITDA to rise to $450 million with a 13.4% margin from $349 million and 10.7% previously and raised full-year gross bookings and adjusted EBITDA forecasts by around 1% and 4%, respectively.

Expedia may still face challenges as US consumer spending is expected to be softer in the near term, which accounts for two-thirds of its revenue, the analysts said.

For fiscal year 2026, Expedia plans to shift toward greater operational efficiency across its marketing spend, cost of revenues, and fixed overhead expenses, the analysts noted.

Wedbush Securities kept its neutral rating and $260 price target on the stock.

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