Shares of Trip.com Group-S (09961) fell sharply following the release of its first-quarter results, dropping over 7% at the time of writing. The stock was down 7.52% to HK$327, with a trading turnover of HK$420 million.

The company reported its 2026 first-quarter financials, showing net operating revenue of RMB 16.208 billion, a year-on-year increase of 17.2%. However, net profit attributable to shareholders was RMB 2.499 billion, representing a significant decline of 41.6% compared to the same period last year. Basic earnings per ordinary share were RMB 3.85.

Adjusted EBITDA rose by 13.7% to RMB 4.83 billion, while the adjusted EBITDA margin decreased by 1 percentage point to 30%. The non-GAAP net profit saw a decrease of 6.8% to RMB 3.905 billion.

Looking ahead to the second quarter, the company provided guidance, forecasting that net operating revenue will grow by approximately 3% to 8% year-on-year. This projected growth rate represents a significant deceleration compared to the first quarter and is expected to have a corresponding impact on the margin and profitability for the upcoming period.

The company attributed this outlook to direct and indirect impacts from adverse macroeconomic factors, including elevated energy prices and geopolitical volatility. Furthermore, the company stated it has proactively made operational adjustments in response to recent changes in industry standards and compliance frameworks.