Airbnb, Inc. (ABNB) stock surged 8.07% in after-hours trading on Thursday, following the release of its second-quarter financial results that surpassed Wall Street expectations across key metrics. The vacation rental giant reported revenue of $3.61 billion, up 17% year-over-year and above the consensus estimate of $3.58 billion. Adjusted earnings per share came in at $1.37, significantly beating the $1.25 estimate, while net income climbed 27% to $816 million.

The rally was fueled by the company’s optimistic outlook, as it raised its full-year revenue growth forecast to “at least mid teens” from the prior “low to mid teens” range, and projected an adjusted EBITDA margin of at least 35.5%. For the third quarter, Airbnb guided revenue between $4.69 billion and $4.77 billion, well above the $4.61 billion analyst consensus. Gross booking value grew 16% to $27.2 billion, and Nights and Seats Booked increased 10% to 148.3 million, accelerating from the previous quarter.

Strong global travel demand, a boost from the FIFA World Cup across North America, and the company’s AI-driven platform improvements were cited as key drivers of the performance. Airbnb executives highlighted that AI has reduced concept-to-delivery time by up to 60% and improved customer support efficiency, contributing to the company’s outperformance against its largest peers. The combination of robust quarterly results and an upbeat forecast sent shares sharply higher in extended trading.