Expedia Group shares rallied about 15% in early New York trading on Friday after the online travel agency posted stronger-than-expected second-quarter results and lifted its full-year outlook, pointing to a rebound in U.S. travel demand. Second-quarter revenue rose 7% from a year earlier to $3.79 billion, topping the $3.71 billion analysts expected. Gross bookings reached $30.41 billion. Net income came in at $330 million, or $2.48 a share, while adjusted earnings were $4.24 a share, beating the $4.10 consensus. Adjusted Ebitda grew to $908 million, also ahead of estimates, as operating margin widened by 190 basis points. Chief Executive Officer Ariane Gorin said booking momentum accelerated at the start of July, especially in the domestic market, allowing Expedia to raise its 2025 gross bookings growth target to between 3% and 5%, up one percentage point from prior guidance. The company said expense discipline, organizational streamlining and the deployment of generative-AI tools are contributing to profitability gains. At roughly $217, the stock trades at about 12 times forward earnings, below the industry median of 14, according to Refinitiv data. Expedia joins peers Marriott and Airbnb in highlighting resilient demand from higher-income travelers even as lower-income consumers remain cautious.