TripAdvisor reported Q4 earnings of $0.04 per share, which missed the Zacks Consensus Estimate of $0.15. That compares with $0.30 per share a year ago (excluding non-recurring items).
The earnings surprise was -73.33%. In the prior quarter, earnings were $0.65 per share versus an expected $0.58, a +12.07% surprise.
Over the last four quarters, TripAdvisor beat consensus EPS estimates three times. Q4 revenue was $411 million for the quarter ended December 2025, which was 0.56% below the consensus estimate. Revenue was flat year over year at $411 million.
TripAdvisor has topped consensus revenue estimates once in the past four quarters. The shares are down about 16.5% year to date, compared with a 1.4% gain for the S&P 500.
Current consensus forecasts call for EPS of $0.09 on $402.02 million in revenue next quarter, and EPS of $1.87 on $1.97 billion for the current fiscal year. The Internet – Commerce industry ranks in the bottom 27% of more than 250 Zacks industries. Historically, top-half industries outperform bottom-half industries by more than 2 to 1.
Wayfair is set to report results for the quarter ended December 2025 on February 19. Expected EPS is $0.64, up 356% year over year. Revenue is expected to be $3.29 billion, up 5.4%. Over the past 30 days, the EPS estimate has been revised 5.3% lower.
TripAdvisor badly missed earnings expectations for Q4 2025. A miss this large (-73.33%) often puts near-term pressure on the stock. Volatility also looks likely, especially since the stock is already down 16.5% year to date.
This lines up with U.S. Travel Association data showing online travel bookings fell 3% in January 2026 versus the prior year. In this market, investors have been quick to punish earnings misses, and stocks that miss by a wide margin often lag for several weeks. A similar pattern could create short-term opportunities for bearish trades.
Implied volatility for March and April options has jumped above 60%, well above the 52-week average. Buying puts is a direct bearish approach, but elevated option premiums can reduce returns. Strategies like bear call spreads may work better, since they can benefit from a price cap and from volatility falling as the news gets fully priced in.
On the earnings call, management pointed to “macroeconomic headwinds impacting travel budgets,” which suggests limited near-term upside. After a major earnings miss in Q2 2024, the stock fell another 12% over the following three weeks. That history suggests any rebound may take time.
The broader Internet-Commerce sector is also out of favor. With Wayfair reporting on February 19, weak results there could weigh on the whole group. That adds to the case for a cautious or bearish view on TripAdvisor in the near term.
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