Trip.com (HK:9961) Shares Fall 10.6% to HK$31.60 as Q1 Profit Drops to ¥2.5B

Trip.com Group (HK: 9961 | NASDAQ: TCOM) had a rough start to June 25, 2026. The Hong Kong-listed stock dropped 10.6% to HK$31.60, reaching its lowest level since August 2024. The selloff came after the company reported a sharp decline in first-quarter profit and issued significantly weaker-than-expected Q2 revenue guidance. Revenue growth wasn’t enough to cushion the blow; the market zeroed in on the earnings miss and the cautious outlook ahead.

Q1 2026 Earnings: Revenue Up, Profit Sharply Down

The contrast inside Trip.com’s Q1 results was striking. Revenue grew, but profit collapsed.

Net income attributable to shareholders fell to 2.5 billion yuan ($363 million) in the January–March quarter, down from 4.3 billion yuan a year earlier. Revenue rose 17% to 16.2 billion yuan, broadly supported by resilient travel demand and strong growth in overseas operations.

Q1 2026 Snapshot

• Total Net Revenue: ¥16.2 billion (US$2.4 billion), up 17% YoY, up 5% QoQ
• Net Income: ¥2.5 billion (US$367 million) down from ¥4.3 billion in Q1 2025
• Adjusted EBITDA: ¥4.8 billion
• Cash and Investments: ¥104.0 billion as of March 31, 2026

International Travel: The One Bright Spot

Not everything pointed downward. Trip.com’s international business put up impressive numbers in Q1 2026. Gross bookings on the company’s international platform increased about 65% year-on-year, while inbound travel bookings surged roughly 90%. These gains reflect genuine structural demand for cross-border travel, particularly into China.

Despite the strong international metrics, the overall profit decline and weak Q2 outlook overrode positive sentiment for Trip.com on the day.

Q2 2026 Guidance: The Real Trigger for the Selloff

The market’s sharpest reaction came from Trip.com’s forward outlook. For Q2 2026, Trip.com Group guides net revenue growth of approximately 3%–8% year-over-year. That range underwhelmed analysts who had expected a continuation of Q1’s 17% pace.

CFO Cindy Wang noted that growth has moderated from the exceptionally strong Q1 environment, reflecting a combination of macro and operational factors. Air travel demand in China has softened versus Q1, as higher airfares are influencing travel behaviors.

The company is also cooperating with a SAMR anti-monopoly investigation, which it notes could lead to significant fines or business practice changes. That regulatory overhang adds additional near-term uncertainty for Trip.com.

Related Stocks Reacting to Travel Sector Sentiment

Trip.com’s results have implications across the global travel sector. These related stocks are worth watching:

• Booking Holdings (NASDAQ: BKNG), a global OTA leader, direct peer
• Expedia Group (NASDAQ: EXPE) was up 5.51% ahead of Trip.com’s earnings release
• Airbnb (NASDAQ: ABNB) gained 3.83% in the same session
• TripAdvisor (NASDAQ: TRIP) travel content and OTA competitor

Trip.com’s June 25, 2026, selloff reflects a clear gap between strong operational data and a profit picture that didn’t match it. The 3%–8% Q2 guidance signals a growth reset that the market hadn’t priced in.

Disclaimer

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.