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Trip.com (TCOM) Earnings Beat Expectations on Strong Travel Demand, Barclays Maintains Overweight
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Trip.com Group Limited (NASDAQ:TCOM) ranks among the best high profit margin stocks to buy. On February 26, Barclays reduced its price target for Trip.com Group Limited (NASDAQ:TCOM) to $75 from $90 while retaining an Overweight rating on the company’s stock. The firm stated that both revenues and earnings came in somewhat higher than originally expected. Trip.com Group Limited (NASDAQ:TCOM) beat analyst expectations with earnings per share of $4.97, compared to $4.77. In addition, the company generated $15.4 billion in revenue, which exceeded the predicted $14.86 billion. However, the slightly higher revenues were partially offset by marginally higher fourth-quarter expenses, while gross margins were stable at 81%. Trip.com demonstrated particularly strong growth, with foreign reservations up 60% year-over-year in 2025 and 2026 to date, as well as in outbound travel. Management also issued a positive first-quarter outlook, citing sustained momentum experienced quarter-to-date, particularly with regard to Chinese New Year travel demand. Global travel service company Trip.com Group Limited (NASDAQ:TCOM) provides end-to-end solutions for the corporate travel, lodging, tour, and transportation sectors. While we acknowledge the potential of TCOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.