Shares of Trip.com Group fell sharply on Thursday after the online travel company reported lower-than-expected adjusted earnings and issued a weaker growth outlook for the second quarter, raising concerns about slowing momentum.
The Hong Kong-listed shares dropped as much as 9.4% during trading, touching their lowest level since August 2024 before recovering slightly to trade nearly 9% lower. The decline added to the stock's difficult year, with shares already down roughly 42% since the beginning of 2026.
Trip.com reported first-quarter revenue of $2.4 billion, representing a 17% increase compared with the same period last year. The growth was driven primarily by strong performance in its overseas operations and rising bookings from its inbound travel business.
Despite solid revenue growth, the company’s adjusted net profit declined 7% from a year earlier. Lower contributions from other income weighed on earnings, causing adjusted profit to fall short of analysts’ expectations even though revenue exceeded forecasts.
Investor concerns intensified after management projected slower growth for the second quarter. The company expects revenue to increase between 3% and 8%, significantly below market expectations for approximately 14% growth. Analysts noted that the softer outlook could pressure profit margins and earnings in the coming quarters.
According to DBS Group Research, the weaker guidance likely contributed to the sharp decline in the share price. However, the firm believes much of the negative outlook may already be reflected in the stock's valuation after its substantial decline this year.
Trip.com has also faced additional pressure from an ongoing investigation by Chinese regulators related to the country's anti-monopoly laws. The regulatory scrutiny has added uncertainty for investors and weighed on market sentiment.
Despite the near-term challenges, analysts remain optimistic about the company’s long-term prospects. DBS maintained its "buy" rating on the stock, citing continued strength in Trip.com's international business and the recovery of both domestic and overseas travel demand.
The company's expanding global presence and increasing international travel activity are expected to remain important growth drivers. As Chinese outbound travel continues to recover and international tourism demand improves, Trip.com may be well positioned to benefit from the long-term expansion of the travel industry.
Investors will now closely monitor whether the company can stabilize earnings growth and overcome regulatory challenges while maintaining momentum in its overseas operations.
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