Trip.com Group Limited (TCOM) H1 2026 Financial Results
QuoteReporter
Trip.com Group Limited (TCOM) Q2 2026: Net Income Declines, Operating Income Drops — Disappointing
In the second quarter of 2026, Trip.com Group Limited reported a net income of RMB 80 million, a significant decline of RMB 9,114 million or -99% compared to the same period last year, when net income was RMB 9,194 million. This sharp drop indicates a disappointing quarter for shareholders, primarily due to a substantial decrease in operating income.
Key Financial Metrics:
- Revenue: RMB 2,483 million
- Operating Income: RMB 2,483 million, down from RMB 7,665 million, a decrease of RMB 5,182 million or -68%
- Net Income: RMB 80 million, down from RMB 9,194 million, a decrease of RMB 9,114 million or -99%
- EPS (Diluted): Not explicitly stated in the provided data
- Gross Margin: Not explicitly stated in the provided data
- Order Intake/Bookings: Not reported in the provided data
- Cash Position: Total assets of RMB 259,089 million
- Debt Position: Total liabilities of RMB 98,285 million
The decline in operating income is particularly concerning, as it fell from RMB 7,665 million to RMB 2,483 million, reflecting a decrease of RMB 5,182 million or -68%. This drop can be attributed to increased expenses in product development, sales and marketing, and general administrative costs, which collectively rose significantly.
Dividend and Buyback Updates:
There were no updates regarding dividends or share buybacks in the report.
Forward Guidance:
Looking ahead, the most critical catalyst to watch for Trip.com Group Limited in the next quarter will be the recovery in travel demand and the company's ability to manage its operating expenses effectively. The company must focus on improving its operational efficiency to regain profitability and restore shareholder confidence.
In summary, the second quarter of 2026 was disappointing for Trip.com Group Limited, with a drastic decline in net income and operating income. The company faces challenges that need to be addressed to improve its financial performance moving forward.
Income Statement / P&L
Currency: RMB (in millions)
| For the six months ended June 30, 2026 | Amounts as reported under U.S. GAAP | Share-based compensation | Leases | Equity | Equity | Available-for-sale debt investments | Convertible senior notes | Software | Business combinations | Amounts under IFRS Accounting Standards |
|---|---|---|---|---|---|---|---|---|---|---|
| Product development | (7,854) | (76) | — | — | — | — | — | — | — | (7,930) |
| Sales and marketing | (7,588) | (12) | — | — | — | — | — | — | — | (7,600) |
| General and administrative | (7,456) | (55) | 1 | — | — | — | — | — | — | (7,510) |
| Income from operations | 2,483 | (143) | 1 | — | — | — | — | — | — | 2,341 |
| Interest expense | (232) | — | (18) | — | — | — | 64 | — | 7 | (179) |
| Fair value changes on investments measured at fair value through profit or loss | — | — | — | 3 | — | — | — | — | — | 3 |
| Fair value changes of convertible senior notes | — | — | — | — | — | — | 2,602 | — | — | 2,602 |
| Income/(loss) before income tax expense and equity in loss of affiliates | 2,353 | (143) | (17) | 3 | — | — | 2,666 | — | 7 | 4,869 |
| Income tax expense | (1,692) | — | — | (0) | — | — | — | — | — | (1,692) |
| Equity in loss of affiliates | (581) | — | — | — | (21) | — | — | — | — | (602) |
| Net income/(loss) | 80 | (143) | (17) | 3 | (21) | — | 2,666 | — | 7 | 2,575 |
Balance Sheet
Currency: RMB (in millions)
| As of June 30, 2026 | Amounts as reported under U.S. GAAP | Share-based compensation | Leases | Equity | Equity | Available-for-sale debt investments | Convertible senior notes | Software | Business combinations | Amounts under IFRS Accounting Standards |
|---|---|---|---|---|---|---|---|---|---|---|
| Intangible assets and land use rights | 12,947 | — | (149) | — | — | — | — | 202 | — | 13,000 |
| Property, equipment and software | 5,767 | — | — | — | — | — | — | (202) | — | 5,565 |
| Investments | 51,361 | — | — | (332) | 248 | (1,402) | — | — | — | 49,875 |
| Investments measured at fair value through profit or loss | — | — | — | 431 | — | 1,402 | — | — | — | 1,833 |
| Goodwill | 62,196 | — | — | — | — | — | — | — | (213) | 61,983 |
| Right-of-use assets | 854 | — | 35 | — | — | — | — | — | — | 889 |
| Total assets | 259,089 | — | (114) | 99 | 248 | — | — | — | (213) | 259,109 |
| Short-term debt and current portion of long-term debt | 25,767 | — | — | — | — | (88) | — | — | — | 25,679 |
| Other payables and accruals | 25,750 | — | — | — | — | (5) | — | — | — | 25,745 |
| Deferred tax liabilities | 4,233 | — | — | 12 | — | — | — | — | — | 4,245 |
| Total liabilities | 98,285 | — | — | 12 | — | — | (93) | — | — | 98,204 |
| Total equity | 160,804 | — | (114) |
