Sabre Corporation SABR shares were trading 22% higher during the pre-market session today after the company reported better-than-expected results for the first quarter of 2026. SABR reported adjusted earnings of 6 cents per share for the first quarter, while the Zacks Consensus Estimate was pegged at a loss of 5 cents. The bottom-line results also compared favorably with the year-ago quarter’s earnings of a penny.
Sabre reported revenues of $760.3 million for the quarter ended March 31, 2026, which beat the Zacks Consensus Estimate of $737.3 million. The figure rose 8% year over year on higher air bookings and increased rates.
Sabre’s Q1 in Detail
Marketplace segment revenues rose 9% to $618 million, driven by an increase in transaction-based revenues, primarily due to a surge in distribution bookings and a favorable rate impact. The Airline Technology segment’s revenues grew 7% year over year to $142 million, driven primarily by revenues that were previously deferred being recognized.
Sabre reported normalized adjusted EBITDA of $169 million, which improved 21% from the year-ago quarter’s $140 million. It also surpassed management’s previous guidance of $130 million. The normalized adjusted EBITDA margin improved 230 basis points year over year to 22.2% in the first quarter of 2026.
Sabre Corporation Price, Consensus and EPS Surprise
Sabre Corporation price-consensus-eps-surprise-chart | Sabre Corporation Quote
Sabre’s Balance Sheet and Cash Flow
Sabre exited the March-end quarter with cash, cash equivalents and restricted cash of $665 million compared with the previous quarter’s $910 million. At the end of the first quarter, the company had net debt (total debt, less cash and cash equivalents) of approximately $3.8 billion.
During the first quarter, the company used cash of $134.2 million for operating activities and had a negative free cash flow of $155.4 million.
Sabre Updates Guidance for FY26
For 2026, Sabre now expects its pro-forma (which excludes the last year’s divested Hospitality Solutions business) revenues to grow in the low-to-mid-single-digit percentage range, instead of the earlier projection of a mid-single-digit percentage range. Pro-forma adjusted EBITDA is still projected to be approximately $585 million. The company still expects to end 2026 with a negative pro-forma free cash flow of approximately $70 million.
Sabre initiated guidance for the second quarter. SABR anticipates pro-forma revenue growth in the flat-to-nominal range. It expects pro-forma adjusted EBITDA to be around $130 million.
Sabre’s Zacks Rank and Stocks to Consider
Currently, SABR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader Zacks Computer and Technology sector are Micron Technology MU, Broadcom AVGO and NVIDIA NVDA. Micron Technology sports a Zacks Rank #1 (Strong Buy) at present, while Broadcom and NVIDIA each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has been revised upward by a penny to $58.37 per share in the past 30 days, suggesting an increase of 604.1% from fiscal 2025’s reported figure. Micron Technology shares have surged 131.6% year to date (YTD).
The Zacks Consensus Estimate for Broadcom’s fiscal 2026 earnings has moved northward by 9 cents to $11.45 per share over the past 30 days and calls for a year-over-year jump of 67.9%. Broadcom shares have soared 22.8% YTD.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 earnings has moved upward by 4 cents to $8.07 per share in the past 30 days, implying a year-over-year improvement of approximately 69.2%. NVIDIA shares have risen 11.1% YTD.
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Sabre Corporation (SABR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
