Booking Holdings Inc. (BKNG) Earnings History

Booking Holdings Inc. - Q4 FY2025 EarningsBeat

Filed at: Feb 18, 2026, 4:02 PM EST|Read from source

EXECUTIVE SUMMARY

Booking Holdings reported strong 2025 results with double-digit revenue growth and expanding Adjusted EBITDA margins, driven by accelerating room night growth and strategic execution. The company is focused on leveraging Generative AI and realizing savings from its Transformation Program to reinvest in sustained long-term growth.

POSITIVE HIGHLIGHTS

  • •

    Revenue grew 16% year-over-year to $6.3 billion in Q4 2025, and 13% for the full year to $26.9 billion.

    positive
  • •

    Room nights grew 9% in Q4 2025 and 8% for the full year 2025, indicating strong demand.

    positive
  • •

    Adjusted EBITDA margin expanded to 36.9% for the full year 2025, up from 35.0% in 2024.

    positive
  • •

    The company approved a 25-to-1 stock split, to be effected on April 2, 2026.

    neutral
  • •

    Achieved $550 million in annual run-rate savings from the Transformation Program, meeting the high end of the target.

    positive

CONCERNS & RISKS

  • •

    Agency revenues declined 8.7% year-over-year for the full year 2025, following a 10.9% decline in 2024.

    negative
  • •

    Net income margin decreased to 20.1% in 2025 from 24.8% in 2024, despite revenue growth.

    attention
  • •

    Marketing expense as a percentage of gross bookings increased to 4.5% in Q4 2025 from 4.2% in Q4 2024 due to strategic investments and higher brand marketing spend.

    attention
  • •

    Adjusted fixed operating expenses increased 10% year-over-year in Q4 2025, driven by adverse FX changes, an indirect tax matter, and higher cloud computing costs.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$6.35B
+16.1%
Prior year: $5.47B
Annual (YTD)
$26.92B
N/A
Prior year: $23.74B
Net Income
Quarterly
$1.43B
+34.0%
Prior year: $1.07B
Annual (YTD)
$5.40B
N/A
Prior year: $5.88B
EPS (Diluted)
Quarterly
$44.22
+38.4%
Prior year: $31.95
Operating Income
Quarterly
$2.03B
+17.4%
Prior year: $1.73B
Annual (YTD)
$8.82B
N/A
Prior year: $7.55B
EPS (Basic)
Quarterly
$44.49
+37.7%
Prior year: $32.31

MARGIN ANALYSIS

Operating Margin
Current Quarter
32.0%
Prior Year
31.6%
YoY Change
+37 bps
Net Margin
Current Quarter
22.5%
Prior Year
19.5%
YoY Change
+300 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY2026

Room Nights Growth
"Targeting full year constant currency top-line growth approximately 100 basis points ahead of our long-term growth algorithm."
Gross Bookings Growth
"Low Double Digits"
Constant Currency Gross Bookings Growth
"High Single Digits"
Revenue Growth
"Low Double Digits"
Constant Currency Revenue Growth
"High Single Digits"
Adjusted EBITDA Growth
"Faster than Revenue Growth"
Adjusted EPS Growth
"Mid-teens"

Q1 2026

Room Nights Growth
5—7
Mid-point: 6
Gross Bookings Growth
14—16
Mid-point: 15
Constant Currency Gross Bookings Growth
7—9
Mid-point: 8
Revenue Growth
$14.0M—$16.0M
Mid-point: $15.0M
"Includes a benefit of about 7% due to foreign currency exchange rates."
Constant Currency Revenue Growth
$7.0M—$9.0M
Mid-point: $8.0M

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

FY2025
Adjustment related to the Netherlands pension fund matter
Resolved matter related to 2023 and earlier years.
$123M
FY2025
Impairment of KAYAK's goodwill and certain intangible assets
Excluded from Adjusted Net Income and Adjusted EBITDA.
$457M
FY2025
Transformation costs
Costs related to organizational changes for efficiency and agility. Excluded from Adjusted Net Income and Adjusted EBITDA.
$203M
FY2025
Amortization of debt discount and change in fair value of the conversion option related to the convertible senior notes
Excluded from Adjusted Net Income.
$360M
FY2024
Adjustment to accruals related to the fine imposed by the Spanish competition authority
Excluded from Adjusted Net Income.
$78M
FY2024
Impact of certain indirect tax matters
Excluded from Adjusted Net Income and Adjusted EBITDA.
$337M
FY2024
Adjustment to one-time deemed repatriation income tax liability resulting from the Tax Act and related net unrecognized tax benefit
Reduction to income tax expense based upon a U.S. Tax Court decision. Excluded from Adjusted Income Tax Expense.
+$250M
Total Impact
$1,308M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Strong results for 2025, delivering double-digit revenue growth, expanding Adjusted EBITDA margin, and accelerating room night growth in every quarter.

— Booking Holdings Inc., Q4 FY2025 2025 Earnings Call

Highlight the strength of our platform and the discipline of our execution.

— Booking Holdings Inc., Q4 FY2025 2025 Earnings Call

Remain focused on our key priorities, especially advancing our use of Generative AI to enhance the value we deliver to both travelers and partners.

— Booking Holdings Inc., Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Airline Tickets
18.0M
+27.7% YoY
Prior year: 14.0M
tickets
Gross Bookings
43000.0M
+15.8% YoY
Prior year: 37200.0M
dollars
Rental Car Days
18.0M
+4.2% YoY
Prior year: 17.0M
days
Room Nights
285.0M
+9.0% YoY
Prior year: 261.0M
nights
Total Revenues
6349.0M
+16.1% YoY
Prior year: 5471.0M
dollars

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.