Booking Holdings Inc. (BKNG) Earnings History
Booking Holdings Inc. - Q1 2026 EarningsBeat
EXECUTIVE SUMMARY
Booking Holdings reported a solid start to 2026, demonstrating resilience despite headwinds from the Middle East conflict. The company achieved strong growth in gross bookings and revenue, alongside significant net income expansion, driven by disciplined execution and strength in strategic growth areas.
POSITIVE HIGHLIGHTS
- •
Revenue grew 16% year-over-year to $5.5 billion, or 10% on a constant currency basis, indicating strong top-line performance.
positive - •
Gross bookings increased 15% year-over-year to $53.8 billion, or 8% on a constant currency basis, showing robust customer demand.
positive - •
GAAP Net income surged 225% year-over-year to $1.1 billion, and Adjusted EBITDA grew 19% to $1.3 billion, highlighting significant profitability improvements.
positive - •
The company completed a 25-for-1 stock split, which is a common signal of management's confidence in future growth and aims to improve stock liquidity.
neutral - •
Marketing expense as a percentage of gross bookings remained stable at 3.8%, indicating efficient marketing spend relative to revenue generation.
neutral
CONCERNS & RISKS
- •
Room night growth was impacted by approximately 2 percentage points due to the conflict in the Middle East.
attention - •
Net cash provided by operating activities decreased by 2% year-over-year to $3.2 billion, and Free Cash Flow also decreased by 2% to $3.1 billion.
negative - •
Guidance for Q2 2026 and FY 2026 anticipates continued impact from the Middle East conflict, with lower growth projections for room nights and gross bookings compared to Q1 2026.
attention - •
The company's guidance for Q2 2026 room night growth is 2%-4%, a significant deceleration from the 6% reported in Q1 2026.
negative - •
The company's guidance for FY 2026 gross bookings growth is high single digits to low double digits, a deceleration from the 15% growth achieved in Q1 2026.
negative
FINANCIAL METRICS
MARGIN ANALYSIS
Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
REVENUE BY SEGMENT — Q1 2026 2026
VISUAL OVERVIEW
DETAILED BREAKDOWN
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Merchant revenues | N/A | — | — | — |
Agency revenues | N/A | — | — | — |
Advertising and other revenues | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
MANAGEMENT GUIDANCE
FY 2026
Q2 2026
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
EARNINGS CALL —
CALL GUIDANCE — Q1 2026 2026
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| room_night_growth | 2-4% | Q2 2026 | tight_range | New |
| growth_bookings | 4-6% | Q2 2026 | tight_range | New |
| revenue | 4-6% | Q2 2026 | tight_range | New |
| adjusted_ebitda | 4-6% | Q2 2026 | tight_range | New |
| growth_bookings | high single digits to low double digits | FY2026 | directional | New |
| revenue | high single digits | FY2026 | directional | New |
| adjusted_ebitda_margin | 0-25 basis points | FY2026 | tight_range | New |
| adjusted_eps | low to mid teens | FY2026 | directional | New |
| growth_bookings | at least 8% | future years | directional | New |
| revenue | at least 8% | future years | directional | New |
| adjusted_eps | at least 15% | future years | directional | New |
CAPITAL ALLOCATION — Q1 2026 2026
- buybackcontinue
$3.6 billion · first quarter · funded by share-free purchases
- buybackcontinue
over 40% · Since 2014 · funded by share-by-back program
- liquiditycontinue
$16.5 billion · first quarter ending · funded by free cash flow
- dividendcontinue
$343 million · quarterly · funded by capital return
- buybackcontinue
$355 million · additional · funded by capital return
- liquiditycontinue
$3.1 billion · in the quarter · funded by free cash flow
- deleveragingtarget
0 to 25 basis points · full year 2026 · adjusted EBITDA margins: 0 to 25 basis points
- buybackcontinue
at least 8% · future years · booking growth: at least 8%
MACRO STANCE — Q1 2026 2026
- demand_environmentheadwindnew
- fxtailwindnew
- inflationheadwindnew
- regulationheadwindnew
Q&A SIGNALS — Q1 2026 2026
SPECIAL ITEMS & ADJUSTMENTS
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
MANAGEMENT COMMENTARY
Despite headwinds associated with the Middle East conflict, we are pleased to report a solid start to 2026, with Adjusted EBITDA growth of 19% (net income growth of 225%), alongside 15% growth in gross bookings and 16% revenue growth.
These results highlight the resilience of our business and the discipline of our execution.
Although the conflict’s dynamics impacted the quarter’s results, our underlying performance exceeded expectations across all key metrics, with continued strength in our strategic growth areas, particularly in the U.S.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
OPERATIONAL METRICS
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.