NORWALK, CT - November 3, 2026…Booking Holdings Inc. (NASDAQ: BKNG) (the "Company," "we," "our," or "us") today reported its third quarter 2026 financial results.
• Room nights grew 7% compared to the third quarter of 2025.
• Gross bookings grew 10% compared to the third quarter of 2025, or approximately 11% on a constant currency basis.
• Revenue declined 1% compared to the third quarter of 2025, while Adjusted Revenue grew 9%, orapproximately 10% on a constant currency basis.
• Net income declined 1% compared to the third quarter of 2025, while Adjusted Net income and AdjustedEBITDA grew 8% and 9%, respectively.
• GAAP EPS and Adjusted EPS grew 7% and 17%, respectively, compared to the third quarter of 2025.
Q3 2026 (#) (Δ Y/Y)
Room Nights 345M 7%
Gross Bookings $54.5B 10%
Revenue $8.9B (1%)
Adjusted Revenue $9.8B 9%
GAAP Net Income $2.7B (1%)
Adjusted Net Income $3.5B 8%
GAAP EPS $3.61 7%
Adjusted EPS $4.66 17%
Adjusted EBITDA $4.6B 9%
Net Cash Provided By Operating Activities $1.1B (21%)
Free Cash Flow $1.1B (22%)
(1) Net Cash Provided By Operating Activities and Free Cash Flow both increased 2% on a year-to-date basis as compared to 2025.
Refer to the "Non-GAAP Financial Measures" section at the end of this release for an explanation of constant currency and non-GAAP financial measures, including Adjusted Revenue, Adjusted Net Income, Adjusted Net Income margin, Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Adjusted Fixed Operating Expenses, and reconciliations to the most directly comparable GAAP measures.
Gross bookings is an operating and statistical metric that captures the total dollar value, generally inclusive of taxes and fees, of all travel services booked by our customers, net of cancellations.
Gross Bookings does not reflect the impact of a Federal Trade Commission ("FTC") matter.
See the section in this press release under the heading "Additional Highlights - Discrete Items" for more information.
On April 2, 2026, the Company effected the 25-for-1 stock split of its common stock.
All share and per share information has been retroactively adjusted to reflect the stock split.
Booking Holdings Reports Third Quarter 2026 Financial Results
"We are pleased with our third-quarter operating performance, as resilient travel demand and disciplined execution by our teams drove double-digit gross bookings growth, margin expansion, and 17% adjusted earnings per share growth (GAAP earnings per share growth of 7%)" said Glenn Fogel, Chief Executive Officer of Booking Holdings.
As AI transforms the ways to discover, plan, and book travel, we continue to make progress integrating AI across our brands, developing AI-native experiences, and collaborating with industry-leading AI platforms.
While geopolitical and macroeconomic uncertainty may affect near-term travel trends, we remain focused on making travel easier, helping our partners succeed, and investing in our business for the long term."
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Return of Capital to Shareholders Fourth Quarter Dividend
• Our Board of Directors declared a cash dividend of $0.42 per share, payable on December 31, 2026 to stockholders of record as of the close of business on December 11, 2026.
• Stock Repurchase Program
• We repurchased $2.1 billion (excluding excise taxes) of our common stock in the quarter ended September 30, 2026 with a total remaining authorization of $12.4 billion as of September 30, 2026.
Discrete Items
• The Company recorded a reduction in revenue of $900 million and accrued a loss of $100 million related to an FTC matter, which have been excluded from Adjusted Revenue, Adjusted Net income, and Adjusted EBITDA (and other related measures), as applicable.
• See footnote 13 to the financial statements included in the Company's Form 10-Q for the quarter ended September 30, 2026.
Additional Highlights
Margins
• Net income margin of 30.6% (30.5% in Q3 2025)
• Adjusted Net income margin of 35.8% (36.0% in Q3 2025)
• Adjusted EBITDA margin of 47.0% (47.0% in Q3 2025)
Third Quarter 2026 vs. 2025
Top Line Metrics
• Alternative accommodation room nights at Booking.com increased by 7%
• CC ADRs increased by about 3%
• Gross bookings increased 10% (approximately 11% on a CC basis) and revenue decreased 1% while adjusted revenue increased 9% (approximately 10% on a CC basis)
Fixed Costs
• Total operating expenses decreased 1%
• Disciplined cost management limited adjusted fixed operating expense growth to 6%, which included a slight reduction in personnel costs
Marketing Metrics
• Marketing expense as a percentage of gross bookings was 4.8% (4.7% in Q3 2025)
• B2C marketing leverage improved vs. Q3 2025
• Over the trailing four quarters, the mix of our total room nights booked through the direct channel was a mid-fifties percentage, similar to last yearGAAP EPS +7% Adjusted EPS +17%
(1) Constant Currency ("CC") and accommodation average daily rates ("ADRs")(2) Business-to-consumer marketing as a percentage of business-to-consumer gross bookings
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Booking Holdings' guidance for the fourth quarter and full year of 2026 is as follows:Global travel demand moderated somewhat toward the end of the third quarter, reflecting softer international travel trends, while domestic travel has remained resilient.
In October, a number of external factors have also affected demand, including disruptions to travel to and from the Middle East, the conflict’s broader indirect effects such as elevated airfares, and localized unrest in certain European cities.
Our guidance reflects these near-term disruptions and assumes that both the direct and indirect impacts of the Middle East conflict on travel persist through the end of the year.
Refer to the "Information About Forward-Looking Statements" section of this release.
(growth is on a year-over-year basis) Q4 2026 FY 2026
Room Nights Growth 1% - 3%
Gross Bookings Growth 2% - 4% High Single Digits
Constant Currency Gross Bookings Growth 4% - 6% High Single Digits
Adjusted Revenue Growth 0% - 2% High Single Digits
Constant Currency Adjusted Revenue Growth (1)(2) 2% - 4% High Single Digits
Adjusted EBITDA Growth About Flat High Single Digits
Adjusted EPS Growth Low to Mid-Teens
(1)Adjusted Revenue Growth includes a negative impact of about 2% in Q4 2026 and a benefit of about 0.5% for FY 2026 due to foreign currency exchange rates. (2)We are not able to provide a reconciliation between forward-looking Adjusted Revenue, Adjusted EBITDA, and Adjusted EPS, and their comparable GAAP measures as we cannot, without unreasonable effort, forecast certain items required to develop meaningful comparable GAAP measures and predict certain components of such reconciliation as they arise from events in future periods.
This is due to the unpredictable nature of these reconciling items, which would require an unreasonable effort to forecast, and would result in a large range of projected values that would not be meaningful to investors.
See Item 10(e)(1)(i)(B) of Securities and Exchange Commission ("SEC") Regulation S-K. (3)Excludes certain costs expected to be incurred related to the Transformation Program.
Refer to the "Non-GAAP Financial Measures" section of this release. (4)Changes in foreign currency exchange rates are expected to impact our reported growth rate for Adjusted EBITDA by a similar amount of percentage points as Adjusted Revenue Growth for the fourth quarter. (5)Changes in foreign currency exchange rates are expected to have a limited impact on our reported growth rates for Adjusted EBITDA and Adjusted EPS for the full year.
Outlook
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September 30,2026 December 31, 2025
(Unaudited)ASSETSCurrent assets:Cash and cash equivalents $ 15,814 $ 17,203
Accounts receivable, net (Allowance for expected credit losses of $153 and $137, respectively) 4,317 3,820
Prepaid expenses, net 572 611
Other current assets 889 630
Total current assets 21,592 22,264
Property and equipment, net 748 807
Operating lease assets 591 632
Intangible assets, net 759 918
Goodwill 2,671 2,669
Long-term investments 435 582
Other assets, net 1,468 1,392
Total assets $ 28,264 $ 29,264
LIABILITIES AND STOCKHOLDERS' DEFICITCurrent liabilities:Accounts payable $ 5,221 $ 5,094
Accrued expenses and other current liabilities 5,713 4,454
Deferred merchant bookings 6,450 5,270
Short-term debt 1,987 1,880
Total current liabilities 19,371 16,698
Operating lease liabilities 515 557
Other long-term liabilities 711 731
Long-term debt 18,074 16,856
Total liabilities 38,671 34,842
Commitments and contingenciesStockholders' deficit:Common stock, $0.008 par value,Authorized shares: 25,000 Issued shares: 1,618 and 1,613, respectively 13 13
Treasury stock: 872 and 816 shares, respectively (64,249) (54,315)
Additional paid-in capital 8,785 8,344
Retained earnings 45,446 40,670
Accumulated other comprehensive loss (402) (290)
Total stockholders' deficit (10,407) (5,578)
Total liabilities and stockholders' deficit $ 28,264 $ 29,264
Consolidated Balance Sheets(In millions, except per share data)
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Three Months EndedSeptember 30, Nine Months Ended September 30,
2026 2025 2026 2025
Merchant revenues $ 6,998 $ 6,131 $ 15,823 $ 13,506
Agency revenues 2,463 2,569 5,894 6,177
Advertising and other revenues 332 308 960 885
FTC matter (900) — (900) —
Total revenues 8,893 9,008 21,777 20,568
Operating expenses:Marketing expenses 2,588 2,340 7,027 6,256
Sales and other expenses 1,097 1,022 2,843 2,623
Personnel, including stock-based compensation of $145, $150, $426, and $446, respectively 944 945 2,737 2,534
General and administrative 338 254 655 595
Information technology 302 242 805 661
Depreciation and amortization 183 160 443 472
Impairment — 457 — 457
Transformation costs 23 105 78 175
Total operating expenses 5,475 5,525 14,588 13,773
Operating income 3,418 3,483 7,189 6,795
Interest expense (311) (301) (864) (1,368)
Interest and dividend income 221 248 609 723
Other income (expense), net 95 39 448 (1,181)
Income before income taxes 3,423 3,469 7,382 4,969
Income tax expense 706 721 1,632 993
Net income $ 2,717 $ 2,748 $ 5,750 $ 3,976
Net income applicable to common stockholders per basic common share $ 3.62 $ 3.39 $ 7.47 $ 4.88
Weighted-average number of basic common shares outstanding 750 810 769 814
Net income applicable to common stockholders per diluted common share$ 3.61 $ 3.38 $ 7.45 $ 4.86
Weighted-average number of diluted common shares outstanding 753 814 772 819
Unaudited Consolidated Statements of Operations(In millions, except per share data)
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