NORWALK, CT - August 4, 2026…Booking Holdings Inc. (NASDAQ: BKNG) (the "Company," "we," "our," or "us") today reported its second quarter 2026 financial results.
Room nights grew 5% compared to the second quarter of 2025.
Gross bookings grew 9% compared to the second quarter of 2025, or approximately 8% on a constant currency basis.
Revenue grew 8% compared to the second quarter of 2025, or approximately 7% on a constant currency basis.
Net income, Adjusted Net income, and Adjusted EBITDA grew 118%, 8%, and 9%, respectively, compared to the second quarter of 2025.
Increased our expected annual run-rate savings through the Transformation Program(1) to approximately
$650 million, and expect to realize these run-rate savings by the end of 2027.
"Despite continued geopolitical and macroeconomic uncertainty during the second quarter, the underlying desire to travel remained resilient, and we are pleased with our results, which reflect the strength of our global platform and the disciplined execution of our teams," said Glenn Fogel, Chief Executive Officer of Booking Holdings. "We also increased the expected annual run-rate savings enabled by our Transformation Program, creating additional capacity to invest in our strategic priorities. We remain focused on what we can control-building better experiences for travelers, creating greater value for our partners, and strengthening our business for the long term."
Room Nights | 325M | 5% |
Gross Bookings | $51.0B | 9% |
Revenue | $7.4B | 8% |
GAAP Net Income | $2.0B | 118% |
Adjusted Net Income | $2.0B | 8% |
GAAP EPS | $2.53 | 131% |
Adjusted EPS | $2.54 | 15% |
Adjusted EBITDA | $2.6B | 9% |
Net Cash Provided By Operating Activities | $3.7B | 16% |
Free Cash Flow | $3.6B | 16% |
Q2 2026 | |
(#) | (Δ Y/Y) |
(1) See note (d) in the Reconciliation of GAAP to Non-GAAP Financial Information section at the end of this release.
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 Net Income, 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.
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.
1
Booking Holdings Reports
Second Quarter 2026 Financial Results
Second Quarter 2026 vs. 2025
Top Line Metrics
Alternative accommodation room nights at Booking.com increased by 4%
CC ADRs increased by about 2%(1)
Gross bookings increased 9% (approximately 8% on a CC basis) and revenue increased 8% (approximately 7% on a CC basis)
Marketing MetricsMarketing expense as a percentage of gross bookings was 4.7% (4.6% in Q2 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 year
Fixed CostsTotal operating expenses increased 7%, slower than the 8% growth in revenue
Adjusted fixed operating expenses increased 6%, driven by higher cloud computing costs and software license fees, as well as adverse changes in foreign currency exchange rates
GAAP EPS
+131%
Adjusted EPS
+15%
MarginsNet income margin of 26.5% (13.2% in Q2 2025)
Adjusted EBITDA margin of 36.0% (35.6% in Q2 2025)
Return of Capital to ShareholdersThird Quarter Dividend
Our Board of Directors declared a cash dividend of $0.42 per share, payable on September 30, 2026 to stockholders of record as of the close of business on September 11, 2026.
Stock Repurchase Program
We repurchased $3.7 billion (excluding excise taxes) of stock in the quarter ended June 30, 2026 with a total remaining authorization of $14.5 billion as of June 30, 2026.
(1) Constant Currency ("CC") and accommodation average daily rates ("ADRs") 2
Additional Highlights
Booking Holdings' guidance for the third quarter and full year of 2026 is as follows:
Global travel demand has remained resilient so far in the third quarter, supported by healthy domestic travel trends (travel within a traveler's own country). As we look ahead, we remain mindful of the Middle East conflict and continue to monitor the direct and indirect impacts on travel demand.
Our guidance assumes stability in the broader travel environment in line with recent trends. It also assumes that the indirect impacts of the conflict-including elevated flight ticket prices, reduced flight capacity on certain routes, and softer long-haul international travel demand-persist through the third quarter. In terms of the direct impact of the conflict, we continue to assume some pressure on inbound travel to the Middle East, while travel demand from Middle East bookers remains largely normalized.
Refer to the "Information About Forward-Looking Statements" section of this release.
(growth is on a year-over-year basis) | Q3 2026 | FY 2026 |
Room Nights Growth | 3% - 5% | |
Gross Bookings Growth | 4% - 6% | High Single Digits |
Constant Currency Gross Bookings Growth | 5% - 7% | High Single Digits |
Revenue Growth (1) | 4% - 6% | High Single Digits |
Constant Currency Revenue Growth (1) | 5% - 7% | Mid to High Single Digits |
Adjusted EBITDA Growth (2)(3)(4)(5) | 4% - 6% | High Single Digits |
Adjusted EPS Growth (2)(3)(5) | Low to Mid-Teens |
Revenue Growth includes a negative impact of about 1% in Q3 2026 and a benefit of about 1% for FY 2026 due to foreign currency exchange rates.
We are not able to provide a reconciliation between forward-looking Adjusted EBITDA and GAAP Net income and Adjusted EPS and GAAP EPS as we cannot, without unreasonable effort, forecast certain items required to develop meaningful comparable GAAP Net Income and GAAP EPS 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.
Excludes certain costs expected to be incurred related to the Transformation Program. Refer to the "Non-GAAP Financial Measures" section of this release.
Changes in foreign currency exchange rates are expected to impact our reported growth rates for Adjusted EBITDA by a similar amount of percentage points as Revenue Growth for the third quarter.
Changes in foreign currency exchange rates are expected to impact our reported growth rate for Adjusted EBITDA and Adjusted EPS by about half a percentage point less than Revenue Growth for the full year.
Outlook
June 30,
2026
December 31,
2025
ASSETS
Current assets:
Cash and cash equivalents $ 17,214 $ 17,203
Accounts receivable, net (Allowance for expected credit losses of $141 and $137,
Prepaid expenses, net 601 611
respectively) 4,341 3,820
Total current assets 23,057 22,264
Other current assets 901 630
Operating lease assets 594 632
Property and equipment, net 767 807
Goodwill 2,672 2,669
Intangible assets, net 852 918
Other assets, net 1,292 1,392
Long-term investments 448 582
LIABILITIES AND STOCKHOLDERS' DEFICIT
Total assets $ 29,682 $ 29,264
Accounts payable $ 5,145 $ 5,094
Current liabilities:
Deferred merchant bookings 10,121 5,270
Accrued expenses and other current liabilities 3,805 4,454
Total current liabilities 21,071 16,698
Short-term debt 2,000 1,880
Other long-term liabilities 700 731
Operating lease liabilities 514 557
Total liabilities 40,465 34,842
Long-term debt 18,180 16,856
Stockholders' deficit:
Commitments and contingencies
Common stock, $0.008 par value, Authorized shares: 25,000
Treasury stock: 860 and 816 shares, respectively (62,129) (54,315)
Issued shares: 1,618 and 1,613, respectively 13 13
Retained earnings 43,046 40,670
Additional paid-in capital 8,635 8,344
Total stockholders' deficit (10,783) (5,578)
Accumulated other comprehensive loss (348) (290)
Total liabilities and stockholders' deficit $ 29,682 $ 29,264
Consolidated Balance Sheets
(In millions, except per share data)
Three Months Ended June 30, | Six Months Ended June 30, | |||
2026 | 2025 | 2026 | 2025 | |
Merchant revenues | $ 5,127 | $ 4,457 | $ 8,825 | $ 7,375 |
Agency revenues | 1,903 | 2,044 | 3,431 | 3,608 |
Advertising and other revenues | 322 | 297 | 628 | 577 |
Total revenues | 7,352 | 6,798 | 12,884 | 11,560 |
Operating expenses: | ||||
Marketing expenses | 2,371 | 2,139 | 4,439 | 3,916 |
Sales and other expenses | 942 | 899 | 1,746 | 1,601 |
Personnel, including stock-based compensation of $140, $154, $281, and $296, respectively | 900 | 896 | 1,793 | 1,589 |
General and administrative | 217 | 199 | 317 | 341 |
Information technology | 263 | 219 | 503 | 419 |
Depreciation and amortization | 129 | 158 | 260 | 312 |
Transformation costs | 30 | 38 | 55 | 70 |
Total operating expenses | 4,852 | 4,548 | 9,113 | 8,248 |
Operating income | 2,500 | 2,250 | 3,771 | 3,312 |
Interest expense | (300) | (418) | (553) | (1,067) |
Interest and dividend income | 201 | 234 | 388 | 475 |
Other income (expense), net | 159 | (962) | 353 | (1,220) |
Income before income taxes | 2,560 | 1,104 | 3,959 | 1,500 |
Income tax expense | 610 | 209 | 926 | 272 |
Net income | $ 1,950 | $ 895 | $ 3,033 | $ 1,228 |
Net income applicable to common stockholders per basic common share | $ 2.54 | $ 1.10 | $ 3.89 | $ 1.50 |
Weighted-average number of basic common shares outstanding | 768 | 812 | 779 | 817 |
Net income applicable to common stockholders per diluted common share | $ 2.53 | $ 1.10 | $ 3.88 | $ 1.50 |
Weighted-average number of diluted common shares outstanding | 770 | 815 | 782 | 821 |
Unaudited Consolidated Statements of Operations
(In millions, except per share data)
Six Months Ended June 30, | |||
OPERATING ACTIVITIES: | 2026 | 2025 | |
Net income | $ 3,033 | $ 1,228 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 260 | 312 | |
Provision for expected credit losses and chargebacks | 217 | 206 | |
Deferred income taxes | 72 | (402) | |
Net losses (gains) on equity securities | 135 | (23) | |
Stock-based compensation expense | 281 | 297 | |
Operating lease amortization | 65 | 66 | |
Unrealized foreign currency transaction (gains) losses related to Euro-denominated debt | (528) | 1,398 | |
Amortization of debt discount and change in fair value of the conversion option related to the convertible senior notes | - | 360 | |
Other | 8 | (44) | |
Changes in assets and liabilities: | |||
Accounts receivable | (795) | (1,078) | |
Deferred merchant bookings and other current liabilities | 4,207 | 3,796 | |
Other | (21) | 368 | |
Net cash provided by operating activities | 6,934 | 6,484 | |
INVESTING ACTIVITIES: | |||
Additions to property and equipment | (183) | (185) | |
Other investing activities | (13) | 6 | |
Net cash used in investing activities | (196) | (179) | |
FINANCING ACTIVITIES: | |||
Proceeds from the issuance of long-term debt | 2,975 | 1,955 | |
Payments on maturity of debt | (1,000) | (3,451) | |
Payments for repurchase of common stock | (7,758) | (3,668) | |
Dividends paid | (664) | (631) | |
Other financing activities | 227 | 31 | |
Net cash used in financing activities | (6,220) | (5,764) | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (279) | 903 | |
Net increase in cash and cash equivalents and restricted cash and cash equivalents | 239 | 1,444 | |
Total cash and cash equivalents and restricted cash and cash equivalents, beginning of period | 17,269 | 16,193 | |
Total cash and cash equivalents and restricted cash and cash equivalents, end of period | $ 17,508 | $ 17,637 | |
Unaudited Consolidated Statements of Cash Flows
(In millions)
The Unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operating results.
To supplement the Unaudited Consolidated Financial Statements, the Company uses non-GAAP financial measures, including Adjusted Net income, Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, and Free cash flow (Net cash provided by operating activities less capital expenditures). The Company also uses information on (i) the impact of the adjustments required to compute Adjusted Net income and Adjusted EBITDA on Sales and other expenses, Personnel expenses, General and administrative expenses, Depreciation and amortization expenses, Impairment expense, Transformation costs, Interest expense, Interest and dividend income, Other income (expense), net, and Income tax expense, as reported in the Company's consolidated statements of operations, as applicable, and (ii) Adjusted fixed operating expenses, which is Total operating expenses, as reported in the Company's consolidated statements of operations, adjusted to exclude (a) certain operating expenses which are generally more likely to vary based on changes in business volumes and (b) amounts which are excluded in the computation of Adjusted EBITDA. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
The Company uses non-GAAP financial measures for financial and operational decision-making and as a basis to evaluate performance and set targets for employee compensation programs. The Company believes that these non-GAAP financial measures are useful for analysts and investors to evaluate the Company's ongoing operating performance because they facilitate comparison of the Company's results for the current period and projected next-period results to those of prior periods and to those of its competitors (though other companies may calculate similar non-GAAP financial measures differently from those calculated by the Company). These non-GAAP financial measures, in particular Adjusted Net income, Adjusted EBITDA, and Free cash flow, are not intended to represent funds available for Booking Holdings' discretionary use and are not intended to represent or to be used as a substitute for Operating income, Net income, or Net cash provided by operating activities as measured under GAAP. The items excluded from these non-GAAP measures, but included in the calculation of their closest GAAP equivalent, are significant components of the Company's consolidated statements of operations and cash flows and must be considered in performing a comprehensive assessment of overall financial performance.
Reconciliations of (i) Net income to Adjusted Net income and Adjusted EPS, (ii) Net income to Adjusted EBITDA, (iii) Net cash provided by operating activities to Free cash flow, and (iv) Total operating expenses to Adjusted fixed operating expenses are detailed in the Reconciliation of GAAP to Non-GAAP Financial Information and Additional Information on the Impact of Non-GAAP Adjustments sections below, including the impact of the adjustments to the respective line item in the Company's consolidated statements of operations.
We evaluate certain operating and financial measures on both an as-reported and constant currency basis. We calculate constant currency measures based on the predominant transactional currency in each country, converting our current-year period results in currencies other than
U.S. Dollars using the corresponding prior-year period monthly average exchange rates.
Non-GAAP Financial Measures
This press release contains forward-looking statements, within the meaning of the U.S. securities laws, including regarding our outlook, travel demand trends, the geopolitical and macroeconomic environment and potential effects on consumer spending and behavior, travel patterns and our partners, artificial intelligence trends, and changes in foreign currency exchange rates. These forward-looking statements reflect the views of the Company's management regarding current expectations based on currently available information about future events. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, such as: the conflict in the Middle East; adverse changes in market conditions for travel services; the effects of competition; the Company's ability to manage growth and expand; adverse changes in third-party relationships; rapid technological or other market changes; success of the Company's marketing efforts; the development and use of generative AI; the Company's ability to attract and retain qualified personnel; impacts of impairments and changes in accounting estimates; operational and technological infrastructure risks; and other business and industry changes. Other risks and uncertainties relate to information security, cybersecurity, and data privacy; taxes; changes in, and compliance with, laws and regulations; the Company's facilitation of payments; foreign currency exchange rates; the Company's debt levels and stock price volatility; and the success of the Company's investments and acquisition strategy. For a detailed discussion of these and other factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements included in this press release, refer to the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequently filed Quarterly Reports on Form 10-Q. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
Information About Forward-Looking Statements
Additional Information
We use the Investor Relations page of our website (ir.bookingholdings.com) to disclose material information for purposes of the SEC's Regulation Fair Disclosure. We encourage our investors to monitor this website in addition to our other public announcements and SEC filings as information posted on that page could be deemed to be material information. We will be posting our prepared remarks and a summary earnings presentation to the Investor Relations page of our website after the conclusion of the earnings call.
About Booking Holdings Inc.Booking Holdings (NASDAQ: BKNG) is the world leader in online travel and services that support the entire travel journey. Our platforms -including Booking.com, Priceline, Agoda, KAYAK and OpenTable - utilize advanced AI, machine learning and other innovative technologies to simplify and personalize the travel experience for consumers and partners in over 220 countries and territories. Our mission is to make it easier for everyone to experience the world. For more information, visit BookingHoldings.com and follow us on X @BookingHoldings.
For Press Information: Leslie Cafferty communications@bookingholdings.com For Investor Relations: Grace Lee ir@bookingholdings.com#BKNG_Earnings
About Booking Holdings
(Unaudited)
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED EPS | Three Months Ended June 30, | Six Months Ended June 30, | ||
2026 | 2025 | 2026 | 2025 | |
Net income | $ 1,950 | $ 895 | $ 3,033 | $ 1,228 |
(a) Adjustment related to the Netherlands pension fund matter | - | 6 | - | (123) |
(b) Gain related to settlement of litigation matters | - | - | (89) | - |
(c) Amortization of intangible assets | 35 | 54 | 71 | 108 |
(d) Transformation costs | 29 | 36 | 52 | 68 |
(e) Net losses (gains) on equity securities | 25 | (21) | 132 | (24) |
(f) Foreign currency transaction (gains) losses on the remeasurement of certain Euro-denominated debt and accrued interest and gains on debt-related foreign currency derivative instruments | (195) | 961 | (528) | 1,350 |
(g) Amortization of debt discount and change in fair value of the conversion option related to the convertible senior notes | - 126 | - 360 | ||
(h) Other | - - | (14) - | ||
(i) Discrete tax items | 79 - | 79 - | ||
(j) Tax impact of Non-GAAP adjustments | 32 (248) | 122 (337) | ||
Adjusted Net income | $ 1,958 $ 1,807 | $ 2,860 $ 2,628 | ||
GAAP and Non-GAAP weighted-average number of diluted common shares outstanding | 770 815 | 782 821 | ||
Net income applicable to common stockholders per diluted common share (GAAP EPS) | $ 2.53 $ 1.10 | $ 3.88 $ 1.50 | ||
Adjusted Net income applicable to common stockholders per diluted common share (Adjusted EPS) | $ 2.54 $ 2.22 | $ 3.66 $ 3.20 | ||
Net income growth YoY | 118 % | 147 % | ||
Adjusted Net income growth YoY | 8 % | 9 % | ||
Net income applicable to common stockholders per diluted common share (GAAP EPS) growth YoY | 131 % | 159 % | ||
Adjusted Net income applicable to common stockholders per diluted common share (Adjusted EPS) growth YoY | 15 % | 14 % | ||
Reconciliation of GAAP to Non-GAAP Financial Information
(In millions, except per share data)(1)
1