Booking Holdings (NASDAQ: BKNG) Q1 profit jumps 225% on 16% revenue growth
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Booking Holdings reported strong first quarter 2026 results. Revenue reached $5.5 billion, up 16% year over year, on gross bookings of $53.8 billion, which grew 15% (about 8% on a constant currency basis). Room nights rose 6% to 338 million, despite an estimated 2‑point drag from the Middle East conflict.
GAAP net income increased to $1.1 billion, up 225%, with GAAP EPS of $1.36 up 239%. Adjusted EPS was $1.14, up 14%, and Adjusted EBITDA was $1.3 billion, up 19%, for a 23.3% margin. The company effected a 25‑for‑1 stock split on April 2, 2026 and repurchased $3.6 billion of stock in the quarter, leaving $18.2 billion authorized. The board declared a quarterly dividend of $0.42 per share.
Positive
- Strong earnings and margin expansion: Q1 2026 revenue grew 16% to $5.5B, GAAP net income rose 225% to $1.1B, and Adjusted EBITDA increased 19% to $1.3B with margins improving.
Negative
- None.
Insights
Q1 2026 showed robust growth, margin expansion, and sizable capital returns.
Booking Holdings delivered double‑digit top‑line growth with revenue up 16% and gross bookings up 15%, while room nights grew 6% despite travel disruption from the Middle East conflict. Net income jumped to $1.1B, up 225%, aided by lower interest expense and favorable non‑GAAP adjustments.
Profitability improved, with net income margin rising to 19.6% and Adjusted EBITDA margin to 23.3%. Adjusted EBITDA grew 19%, outpacing revenue, signaling operating leverage even as total operating expenses increased at a slightly slower rate than revenue.
Capital returns were significant: the company repurchased $3.6B of stock in Q1 and still has $18.2B of authorization, and it declared a $0.42 dividend payable on June 30, 2026. Guidance for Q2 2026 and full‑year 2026 points to continued but more moderate growth, with room nights and revenue expected to grow in low‑ to mid‑single digits, reflecting ongoing geopolitical and currency headwinds.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revenue: $5.5B
Gross bookings: $53.8B
GAAP net income: $1.1B
+5 more
8 metrics
Revenue
$5.5B
Q1 2026, 16% year-over-year growth
Gross bookings
$53.8B
Q1 2026, 15% YoY growth (8% constant currency)
GAAP net income
$1.1B
Q1 2026, 225% year-over-year growth
GAAP EPS
$1.36
Q1 2026, 239% year-over-year growth
Adjusted EBITDA
$1.3B
Q1 2026, 19% year-over-year growth; 23.3% margin
Free cash flow
$3.108B
Q1 2026, down 2% year over year
Share repurchases
$3.6B
Stock bought back in quarter ended March 31, 2026
Quarterly dividend
$0.42 per share
Declared for payment on June 30, 2026
Key Terms
Adjusted EBITDA, Free cash flow, constant currency, Transformation Program, +2 more
6 terms
Adjusted EBITDA financial
"Net income and Adjusted EBITDA grew 225% and 19%, respectively"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free cash flow financial
"Free Cash Flow $3.1B (2%)"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
constant currency financial
"Gross bookings grew 15%... or approximately 8% on a constant currency basis"
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
Transformation Program financial
"announced its intention to implement certain organizational changes... (the "Transformation Program")"
Adjusted EPS financial
"Adjusted EPS $1.14 14%"
Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.
stock split financial
"the Company effected the 25-for-1 stock split of its common stock"
A stock split increases the number of a company's shares by dividing each existing share into multiple new shares while reducing the price per share by the same proportion, so an investor's total value and ownership percentage stay the same. It matters because lower per-share prices can make trading easier and attract more buyers, similar to breaking a large chocolate bar into smaller pieces to make it easier to share, which can boost liquidity and market interest.
Earnings Snapshot
Revenue: $5.5B · Guidance included
Q1 2026
Revenue
$5.5B
+16% YoY
Gross bookings
$53.8B
+15% YoY (8% constant currency)
GAAP net income
$1.1B
+225% YoY
GAAP EPS
$1.36
+239% YoY
Adjusted EPS
$1.14
+14% YoY
Adjusted EBITDA
$1.3B
+19% YoY
Room nights
338M
+6% YoY
Guidance
For Q2 2026, room nights growth 2–4% and revenue growth 4–6%. For FY 2026, revenue expected to grow high single digits, with Adjusted EBITDA growth slightly faster than revenue, assuming Middle East conflict impact eases after June 2026.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 28, 2026
(Exact name of registrant as specified in its charter)
| (State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (zip code) | |||||||||||||
Registrant's telephone number, including area code: (203 ) 299-8000
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities Registered Pursuant to Section 12(b) of the Act:
| Title of Each Class: | Trading Symbol | Name of Each Exchange on which Registered: | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On April 28, 2026, Booking Holdings Inc. (the "Company") announced its financial results for the first quarter ended March 31, 2026. The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. Copies of Booking Holdings' consolidated balance sheet at March 31, 2026, consolidated statement of operations for the three months ended March 31, 2026, and consolidated statement of cash flows for the three months ended March 31, 2026, are included in the financial and statistical supplement attached to the press release.
The information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Description | ||||
99.1 | Press release (which includes a financial and statistical supplement and related information) issued by Booking Holdings Inc. on April 28, 2026 relating to, among other things, its first quarter 2026 earnings. | ||||
| 104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BOOKING HOLDINGS INC. | |||||||||||
| By: | /s/ Ewout L. Steenbergen | ||||||||||
| Name: | Ewout L. Steenbergen | ||||||||||
| Title: | Executive Vice President and Chief Financial Officer | ||||||||||
Date: April 28, 2026
NORWALK, CT - April 28, 2026…Booking Holdings Inc. (NASDAQ: BKNG) (the "Company," "we," "our," or "us") today reported its first quarter 2026 financial results. ● Room nights grew 6% compared to the first quarter of 2025. We estimate room night growth was negatively impacted by approximately 2 percentage points by the conflict in the Middle East. ● Gross bookings grew 15% compared to the first quarter of 2025, or approximately 8% on a constant currency basis. We estimate that the conflict in the Middle East impacted gross bookings growth in line with the impact observed in room night growth. ● Revenue grew 16% compared to the first quarter of 2025, or approximately 10% on a constant currency basis. We estimate that the conflict in the Middle East impacted revenue growth slightly lower than the impact observed in room night growth. ● Net income and Adjusted EBITDA grew 225% and 19%, respectively, compared to the first quarter of 2025. ● 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. Q1 2026 (#) (Δ Y/Y) Room Nights 338M 6% Gross Bookings $53.8B 15% Revenue $5.5B 16% GAAP Net Income $1.1B 225% GAAP EPS $1.36 239% Adjusted EPS $1.14 14% Adjusted EBITDA $1.3B 19% Net Cash Provided By Operating Activities $3.2B (2%) Free Cash Flow $3.1B (2%) 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. 1 Booking Holdings Reports First Quarter 2026 Financial Results Exhibit 99.1 “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,” said Glenn Fogel, Chief Executive Officer of Booking Holdings. “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. Regardless of near-term uncertainty, we remain focused on the factors within our control—furthering our Connected Trip vision, expanding our global reach, and leveraging Generative AI to enhance the value we deliver to travelers and partners.”
Return of Capital to Shareholders Second Quarter Dividend ● Our Board of Directors declared a cash dividend of $0.42 per share, payable on June 30, 2026 to stockholders of record as of the close of business on June 5, 2026. Stock Repurchase Program ● We repurchased $3.6 billion (excluding excise taxes) of stock in the quarter ended March 31, 2026 with a total remaining authorization of $18.2 billion as of March 31, 2026. Stock Split ● On April 2, 2026, the Company effected the 25-for-1 stock split of its common stock. 2 Additional Highlights Margins ● Net income margin of 19.6% (7.0% in Q1 2025) ● Adjusted EBITDA margin of 23.3% (22.9% in Q1 2025) First Quarter 2026 vs. 2025 Top Line Metrics ● Alternative accommodation room nights at Booking.com increased by 5.5% ● CC ADRs increased by about 1%(1) ● Gross bookings increased 15% (approximately 8% on a CC basis) and revenue increased 16% (approximately 10% on a CC basis) Fixed Costs ● Total operating expenses increased 15%, slower than the 16% growth in revenue ● Adjusted fixed operating expenses increased 14%, driven by adverse FX changes and $53 million in one-time benefits in the first quarter of 2025 Marketing Metrics ● Marketing expense as a percentage of gross bookings was 3.8% (3.8% in Q1 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 GAAP EPS +239% Adjusted EPS +14% (1) Constant Currency ("CC") and accommodation average daily rates ("ADRs")
Booking Holdings' guidance for the second quarter and full year of 2026 is as follows: For our second quarter guidance, we are assuming the direct and indirect impact from the conflict in the Middle East continues through the end of June. Specifically, our outlook accounts for continued fluctuations in travel demand across Middle Eastern inbound, outbound, and intra-region routes, as well as ongoing disruptions to major transit corridors, such as those between Europe and Asia. For the full year 2026, our planning assumption is that the direct and indirect impact from the conflict in the Middle East continues through the end of June, followed by a recovery in bookings in the second half of the year. We are mindful that a sustained disruption could introduce broader inflationary pressures, including fluctuations in jet fuel prices, airline capacity reductions, as well as weigh on traveler sentiment more broadly. These dynamics can create headwinds across the travel value chain, and we are monitoring them closely. However, since these extended impacts on the broader economy are harder to estimate, we have not included them in our guidance assumptions. Our second quarter and full year guidance are based on estimates and the information available to us at this time, in an unusually unpredictable environment. Refer to the "Information About Forward-Looking Statements" section of this release. (growth is on a year-over-year basis) Q2 2026 FY 2026 Room Nights Growth 2% - 4% Gross Bookings Growth 4% - 6% High Single Digits to Low Double Digits Constant Currency Gross Bookings Growth 2% - 4% High Single Digits Revenue Growth (1) 4% - 6% High Single Digits Constant Currency Revenue Growth (1) 2% - 4% Mid to High Single Digits Adjusted EBITDA Growth (2)(3)(4) 4% - 6% Slightly Faster than Revenue Growth Adjusted EPS Growth (2)(3)(5) Low to Mid-teens (1) Revenue Growth includes a benefit of about 2% in Q2 2026 and of about 1.5% for FY 2026 due to foreign currency exchange rates. (2) 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. (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 rates for Adjusted EBITDA by a similar amount of percentage points for the second quarter and by about a half percentage point less than Revenue Growth for the full year. (5) Changes in foreign currency exchange rates are expected to impact our reported growth rate for Adjusted EPS by about a half percentage point less than Revenue Growth for the full year. 3 Outlook
March 31, 2026 December 31, 2025 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 16,024 $ 17,203 Accounts receivable, net (Allowance for expected credit losses of $145 and $137, respectively) 3,520 3,820 Prepaid expenses, net 619 611 Other current assets 771 630 Total current assets 20,934 22,264 Property and equipment, net 784 807 Operating lease assets 607 632 Intangible assets, net 882 918 Goodwill 2,662 2,669 Long-term investments 473 582 Other assets, net 1,378 1,392 Total assets $ 27,720 $ 29,264 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 4,131 $ 5,094 Accrued expenses and other current liabilities 4,476 4,454 Deferred merchant bookings 8,189 5,270 Short-term debt 3,015 1,880 Total current liabilities 19,811 16,698 Operating lease liabilities 530 557 Other long-term liabilities 705 731 Long-term debt 15,398 16,856 Total liabilities 36,444 34,842 Commitments and contingencies Stockholders' deficit: Common stock, $0.008 par value, Authorized shares: 25,000 Issued shares: 1,618 and 1,613, respectively 13 13 Treasury stock: 838 and 816 shares, respectively (58,337) (54,315) Additional paid-in capital 8,490 8,344 Retained earnings 41,420 40,670 Accumulated other comprehensive loss (310) (290) Total stockholders' deficit (8,724) (5,578) Total liabilities and stockholders' deficit $ 27,720 $ 29,264 4 Consolidated Balance Sheets (In millions, except per share data)
Three Months Ended March 31, 2026 2025 Merchant revenues $ 3,698 $ 2,918 Agency revenues 1,528 1,564 Advertising and other revenues 306 280 Total revenues 5,532 4,762 Operating expenses: Marketing expenses 2,068 1,777 Sales and other expenses 804 702 Personnel, including stock-based compensation of $141 and $142, respectively 893 693 General and administrative 100 142 Information technology 240 200 Depreciation and amortization 131 154 Transformation costs 25 32 Total operating expenses 4,261 3,700 Operating income 1,271 1,062 Interest expense (253) (649) Interest and dividend income 187 241 Other income (expense), net 194 (258) Income before income taxes 1,399 396 Income tax expense 316 63 Net income $ 1,083 $ 333 Net income applicable to common stockholders per basic common share $ 1.37 $ 0.41 Weighted-average number of basic common shares outstanding 790 821 Net income applicable to common stockholders per diluted common share $ 1.36 $ 0.40 Weighted-average number of diluted common shares outstanding 794 827 5 Unaudited Consolidated Statements of Operations (In millions, except per share data)
Three Months Ended March 31, 2026 2025 OPERATING ACTIVITIES: Net income $ 1,083 $ 333 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 131 154 Provision for expected credit losses and chargebacks 110 89 Deferred income taxes 54 (144) Net losses (gains) on equity securities 110 (2) Stock-based compensation expense 141 143 Operating lease amortization 32 30 Unrealized foreign currency transaction (gains) losses related to Euro-denominated debt (333) 437 Amortization of debt discount and change in fair value of the conversion option related to the convertible senior notes — 234 Other 5 (42) Changes in assets and liabilities: Accounts receivable 155 (99) Prepaid expenses and other current assets (66) 84 Deferred merchant bookings and other current liabilities 1,827 1,903 Other (34) 163 Net cash provided by operating activities 3,215 3,283 INVESTING ACTIVITIES: Additions to property and equipment (107) (121) Other investing activities — 3 Net cash used in investing activities (107) (118) FINANCING ACTIVITIES: Payments on maturity of debt — (1,530) Payments for repurchase of common stock (3,770) (2,170) Dividends paid (343) (319) Other financing activities 87 52 Net cash used in financing activities (4,026) (3,967) Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents (168) 222 Net decrease in cash and cash equivalents and restricted cash and cash equivalents (1,086) (580) 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 $ 16,183 $ 15,613 6 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. 7 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. 8 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 9 About Booking Holdings
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED EPS Three Months Ended March 31, 2026 2025 Net income $ 1,083 $ 333 (a) Adjustment related to the Netherlands pension fund matter — (129) (b) Gain related to settlement of litigation matters (89) — (c) Amortization of intangible assets 36 54 (d) Transformation costs 23 32 (e) Net losses (gains) on equity securities 107 (3) (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 (333) 389 (g) Amortization of debt discount and change in fair value of the conversion option related to the convertible senior notes — 234 (h) Other (14) — (i) Tax impact of Non-GAAP adjustments 90 (89) Adjusted Net income $ 902 $ 821 GAAP and Non-GAAP weighted-average number of diluted common shares outstanding 794 827 Net income applicable to common stockholders per diluted common share (GAAP EPS) $ 1.36 $ 0.40 Adjusted Net income applicable to common stockholders per diluted common share (Adjusted EPS) $ 1.14 $ 0.99 Net income applicable to common stockholders per diluted common share (GAAP EPS) growth YoY 239 % Adjusted Net income applicable to common stockholders per diluted common share (Adjusted EPS) growth YoY 14 % 10 Reconciliation of GAAP to Non-GAAP Financial Information (In millions, except per share data)(1) (Unaudited)
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA Three Months Ended March 31, 2026 2025 Net income $ 1,083 $ 333 (a) Adjustment related to the Netherlands pension fund matter — (129) (b) Gain related to settlement of litigation matters (89) — (j) Depreciation and amortization 131 154 (d) Transformation costs 23 32 (j) Interest and dividend income (187) (241) (j) Interest expense 253 649 (e) Net losses (gains) on equity securities 107 (3) (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 (333) 389 (g) Change in fair value of the conversion option related to the convertible senior notes — (158) (h) Other (14) — (j) Income tax expense 316 63 Adjusted EBITDA $ 1,290 $ 1,088 Net income as a % of Total Revenues (Net income margin) 19.6 % 7.0 % Net income growth YoY 225 % Adjusted EBITDA as a % of Total Revenues (Adjusted EBITDA margin) 23.3 % 22.9 % Adjusted EBITDA growth YoY 19 % RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW Three Months Ended March 31, 2026 2025 Net cash provided by operating activities $ 3,215 $ 3,283 (k) Additions to property and equipment (107) (121) Free cash flow $ 3,108 $ 3,162 Net cash provided by operating activities as a % of Total Revenues 58.1 % 68.9 % Free cash flow as a % of Total Revenues 56.2 % 66.4 % Net cash provided by operating activities decline YoY (2) % Free cash flow decline YoY (2) % (1) Amounts may not total due to rounding. 11 (Unaudited)
Notes: (a) During the quarter ended March 31, 2025, the Netherlands pension fund matter related to 2023 and earlier years was resolved resulting in a $129 million reduction to the related accruals. When the liability related to these years was initially recorded in the Company's Consolidated Financial Statements for 2023, its impact was excluded from the Non-GAAP results for that year. (b) In the first quarter of 2026, the Company entered into favorable settlement agreements to resolve litigation matters in which it was a plaintiff, for which it received a benefit of $89 million. (c) Amortization of intangible assets is excluded from Net income to calculate Adjusted Net income. (d) In November 2024, the Company announced its intention to implement certain organizational changes to improve operating expense efficiency, increase organizational agility, free up resources that can be reinvested into further improving its offering to travelers and partners, and better position the Company for the long-term (the "Transformation Program"). Certain costs incurred in connection with this transformation program, which are not considered normal operating expenses, are excluded from Net income to calculate Adjusted Net income and Adjusted EBITDA. These costs primarily consist of professional fees and employee termination benefits. (e) Net losses (gains) on equity securities with readily determinable fair values. (f) Foreign currency transaction (gains) losses on the remeasurement of Euro-denominated debt and accrued interest that are not designated as hedging instruments for accounting purposes and gains on debt-related foreign currency derivative instruments used as economic hedges. (g) Adjustment for the amortization of the debt discount of $392 million and the change in fair value of the conversion option of $158 million, both related to the convertible senior notes. (h) Benefit related to the Canadian digital services taxes for the years ended December 31, 2022 and 2023 as it was repealed in March 2026. When the retrospective liability related to these years was initially recorded in 2024, its impact was excluded from the Non- GAAP results for that year. (i) Reflects the tax impact of Non-GAAP adjustments above and changes in tax estimates, as applicable. (j) Depreciation and amortization, Interest and dividend income, Interest expense, and Income tax expense are excluded from Net income to calculate Adjusted EBITDA. (k) Cash used for additions to property and equipment is included in the calculation of Free cash flow. For a more detailed discussion of the adjustments described above, please see the section in this press release under the heading "Non-GAAP Financial Measures" which provides information about the use of non-GAAP financial measures. Additional information on the impact of the adjustments above to the respective line item in the Company's consolidated statements of operations are presented in the following pages. The reconciliation of Total operating expenses to Adjusted fixed operating expenses is also provided. 12
Three Months Ended March 31, 2026 2025 Sales and other expenses: Sales and other expenses $ 804 $ 702 Benefit related to prior-period Canadian digital services taxes 14 — Adjusted Sales and other expenses $ 818 $ 702 Personnel expenses: Personnel expenses $ 893 $ 693 Adjustment related to the Netherlands pension fund matter — 134 Adjusted Personnel expenses $ 893 $ 827 General and administrative expenses: General and administrative expenses $ 100 $ 142 Adjustment related to the Netherlands pension fund matter — (5) Gain related to settlement of litigation matters 89 — Adjusted General and administrative expenses $ 189 $ 137 Depreciation and amortization expenses: Depreciation and amortization expenses $ 131 $ 154 Amortization of intangible assets (36) (54) Depreciation expenses $ 95 $ 100 Transformation costs: Transformation costs $ 25 $ 32 Adjustment related to transformation costs (23) (32) Adjusted Transformation costs $ 2 $ — Interest expense: Interest expense $ (253) $ (649) Amortization of debt discount on convertible senior notes — 392 Adjusted Interest expense $ (253) $ (257) Other income (expense), net: Other income (expense), net $ 194 $ (258) Net losses (gains) on equity securities 107 (3) 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 (333) 389 Change in fair value of the conversion option related to the convertible senior notes — (158) Adjusted Other income (expense), net $ (32) $ (30) 13 Additional Information on the Impact of Non- GAAP Adjustments (In millions) (Unaudited)
(Unaudited) Three Months Ended March 31, 2026 2025 Income tax expense: Income tax expense $ 316 $ 63 Tax impact of Non-GAAP adjustments (90) 89 Adjusted Income tax expense $ 226 $ 152 RECONCILIATION OF TOTAL OPERATING EXPENSES TO ADJUSTED FIXED OPERATING EXPENSES Total operating expenses $ 4,261 $ 3,700 Marketing expenses (2,068) (1,777) Sales and other expenses (804) (702) Depreciation and amortization (131) (154) Adjustment related to the Netherlands pension fund matter — 129 Gain related to settlement of litigation matters 89 — Adjustment related to transformation costs (23) (32) Adjusted fixed operating expenses $ 1,324 $ 1,164 Total operating expenses growth YoY 15 % Adjusted fixed operating expenses growth YoY 14 % 14
(Unaudited) 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Units Sold Room Nights 297 287 299 261 319 309 323 285 338 Year/Year Growth 8.5 % 7.1 % 8.1 % 13.2 % 7.2 % 7.7 % 8.2 % 9.0 % 5.9 % Rental Car Days 21 22 23 17 22 24 23 18 21 Year/Year Growth (Decline) 10.7 % 10.0 % 16.2 % 12.1 % 7.7 % 9.0 % 2.1 % 4.2 % (4.9) % Airline Tickets 11 11 13 14 16 16 17 18 21 Year/Year Growth 33.1 % 27.7 % 38.7 % 52.3 % 44.8 % 44.2 % 32.3 % 27.7 % 28.5 % Gross Bookings (2) Merchant $ 25.8 $ 25.8 $ 28.4 $ 24.2 $ 31.2 $ 32.3 $ 35.7 $ 30.8 $ 38.7 Year/Year Growth 29.3 % 22.3 % 27.3 % 31.7 % 21.0 % 25.1 % 26.0 % 27.2 % 24.3 % Agency $ 17.8 $ 15.6 $ 15.1 $ 12.9 $ 15.5 $ 14.4 $ 13.9 $ 12.2 $ 15.0 Year/Year Decline (8.9) % (16.0) % (14.0) % (2.7) % (12.8) % (7.5) % (7.6) % (5.6) % (3.1) % Total Gross Bookings $ 43.5 $ 41.4 $ 43.4 $ 37.2 $ 46.7 $ 46.7 $ 49.7 $ 43.0 $ 53.8 Year/Year Growth 10.4 % 4.4 % 9.1 % 17.3 % 7.2 % 12.8 % 14.3 % 15.8 % 15.2 % Constant currency Basis (3) 10 % 6 % 9 % 18 % 10 % 9 % 10 % 11 % 8 % Total Revenues $ 4.4 $ 5.9 $ 8.0 $ 5.5 $ 4.8 $ 6.8 $ 9.0 $ 6.3 $ 5.5 Year/Year Growth 16.9 % 7.3 % 8.9 % 14.4 % 7.9 % 16.0 % 12.7 % 16.1 % 16.2 % Constant currency Basis (3) 17 % 9 % 9 % 15 % 10 % 12 % 8 % 11 % 10 % Reconciliation of As Reported Total Revenues Growth to Constant Currency Total Revenues Growth As reported Total revenues growth YoY 17 % 7 % 9 % 14 % 8 % 16 % 13 % 16 % 16 % Foreign currency impact (3) — % 2 % — % 1 % 2 % (4) % (4) % (5) % (6) % Constant currency Total revenues growth YoY (3) 17 % 9 % 9 % 15 % 10 % 12 % 8 % 11 % 10 % (1) Amounts may not total due to rounding. (2) 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. (3) Approximate values. 15 Statistical Data (Units Sold in millions and Gross Bookings and Total Revenues in billions)(1)
FAQ
How did Booking Holdings (BKNG) perform in Q1 2026?
Booking Holdings reported strong Q1 2026 results, with revenue up 16% to $5.5 billion and gross bookings up 15% to $53.8 billion. GAAP net income rose 225% to $1.1 billion, supported by improved margins and lower interest expense.
What were Booking Holdings' key operating metrics for Q1 2026?
In Q1 2026, Booking Holdings recorded 338 million room nights, up 6% year over year. Gross bookings reached $53.8 billion, up 15%, or about 8% on a constant currency basis. The company noted the Middle East conflict reduced room night and bookings growth by about 2 percentage points.
How profitable was Booking Holdings in Q1 2026?
Booking Holdings generated $1.1 billion in GAAP net income in Q1 2026, up 225% from a year earlier. GAAP EPS was $1.36, up 239%. Adjusted EPS was $1.14, up 14%, and Adjusted EBITDA was $1.3 billion, up 19% with a 23.3% margin.
What capital return actions did Booking Holdings (BKNG) take in Q1 2026?
In Q1 2026, Booking Holdings repurchased $3.6 billion of stock, leaving $18.2 billion remaining authorization. The board also declared a $0.42 per share cash dividend, payable June 30, 2026, to shareholders of record as of June 5, 2026.
Did Booking Holdings announce a stock split in 2026?
Yes. Booking Holdings effected a 25-for-1 stock split of its common stock on April 2, 2026. All share and per-share figures in the results were retroactively adjusted to reflect the split, making the stock price and per-share amounts more accessible to a broader investor base.
What guidance did Booking Holdings provide for Q2 and full-year 2026?
For Q2 2026, Booking Holdings expects room nights growth of 2–4% and revenue growth of 4–6%. For full-year 2026, it guides to high single-digit revenue growth and Adjusted EBITDA growth slightly faster than revenue, assuming Middle East conflict impacts ease after June.