Booking Holdings — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP Revenue declined 1% year-over-year (YoY) to $8.9 billion; Adjusted Revenue grew 9% YoY to $9.8 billion (approximately 10% on a constant currency basis).
• GAAP Net Income declined 1% YoY to $2.7 billion; Adjusted Net Income grew 8% YoY to $3.5 billion.
• GAAP EPS grew 7% YoY to $3.61; Adjusted EPS grew 17% YoY to $4.66.
• Adjusted EBITDA grew 9% YoY to $4.6 billion.
• Net Cash Provided By Operating Activities was $1.1 billion, a 21% decline YoY; Free Cash Flow was $1.1 billion, a 22% decline YoY. Both metrics increased 2% on a year-to-date basis compared to 2025.
• Net income margin was 30.6% (vs. 30.5% in Q3 2025); Adjusted Net income margin was 35.8% (vs. 36.0% in Q3 2025); Adjusted EBITDA margin was 47.0% (unchanged from Q3 2025).
• Total operating expenses decreased 1% YoY; Adjusted fixed operating expenses grew 6% YoY.
• Marketing expense as a percentage of gross bookings was 4.8% (vs. 4.7% in Q3 2025).
• Gross Bookings grew 10% YoY to $54.5 billion (approximately 11% on a constant currency basis).
• Room Nights grew 7% YoY to 345 million.
• Alternative accommodation room nights at Booking.com increased 7% YoY.
• Constant Currency Average Daily Rates (CC ADRs) increased approximately 3% YoY.
• Direct channel mix of total room nights booked was a mid-fifties percentage over the trailing four quarters, similar to the prior year.

Guidance and Future Outlook:

• Q4 2026 Room Nights Growth: 1% - 3%.
• Q4 2026 Gross Bookings Growth: 2% - 4%.
• Q4 2026 Constant Currency Gross Bookings Growth: 4% - 6%.
• Q4 2026 Adjusted Revenue Growth: 0% - 2% (includes a negative 2% impact from foreign currency exchange rates).
• Q4 2026 Adjusted EBITDA Growth: About Flat.
• Q4 2026 Adjusted EPS Growth: Low to Mid-Teens.
• FY 2026 Gross Bookings Growth: High Single Digits.
• FY 2026 Constant Currency Gross Bookings Growth: High Single Digits.
• FY 2026 Adjusted Revenue Growth: High Single Digits (includes a 0.5% benefit from foreign currency exchange rates).
• FY 2026 Adjusted EBITDA Growth: High Single Digits.
• FY 2026 Adjusted EPS Growth: High Single Digits.
• Outlook assumes near-term disruptions from the Middle East conflict persist through the end of the year, including elevated airfares and localized unrest in certain European cities.
• Management notes global travel demand moderated toward the end of Q3 due to softer international trends, while domestic travel remained resilient.

Business Segments and Product Lines:

• Booking.com alternative accommodation room nights increased 7% YoY.
• B2C marketing leverage improved vs. Q3 2025.
• The company continues integrating AI across brands and developing AI-native experiences.
• A 25-for-1 stock split was effected on April 2, 2026; all share and per share information has been retroactively adjusted.

Market and Competitive Landscape:

• The company operates in over 220 countries and territories with platforms including Booking.com, Priceline, Agoda, KAYAK, and OpenTable.
• Geopolitical and macroeconomic uncertainty may affect near-term travel trends.
• External factors affecting demand include disruptions to travel to and from the Middle East and indirect effects such as elevated airfares.

Risks and Challenges:

• An FTC matter resulted in a $900 million reduction in revenue and a $100 million accrued loss, excluded from Adjusted measures.
• Risks include the conflict in the Middle East, adverse changes in market conditions, competition, third-party relationship changes, rapid technological changes, and success of marketing efforts.
• Other risks involve cybersecurity, data privacy, taxes, regulatory compliance, foreign currency exchange rates, debt levels, and stock price volatility.

Management Commentary and Tone:

• CEO Glenn Fogel stated the company is "pleased with our third-quarter operating performance," citing resilient travel demand and disciplined execution.
• Management highlighted double-digit gross bookings growth, margin expansion, and 17% adjusted EPS growth.
• The tone remains focused on long-term investment, making travel easier, and helping partners succeed despite near-term disruptions.

Other Key Points:

• The Board declared a cash dividend of $0.42 per share, payable December 31, 2026, to stockholders of record as of December 11, 2026.
• The company repurchased $2.1 billion of common stock in Q3 2026 (excluding excise taxes), with $12.4 billion remaining in authorization as of September 30, 2026.
• The FTC matter reduction in revenue and accrued loss are excluded from Adjusted Revenue, Adjusted Net Income, and Adjusted EBITDA.
• Transformation Program costs were $23 million for the quarter and $78 million for the nine months ended September 30, 2026.
• Total assets were $28.3 billion as of September 30, 2026; Total liabilities were $38.7 billion; Stockholders' deficit was $(10.4) billion.
• Long-term debt increased to $18.1 billion as of September 30, 2026, from $16.9 billion in December 2025.