10-Q · April 28, 2026
Booking Holdings reported a strong Q1 2026 with a total revenue of $5.53 billion, reflecting a 16% increase year-over-year, driven by growth in global room nights and merchant bookings despite headwinds from regional…
Earnings analysis · 10-Q
BKNG earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Booking Holdings delivered an 8.1% year-over-year revenue increase to $7.352B, approximately 34.0% operating margin, and $2.54 diluted EPS, ahead of the $2.44 consensus estimate. Merchant revenue and gross bookings were…
Read full summary
Booking Holdings delivered an 8.1% year-over-year revenue increase to $7.352B, approximately 34.0% operating margin, and $2.54 diluted EPS, ahead of the $2.44 consensus estimate. Merchant revenue and gross bookings were the central growth drivers, while operating cash flow rose to $6.934B for the first six months. Offsetting the favorable financial trend, room-night growth decelerated to 5% amid Middle East-related travel disruption, and marketing expense grew 10.8%; the 10-Q itself does not provide explicit revenue or EPS guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.54
What stood out
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Revenue accelerated to $7.352B
Q2 revenue rose 8.1% year over year to $7.352B from $6.798B and increased 33.0% sequentially from $5.530B in Q1 2026. Growth included about a 1% foreign-exchange benefit.
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Margin and EPS improved
Operating margin was approximately 34.0%, calculated from $2.500B of operating income on $7.352B of revenue; this is up from 33.1% in Q2 2025 and 23.0% in Q1 2026. Diluted EPS of $2.54 exceeded the $2.44 consensus estimate by 4.1% and rose from $1.10 in Q2 2025.
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Merchant mix drove growth
Merchant revenue increased 15.0% to $5.127B and merchant gross bookings grew 14.5% to $36.996B. The merchant share of total gross bookings reached 73%, versus 69% a year earlier, while agency revenue declined 6.9% to $1.903B due to the Booking.com agency-to-merchant shift.
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Cash generation remained strong
Operating cash flow for the first six months increased 6.9% to $6.934B from $6.484B. With $196M of investing cash outflow, six-month free cash flow was approximately $6.738B and capex intensity was about 1.5% of revenue.
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Transformation savings target increased
The Transformation Program had enabled approximately $550M of annual run-rate savings by year-end 2025; management increased its expected annual run-rate savings to approximately $650M. Most incremental savings above $550M are expected in 2027.
What to watch
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Middle East disruption slowed room nights
Global room-night growth slowed to 5% in Q2 2026 from 6% in Q1 2026. Management attributed the slowdown to the Middle East conflict, including elevated flight prices, reduced capacity on certain routes, and weaker long-haul international demand.
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Marketing efficiency faces pressure
Marketing expense increased 10.8% to $2.371B, faster than 8.1% revenue growth, and rose to 4.7% of gross bookings from 4.6%. Management expects SEO traffic to decline in the short to medium term, potentially requiring greater paid-marketing spend.
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Rental cars and agency business declined
Rental-car days fell 6.5% to 23M and agency gross bookings declined 3.3% to $13.961B. These declines reflect lower partner volume and the ongoing migration of Booking.com transactions from agency to merchant.
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No new Q2 risk-factor additions
Risk-factor disclosure was not newly updated in this Q2 2026 filing: Item 1A refers to the 2025 Form 10-K as supplemented by the Q1 2026 Form 10-Q. Debt sensitivity remains material, as a hypothetical 100-basis-point rate decrease would increase debt fair value by approximately $1.2B.
Management's outlook
The 10-Q contains no explicit quantitative revenue or EPS outlook. Management instead cites approximately $650M of expected annual Transformation Program run-rate savings, with the majority of incremental savings above the approximately $550M level expected in 2027.
Earlier filings 4
10-K · February 18, 2026
Booking Holdings reported full-year 2025 revenues of $26.9 billion and reports strategic progress on Gen AI, Connected Trip, payments, and record annual room nights. Operational performance was broadly stable with…
10-Q · October 28, 2025
Booking Holdings reported Q3 2025 revenue of $9,008 million, up $1,014 million (+12.7%) versus Q3 2024, and delivered diluted net income per share of $84.41, up $10.07 (+13.6%) year-over-year. Merchant revenue led the…
10-Q · April 29, 2025
Booking Holdings reported first-quarter 2025 revenue of $4,762 million, up from $4,415 million in Q1 2024, with operating income rising to $1,062 million. Operating performance and cash generation were strong (operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.