second quarter 2026
Filed Aug 4, 2026Booking Holdings reported second-quarter 2026 revenue of $7.4B, GAAP net income of $2.0B, Adjusted EBITDA of $2.6B, and room-night growth of 5%.
Revenue, gross bookings, adjusted earnings, Adjusted EBITDA, operating cash flow, and free cash flow all increased year over year, while total operating-expense growth trailed revenue growth. The outlook calls for lower third-quarter room-night growth of 3% - 5% amid continued Middle East conflict-related travel pressure and softer long-haul international demand assumptions.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Room Nightsother | 325M | – | 5% |
| Rental Car Daysother | 23 | – | (6.5) % |
| Flight Ticketsother | 17 | – | 3.7 % |
| Gross Bookingsother | $51.0B | – | 9% |
| Gross Bookings constant currency growthother | approximately 8% | – | approximately 8% |
| Total revenuesGAAP | $7,352 | – | – |
| Revenue growthGAAP | 8% | – | 8% |
| Revenue constant currency growthother | approximately 7% | – | approximately 7% |
| Marketing expensesGAAP | $2,371 | – | – |
| Sales and other expensesGAAP | $942 | – | – |
| Personnel expensesGAAP | $900 | – | – |
| General and administrative expensesGAAP | $217 | – | – |
| Information technology expensesGAAP | $263 | – | – |
| Depreciation and amortizationGAAP | $129 | – | – |
| Transformation costsGAAP | $30 | – | – |
| Total operating expensesGAAP | $4,852 | – | 7% |
| Adjusted fixed operating expensesnon-GAAP | $1,381 | – | 6% |
| Operating incomeGAAP | $2,500 | – | – |
| Net incomeGAAP | $1,950 | – | 118 % |
| Adjusted Net incomenon-GAAP | $1,958 | – | 8 % |
| Net income marginGAAP | 26.5 % | – | – |
| Adjusted EBITDAnon-GAAP | $2,648 | – | 9 % |
| Adjusted EBITDA marginnon-GAAP | 36.0 % | – | – |
| Net income applicable to common stockholders per diluted common share (GAAP EPS)GAAP | $2.53 | – | 131 % |
| Adjusted EPSnon-GAAP | $2.54 | – | 15 % |
| Net cash provided by operating activitiesGAAP | $3,719 | – | 16 % |
| Free cash flownon-GAAP | $3,643 | – | 16 % |
| Marketing expense as a percentage of gross bookingsGAAP | 4.7% | – | – |
| Alternative accommodation room nights at Booking.comother | 4% | – | 4% |
| CC ADRs growthother | about 2% | – | about 2% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Merchant revenuesNot separately disclosed. | $5,127 | – | – |
| Agency revenuesNot separately disclosed. | $1,903 | – | – |
| Advertising and other revenuesNot separately disclosed. | $322 | – | – |
Q3 2026 and FY 2026 outlook
- RevenueQ3 2026: 4% - 6%; FY 2026: High Single Digits
- NoteRoom Nights Growth: Q3 2026: 3% - 5%; FY 2026: High Single Digits
- NoteGross Bookings Growth: Q3 2026: 4% - 6%; FY 2026: High Single Digits
- NoteConstant Currency Gross Bookings Growth: Q3 2026: 5% - 7%; FY 2026: High Single Digits
- NoteConstant Currency Revenue Growth: Q3 2026: 5% - 7%; FY 2026: Mid to High Single Digits
- NoteAdjusted EBITDA Growth: Q3 2026: 4% - 6%; FY 2026: High Single Digits
- NoteAdjusted EPS Growth: FY 2026: Low to Mid-Teens
- NoteRevenue 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.
- NoteChanges in foreign currency exchange rates are expected to impact reported growth rates for Adjusted EBITDA by a similar amount of percentage points as Revenue Growth for the third quarter.
- NoteChanges in foreign currency exchange rates are expected to impact reported growth rate for Adjusted EBITDA and Adjusted EPS by about half a percentage point less than Revenue Growth for the full year.
Capital returns
- 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.
- Repurchased $3.7 billion (excluding excise taxes) of stock in the quarter ended June 30, 2026.
- Total remaining repurchase authorization of $14.5 billion as of June 30, 2026.
- Payments for repurchase of common stock were $(7,758) for the six months ended June 30, 2026.
- Dividends paid were $(664) for the six months ended June 30, 2026.
What drove it
- Global travel demand remained resilient so far in the third quarter, supported by healthy domestic travel trends.
- Room nights grew 5%, gross bookings grew 9%, and revenue grew 8% compared with the second quarter of 2025.
- Constant currency ADRs increased by about 2%.
- 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.
- The Company increased expected annual run-rate savings through the Transformation Program to approximately $650 million and expects to realize these run-rate savings by the end of 2027.
- Over the trailing four quarters, the mix of total room nights booked through the direct channel was a mid-fifties percentage, similar to last year.
Concerns
- The outlook assumes that indirect impacts of the Middle East conflict, including elevated flight ticket prices, reduced flight capacity on certain routes, and softer long-haul international travel demand, persist through the third quarter.
- The Company continues to assume some pressure on inbound travel to the Middle East.
- Rental Car Days declined (6.5) % year over year.
- Q3 2026 Room Nights Growth guidance of 3% - 5% is below the reported 5% second-quarter growth range at its midpoint.
- Marketing expense as a percentage of gross bookings was 4.7%, compared with 4.6% in Q2 2025.
- Long-term debt increased to $18,180 as of June 30, 2026 from $16,856 as of December 31, 2025.
What to watch
- Q3 2026 room-night growth against guidance of 3% - 5%.
- The persistence of conflict-related pressure on Middle East inbound travel, flight capacity, ticket prices, and long-haul international travel demand.
- Whether revenue and gross bookings growth meet the Q3 2026 guidance ranges of 4% - 6%.
- Realization of approximately $650 million of expected annual run-rate Transformation Program savings by the end of 2027.
- Adjusted EBITDA growth relative to Q3 2026 guidance of 4% - 6% and FY 2026 High Single Digits guidance.
- The pace of stock repurchases against the $14.5 billion authorization remaining as of June 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $17,214 as of June 30, 2026, compared with $17,203 as of December 31, 2025.
- Short-term debt was $2,000 as of June 30, 2026, compared with $1,880 as of December 31, 2025.
- Long-term debt was $18,180 as of June 30, 2026, compared with $16,856 as of December 31, 2025.
- Total assets were $29,682 as of June 30, 2026, compared with $29,264 as of December 31, 2025.
- Total liabilities were $40,465 as of June 30, 2026, compared with $34,842 as of December 31, 2025.
- Total stockholders' deficit was $(10,783) as of June 30, 2026, compared with $(5,578) as of December 31, 2025.
- Net cash provided by operating activities was $6,934 for the six months ended June 30, 2026, compared with $6,484 for the six months ended June 30, 2025.
- Additions to property and equipment were $(183) for the six months ended June 30, 2026, compared with $(185) for the six months ended June 30, 2025.
- Free cash flow was $6,751 for the six months ended June 30, 2026, compared with $6,299 for the six months ended June 30, 2025.
- Proceeds from the issuance of long-term debt were $2,975 for the six months ended June 30, 2026.
- Payments on maturity of debt were $(1,000) for the six months ended June 30, 2026.
Analysis
Booking Holdings delivered a solid second quarter, with room nights of 325M, gross bookings of $51.0B, and revenue of $7.4B. Room nights grew 5%, while gross bookings and revenue grew 9% and 8%, respectively. On a constant currency basis, gross bookings growth was approximately 8% and revenue growth was approximately 7%. Merchant revenues were $5,127, agency revenues were $1,903, and advertising and other revenues were $322. Alternative accommodation room nights at Booking.com increased by 4%, while CC ADRs increased by about 2%.
Profitability improved materially on a GAAP basis. Net income was $1,950, up 118%, and GAAP EPS was $2.53, up 131%. The reported comparison benefited from a much smaller foreign currency transaction gain in the current period than the prior-year foreign currency transaction loss included in other income (expense), net. Adjusted Net income was $1,958, up 8%, and Adjusted EPS was $2.54, up 15%. Adjusted EBITDA increased 9% to $2,648, and Adjusted EBITDA margin increased to 36.0 % from 35.6 %.
Cost growth remained below reported revenue growth. Total operating expenses increased 7%, compared with 8% revenue growth, while adjusted fixed operating expenses increased 6%. Marketing expense as a percentage of gross bookings rose to 4.7% from 4.6%. Adjusted fixed operating expense growth reflected higher cloud computing costs, software license fees, and adverse foreign currency exchange-rate changes. The Company also raised expected annual run-rate savings from the Transformation Program to approximately $650 million, expected by the end of 2027.
Cash generation was strong. Net cash provided by operating activities rose 16% to $3,719 and free cash flow rose 16% to $3,643 in the quarter. The Company repurchased $3.7 billion of stock excluding excise taxes, retained $14.5 billion of repurchase authorization, and declared a $0.42 per-share cash dividend. Cash and cash equivalents were $17,214 at June 30, 2026, while long-term debt was $18,180.
The Q3 outlook anticipates continued resilient demand supported by domestic travel, but it embeds a more measured 3% - 5% room-night growth outlook. Gross bookings, revenue, and Adjusted EBITDA growth are each guided to 4% - 6% for Q3 2026, with constant currency gross bookings and revenue growth of 5% - 7%. The guidance assumes continuing indirect effects from the Middle East conflict, including elevated ticket prices, reduced capacity on certain routes, softer long-haul international demand, and pressure on inbound travel to the Middle East.
Management, verbatim
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.
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.
Glenn Fogel, Chief Executive Officer of Booking Holdings
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- A reported GAAP tax rate was not provided.
- Q3 2026 gross margin, operating expenses, and tax-rate guidance were not provided.
- GAAP Net income and GAAP EPS reconciliations for forward-looking Adjusted EBITDA and Adjusted EPS guidance were not provided.
- Prior-period guidance was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.