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Booking Holdings reported Q2 adjusted EPS of $2.54, up 15% Y/Y and above estimates.
BKNG's gross bookings rose 9% to $51.0 billion, helped by room-night growth and travel demand.
Connected Trip transactions grew low double digits, while loyalty and mobile engagement increased Y/Y.
Booking Holdings (BKNG - Free Report) reported second-quarter 2026 adjusted earnings of $2.54 per share, beating the Zacks Consensus Estimate by 3.67%. The figure increased 15% year over year.
Revenues of $7.35 billion surpassed the consensus estimate by 2.26% and increased 8% year over year and about 7% on a constant currency (cc) basis.
The company benefited from resilient travel demand, with room nights rising 5% year over year to 325 million. Gross bookings increased by 9% to $51.0 billion, supported by room-night growth, higher constant-currency average daily rates and contributions from other travel verticals.
BKNG Delivers Broad Travel Growth
Booking Holdings’ room-night growth reflected continued demand despite geopolitical pressures. Domestic room nights grew high single digits globally, while international room nights increased slightly as long-haul travel remained affected by indirect impacts from the Middle East conflict.
The company saw mid-single-digit room night growth in Europe, Asia and the Rest of World, while the U.S. grew high single digits. Alternative accommodation room nights at Booking.com increased 4% year over year, with the category representing approximately 37% of Booking.com room nights.
Booking Holdings Expands Strategic Initiatives
Booking Holdings continued to build its Connected Trip strategy, which combines multiple travel services into a more integrated customer experience. Connected Trip transactions grew in the low double digits year over year and represented a low double-digit percentage of Booking.com’s total transactions.
The company also highlighted progress in loyalty and mobile engagement. Level 2 and Level 3 Genius members accounted for a high-50% share of room nights, while the mobile app mix of total room nights remained in the high-50% range, both increasing year over year.
BKNG’s Revenue Growth Benefits From Payments
Merchant revenues were $5.13 billion (69.7% of total revenues), up 15% year over year. Agency revenues were $1.90 billion (25.9% of total revenues), down 6.9% year over year. Advertising & Other revenues were $322 million (4.4% of total revenues), up 8.4% year over year.
Revenue growth trailed gross bookings growth primarily due to elevated cancellations in March that affected second-quarter revenues. The company also noted that higher payment revenues supported revenue performance during the quarter.
BKNG’s Q2 Operating Results
Booking Holdings maintained cost discipline during the quarter. Total operating expenses increased 7% year over year to $4.85 billion, slower than revenue growth. Marketing expenses increased 11% to $2.37 billion, while sales and other expenses rose 5% to $942 million.
Adjusted EBITDA increased 9% year over year to $2.65 billion, while adjusted EBITDA margin expanded 40 basis points year over year.
BKNG increased its expected annual run-rate savings from its Transformation Program to approximately $650 million, with the additional savings expected to be realized primarily in 2027. The company incurred approximately $30 million in transformation costs during the second quarter.
BKNG’s Q2 Balance Sheet & Cash Flow
As of June 30, 2026, the company's cash and cash equivalents totaled $17.21 billion, up from $16.02 billion as of March 31, 2026.
Booking Holdings had $18.18 billion of total long-term debt, up from $15.40 billion as of March 31, 2026.
The company generated $3.64 billion in free cash flow during the quarter, up 16% year over year. BKNG returned $4.1 billion to its shareholders, including $3.7 billion through share repurchases, marking its highest quarterly capital return amount in company history.
Booking Holdings’ Q3 & 2026 Outlook
Booking Holdings expects third-quarter 2026 room nights to grow 3% to 5%, while gross bookings, revenues and adjusted EBITDA are each projected to increase 4% to 6% year over year. The outlook assumes stability in the broader travel environment and continued indirect impacts from the Middle East conflict.
For full-year 2026, the company expects gross bookings, revenues and adjusted EBITDA to increase in the high-single-digit range, while adjusted EPS growth is projected in the low-to-mid-teens range. Management continues to focus on Connected Trip, AI capabilities and expansion in key markets.
BKNG’s Zacks Rank & Stocks to Consider
Currently, Booking Holdings carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
Booking Holdings Q2 Earnings & Revenues Beat Estimates, Rise Y/Y
Key Takeaways
Booking Holdings (BKNG - Free Report) reported second-quarter 2026 adjusted earnings of $2.54 per share, beating the Zacks Consensus Estimate by 3.67%. The figure increased 15% year over year.
Revenues of $7.35 billion surpassed the consensus estimate by 2.26% and increased 8% year over year and about 7% on a constant currency (cc) basis.
The company benefited from resilient travel demand, with room nights rising 5% year over year to 325 million. Gross bookings increased by 9% to $51.0 billion, supported by room-night growth, higher constant-currency average daily rates and contributions from other travel verticals.
BKNG Delivers Broad Travel Growth
Booking Holdings’ room-night growth reflected continued demand despite geopolitical pressures. Domestic room nights grew high single digits globally, while international room nights increased slightly as long-haul travel remained affected by indirect impacts from the Middle East conflict.
Booking Holdings Inc. Price and EPS Surprise
Booking Holdings Inc. price-eps-surprise | Booking Holdings Inc. Quote
The company saw mid-single-digit room night growth in Europe, Asia and the Rest of World, while the U.S. grew high single digits. Alternative accommodation room nights at Booking.com increased 4% year over year, with the category representing approximately 37% of Booking.com room nights.
Booking Holdings Expands Strategic Initiatives
Booking Holdings continued to build its Connected Trip strategy, which combines multiple travel services into a more integrated customer experience. Connected Trip transactions grew in the low double digits year over year and represented a low double-digit percentage of Booking.com’s total transactions.
The company also highlighted progress in loyalty and mobile engagement. Level 2 and Level 3 Genius members accounted for a high-50% share of room nights, while the mobile app mix of total room nights remained in the high-50% range, both increasing year over year.
BKNG’s Revenue Growth Benefits From Payments
Merchant revenues were $5.13 billion (69.7% of total revenues), up 15% year over year. Agency revenues were $1.90 billion (25.9% of total revenues), down 6.9% year over year. Advertising & Other revenues were $322 million (4.4% of total revenues), up 8.4% year over year.
Revenue growth trailed gross bookings growth primarily due to elevated cancellations in March that affected second-quarter revenues. The company also noted that higher payment revenues supported revenue performance during the quarter.
BKNG’s Q2 Operating Results
Booking Holdings maintained cost discipline during the quarter. Total operating expenses increased 7% year over year to $4.85 billion, slower than revenue growth. Marketing expenses increased 11% to $2.37 billion, while sales and other expenses rose 5% to $942 million.
Adjusted EBITDA increased 9% year over year to $2.65 billion, while adjusted EBITDA margin expanded 40 basis points year over year.
BKNG increased its expected annual run-rate savings from its Transformation Program to approximately $650 million, with the additional savings expected to be realized primarily in 2027. The company incurred approximately $30 million in transformation costs during the second quarter.
BKNG’s Q2 Balance Sheet & Cash Flow
As of June 30, 2026, the company's cash and cash equivalents totaled $17.21 billion, up from $16.02 billion as of March 31, 2026.
Booking Holdings had $18.18 billion of total long-term debt, up from $15.40 billion as of March 31, 2026.
The company generated $3.64 billion in free cash flow during the quarter, up 16% year over year. BKNG returned $4.1 billion to its shareholders, including $3.7 billion through share repurchases, marking its highest quarterly capital return amount in company history.
Booking Holdings’ Q3 & 2026 Outlook
Booking Holdings expects third-quarter 2026 room nights to grow 3% to 5%, while gross bookings, revenues and adjusted EBITDA are each projected to increase 4% to 6% year over year. The outlook assumes stability in the broader travel environment and continued indirect impacts from the Middle East conflict.
For full-year 2026, the company expects gross bookings, revenues and adjusted EBITDA to increase in the high-single-digit range, while adjusted EPS growth is projected in the low-to-mid-teens range. Management continues to focus on Connected Trip, AI capabilities and expansion in key markets.
BKNG’s Zacks Rank & Stocks to Consider
Currently, Booking Holdings carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Retail-Wholesale sector are The TJX Companies (TJX - Free Report) , Insight Enterprises (NSIT - Free Report) and TripAdvisor (TRIP - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The TJX Companies shares have inched up 1% in the past six months. TJX is set to report its second-quarter fiscal 2027 results on Aug. 19, 2026.
Insight Enterprises shares have gained 54% in the past six months. NSIT is slated to report its second-quarter 2026 results on Aug.6.
TripAdvisor's shares have returned 12.3% in the past six months. TRIP is scheduled to report its second-quarter 2026 results on Aug. 6.