It has been about a month since the last earnings report for Booking Holdings (BKNG Quick QuoteBKNG - Free Report) . Shares have lost about 3.6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Booking Holdings due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Booking Holdings Q2 Earnings & Revenues Beat Estimates, Rise Y/Y

Booking Holdings 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates review.

VGM Scores

Currently, Booking Holdings has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Booking Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.