Booking Holdings (BKNG) investor relations material

Executive summary

• Revenue for Q2 2026 grew 8% year-over-year to $7.4 billion, with net income up 118% to $1.95 billion and adjusted EBITDA up 9% to $2.65 billion, reflecting strong execution and resilience in a volatile travel environment.

• Room nights grew 5% year-over-year to 325 million, driven by robust domestic demand and healthy trends in Europe and Asia, despite ongoing impacts from the Middle East conflict.

• Gross bookings increased 9% year-over-year (8% constant currency) to $51.0 billion, supported by a 2% benefit from constant currency ADRs.

• Transformation Program raised annual run-rate savings target to $650 million, enhancing capacity for future growth investments.

• Continued strategic investments in Connected Trip, AI, and expansion in the U.S. and Asia to drive long-term value.

Financial highlights

• Revenue: $7.4 billion, up 8% year-over-year; gross bookings: $51.0 billion, up 9%; net income: $1.95 billion, up 118%.

• Adjusted EBITDA: $2.65 billion, up 9%; margin expanded to 36.7%.

• Adjusted EPS rose 15% year-over-year to $2.54, aided by a 6% reduction in average share count.

• Free cash flow reached $3.6 billion, up 16% year-over-year; cash and investments at $17.7 billion after $4.1 billion in shareholder returns.

• Operating margin for Q2 2026 was 34%; net income margin improved to 26.5%.

Outlook and guidance

• Q3 2026 guidance: room nights up 3–5%, gross bookings, revenue, and adjusted EBITDA up 4–6% year-over-year, with a 1% FX headwind.

• FY 2026 guidance: high single-digit growth in gross bookings, revenue, and adjusted EBITDA; adjusted EPS growth in low to mid-teens.

• Guidance assumes persistent indirect impacts from Middle East conflict, including elevated flight prices and reduced capacity.