Booking Holdings (BKNG) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong execution and results, with revenue up 16% to $5.5B, gross bookings up 15% to $53.8B, and room nights up 6%, despite a 2 percentage point negative impact from the Middle East conflict.

• Net income surged 225% to $1.08B, with adjusted EBITDA up 19% to $1.3B and adjusted EPS up 14% to $1.14, reflecting operating leverage and a 25-for-1 stock split.

• U.S. room night growth accelerated to low teens, Asia saw high single-digit growth, and Europe grew mid-single digits; Rest of World declined low single digits due to Middle East weakness.

• Alternative accommodations accounted for 38% of Booking.com room nights, up one percentage point year-over-year; mobile app and direct bookings continued to rise.

• Record $4B in capital returns in Q1, including $3.6B–$4B in share repurchases and $343M in dividends; 25-for-1 stock split effective April 2, 2026.

Financial highlights

• Gross bookings: $53.8B (+15% YoY, 8% constant currency); revenue: $5.5B (+16% YoY, 10% constant currency); adjusted EBITDA: $1.3B (+19% YoY); adjusted EPS: $1.14 (+14% YoY); net income: $1.08B (+225% YoY).

• Merchant gross bookings rose 24% to 72% of total; agency gross bookings fell 3%.

• Airline tickets up 28%, attractions tickets up 25% year-over-year.

• Adjusted fixed operating expenses up 14% YoY; operating margin improved to 23%.

• Free cash flow was $3.1B, down 2% YoY; cash and investments at quarter-end were $16.5B.

Outlook and guidance

• Q2 2026: room nights up 2–4%, gross bookings, revenue, and adjusted EBITDA up 4–6%.

• FY 2026: gross bookings up high single to low double digits, revenue up high single digits, adjusted EBITDA to outpace revenue, adjusted EPS up low to mid-teens.

• Guidance assumes Middle East conflict impacts persist through June, with recovery in H2; FX expected to add 2 percentage points to gross bookings growth.

• Long-term ambition: at least 8% constant currency growth in gross bookings and revenue, and 15% adjusted EPS growth.