Booking Holdings (BKNG) Q2 2026 earnings summary

Executive summary

• Q2 2026 exceeded the high end of guidance across all key financial metrics, with revenue up 8% to $7.4 billion, net income surging 118% to $1.95 billion, and strong execution amid macroeconomic uncertainty and Middle East conflict.

• Room nights grew 5% year-over-year to 325 million, driven by resilient domestic and intra-regional demand, while international travel increased slightly.

• Strategic investments continued in Connected Trip, AI, loyalty programs, and expansion in the U.S. and Asia to drive long-term value and operational efficiency.

• Transformation Program annual run-rate savings target raised to $650 million, with $100 million incremental savings expected in 2027.

• Free cash flow reached $3.6 billion, and record capital returns of $4.1 billion were delivered in Q2, including $3.7 billion in share repurchases.

Financial highlights

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

• Adjusted EBITDA reached $2.65 billion, up 9% year-over-year, with margin expanding 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 was $3.6 billion, up 16% year-over-year; cash and investments at $17.7 billion.

• Merchant gross bookings accounted for 73% of total, up four percentage points year-over-year.

Outlook and guidance

• Q3 2026 guidance: room nights expected to grow 3–5%; gross bookings, revenue, and adjusted EBITDA to rise 4–6%.

• Full-year 2026: gross bookings, revenue, and adjusted EBITDA projected to increase high single digits; adjusted EPS up low to mid-teens.

• Guidance assumes persistent indirect impacts from Middle East conflict, elevated flight prices, and FX fluctuations.