Booking Holdings (BKNG) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue 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 amid ongoing geopolitical impacts in the Middle East.

• Room nights grew 5% year-over-year to 325 million, driven by resilient domestic demand and strategic investments in Connected Trip, AI, and expansion in the U.S. and Asia.

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

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

• Free cash flow reached $3.6 billion, up 16% year-over-year, and capital return hit a record $4.1 billion in the quarter.

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%; diluted EPS: $2.53, up 131%; adjusted EPS: $2.54, up 15%.

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

• Free cash flow: $3.6 billion, up 16% year-over-year; cash and investments at $17.7 billion at quarter end.

• Adjusted fixed operating expenses grew 6%, slower than revenue.

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.