Booking Holdings (BKNG) Q4 2025 earnings summary

Executive summary

• Achieved strong financial and operational performance in 2025, with robust growth in room nights, gross bookings, and revenue, driven by resilient travel demand and strategic investments in technology, AI, and global expansion.

• Transformation Program delivered significant cost savings and margin expansion, enabling reinvestment in growth priorities.

• Advanced strategic priorities including Connected Trip, AI-powered capabilities, and growth in Asia and the U.S.

Financial highlights

• Q4 2025 room nights reached 285 million, up 9% year-over-year; gross bookings and revenue both up 16%; adjusted EBITDA up 19%; adjusted EPS up 17%.

• Full-year 2025: room nights surpassed 1.2 billion (+8% YoY); gross bookings up 12%, revenue up 13%, adjusted EBITDA over $9.9 billion (+20% YoY), adjusted EPS up 22%.

• Q4 net income: $1.43 billion (up 34% YoY); FY net income: $5.4 billion (down 8% YoY); Q4 GAAP EPS: $44.22, adjusted EPS: $48.80.

• Free cash flow for 2025: $9.1 billion (+15% YoY); ended Q4 with $17.8 billion in cash and investments.

• FX benefited Q4 and full-year growth rates by 500 and 200–400 basis points, respectively.

Outlook and guidance

• FY 2026 guidance: gross bookings and revenue expected to grow in low double digits, about 100 bps above long-term ambition on a constant currency basis; adjusted EBITDA and EPS growth to outpace revenue, with margin expansion of ~50 bps.

• Q1 2026 room night growth expected at 5–7%; gross bookings and revenue up 14–16%; adjusted EBITDA growth 10–14%.

• Transformation Program to deliver $500–$550 million in 2026 savings, enabling $700 million in reinvestments.

• FX expected to positively impact 2026 reported growth rates by 1.5–2.5 percentage points.