Booking Holdings Q3 Adjusted Revenue Rises 9% as Q4 Demand Moderates

Booking Holdings Inc. (NASDAQ: BKNG) reported higher third-quarter adjusted revenue and earnings as room-night growth accelerated, but said global travel demand moderated late in the quarter and issued a restrained fourth-quarter outlook reflecting disruptions linked to the Middle East conflict.

For the third quarter of 2026, adjusted revenue rose 9% year over year to $9.79 billion, or about 10% on a constant-currency basis. Adjusted EBITDA increased 9% to $4.61 billion, while adjusted net income gained 8% to $3.51 billion. Adjusted diluted earnings per share rose 17% to $4.66, helped by a 7.5% reduction in the average share count.

On a GAAP basis, revenue declined 1% to $8.89 billion and net income fell 1% to $2.72 billion. GAAP diluted EPS increased 7% to $3.61.

Room-night growth accelerates

Room nights increased 7% from a year earlier, accelerating from 5% growth in the second quarter. Booking Holdings attributed the improvement to stronger international travel among customers in Europe and Asia, while domestic room-night growth remained stable at a higher level. Domestic room nights rose by a high-single-digit percentage globally, and international room nights increased by a mid-single-digit percentage.

Room nights grew by high-single-digit percentages in Europe and Asia and by mid-single-digit percentages in the U.S. and the rest of the world. However, elevated airfares and reduced capacity on some routes continued to weigh on long-haul demand as indirect effects of the Middle East conflict persisted.

Gross bookings increased 10%, supported by the 7% rise in room nights, approximately 3% growth in constant-currency accommodation average daily rates and contributions from flights and other travel categories. Currency movements reduced reported growth by about one percentage point, leaving constant-currency gross bookings growth at approximately 11%.

Adjusted revenue grew slightly more slowly than gross bookings because of a higher mix of flight reservations and the timing difference between bookings and travel. Higher revenue from facilitating payments partially offset those factors.

Alternative accommodations and connected trips expand

Booking.com’s alternative-accommodation room nights rose 7%, with their share of the platform’s total room nights increasing to approximately 37% from about 36% a year earlier. Alternative-accommodation listings increased 9% to 9.4 million.

Connected transactions—bookings by the same traveler across more than one travel category for trips occurring within a few days of one another—grew nearly 20% and represented a low-double-digit percentage of Booking.com’s total transactions.

Mobile-app bookings also continued to account for a larger portion of activity. The trailing-12-month app mix reached the high-50% range, up from the mid-50% range a year earlier. The company said a significant majority of room nights booked through its apps are direct bookings. Its overall trailing-12-month business-to-consumer direct mix remained in the mid-60% range, similar to the prior-year period.

The share of Booking.com room nights generated by Level 2 and Level 3 Genius members rose to the high-50% range from the mid-50% range a year earlier.

Cost growth remains below adjusted revenue growth

Adjusted fixed operating expenses increased 6%, compared with the 9% rise in adjusted revenue, as Booking Holdings cited disciplined cost management. Headcount grew 4% year over year at quarter-end. Sales and other expenses rose 7% to $1.10 billion, while marketing expenses increased 11% to $2.59 billion.

Adjusted EBITDA grew slightly faster than adjusted revenue. Leverage from adjusted fixed operating expenses and sales and other expenses was partly offset by modest marketing deleverage, primarily because business-to-business affiliate marketing expenses grew faster.

Third-quarter free cash flow declined 22% to $1.1 billion, reflecting a working-capital decrease associated with a $3.6 billion seasonal unwind of deferred merchant bookings. Trailing-12-month free cash flow increased 11% to $9.2 billion. The company returned $2.4 billion of capital during the quarter, including $2.1 billion through share repurchases.

Fourth-quarter outlook reflects demand disruptions

Booking Holdings expects fourth-quarter room nights to increase 1% to 3% year over year. Reported gross bookings are projected to be approximately flat, with constant-currency growth of 2% to 4%. Adjusted revenue is expected to rise 0% to 2% as reported and 2% to 4% at constant currency. Adjusted EBITDA is forecast to increase approximately 2% as reported and 4% to 6% at constant currency, excluding certain costs related to the previously disclosed Transformation Program.

Management said international travel drove moderation in global demand near the end of the third quarter, while domestic demand remained more resilient as travelers took shorter trips and selected destinations closer to home. October demand was also affected by disruptions to Middle East travel, broader effects including elevated airfares and localized unrest in certain European cities. The outlook assumes the direct and indirect effects of the Middle East conflict persist through year-end.

For full-year 2026, Booking Holdings continues to expect reported gross bookings, adjusted revenue and adjusted EBITDA to grow by high-single-digit percentages. Adjusted EPS is expected to increase by a low- to mid-teens percentage. At the upper end, the company said the outlook would be broadly consistent with its long-term constant-currency growth ambitions of at least 8% for gross bookings and adjusted revenue and 15% for adjusted EPS.

The outlook remains subject to travel-market conditions, competition, foreign-exchange movements, marketing efficiency, geopolitical disruptions and operational, technological, cybersecurity, legal and regulatory risks. The company also identified risks related to generative AI, payment facilitation, taxes, third-party relationships, debt levels and the integration of investments and acquisitions.