Booking Holdings 8-K
PositiveEarningsNew guidance
Transformation Program savings target raised to ≈$650M annually by end-2027; Q3 outlook assumes Middle East conflict effects persist
Filed 2026-08-04 16:03 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with Q3 and FY 2026 guidance. Revenue grew 8% and adjusted EBITDA grew 9% Y/Y; Booking Holdings raised expected annual run-rate savings from its Transformation Program to ≈$650M, expected by the end of 2027. The outlook assumes broader travel conditions remain stable, while specified direct and indirect effects of the Middle East conflict persist through Q3.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $7.35B | $6.80B | 8% |
| Operating income | $2.50B | $2.25B | 11% |
| Net income | $1.95B | $0.895B | 118% |
| Adjusted net income | $1.96B | $1.81B | 8% |
| Diluted EPS | $2.53 | $1.10 | 131% |
| Adjusted diluted EPS | $2.54 | $2.22 | 15% |
| Adjusted EBITDA | $2.65B | $2.42B | 9% |
| Net cash provided by operating activities | $3.72B | $3.20B | 16% |
| Free cash flow | $3.64B | $3.14B | 16% |
| Room nights | 325M | 309M | 5% |
- Gross bookings were $51.0B, up 9% Y/Y (≈8% on a constant currency basis). Revenue growth was ≈7% on a constant currency basis. Total operating expenses rose 7%, slower than revenue; adjusted fixed operating expenses rose 6%, driven by higher cloud computing costs and software license fees, and adverse foreign currency movements.
- Net income margin was 26.5% vs 13.2%; adjusted EBITDA margin was 36.0% vs 35.6%. Other income, net, was $159M vs $(962)M, alongside the increase in net income.
- Stock repurchases were $3.7B, excluding excise taxes, with $14.5B of authorization remaining at quarter-end. Weighted-average diluted shares were 770M vs 815M Y/Y. The board declared a $0.42-per-share dividend payable 9/30/2026 to holders of record 9/11/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Room nights growth | Q3 2026 | 3%–5% Y/Y | — | — |
| Gross bookings growth | Q3 2026 | 4%–6% Y/Y | — | — |
| Constant currency gross bookings growth | Q3 2026 | 5%–7% Y/Y | — | — |
| Gross bookings growth | FY 2026 | High single digits Y/Y | — | — |
| Constant currency gross bookings growth | FY 2026 | High single digits Y/Y | — | — |
| Revenue growth | Q3 2026 | 4%–6% Y/Y | — | — |
| Constant currency revenue growth | Q3 2026 | 5%–7% Y/Y | — | — |
| Revenue growth | FY 2026 | High single digits Y/Y | — | — |
| Constant currency revenue growth | FY 2026 | Mid to high single digits Y/Y | — | — |
| Adjusted EBITDA growth, non-GAAP | Q3 2026 | 4%–6% Y/Y | — | — |
| Adjusted EBITDA growth, non-GAAP | FY 2026 | High single digits Y/Y | — | — |
| Adjusted EPS growth, non-GAAP | FY 2026 | Low to mid-teens Y/Y | — | — |
Reported revenue growth guidance includes an ≈1% foreign currency headwind in Q3 and an ≈1% benefit for FY 2026.
Investor Takeaways
- Q3 results will test the outlook’s room-night and bookings growth ranges, under the company’s stated travel-demand and Middle East assumptions.
- Track whether the company achieves the increased ≈$650M annual run-rate savings target by the end of 2027.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3