Booking Holdings Q3 Adjusted EPS Jumps 17.1% to $4.66, but Q4 Outlook Slows as Travel Demand Softens

Booking Holdings posted a 17.1% jump in third-quarter adjusted earnings per share to $4.66, but the online travel giant warned that travel demand softened late in the quarter and guided to slower fourth-quarter growth as disruptions tied to the Middle East weigh on bookings.

Reported revenue slipped 1.3% to $8.89 billion from $9.01 billion a year earlier, according to the earnings release Booking filed with an 8-K on Tuesday. That figure reflects a $900 million revenue reduction tied to a Federal Trade Commission matter. Excluding it, adjusted revenue rose 8.7% to $9.79 billion. The company also recorded a $100 million accrued loss for the same matter, and both items are excluded from its adjusted results.

Net income fell 1.1% to $2.72 billion, while GAAP earnings per share rose 6.8% to $3.61 from $3.38, helped by a diluted share count of 753 million versus 814 million a year earlier. Per-share figures reflect the 25-for-1 stock split that took effect on April 2, 2026. Adjusted net income climbed 8.3% to $3.51 billion, and adjusted EBITDA grew 8.9% to $4.61 billion, holding its margin at 47.0%.

"We are pleased with our third-quarter operating performance, as resilient travel demand and disciplined execution by our teams drove double-digit gross bookings growth, margin expansion, and 17% adjusted earnings per share growth," CEO Glenn Fogel said in the release.

Bookings growth held up in the quarter

Room nights rose 6.7% to 345 million from 323 million, and alternative accommodation room nights at Booking.com increased 7%, the company said. Gross bookings grew 10% to $54.5 billion, the company said. Merchant gross bookings rose to $40.7 billion from $35.7 billion, while agency gross bookings slipped to $13.7 billion from $13.9 billion. Flight tickets booked climbed 19.4% to 21 million.

Marketing expense equaled 4.8% of gross bookings, compared with 4.7% a year earlier, and adjusted fixed operating expense growth was held to 6%.

A softer fourth quarter

The company said global travel demand moderated somewhat toward the end of the third quarter, reflecting softer international travel. In October, demand was further affected by disruptions to travel in the Middle East, elevated airfares and localized unrest in certain European cities. Booking's outlook assumes the direct and indirect impacts of the Middle East conflict persist through year-end.

"While geopolitical and macroeconomic uncertainty may affect near-term travel trends, we remain focused on making travel easier," Fogel said.

For the fourth quarter, Booking expects room nights to grow 1% to 3%, gross bookings to rise 2% to 4% (4% to 6% in constant currency) and adjusted revenue to grow 0% to 2% (2% to 4% in constant currency). It described expected adjusted EBITDA growth as "About Flat." For the full year, it expects high-single-digit growth in gross bookings, adjusted revenue and adjusted EBITDA, with adjusted EPS growth in the low to mid-teens.

Cash flow and shareholder returns

Operating cash flow fell 20.8% to $1.14 billion, and free cash flow declined 22.0% to $1.07 billion from $1.37 billion. Booking repurchased $2.1 billion of its stock in the quarter and had $12.4 billion remaining under its authorization as of Sept. 30. The board declared a quarterly dividend of $0.42 per share, payable Dec. 31, 2026, to shareholders of record as of Dec. 11.

By the numbers

• Adjusted EPS: $4.66, up 17.1%
• GAAP EPS: $3.61, up 6.8%
• Revenue: $8.89 billion, down 1.3%; adjusted revenue $9.79 billion, up 8.7%
• Gross bookings: $54.5 billion, up 10%
• Room nights: 345 million, up 6.7%
• Third-quarter buybacks: $2.1 billion

Sources

1. Booking Holdings Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001075531-26-000044)

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