BKNG · Booking Holdings Inc.

Booking Holdings delivered strong Q1 2026 results despite headwinds from the Middle East conflict, which negatively impacted room night growth by ~2pp, gross bookings in line, and revenue slightly less. Room nights rose 6% to 338M, driven by resilience in core markets and U.S. strength, with alternative accommodations at Booking.com up 5.5% and CC ADRs +1%. Gross bookings surged 15% (8% CC) to $53.8B, revenue 16% (10% CC) to $5.5B, reflecting solid demand execution. Profitability soared with GAAP net income +225% to $1.1B (margin 19.6% vs 7.0%), fueled by lower interest expense and other income gains, while Adjusted EBITDA grew 19% to $1.3B (margin 23.3%). Operating expenses rose 15%, lagging revenue, with marketing stable at 3.8% of gross bookings and adjusted fixed costs +14%. CEO Glenn Fogel highlighted business resilience, Connected Trip progress, global expansion, and AI leverage amid uncertainty. Capital returns remained aggressive: $3.6B stock repurchases (remaining auth. $18.2B post-split) and $0.42/share Q2 dividend. Guidance assumes Middle East impact through June, with Q2 room nights 2-4%, gross bookings 4-6%; FY gross bookings high single/low double digits, Adjusted EBITDA slightly faster than revenue. Post 25-for-1 split (Apr 2), share count adjusted. Balance sheet shows $16B cash, $18.4B debt, ongoing buybacks pressuring equity to -$8.7B deficit.