01—Abstract
Summary
Summary of the 10-Q filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Booking Holdings Inc. reported a significant increase in financial performance for the first quarter of 2026 compared to the prior year, driven by robust demand in Europe and Asia.
Total revenues surged by 16.2% to $5.53 billiona, with merchant revenues showing a strong 26.7% growth, reflecting a strategic shift towards the merchant model. Net income more than tripled to $1.08 billion, or $1.36 per diluted share, demonstrating improved profitability. Despite geopolitical headwinds like the conflict in the Middle East, which impacted booking growth and marketing efficiency, the company maintained its focus on innovation and expanding its "Connected Trip" vision.
Significant share repurchases and dividend payments underscore a commitment to returning capital to shareholders. Operationally, the company saw a 5.9%b increase in room nights, though growth was tempered by geopolitical events. The shift towards merchant bookings is a key strategic initiative, which, while increasing revenue and gross bookings, also incurs higher operational expenses and may impact margins.
Marketing expenses rose in line with revenue growth, but efficiency was affected by increased cancellations due to the Middle East conflict. The company is actively managing its substantial debt load and continues to invest in technology and strategic initiatives, including its transformation program aimed at improving expense efficiency and agility.
02—Key points
Key Highlights
- Total revenues increased by 16.2% to $5.53 billion, driven by strong performance across its brands, particularly Booking.com.
- Net income surged by over 225% to $1.08 billion, resulting in a diluted EPS of $1.36, a significant improvement from $0.40 in the prior year.
- The company's strategic shift to a merchant booking model continues, with merchant revenues growing 26.7% and representing a larger portion of total revenues.
- Room nights booked increased by 5.9% year-over-year, though growth was impacted by the conflict in the Middle East, which led to increased cancellations and slower booking growth.
- Marketing expenses increased by 16.4% to $2.07 billion, closely tracking revenue growth, but marketing efficiency was negatively impacted by higher cancellation rates due to geopolitical events.
- The company actively returned capital to shareholders, repurchasing $4.02 billion of common stock and paying $343 million in dividends during the quarter.
- Despite geopolitical challenges and increased operational costs associated with the merchant model, Booking Holdings demonstrates strong underlying revenue and profit growth.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 28, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $5.53B$4.76B | +16.2% |
| Operating Expenses | $4.26B$3.70B | +15.2% |
| Operating Income | $1.27B$1.06B | +19.7% |
| Net Income | $1.08B$333.00M | +225.2% |
| EPS (Basic) | $1.37$0.41 | +234.1% |
| EPS (Diluted) | $1.36$0.40 | +240.0% |
| Shares Outstanding (Basic) | 790.00M821.00M | −3.8% |
| Shares Outstanding (Diluted) | 794.00M827.00M | −4.0% |
05—Questions
Frequently Asked Questions
What is the primary driver of Booking Holdings' revenue growth in Q1 2026?
The primary driver of Booking Holdings' revenue growth in Q1 2026 is the significant increase in merchant revenues, which grew by 26.7% year-over-year. This is a result of the company's strategic shift towards a merchant booking model and strong travel demand, particularly in Europe and Asia.
How has the conflict in the Middle East impacted Booking Holdings' performance?
The conflict in the Middle East has negatively impacted Booking Holdings' performance by leading to increased cancellations and slower growth in new bookings, particularly in March. This has affected room night growth and marketing efficiency, as performance marketing expenses incurred for bookings that were subsequently canceled yielded diminished returns.
What is the company's strategy regarding capital allocation for shareholders?
Booking Holdings continues to actively return capital to shareholders. In Q1 2026, the company repurchased approximately $4.02 billion of its common stock and paid $343 million in cash dividends, demonstrating a commitment to shareholder value.
How is the shift to a merchant booking model impacting the company's financial results?
The shift to a merchant booking model is a key strategic initiative that has boosted merchant revenues and overall gross bookings. However, it also leads to increased operational expenses related to payment processing and customer service, which can negatively impact operating margins despite the higher associated revenues.
06—Continue