10-QPeriod: Q2 FY2026

Booking Holdings Inc. Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 4, 2026For Securities:BKNG

Summary

Booking Holdings Inc. reported a solid second quarter of 2026, with total revenues increasing by 8.1% year-over-year to $7.35 billion. This growth was primarily driven by a 15.0% increase in merchant revenues, signaling a continued shift in booking models. Net income also saw a significant jump, rising to $1.95 billion for the quarter, up from $895 million in the prior year, with diluted EPS at $2.53. The company demonstrated strong operational execution despite ongoing geopolitical uncertainties affecting global travel demand, particularly the indirect impacts from the Middle East conflict. Global room nights grew by 5.3% year-over-year for the quarter, indicating resilience in travel bookings. The company also continues to aggressively return capital to shareholders, with substantial share repurchases totaling $3.8 billion in the quarter and consistent dividend payments. Management remains focused on long-term strategic investments, including its AI-powered "Connected Trip" vision, while maintaining disciplined cost management.

Key Highlights

  • 1Total revenues increased by 8.1% year-over-year to $7.35 billion for Q2 2026.
  • 2Net income more than doubled to $1.95 billion, reflecting improved profitability.
  • 3Diluted earnings per share (EPS) were $2.53 for Q2 2026.
  • 4Global room nights grew by 5.3% year-over-year, demonstrating sustained travel demand.
  • 5Merchant revenues saw a substantial 15.0% increase, indicating a successful shift towards a merchant booking model.
  • 6The company repurchased $3.79 billion of common stock in Q2 2026, underscoring a commitment to shareholder returns.
  • 7Effective tax rate increased to 23.8% for Q2 2026 compared to 18.9% in Q2 2025, mainly due to increased unrecognized tax benefits and valuation allowances.

Frequently Asked Questions

The significant increase in net income was driven by higher total revenues, a favorable shift in revenue mix towards higher-margin merchant bookings, and effective cost management. Additionally, the "Other income (expense), net" line item was a significant positive contributor, particularly foreign currency transaction gains, which largely offset the losses seen in the prior year's comparable period.

While direct impacts on travel within the Middle East have largely normalized, there are continued indirect impacts. These include elevated flight ticket prices, reduced flight capacity on certain international routes, and decreased long-haul international travel demand. These factors negatively impacted overall room night growth in Q2 2026, though domestic and short-haul regional travel remained healthy.

The shift towards merchant revenues, a 15.0% increase in Q2 2026, indicates a strategic move where Booking Holdings facilitates payments directly. While this model incurs additional expenses (like payment processing), it allows for more control over the customer experience, potentially better data, and can lead to higher overall gross bookings. The company noted that incremental revenues from payment facilitation have exceeded associated incremental variable expenses.

Booking Holdings is focusing on an AI-powered "Connected Trip" vision to offer a personalized and seamless travel experience from planning to in-trip. This involves integrating more services, enhancing mobile app functionality, and developing a robust loyalty program. While this may increase non-accommodation services with lower margins, the company believes it will improve traveler loyalty and long-term value.