01—Abstract
Summary
Summary of the 10-Q filed November 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Booking Holdings Inc. reported its third-quarter and year-to-date results for 2026, showcasing a resilient top line despite ongoing global uncertainties.
Total revenues for the nine months ended September 30, 2026, increased by 5.9% to $21.8 billiona, driven primarily by a 17.2% surge in merchant revenues. This growth was significantly influenced by Booking.com's continued shift from an agency to a merchant model, alongside strong performance from Agoda and Priceline in accommodation reservation services. While overall revenue growth was impacted by a substantial $900 million reduction related to an FTC matter, the underlying business demonstrated robust activity, with room nights increasing by 6.0% for the nine-month period.
Despite revenue pressures from the FTC settlement and the lingering effects of geopolitical events like the conflict in the Middle East on long-haul travel, the company managed its expenses effectively. Marketing expenses, though up 12.3%b for the nine months, remained stable as a percentage of gross bookings, indicating a focus on efficient customer acquisition.
Significant share repurchases and dividend payments highlight a commitment to returning capital to shareholders. The company's strong operating cash flow and substantial cash reserves provide financial flexibility to navigate market challenges and invest in its long-term strategy, including the 'Connected Trip' vision.
02—Key points
Key Highlights
- Merchant revenues saw a significant increase of 17.2% for the nine months ended September 30, 2026, reaching $15.8 billion, driven by Booking.com's model shift and growth across brands.
- Total revenues grew 5.9% to $21.8 billion for the nine months, though this was impacted by a $900 million reduction related to an FTC matter.
- Room nights increased by 6.0% for the nine-month period, reflecting continued demand for accommodation services, with notable growth in key regions.
- Marketing expenses rose 12.3% for the nine months to $7.0 billion but remained stable as a percentage of gross bookings, indicating efficient spend.
- The company repurchased $9.9 billion of its common stock during the nine-month period, alongside paying $978 million in dividends, demonstrating a strong commitment to capital return.
- Net income for the nine months improved to $5.75 billion, up from $3.98 billion in the prior year, showcasing enhanced profitability.
- Despite geopolitical headwinds impacting long-haul travel, the company's diversified global portfolio and focus on innovation like the 'Connected Trip' vision position it for future growth.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 3, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $8.89B$9.01B | −1.3% |
| Operating Expenses | $5.47B$5.53B | −0.9% |
| Operating Income | $3.42B$3.48B | −1.9% |
| Net Income | $2.72B$2.75B | −1.1% |
| EPS (Basic) | $3.62$3.39 | +6.8% |
| EPS (Diluted) | $3.61$3.38 | +6.8% |
| Shares Outstanding (Basic) | 750.00M810.00M | −7.4% |
| Shares Outstanding (Diluted) | 753.00M814.00M | −7.5% |
05—Questions
Frequently Asked Questions
How did the FTC matter affect Booking Holdings' financial performance?
The FTC matter resulted in a $900 million reduction in total revenues for both the three and nine months ended September 30, 2026. Additionally, $100 million was accrued in general and administrative expenses. This significantly impacted reported revenue figures, although the underlying business operations continued to show growth.
What is driving the growth in merchant revenues?
The significant increase in merchant revenues is primarily driven by Booking.com's ongoing strategic shift from an agency to a merchant booking model. This shift, along with growth in accommodation reservation services from other brands like Agoda and Priceline, contributed to the 17.2% year-over-year increase in merchant revenues for the nine months ended September 30, 2026.
What is the current status of Booking Holdings' share repurchase program?
Booking Holdings has a substantial authorization for share repurchases. At September 30, 2026, there was a remaining authorization of $12.4 billion under its $20 billion share repurchase program initiated in 2025. During the nine months ended September 30, 2026, the company repurchased approximately $9.9 billion of its common stock.
How is the company addressing geopolitical impacts on travel demand?
The company acknowledges that the conflict in the Middle East has had indirect impacts, such as elevated flight ticket prices, weighing on long-haul international travel demand. While international room night growth has improved, it lags behind domestic growth. Booking Holdings emphasizes its diversified global portfolio, flexible platforms, and strong financial position to navigate these challenges and remains focused on delivering value and making strategic investments.
06—Continue