European Investor
04 Nov 2026, 09:11
Booking Holdings Edges Down 0.2% Premarket as Softer Q4 Travel Outlook Offsets Strong Q3 Earnings
Booking Holdings (NASDAQ: BKNG) shares slipped about 0.2% in premarket trading after the company reported solid third-quarter growth but issued a more cautious fourth-quarter outlook as global travel demand moderated.
Third-quarter gross bookings increased 10% year over year to $54.5 billion, or about 11% at constant currency, while room nights grew 7% to 345 million. Adjusted revenue rose 9% to $9.8 billion, although reported revenue declined 1% to $8.9 billion after the company recorded a $900 million revenue reduction related to an FTC matter.
Adjusted EPS increased 17% to $4.66, while GAAP EPS rose 7% to $3.61. Adjusted EBITDA grew 9% to $4.6 billion, with the adjusted EBITDA margin holding steady at 47.0%.
Operating trends remained healthy across the platform. Alternative accommodation room nights at Booking*com increased 7%, while constant-currency average daily rates rose about 3%. Marketing efficiency also improved modestly in the consumer business.
Cash generation weakened in the quarter, with free cash flow falling 22% to $1.1 billion, although year-to-date free cash flow remained 2% above the prior year. Booking repurchased $2.1 billion of stock during the quarter and had $12.4 billion remaining under its authorization.
The main concern was the near-term outlook. Booking said global travel demand moderated toward the end of Q3, particularly in international travel, while Middle East disruptions, higher airfares and localized unrest in parts of Europe weighed on October demand.
For the fourth quarter, the company expects room-night growth of just 1%-3%, gross bookings growth of 2%-4% and adjusted revenue growth of 0%-2%. Adjusted EBITDA is expected to be roughly flat year over year, although adjusted EPS is still projected to grow at a low-to-mid-teens rate.
The slight premarket decline appears to reflect the contrast between strong Q3 execution and a softer near-term travel environment. Investors may be focusing less on the quarter just reported and more on the marked slowdown implied by Booking’s Q4 growth expectations.
Booking Holdings (NASDAQ: BKNG) shares slipped about 0.2% in premarket trading after the company reported solid third-quarter growth but issued a more cautious fourth-quarter outlook as global travel demand moderated.
Third-quarter gross bookings increased 10% year over year to $54.5 billion, or about 11% at constant currency, while room nights grew 7% to 345 million. Adjusted revenue rose 9% to $9.8 billion, although reported revenue declined 1% to $8.9 billion after the company recorded a $900 million revenue reduction related to an FTC matter.
Adjusted EPS increased 17% to $4.66, while GAAP EPS rose 7% to $3.61. Adjusted EBITDA grew 9% to $4.6 billion, with the adjusted EBITDA margin holding steady at 47.0%.
Operating trends remained healthy across the platform. Alternative accommodation room nights at Booking*com increased 7%, while constant-currency average daily rates rose about 3%. Marketing efficiency also improved modestly in the consumer business.
Cash generation weakened in the quarter, with free cash flow falling 22% to $1.1 billion, although year-to-date free cash flow remained 2% above the prior year. Booking repurchased $2.1 billion of stock during the quarter and had $12.4 billion remaining under its authorization.
The main concern was the near-term outlook. Booking said global travel demand moderated toward the end of Q3, particularly in international travel, while Middle East disruptions, higher airfares and localized unrest in parts of Europe weighed on October demand.
For the fourth quarter, the company expects room-night growth of just 1%-3%, gross bookings growth of 2%-4% and adjusted revenue growth of 0%-2%. Adjusted EBITDA is expected to be roughly flat year over year, although adjusted EPS is still projected to grow at a low-to-mid-teens rate.
The slight premarket decline appears to reflect the contrast between strong Q3 execution and a softer near-term travel environment. Investors may be focusing less on the quarter just reported and more on the marked slowdown implied by Booking’s Q4 growth expectations.
