BKNG
BKNG
Booking Holdings Inc.
$155.07
+$0.04 (+0.03%)
Mkt Cap: $120.16B
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Q1 Revenue Grows 16% to $5.5B: U.S. Acceleration Offsets Middle East Headwinds (BKNG Q1 2026 Earnings Call)

By Dr. Graph | Updated on Apr 29, 2026 | earnings

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Booking Holdings delivered strong first-quarter execution, navigating macro volatility to post significant top- and bottom-line growth. With robust demand in the U.S. and Asia counterbalancing geopolitical headwinds in the Middle East, the company's persistent investments in direct channels and its Connected Trip vision are demonstrating clear returns. This performance highlights the enduring resilience of global travel demand and the company's ability to capture structural growth opportunities.

Strong Bookings and Earnings Growth Defy Geopolitical Drag

Booking Holdings generated $53.8 billion in first-quarter gross bookings, representing a 15% year-over-year increase. Revenue matched this momentum, growing 16% to $5.5 billion, while adjusted EBITDA expanded 19% to approximately $1.3 billion. The company booked 338 million room nights, a 6% increase, though management noted growth would have reached approximately 8% excluding the estimated 2 percentage point impact from the Middle East conflict. Adjusted EPS rose 14% to $1.14, supported by a 4% reduction in share count fueled by a record $3.6 billion in share repurchases.

Management Outlines Solid Full-Year Guidance Amid Q2 Caution

Looking ahead, management assumes the impact of the Middle East conflict will persist through the second quarter, leading to a projected Q2 room night growth of 2% to 4%. Second-quarter gross bookings, revenue, and adjusted EBITDA are each expected to grow between 4% and 6%. For the full year 2026, CFO Ewout Steenbergen reaffirmed a solid outlook: "We're still actually from a range perspective, at the high end, still at the level of the original guidance for 2026." The company projects full-year gross bookings to rise high single digits to low double digits, with adjusted EPS increasing in the low to mid-teens.

U.S. Expansion and Connected Trip Drive Market Share Gains

The U.S. market emerged as a standout performer, with room night growth accelerating for the fourth consecutive quarter to the low teens, driven primarily by domestic travel. This strength outpaced broader market trends, signaling sustained market share gains. Additionally, the Connected Trip strategy is proving effective; connected transactions grew in the high teens percentage, substantially faster than total transaction growth. Global alternative accommodation room nights also remained strong, comprising about 38% of Booking.com's total room nights.

Q&A Unpacks Middle East Headwinds and AI Innovations

During the Q&A session, analysts probed the specific impacts of the Middle East conflict. CFO Ewout Steenbergen quantified the expected second-quarter headwind at approximately 3 percentage points on room night growth, factoring in disruptions to Europe-Asia transit corridors. Addressing questions on artificial intelligence, CEO Glenn Fogel highlighted early successes with the Penny AI assistant at Priceline, noting a "noticeable uplift" in conversion from users engaging with the tool. Steenbergen emphasized that unlike generic AI planners, Penny enables immediate booking execution, reinforcing the value of Booking Holdings' direct channel.

Disclaimer: This report is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research or consult a qualified professional before investing. Past performance is not indicative of future results.

Frequently Asked Questions

What impact did the Middle East conflict have on Q1 results?
CFO Ewout Steenbergen estimated the conflict negatively impacted first-quarter room night and gross bookings growth by about 2 percentage points, primarily affecting March performance.
How is the U.S. market performing for Booking Holdings?
CEO Glenn Fogel stated that U.S. room night growth accelerated for the fourth consecutive quarter to the low teens, driven by strong domestic demand and continued momentum in the direct channel.
What are the early results from the Penny AI assistant?
CEO Glenn Fogel noted that in early testing, the company is seeing a noticeable uplift in conversion from users who engage with Penny compared to non-Penny users.

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