Summary of Booking Holdings Q2 2026 Earnings Call

1Key Financial Results and Metrics

Room Nights Growth: Increased by 5%, exceeding guidance by 1%.

Gross Bookings: Grew 9% year-over-year, approximately 8% on a constant currency basis, surpassing guidance by 3%.

Revenue: Up 8% year-over-year, approximately 7% on a constant currency basis.

Adjusted EBITDA: Approximately $2.6 billion, up 9% year-over-year, exceeding guidance.

Adjusted EPS: Increased 15% year-over-year to $2.54 per share, aided by a 6% reduction in average share count.

Cash Position: Ending cash and investments balance rose to $17.7 billion, with strong free cash flow of $3.6 billion.

Share Repurchases: Returned $4.1 billion to shareholders, including $3.7 billion in share repurchases.

2Strategic Updates and Business Highlights

Connected Trip Vision: Continued growth in transactions where travelers booked multiple services, reflecting a low double-digit percentage of total transactions.

Genius Loyalty Program: Strong engagement from higher-tier members, who accounted for over 30% of the active customer base and 50% of room nights.

U.S. and Asia Focus: Investments in product, supply, and marketing in the U.S. led to high single-digit growth in unit room nights. In Asia, localized products and distribution capabilities are being enhanced.

AI Initiatives: Advancements in AI are improving customer experience and operational efficiency, with ongoing testing of AI-powered discovery tools and enhancements in customer service.

3Forward Guidance and Outlook

Third Quarter Expectations: Room nights expected to increase between 3% and 5%, with gross bookings, revenue, and adjusted EBITDA anticipated to grow between 4% and 6%.

Full Year Guidance: Anticipates high single-digit growth for gross bookings, revenue, and adjusted EBITDA, with adjusted EPS expected to rise in the low to mid-teens.

4Bad News, Challenges, or Points of Concern

Impact of Middle East Conflict: Ongoing geopolitical tensions are affecting travel demand, particularly long-haul international travel, with elevated flight prices and reduced capacity.

SEO Pressure: Noted pressure on search engine optimization, which may affect organic visibility, although direct channel growth remains stable.

Flight and Rental Car Performance: Flight ticket growth decelerated, and rental car bookings were down, attributed to external factors rather than internal performance issues.

5Notable Q&A Insights

AI Impact: While AI initiatives are still in early stages, there is optimism about improving personalization and customer satisfaction. However, current traffic from AI remains minimal.

B2B Consolidation: Efforts to consolidate B2B operations across brands aim to create a best-in-class platform, focusing on larger corporate clients while maintaining service for smaller players.

Travel Behavior Shifts: Observed modest shifts in booking windows and lengths of stay, with a normalization trend noted in June.

Incremental Savings: An additional $100 million in expected annual run rate savings was identified, primarily from procurement efficiencies. Overall, Booking Holdings reported strong financial performance in Q2 2026, driven by resilient travel demand and strategic investments, despite facing challenges from geopolitical tensions and competitive pressures. The company remains focused on long-term growth through innovation and operational efficiency.