Booking Holdings (BKNG)
NASDAQ:BKNG
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Booking Holdings
(NASDAQ:BKNG)
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Rating:69Neutral
Price Target:
$5,052.00
▲(24.37% Upside)
Action:DowngradedDate:03/06/26
The score is driven primarily by strong operating results, cash flow strength, and upbeat 2026 guidance with continued cost-savings execution, tempered by balance-sheet risk (negative equity and higher debt) and a technically weak longer-term price trend. Valuation is moderately limiting given the premium P/E and modest dividend yield.
Positive Factors
Strong cash generation
Consistent, large operating and free cash flow with FCF tracking ~95–97% of net income creates durable funding for capex, product investment, buybacks and dividends. This cash conversion underpins strategic flexibility and helps service debt without relying on volatile capital markets.
Negative Factors
High leverage & negative equity
Significant leverage and a sustained negative equity position constrain financial flexibility and elevate refinancing and covenant risks in downturns. Even with strong cash flow, negative equity limits balance-sheet resilience and may reduce strategic options like M&A or large cyclical investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, large operating and free cash flow with FCF tracking ~95–97% of net income creates durable funding for capex, product investment, buybacks and dividends. This cash conversion underpins strategic flexibility and helps service debt without relying on volatile capital markets.
Read all positive factors
Booking Holdings (BKNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$128.66B
Dividend Yield0.71%
Average Volume (3M)495.56K
Price to Earnings (P/E)30.4
Beta (1Y)1.11
Revenue Growth13.39%
EPS Growth-4.72%
CountryUS
Employees24,500
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)48.80
Shares Outstanding31,673,346
10 Day Avg. Volume292,065
30 Day Avg. Volume495,563
Financial Highlights & Ratios
PEG Ratio-6.67
Price to Book (P/B)-31.16
Price to Sales (P/S)6.46
P/FCF Ratio19.13
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue4.94
Enterprise Value/Gross Profit4.94
Enterprise Value/Ebitda14.43
Forecast
1Y Price Target
$5,730.94Price Target Upside41.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering26
EPS Forecast (FY)268.61
Revenue Forecast (FY)$29.96B
Booking Holdings Business Overview & Revenue Model
Company Description
Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide. The company operates Booking.com, which offers online accommodation reservations; Rentalcars.com that provides online rental car reservation se...
How the Company Makes Money
Booking Holdings primarily generates revenue through commissions and service fees charged to travel service providers, such as hotels and airlines, for facilitating bookings through its platforms. The company earns a significant portion of its rev...
Booking Holdings Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, revealing which areas are driving growth and where there may be potential risks or opportunities.
Breaks down revenue across different business segments, revealing which areas are driving growth and where there may be potential risks or opportunities.
Data provided by:
The Fly
The FlyBooking Holdings Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented a strong set of financial and operational outcomes — above-guidance Q4 performance, double-digit top-line growth, substantial margin expansion, significant free cash flow and aggressive shareholder returns — alongside strategic progress in GenAI, Connected Trip, flights and payments. Management also highlighted disciplined cost savings via the Transformation Program and plans to self-fund sizeable reinvestments to drive future growth. Key near-term headwinds include opportunistic marketing deleverage in Q4, higher payment costs from a larger merchant mix, some U.S. ADR softness, and a planned reinvestment cadence that will modestly dampen 2026 EBITDA. Overall, the positives (robust growth, margin expansion, cash generation and strategic investment) substantially outweigh the manageable challenges reported.Positive Updates
Quarterly Room Night Growth Outperformed
Q4 room nights reached 285 million, up 9% year-over-year and exceeding the high end of guidance by ~3 percentage points, driven by healthy demand across major regions.
Negative Updates
Marketing Deleverage in Q4
Marketing expense as a percentage of gross bookings was ~24 basis points higher year-over-year in Q4 due to opportunistic investments in performance and social channels and increased brand spend, creating short-term deleverage.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Room Night Growth Outperformed
Q4 room nights reached 285 million, up 9% year-over-year and exceeding the high end of guidance by ~3 percentage points, driven by healthy demand across major regions.
Read all positive updates
Company Guidance
Booking Holdings guided that for full‑year 2026 it expects constant‑currency top‑line growth about 100 basis points above its 8% long‑term algorithm (i.e., roughly ~9%), with reported gross bookings and revenue up low double‑digits, adjusted EBITDA growing faster than revenue and adjusted EBITDA margins expanding by about 50 basis points, and adjusted EPS up in the mid‑teens (constant‑currency EPS growth in line with a ~15% target). The company assumes EUR/USD at $1.17 and expects FX to boost full‑year reported growth by ~2.5 p.p. for gross bookings, ~2 p.p. for revenue and ~1.5 p.p. for adjusted EBITDA and EPS; Q1 FX is expected to add ~7 p.p. to gross bookings/revenue and ~8 p.p. to adjusted EBITDA. Q1 2026 guidance is room nights +5–7%, gross bookings +14–16% (>1 p.p. from flights/other), revenue +14–16%, adjusted EBITDA +10–14% (~20% at the high end after normalizing a $53M prior‑year benefit), and Q1 accommodation ADRs roughly flat. The Transformation Program is expected to deliver $500–550M of in‑year savings in 2026 (run‑rate savings ~ $550M targeted by year‑end, aggregate costs <1x run rate), and the company plans ~ $700M of reinvestment above baseline that it says will drive ~$400M of incremental revenue and about $300M of net contribution to adjusted EBITDA, while keeping sales & other expenses as a percentage of gross bookings roughly flat.Booking Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
38
Negative
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 26.92B | 23.74B | 21.36B | 17.09B | 10.96B |
| Gross Profit | 26.92B | 23.74B | 21.36B | 17.09B | 10.96B |
| EBITDA | 9.22B | 9.34B | 7.04B | 4.92B | 2.40B |
| Net Income | 5.40B | 5.88B | 4.29B | 3.06B | 1.17B |
Balance Sheet | |||||
| Total Assets | 29.26B | 27.71B | 24.34B | 25.36B | 23.64B |
| Cash, Cash Equivalents and Short-Term Investments | 17.79B | 16.16B | 12.68B | 12.43B | 11.15B |
| Total Debt | 19.29B | 17.08B | 14.78B | 13.04B | 11.28B |
| Total Liabilities | 34.84B | 31.73B | 27.09B | 22.58B | 17.46B |
| Stockholders Equity | -5.58B | -4.02B | -2.74B | 2.78B | 6.18B |
Cash Flow | |||||
| Free Cash Flow | 9.09B | 7.89B | 7.00B | 6.19B | 2.52B |
| Operating Cash Flow | 9.41B | 8.32B | 7.34B | 6.55B | 2.82B |
| Investing Cash Flow | -313.00M | 129.00M | 1.49B | -518.00M | -998.00M |
| Financing Cash Flow | -8.91B | -4.20B | -8.91B | -4.90B | -1.24B |
Booking Holdings Technical Analysis
Negative
4062.14
Price Trends
4472.60
Negative
4809.21
Negative
5128.09
Negative
Market Momentum
-60.39
Positive
38.20
Neutral
12.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKNG, the sentiment is Negative. The current price of 4062.14 is below the 20-day moving average (MA) of 4312.09, below the 50-day MA of 4472.60, and below the 200-day MA of 5128.09, indicating a bearish trend. The MACD of -60.39 indicates Positive momentum. The RSI at 38.20 is Neutral, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKNG.
Booking Holdings Risk Analysis
Booking Holdings disclosed 29 risk factors in its most recent earnings report. Booking Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Booking Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $79.78B | 33.13 | 30.88% | ― | 10.84% | -2.16% | |
71 Outperform | $32.94B | 10.21 | 20.98% | 0.39% | 17.34% | 91.50% | |
69 Neutral | $128.66B | 30.43 | -93.64% | 0.71% | 13.39% | -4.72% | |
62 Neutral | $27.67B | 27.45 | 114.29% | 0.56% | 7.61% | 9.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $3.44B | 276.78 | 31.18% | ― | 11.07% | -76.51% | |
50 Neutral | $1.16B | 45.50 | 6.10% | ― | 3.05% | 890.32% |
* Consumer Cyclical Sector Average
BKNG
Booking Holdings
4,062.14
-536.85
-11.67%
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Booking Holdings Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresStock Split
Booking Holdings Posts Strong 2025 Results, Plans Stock Split
Positive
Feb 18, 2026
Booking Holdings reported strong fourth-quarter and full-year 2025 results on February 18, 2026, with Q4 room nights up 9% and gross bookings and revenue each rising 16% year over year, while net income grew 34% and GAAP EPS 38%. For 2025, room ni...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.