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Booking Holdings (BKNG)
NASDAQ:BKNG
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Booking Holdings
(NASDAQ:BKNG)
Select Model
Select Model
Rating:63Neutral
Price Target:
$5,406.00
▲(0.27% Upside)
Booking Holdings' strong earnings performance and strategic advancements in AI and loyalty programs are major positives. However, significant leverage issues, bearish technical indicators, and high valuation pose risks. The company's ability to manage these challenges will be crucial for future performance.
Positive Factors
Revenue Growth
The consistent revenue growth, surpassing expectations, indicates strong demand and effective execution, enhancing long-term market position.
AI and Technology Advancements
Advancements in AI enhance customer experience and operational efficiency, providing a competitive edge and supporting sustainable growth.
Genius Loyalty Program
The expansion of the Genius loyalty program drives customer retention and repeat bookings, strengthening long-term revenue streams.
Negative Factors
Significant Leverage
High leverage and negative equity pose financial risks, potentially limiting investment capacity and increasing vulnerability to economic shifts.
Decline in Free Cash Flow Growth
Decreasing free cash flow growth could strain financial flexibility, affecting the company's ability to fund operations and strategic initiatives.
Geopolitical and Macroeconomic Uncertainty
Geopolitical and macroeconomic uncertainties may impact travel demand and operational stability, posing long-term challenges to growth.
Booking Holdings (BKNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$177.03B
Dividend Yield0.71%
Average Volume (3M)204.22K
Price to Earnings (P/E)35.7
Beta (1Y)1.11
Revenue Growth12.96%
EPS Growth3.66%
CountryUS
Employees24,500
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)99.50
Shares Outstanding32,233,814
10 Day Avg. Volume132,748
30 Day Avg. Volume204,217
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)-41.55
Price to Sales (P/S)7.04
P/FCF Ratio21.16
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue6.79
Enterprise Value/Gross Profit6.79
Enterprise Value/Ebitda19.33
Forecast
1Y Price Target
$6,172.48Price Target Upside14.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering26
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Booking Holdings Business Overview & Revenue Model
Company DescriptionBooking 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 services; Priceline, which offer online travel reservation services, and consumers hotel, flight, and rental car reservation services, as well as vacation packages, cruises, and hotel distribution services. It also operates Agoda that provides online accommodation reservation services, as well as flight, ground transportation and activities reservation services. In addition, the company operates KAYAK, an online price comparison service that allows consumers to search and compare travel itineraries and prices, comprising airline ticket, accommodation reservation, and rental car reservation information; and OpenTable for booking online restaurant reservations. Further, it offers travel-related insurance products, and restaurant management services to consumers, travel service providers, and restaurants. The company was formerly known as The Priceline Group Inc. and changed its name to Booking Holdings Inc. in February 2018. The company was founded in 1997 and is headquartered in Norwalk, Connecticut.
How the Company Makes MoneyBooking 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 revenue from hotel reservations, where it takes a percentage of the booking price from the property owners. Additionally, it earns income from advertising on its websites and apps, as well as from offering ancillary services like travel insurance and car rentals. Key partnerships with various travel and hospitality companies enhance its offerings and drive additional revenue. The company's scale and global reach allow it to negotiate favorable terms with suppliers, further optimizing its revenue generation.
Booking Holdings Key Performance Indicators (KPIs)
Any
Travel Bookings
Tracks the total number of travel reservations made, indicating consumer demand and market share within the travel industry.
Tracks the total number of travel reservations made, indicating consumer demand and market share within the travel industry.
Data provided by:
The Fly
The FlyBooking Holdings Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The earnings call reflects strong financial performance and strategic advances, particularly in alternative accommodations and AI-driven initiatives, despite challenges in the U.S. market and geopolitical uncertainties.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Second quarter revenue grew 16% year-over-year, exceeding expectations. Adjusted EBITDA increased by 28% year-over-year, and adjusted EPS grew 32%.
Positive Room Night and Booking Growth
Room nights reached 309 million, an 8% increase from the previous year, with gross bookings up 13% and revenue up 16%.
Significant Growth in Alternative Accommodations
Alternative accommodation listings increased to 8.4 million, an 8% increase year-over-year, contributing to a 10% growth in room nights for this segment.
Expansion of Genius Loyalty Program
The Genius loyalty program continues to expand, with over 30% of active travelers in higher tiers, contributing significantly to booking frequency and direct bookings.
Connected Trip Vision Progress
Connected Trip transactions grew over 30% year-over-year, supported by strong growth in non-accommodation verticals like flights and attractions, with flight tickets up 44%.
Advancements in AI Integration
Investments in AI capabilities, including enhancements in Priceline's AI assistant Penny and OpenTable's AI Concierge, have improved customer engagement and service efficiencies.
Negative Updates
Challenges in the U.S. Market
The U.S. remains the slowest-growing region with lower ADRs, shorter booking windows, and indications of cautious consumer spending.
Geopolitical and Macroeconomic Uncertainties
There are ongoing challenges due to geopolitical dynamics and macroeconomic uncertainties, which have impacted June's growth by approximately 1%.
Difficulties in the China Market
Booking Holdings faces challenges in competing in China's domestic market and has adjusted expectations for outbound business from China.
Company Guidance
During the second quarter of 2025, Booking Holdings delivered robust financial results that surpassed expectations, driven by strong demand across its globally diversified business. Room nights grew by 8% year-over-year to 309 million, with notable performance in Europe and Asia, while gross bookings increased by 13% and revenue by 16%, both exceeding guidance. FX favorably impacted growth rates by approximately 4 percentage points. Adjusted EBITDA rose by 28%, reflecting disciplined expense management. The company reported adjusted EPS growth of 32% year-over-year. Strategic initiatives such as expanding alternative accommodations, with 8.4 million listings, and accelerating the Connected Trip vision contributed to a 10% growth in alternative accommodation room nights and over 30% growth in Connected Trip transactions. The Genius loyalty program now accounts for over 30% of active travelers. Additionally, non-accommodation verticals like flight tickets and attraction tickets saw significant growth, with flights up 44% and attractions more than doubling year-over-year. Looking ahead, the company expects room night growth of 3.5% to 5.5% in the third quarter, with gross bookings projected to rise between 8% and 10%. For the full year, guidance was raised, with expectations of low double-digit growth in gross bookings and revenue, and mid-teens growth in adjusted EBITDA.Booking Holdings Financial Statement Overview
Summary
Booking Holdings shows strong revenue growth and profitability, with high margins and efficient operations. However, significant leverage and negative equity on the balance sheet pose financial stability risks. Cash flow generation is solid, but recent declines in free cash flow growth are concerning.Income Statement
Booking Holdings has demonstrated strong revenue growth with a TTM increase of 4.05% and a consistent upward trajectory over the past years. The company maintains high profitability with a gross profit margin of 100% and a solid net profit margin of 19.37% TTM. However, there is a slight decline in net profit margin compared to the previous year. EBIT and EBITDA margins are robust at 32.29% and 35.14% respectively, indicating efficient operational management.Balance Sheet
The balance sheet reveals significant leverage concerns, with a negative stockholders' equity leading to a negative debt-to-equity ratio of -3.70 TTM. This indicates potential financial instability. The return on equity is also negative, reflecting challenges in generating returns for shareholders. Despite these issues, the company has maintained a stable asset base.Cash Flow
Cash flow analysis shows a decline in free cash flow growth by 10.01% TTM, which could be a concern. However, the operating cash flow to net income ratio remains healthy at 0.53, and the free cash flow to net income ratio is strong at 0.96, indicating good cash generation relative to net income.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.04B | 23.74B | 21.36B | 17.09B | 10.96B | 6.80B |
| Gross Profit | 26.04B | 23.74B | 21.36B | 17.09B | 10.96B | 6.80B |
| EBITDA | 9.15B | 9.34B | 7.04B | 4.92B | 2.40B | 1.56B |
| Net Income | 5.04B | 5.88B | 4.29B | 3.06B | 1.17B | 59.00M |
Balance Sheet | ||||||
| Total Assets | 28.75B | 27.71B | 24.34B | 25.36B | 23.64B | 21.87B |
| Cash, Cash Equivalents and Short-Term Investments | 16.51B | 16.16B | 12.68B | 12.43B | 11.15B | 11.06B |
| Total Debt | 17.53B | 17.08B | 14.78B | 13.04B | 11.28B | 12.38B |
| Total Liabilities | 33.49B | 31.73B | 27.09B | 22.58B | 17.46B | 16.98B |
| Stockholders Equity | -4.74B | -4.02B | -2.74B | 2.78B | 6.18B | 4.89B |
Cash Flow | ||||||
| Free Cash Flow | 8.31B | 7.89B | 7.00B | 6.19B | 2.52B | -201.00M |
| Operating Cash Flow | 8.64B | 8.32B | 7.34B | 6.55B | 2.82B | 85.00M |
| Investing Cash Flow | -317.00M | 129.00M | 1.49B | -518.00M | -998.00M | 2.64B |
| Financing Cash Flow | -8.11B | -4.20B | -8.91B | -4.90B | -1.24B | 1.53B |
Booking Holdings Technical Analysis
Positive
5391.52
Price Trends
5150.29
Positive
5272.67
Positive
5262.43
Positive
Market Momentum
70.02
Positive
55.06
Neutral
74.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKNG, the sentiment is Positive. The current price of 5391.52 is below the 20-day moving average (MA) of 5402.32, above the 50-day MA of 5150.29, and above the 200-day MA of 5262.43, indicating a neutral trend. The MACD of 70.02 indicates Positive momentum. The RSI at 55.06 is Neutral, neither overbought nor oversold. The STOCH value of 74.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKNG.
Booking Holdings Risk Analysis
Booking Holdings disclosed 34 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $36.31B | 28.35 | 104.40% | 0.56% | 7.29% | 36.51% | |
71 Outperform | $85.73B | 32.77 | 30.78% | ― | 10.56% | 47.16% | |
71 Outperform | $50.43B | 12.15 | 19.96% | 0.39% | 17.34% | 91.51% | |
67 Neutral | $1.73B | 23.40 | 9.57% | ― | 4.24% | 159.81% | |
63 Neutral | $177.03B | 35.70 | ― | 0.71% | 12.96% | 3.66% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $7.48B | 118.24 | 16.66% | ― | 14.55% | -68.46% |
* Consumer Cyclical Sector Average
BKNG
Booking Holdings
5,391.52
647.96
13.66%
TCOM
Trip.com Group Sponsored ADR
78.96
14.85
23.17%
EXPE
Expedia
291.53
109.81
60.43%
MMYT
Makemytrip
78.63
-24.23
-23.56%
TRIP
TripAdvisor
14.83
<0.01
0.07%
ABNB
Airbnb
138.51
10.91
8.55%
Booking Holdings Corporate Events
Private Placements and Financing
Booking Holdings Sells €1.5 Billion in Senior Notes
Neutral
Nov 7, 2025
On November 7, 2025, Booking Holdings Inc. executed the sale of €1.5 billion in Senior Notes, split equally between 3.000% Senior Notes due 2030 and 3.625% Senior Notes due 2035. These notes are general senior unsecured obligations and rank equally with other senior unsecured obligations of the company. The issuance is part of a registered public offering, with interest payments beginning in 2026, and includes options for early redemption under specific conditions. The move is likely aimed at strengthening the company’s financial position and providing flexibility in managing its debt obligations.
The most recent analyst rating on (BKNG) stock is a Buy with a $6250.00 price target. To see the full list of analyst forecasts on Booking Holdings stock, see the BKNG Stock Forecast page.
Business Operations and StrategyRegulatory Filings and Compliance
Booking Holdings Updates By-Laws for Better Governance
Neutral
Oct 17, 2025
On October 16, 2025, Booking Holdings Inc.’s Board of Directors approved amendments to the company’s By-Laws, which include changes to the threshold for calling a special meeting and revisions to the advance notice provision. These amendments are expected to streamline board operations and enhance governance, potentially impacting the company’s decision-making processes and stakeholder engagement.
The most recent analyst rating on (BKNG) stock is a Hold with a $5850.00 price target. To see the full list of analyst forecasts on Booking Holdings stock, see the BKNG Stock Forecast page.
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.