Booking Holdings Inc. reported fourth‑quarter 2025 results that surpassed expectations, with revenue reaching $6.35 billion—an increase of 16% year‑over‑year—and adjusted earnings per share of $48.80, beating the consensus estimate of $48.27. Room nights grew 9%, marking the fourth consecutive quarter of acceleration, while the adjusted EBITDA margin expanded to 34.6%, up 193 basis points from the same period a year earlier.
The revenue beat can be attributed to robust demand across Booking Holdings’ core travel segments and a 25‑percentage‑point shift toward merchant‑model bookings, which command higher contribution margins and lower agency costs. The mix shift, combined with effective pricing strategies, lifted top‑line growth beyond analyst expectations.
Margin expansion was driven largely by the merchant‑model shift and disciplined cost management. The company’s Transformation Program is expected to deliver $550 million in annual run‑rate savings by the end of 2026, further supporting the higher EBITDA margin. Together, these factors explain the 1.93‑percentage‑point lift in margin year‑over‑year.
Guidance for the first quarter of 2026 reflects a more cautious outlook: room‑night growth is projected at 5%–7% and constant‑currency revenue growth at 7%–9%, down from the 11% growth reported in Q4. For the full year, Booking Holdings expects high‑single‑digit revenue growth and mid‑teens adjusted EPS growth, indicating a modest deceleration in the travel market.
Management highlighted continued execution strength and a focus on Generative AI and the Connected Trip vision. CEO Glenn Fogel emphasized the platform’s resilience, while CFO Ewout Steenbergen noted investments in Asia and the U.S., an expanded booking window, and the transformation program’s savings. These initiatives aim to sustain profitability while positioning the company for long‑term growth.
Investors noted the earnings beat, margin expansion, and corporate actions such as a 10% dividend increase to $10.50 per share and a 25‑to‑1 stock split effective April 2, 2026. The guidance slowdown tempered enthusiasm, reflecting a cooling travel market and headwinds that the company is actively managing.
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