Booking Holdings (NASDAQ:BKNG) shares traded largely unchanged in premarket trading on Wednesday after the online travel company reported third-quarter 2026 revenue below Wall Street expectations and issued cautious fourth-quarter guidance, offsetting stronger-than-expected adjusted earnings and continued growth in travel bookings.
The company reported quarterly revenue of $8.9 billion, down 1% from the previous year and below analyst estimates of $9.54 billion. However, the reported figure included a $900 million reduction related to a US Federal Trade Commission matter. Excluding this item, adjusted revenue increased 9% to $9.8 billion.
Adjusted earnings per share reached $4.66, exceeding the consensus estimate of $4.49, while gross bookings rose 10% to $54.5 billion.
Despite the stronger underlying operating performance, investors remained cautious after management highlighted slowing international travel demand, disruptions associated with the Middle East conflict and a weaker outlook for the final quarter of the year.
Booking Holdings reported third-quarter revenue of $8.9 billion, representing a 1% decline compared with the corresponding period of 2025.
The figure fell short of Wall Street expectations of approximately $9.54 billion.
Reported revenue was affected by a $900 million reduction associated with a US Federal Trade Commission matter, which significantly influenced the year-over-year comparison.
Excluding the regulatory adjustment, Booking’s adjusted revenue increased 9% to $9.8 billion.
On a constant-currency basis, adjusted revenue growth was approximately 10%, indicating continued expansion in the company’s underlying travel business.
The difference between reported and adjusted revenue highlighted the impact of the regulatory item on the company’s headline financial results.
While the reported revenue decline contributed to investor caution, the adjusted figures demonstrated that Booking continued to generate growth from its travel platforms.
Booking delivered stronger-than-expected adjusted profitability during the quarter.
Adjusted earnings per share reached $4.66, exceeding the analyst consensus estimate of $4.49.
The result represented an earnings beat of approximately 3.8%.
Adjusted net income increased 8% year over year to $3.5 billion, while adjusted EBITDA rose 9% to $4.6 billion.
The improvements reflected continued growth in booking activity and the company’s ability to maintain profitability despite changing travel demand conditions.
Chief Executive Officer Glenn Fogel said resilient travel demand and disciplined execution supported double-digit gross bookings growth and a 17% increase in adjusted earnings per share during the quarter.
The stronger earnings performance provided a counterbalance to the reported revenue shortfall, although investors remained focused on management’s expectations for the coming months.
Operational performance remained positive during the third quarter, with Booking Holdings recording growth in both room nights and gross bookings.
Gross bookings increased 10% year over year to $54.5 billion, reflecting continued spending on travel through the company’s platforms.
Room nights booked reached 345 million, representing a 7% increase compared with the same period last year.
The figures indicated that travel activity remained resilient for much of the quarter, despite signs of weaker demand emerging towards the end of the period.
Gross bookings represent the total value of travel reservations made through Booking’s platforms before adjustments associated with cancellations and other factors.
The measure provides an indication of underlying customer activity and travel spending.
The increase in gross bookings suggested that the company’s travel platforms continued to attract customers, even as broader economic and geopolitical developments affected certain markets.
However, management indicated that demand trends became less favourable as the quarter progressed.
Booking Holdings issued a cautious outlook for the fourth quarter of 2026, reflecting expectations for slower travel demand.
The company forecast room-night growth of between 1% and 3%, substantially below the 7% increase recorded during the third quarter.
Gross bookings are expected to rise between 2% and 4%, compared with the 10% growth achieved in the preceding quarter.
Adjusted revenue growth is projected at between 0% and 2%, while adjusted EBITDA is expected to remain approximately unchanged from the previous year.
The guidance indicates a marked slowdown in operating momentum heading into the final months of 2026.
The weaker projections were a central factor behind the muted market reaction to the company’s earnings announcement.
Although third-quarter adjusted earnings exceeded expectations, investors appeared more concerned about the potential impact of slowing travel activity on future revenue and profitability.
Despite the cautious fourth-quarter outlook, Booking Holdings maintained broadly stable expectations for its full-year financial performance.
The company anticipates high-single-digit growth in both gross bookings and adjusted revenue for 2026.
Adjusted earnings per share are expected to increase at a low- to mid-teens percentage rate.
The full-year projections suggest that the company’s stronger performance during the earlier quarters of 2026 will continue to support annual growth, even as demand moderates towards year-end.
The outlook also indicates that management expects profitability to remain relatively resilient despite the slowdown in travel bookings.
However, achieving these targets will depend on travel demand trends during the fourth quarter and the company’s ability to manage costs effectively.
Investors will be monitoring whether the weaker demand environment persists into 2027.
Booking Holdings reported signs of slowing travel demand towards the end of the third quarter, particularly in international markets.
Management indicated that domestic travel remained relatively resilient, while international bookings faced greater pressure.
Disruptions to travel to and from the Middle East contributed to weaker demand, alongside the conflict’s broader effects on airfares.
The company also identified localised unrest in certain European cities as a factor affecting travel activity during October.
These developments created additional uncertainty for international travellers and contributed to a more challenging operating environment.
Higher airfares and disruptions to travel routes can influence consumer booking decisions, particularly for long-distance and international journeys.
The company did not indicate that all travel markets were experiencing the same degree of weakness.
Instead, the slowdown appeared more pronounced in regions affected by geopolitical developments and local disruptions.
The divergence between domestic and international demand will be an important factor in assessing Booking’s performance during the final quarter.
Wall Street analysts offered a measured assessment of Booking’s quarterly performance and forward guidance.
Truist Securities described the earnings announcement as mixed, noting that the stronger-than-expected third-quarter results were less surprising than the weaker fourth-quarter outlook.
“We treat tonight’s earnings as mixed as a 3Q beat was less of a surprise than the light 4Q guide,” Truist analysts said in a post-earnings note.
The firm added that Booking’s largely unchanged full-year guidance could indicate that management had incorporated some caution into its fourth-quarter projections.
“However, given FY guidance is largely maintained and there may be some embedded conservatism in the guide, we expect investors will largely look past the softer-than-expected 4Q outlook,” the analysts said.
The comments suggested that the weaker near-term forecast may not necessarily indicate a lasting deterioration in the company’s underlying business.
However, the extent of any recovery in travel demand remains uncertain.
B. Riley Securities also acknowledged the contrast between Booking’s solid operating performance and the weaker demand outlook.
The investment firm said the company’s quarterly results and management commentary “attest to strong underlying fundamentals amid transitory choppiness in demand.”
The assessment reflected the company’s continued growth in gross bookings, room nights and adjusted profitability.
Despite the reported revenue decline, Booking’s adjusted financial results demonstrated that its core travel business continued to expand during the third quarter.
The analyst commentary also highlighted the possibility that recent demand disruptions could prove temporary.
However, the duration and financial impact of geopolitical uncertainty remain difficult to predict.
Investors will therefore be looking for evidence that international travel demand stabilises over the coming months.
Alongside its financial results, Booking Holdings highlighted its continued investment in artificial intelligence.
Chief Executive Glenn Fogel said the company is developing AI-powered capabilities intended to improve how travellers discover destinations, plan journeys and make reservations.
The investments form part of Booking’s broader strategy to enhance its digital travel platforms and improve the customer experience.
Artificial intelligence could support more personalised travel recommendations, simplify trip planning and improve the efficiency of booking processes.
The company is seeking to incorporate these technologies into its services as competition for online travel customers continues.
However, the financial contribution of these initiatives will depend on their adoption and effectiveness over time.
For investors, AI investment represents a potential longer-term growth opportunity, although near-term performance remains more directly influenced by travel demand, booking volumes and profitability.
Booking Holdings shares traded largely unchanged in premarket trading following the announcement.
The muted response reflected the contrasting elements of the company’s financial results.
On one hand, adjusted earnings exceeded expectations, gross bookings increased 10% and room nights rose 7%.
On the other, reported revenue missed forecasts and fourth-quarter guidance indicated a substantial slowdown in growth.
The $900 million regulatory adjustment also complicated comparisons between reported revenue and the company’s underlying operating performance.
Investors appeared to be weighing these factors rather than responding strongly in either direction.
The company’s ability to maintain its full-year outlook provided some reassurance, while uncertainty surrounding international travel demand limited enthusiasm.
Booking Holdings enters the final quarter of 2026 with continued growth in its underlying travel business but increasing uncertainty about near-term demand.
Third-quarter gross bookings rose 10% to $54.5 billion, while room nights increased 7% to 345 million.
Adjusted earnings per share of $4.66 exceeded Wall Street expectations, and adjusted revenue increased 9% to $9.8 billion after excluding the $900 million regulatory adjustment.
However, the company expects fourth-quarter room-night growth to slow to between 1% and 3%, with gross bookings growth of 2% to 4% and adjusted revenue growth of 0% to 2%.
Management’s warning about softer international travel demand, particularly in markets affected by the Middle East conflict and European disruptions, has raised questions about the pace of growth heading into 2027.
Despite these challenges, Booking continues to expect high-single-digit growth in full-year gross bookings and adjusted revenue, alongside low- to mid-teens adjusted earnings per share growth.
Investors will be monitoring international travel trends, the impact of geopolitical disruptions and the company’s ability to sustain profitability as booking growth moderates.
The largely unchanged premarket share price reflects the balance between Booking’s stronger-than-expected third-quarter profitability and its more cautious outlook for the months ahead.
Booking Holdings stock price
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