Online travel agency Booking Holdings (NASDAQ: BKNG) fell short of the market’s revenue expectations in Q3 2026, with revenue falling 1.3% year on year to $8.89 billion. Its non-GAAP profit of $4.66 per share was 3.6% above analysts’ consensus estimates.
For more on Booking, read our free full research report.
Booking (BKNG) Q3 2026 highlights:
- Revenue $8.89 billion vs S&P analysts’ consensus estimates of $9.56 billion (1.3% year-on-year decline, 7% miss partly due to a $900 million FTC matter that reduced reported revenue)
- Adjusted EPS $4.66 vs S&P analysts’ consensus estimates of $4.50 (3.6% beat)
- Adjusted EBITDA $4.61 billion vs analysts’ consensus estimates of $4.49 billion (51.8% margin, 2.6% beat)
- Operating margin 38.4%, in line with the same quarter last year
- Free cash flow margin 12%, down from 49.6% in the previous quarter
- Room nights booked 345 million, up 22 million year on year
- Market capitalization $115.5 billion
Revenue growth
Examining a company’s long-term performance can provide clues about its quality. Any business can deliver a good quarter or two, but many enduring ones grow for years. Booking’s 10.9% annualized revenue growth over the last three years was decent. Its growth was slightly above the average consumer internet company and shows its offerings resonate with customers.
This quarter, Booking missed Wall Street’s consensus estimates and reported an uninspiring 1.3% year-on-year revenue decline, generating $8.89 billion in revenue.
Looking ahead, sell-side analysts expect revenue to grow 11.3% over the next 12 months, according to S&P, similar to its three-year rate. This projection is above average for the sector and implies its newer products and services will help sustain its historical top-line performance.
Room nights booked
Booking growth
As an online travel company, Booking generates revenue growth by increasing both the number of stays (or experiences) booked and the commission charged on those bookings.
Over the last two years, Booking’s room nights booked, a key performance metric for the company, increased by 7.9% annually to 345 million in the latest quarter. This growth rate is decent for a consumer internet business and indicates users value its offerings.
In Q3, Booking added 22 million room nights booked, leading to 6.8% year-on-year growth. The quarterly growth rate was lower than its two-year result, suggesting its new initiatives aren’t accelerating booking growth just yet.
Revenue per booking
Average revenue per booking, or ARPB, is a critical metric to track because it not only measures how much users book on its platform but also the commission that Booking can charge.
Booking’s ARPB growth has been mediocre over the last two years, averaging 3.1%. This is underwhelming, but the increase in room nights booked is more relevant for assessing long-term business potential. If Booking tries boosting ARPB by taking a more aggressive approach to monetization, it’s unclear whether bookings can continue growing at the current pace.
This quarter, Booking’s ARPB came in at $25.78. It declined 7.6% year on year, worse than the change in its room nights booked.
Key takeaways from Booking’s Q3 results
Booking’s revenue miss made for a softer Q3, despite EBITDA topping analysts’ consensus estimates. Shares fell 3.5% to $152.95 immediately after the results.
Booking underperformed this quarter, but assessing whether the stock is a buy requires considering the bigger picture of valuation, business quality and the latest earnings. For more on Booking, read our full research report here (it’s free).
