Booking’s adjusted earnings reach $4.66 per share despite 1% revenue decline
Key Facts
Booking Holdings reported adjusted earnings of $4.66 per share in the third quarter of 2026, exceeding the average estimate of 11 analysts of $4.48, according to data cited by the Associated Press. Net income was $2.72 billion, while reported earnings per share were $3.61. The gap between the two figures reflects the adjustment of earnings for exceptional items versus reported earnings per share. The earnings beat came alongside a revenue decline, presenting a mixed picture of the company’s performance during the quarter. Gross bookings also exceeded analysts’ expectations, while revenue fell short of their estimates.
Revenue was $8.89 billion, down 1% year over year, compared with FactSet’s estimate of $9.55 billion, according to Dow Jones Newswires. On the demand side, gross bookings reached $54.4 billion, ahead of analysts’ estimate of $52.63 billion. Room nights also exceeded estimates, the report said, without providing a comparison figure. The divergence between bookings and revenue highlights that activity indicators did not all move in the same direction during the quarter. Bookings rose above expectations, while revenue fell from its level a year earlier and missed FactSet’s estimate.
The company said a matter involving the Federal Trade Commission reduced revenue by $900 million and resulted in a loss of $100 million during the quarter, according to the report. Booking said the amounts relate to the same matter, making its impact part of the context for assessing revenue and reported earnings. Adjusted earnings per share, meanwhile, were $4.66, above the average estimate of $4.48. The adjusted earnings beat does not change the fact that revenue declined year over year and missed expectations. The quarter’s results therefore combined adjusted earnings above analysts’ estimates with a specified financial impact from the regulatory matter and a decline in revenue.
Booking said global travel demand slowed near the end of the third quarter, as international travel eased while domestic travel remained resilient. In October, travel disruptions across the Middle East, fuel costs, airfares and local disruptions in European cities, including Paris, weighed on demand, according to Dow Jones Newswires. Before reporting results, the company had forecast year-over-year growth in room nights of between 3% and 5%, and growth in gross bookings of between 4% and 6% in the third quarter. Its earlier outlook also cited the impact of the Middle East conflict, higher airfares and weaker demand for long-haul international trips. These factors provide context for the slowdown in international travel the company described near the end of the quarter.
A comparison with the third quarter of 2025 shows slower year-over-year growth in the operating metrics the company reported at the time: room nights rose 8%, gross bookings 14% and revenue 13%. Chief Executive Glenn Fogel said then that the results reflected the strength of the platform and disciplined execution. In the second quarter of 2026, Booking recorded 325 million room nights, up 5% year over year, and gross bookings of $51 billion, an increase of 9%. Revenue for that quarter was also $7.4 billion, up 8% year over year. These figures put the third-quarter trajectory in the context of earlier comparison periods, while the periods and metrics differ between reported results and estimates.
For the fourth quarter of 2026, the company expects room-night growth of between 1% and 3%, and gross-bookings growth of between 2% and 4%, according to Dow Jones Newswires. Booking also left its full-year forecasts for gross bookings and adjusted earnings per share unchanged. The projected room-night growth range for the coming quarter follows an earlier third-quarter forecast of between 3% and 5%, while the previous range for gross bookings was between 4% and 6%. The third-quarter results call was scheduled for November 3, 2026, according to the investor relations page. In trading ahead of the results announcement, the company’s shares closed at $153.75 on November 2, according to EL7 data.